EXECUTIVE SUMMARY
How to Thrive Amidst Constant Disruptions
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Overview
Frequent, unexpected disruptions are likely to continue, prompting manufacturers to adopt cloud collaboration and communication tools as well as cloud-based product lifecycle management (PLM) and enterprise resource planning (ERP) solutions. Manufacturers have also changed how and where they work, shifting from working solely on-premises to working remotely and in a hybrid fashion.
These changes set the stage for the future where keys to success in developing and designing new products will be pace, collaboration, adaptation, flexibility and visibility. It will also be increasingly important to work closely with external suppliers and partners on supply chain options and alternatives, all to increase speed and reduce risks.
Context
Overcoming Disruptions
The past two years have brought more disruptions than ever for global manufacturers.
There have been economic disruptions and geopolitical disruptions as well as long-term resource and demographic disruptions related to not having enough skilled workers. But the most significant disruptions of the past two years have been disruptions related to the pandemic and supply chain upheaval.
The pandemic, which has been more severe and has lasted longer than anyone could have imagined, has affected where people work, how they work, and how companies design and develop products. Supply chain disruptions have resulted in component delays and shortages, which has caused manufacturers to reduce production and has caused some manufacturers to shut down.
Manufacturers have overcome these disruptions by making significant changes both internally and externally.
In describing how their organizations have coped with these disruptions, the panelists used words such as “adapted” and “flexibility.” Each organization has made both internal and external changes.
- Internally: As companies were forced to work remotely, the most successful organizations quickly adopted online tools (if they didn’t already have them), improved their internal collaboration, and accelerated their pace. To make internal improvements, the speakers stressed the importance of having common datasets and improved visibility.
- Externally: Companies increased their contact with customers to keep them informed. In working with suppliers, companies focused on mitigating risks by identifying supply options and alternatives, while also forming more partnerships.
Due to the length of the pandemic and continuing supply chain disruptions, the perspective of manufacturers has changed.
Manufacturers’ perspectives have changed over time in two key ways:
Hybrid Work
Approach
Looking Forward
In looking to the future, the speakers expect even more disruptions and shortages.
Ms. Lalowski commented that she expects to continue to see worldwide component shortages and long, if not even longer, lead times. She also expects a continued disruption in the workplace as companies settle into a blended work environment.
In this uncertain, fragile environment, individuals and organizations must embrace change, be able to adapt, always be working to manage risk, and be focused on flexibility and improved business processes.
Among the most important pieces of advice for dealing with disruptions: Invest in cloud solutions and enable flexible processes.
In planning for the future, multiple cloud-based solutions are essential, along with integration of these solutions.
When asked what cloud-based solutions companies should adopt to deal with today’s supply chain disruptions, the panelists agreed on PLM and ERP. They also mentioned engineering design tools and the importance of master data control.
However, dealing effectively with disruptions goes beyond the individual tools. Mr. Keer said, “It’s not only the core tools, but how those tools integrate together that is valuable for companies."
Additional Resources
Constant Disruptions
Thriving in an Age of Disruption
Boost Agility with Cloud Product Development
