The industry needs to re-invent itself
The great Industrial revolutions originated in Europe. Abundant knowledge, expertise and experience is still readily available and is an excellent base for a revival of Europe’s industry. The term Industry 4.0 is born in Europe as well. But the realities of international competition make the adoption of productivity-enhancing technologies in Manufacturing an absolute imperative (FOME, the Future of Manufacturing in Europe, 2019). Otherwise, Europe’s birth right on industry will fade away swiftly.
‘Manufacturing firms need to re-invent themselves to exploit the potential offered by new technologies’ wrote the independent Brussels based think-tank, the Bruegel Institute (2017). The recently published research called Made @ Europe (Ekhart, 2019) showed that the key to successfully revitalize Europe’s industry is to rebuild its industrial ‘footprint’, focusing on ‘value creation’ instead of ‘cost reduction’.
Gerard combined his extensive scientific research with his practical business experience, leading to the Vitality Wheel © : a framework for rebuilding your industrial business strategy and making it 21st century proof.
Revitalizing: how to start?
No business without ambition. That’s how it all started, also with your business. Today
Artificial Intelligence, blockchain, robotics and the digital platform-economy requires you to redefine the ambition of your business.
Q: Does your current ambition still fits the opportunities and threats of the 4th industrial revolution?
What do you deliver to your customer? In the previous years, this has transformed from delivering a physical product to providing a customer-oriented solution. Competing on cost and/or quality is not sufficient to set yourself apart from the competition. Customers today demand solutions, not products.
Q: Does your organization provide customer solutions or physical products?
Your company is part of a long, complex value chain. Every single product has its own, unique supply chain. The application of new production technology can drastically shorten your current supply chain, making it more manageable as well as eco-friendlier. Re-shoring and insourcing strategies are gaining momentum in many industries. New CO2 reduction legislation and shaky global trade agreements (think Brexit and Trumponomics), are the new design parameters for the footprint of global industries.
How futureproof is the footprint of your company?
Perhaps the most used term in business today. But action speaks louder than words. Successful companies distinguish themselves from the competition by vigorously investing in the innovation of the company’s products and processes. One example is ASML, a global market leader in the semiconductor industry: 37% of all their staff works within R&D.
Q: To what extent and at which speed is your company innovating its products and processes?
A successful company without people does not exist. Despite new technologies, clever robotics and artificial intelligence, talented people will remain the foundation for successful companies. People who understand that change is required for progress and survival.
Q: Does the majority of the people in your organization fit this profile?