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LATEST THINKING


Manufacturing Ecosystems

OVERVIEW

The future of manufacturing

Customers have always expected the companies they buy from to respond to their needs. But now they’re more unpredictable and demanding than ever. They expect the companies they do business with to do a lot more than just sell them a product. They want more frequent product launches, and they clamor for ever-more extreme personalization.

The new economy requires a new ecosystem strategy, where partners have a greater role in innovation, production and distribution. Manufacturers must move to a model where third parties assume increasingly greater responsibility for various facets of innovation, production and distribution.

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Manufacturers that use
a higher percentage of
3rd parties
are more likely to have
higher productivity,
revenue, and margin
than those that try to build
and own the entire network.

KEY FINDINGS

Manufacturers are struggling to meet these more challenging customer demands profitably. Why? Their current production networks are rigid, capitally constrained and geographically misaligned.

Tepid adoption of digital is further hampering manufacturers’ ability to respond to changes in demand. Only about 3 in 10 manufacturers we studied have implemented key digital manufacturing related technologies.

Manufacturers that continue to “go it alone” will find themselves increasingly marginalized. They’ll get elbowed to the sidelines by competitors that recognize the future of manufacturing is ecosystem driven.

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RECOMMENDATIONS

Leaders have boldly embraced hybrid ecosystems in which they heavily leverage third parties. They are:

AUTHORS

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