Retooling manufacturing for

Agility and Resilience
Leveraging data is the new currency of automation,
optimization and profound transformation.

Imagine the future ofyour organization

What do you want it to be? How will it operate?
Based on the survey we commissioned, the responses from over 200 global manufacturing leaders were virtually unanimous—toleverage data in real time from every link of their value chain to:

Optimize

Create deeper relationships

product portfolios, pricing andmarketing channels to improvemargins and generate new business.

with their customers and strategic
partners to enhance and create new
products and services.

Anticipate

Develop new sources

rapid supply chain shifts and proactively
respond in both growth and disruption cycles.

of critical materials that can meettheir demand requirements
when their primary sources are
not available.

3

Primary forces driving the need for change

Uncertain
macro-economic
and geopoliticalenvironment
Events around theworld create risks thatneed to be managed.
Enhanced efficiency,
visibility and agility
across the value
chain are a must
to compete.

A changing
customerWith an increasingneed to be not justcustomer-centric
but also morecustomer-adaptive
and innovative.

A highlycompetitive
landscape

A complex
and connectedsupply chain

In which Industry
4.0 leaders arepoised to gain
advantage quickly
and even become
disruptive.

Where data quality can
speed up making criticalbusiness decisions. Like
the need to diversify andtap into new revenue
sources, leveraging
new ecosystems andconnected data tosurvive and later thrive.

The people
dimension
Technology andinnovation need toplay more profoundroles. Neither thetalent to deliver thesecapabilities nor theculture to enhanceand sustain them issufficient to move
forward quickly.

Modern software, fed on rich, 360-degree data, is rapidly
becoming today’s engine of business, regardless of what amanufacturer produces
Customers engage with your company throughyour website to learn about you, place orders,view account status, confirm shipping updates,request services and more.

Your workforce depends on more
timely and integrated information,
analytics and automation to respond tounanticipated changes.

You can dynamically model, recognize
and react to disruptions in yourdemand, supply and/or value chains.

Supply chain partners are
better linked to your real-time
requirements.

5

Data mastery can help achieve a comprehensive
set of business outcomes
Leveraging data:
The more data gathered early on, and the timely delivery of it to where it matters when it matters, the more insightthat data will drive into the value chain as it's converted to actionable information.

Performance:

Achieve a wide range of strategic, operational and performance outcomes—from improving costs increasing profitability
reducing waste, automating to prevent errors and delays, and working more in real time.

Agility and responsiveness:

The scalability and agility we expect from IT services need to extend into manufacturing OT, using new technologies and tools
to predict and meet seasonal demand, fluctuations in production, and the possibility to downscale or upscale quickly. With theright information, adjustments that are fairly predictable can be made more accurately. Adjustments that are unpredictable canbe better handled with increased visibility and flexibility.

Better working conditions:Improve working conditions based on real-time temperature, humidity and other influences. Provide enhanced
protection in case of workplace incidents, quickly detect gasses and focus dangerous substances, focus on ergonomics
and clean factory initiatives.

Continuity—knowledge retention:It’s estimated that 30% to 40% of the manufacturing and service workforce are retiring over the next five years withknowledge that isn't easily shared in a scalable way. Institutionalize the tribal knowledge of the aging workforce by applying
AR/VR technologies to capture undocumented processes, training the next generation of workers and reduce on-site presenceof specialists.

Talent acquisition:
Leveraging all these areas positions the enterprise in a completely new way that attracts digitally savvy employees.

6Data is the new oil,but not without refining…
The foundation driving these changes—data, including:••

All sources of existing data, much of it captive in standalone systems
Data from newly connected assets

Unifying data from these various sources can drive much deeper insight:•••

Sparking efficiencies at multiple organization levels
Transforming existing processes
Creating end-to-end information streams across the value chain to realize new services

The keys to making the technologies of Industry 4.0 work are cloud computing,big data, AI, data analysis, storage, IoT and RPA to integrate and refine data.

The convergence of IT and OT is critical for this reason. The essence of IT and OT
convergence revolves around data (and the systems that contain data), processes
and people—your teams.

Think beyond collecting thick data and strive for data quality.

