Do or die: Why “transformation at scale” is now a must for Australian manufacturers
By Paul Eastwood Australian Managing Partner of global management consultancy, Argon & Co Australian manufacturers can’t survive on a BAU basis. The game has changed and it’s no longer about incremental improvements in the world of manufacturing – it’s about transformation at scale. So this is a wake-up call for CEOs: if your factories don’t have key capabilities embedded in their operating model, your business could be obsolete before the decade is out. And the reason for this relates to a number of coalescing factors. Stiff competition from countries with lower labour costs and larger industrial bases – think China, India, and Vietnam – combined with Australia’s high wages, energy costs, and regulatory burdens are creating enormous cost pressures. Only transformative changes like automation, digitisation, or shifting to advanced manufacturing can offset these pressures. Events like COVID-19 exposed Australia’s weak sovereign capabilities, and occurred at roughly the same time that sustainability demands shot up from consumers, investors, and governments. Both of these factors call for reimagined supply chains, not just optimising existing ones. And massive technology shifts caused by the rise of Industry 4.0 and innovations based in AI, robotics, IoT, and 3D printing mean the industry is evolving fast. There’s no time to watch and see. Because in just a short time, the winners and losers within the manufacturing sector will become apparent. But it’s not all doom and gloom. If you want to be a technology winner – one with an intelligent, connected and adaptive factory – there are five pillars that aren’t just operational enhancements but strategic imperatives. Below are the five key elements that separate future-ready enterprises from those still playing catch up – i.e. the losers. Master Data At the foundation of every digital transformation lies one critical asset: data. And not just any data. […]