7

The current challenges manufacturers must overcome
Defining the business case that drives strategy

Reimagining the organization and true interconnection of departments and processes to maximize
business outcomes—IT/OT integration

Building a clear implementation roadmap, which is more challenging due to complex supply chains

Reconciling and simplifying multiple ERP, MES and SCADA systems, cloud approaches and technology
choices, and the cumbersome legacy systems and infrastructure that slow digital innovation

Talent management—training, retaining and cultivating employees while creating the right environment to
attract new talent in the latest digital technologies, tool and trends

Spoiler alert—the study also highlights a realdisparity between leaders’ beliefs and their actions
Nearly all respondents (94%) acknowledge that data-driven software engineering is important or
critical to their company’s future.

The value they expect includes:
Cost savings of 25% ormore (89% of respondents)

Revenue increases of 3% ormore (96% of respondents)

At least 45% faster time
to market (72% of respondents)

Yet progress has been slow. While 80% of respondents have begun adopting adata-driven engineering strategy, only 8% have crossed over to production.

At least a 6% boost to customer
satisfaction (96% of respondents)

So where do we stand?
The current state of
the manufacturinglandscapeThe growth of traditional manufacturers has evolved ad hoc within the different towers that constitute the manufacturing value chain.
As a consequence, businesses use separate systems, processes and structures built into and for the value chain towers:

DesignManufacturing

Sourcing

Distribution(Includes Third-Party Contract
Manufacturing)

Industrial Manufacturing Operations

Business Ops/Planning/HR

IT

•
•
•
•

•
•
•

•
•
•

Specialized systems for supply chain
Product line management
Manufacturing engineering systems
SCADA systems

SAP
OracleBespoke solutions

After Sales

Sales/Marketing
QA
Release engineering
Regression testing

•
•
•
•

Spreadsheets
SFDC
MarketoAdobe
marketing cloud

Lack of responsivenessTechnology non-adoption

Manufacturers continue to be hardwired to traditional functions
or towers that comprise the value chain. Without shared dataand processes to connect the towers, organizations impede
their ability to share data and collaborate to adjust production
schedules to market forces, both positive and negative.

The most impactful 4.0 technologies—analytics, AI,
IoT, digital twins and robotics—are key enablers tothrive in the smart manufacturing era. By resisting or
slow-rolling change, traditional manufacturers lose thebenefits of being a data-driven manufacturer.

Resource scarcity

Inefficient processes

Minerals, metals and essential raw material scarcity, or
problems in the geography they originate from and/or travel
through, can cause unplanned production outages. Lack of anearly-warning system causes revenue loss.

Manufacturers are still stuck in spreadsheet analysis, gut-based
decision-making and reactive maintenance.

11

The industry needs to pick up the pace
Unlike other industries, most manufacturers are in the early stages of digital transformation, particularly in core areas. Manufacturingleaders—the top 20% of all manufacturers—are doing far better and are well ahead in managing data and AI, leveraging automation anddeploying software.

Area of Digital Transformation

All Industries

All
Manufacturing

Manufacturin
Leaders

Leaders'
Edge

Digital strategy and roadmap

46

36

63

27

Automation

35

31

58

27

Workforce transformation

30

25

38

13

Innovation culture

28

25

53

28

IoT and connected products

27

24

35

11

Data management and analytics

35

23

50

27

Aligning ops with customer demands

24

20

38

18

Software deployment

28

19

53

34

Modernize core IT

26

19

33

14

Artificial intelligence

19

15

45

30

Improved consumer/employee experience

17

13

30

17

Percent (%) Maturing or Advanced

Source: ESI ThoughLab Cognizant 'The path to digital leadership: Industrial Manufacturing, 2020'12

Manufacturing leaders – the top 20% are seriously reaping
the rewards
Manufacturing leaders are realizing a multiplier effect across a wide range of strategic, operational and performance outcomes—from
improving decision-making and risk management to building new business models.

Benefit % Citing Benefits TodayAll
Manufacturing

Beginners

Leaders

Leader’s Edge

Improved planning and decision-making

31

16

48

32

More effective risk management

29

11

50

39

More effective innovation

29

16

40

24

Improved employee productivity and engagement

25

11

40

29

Wider range of business models and channels

25

19

48

29

Increased customer retention/engagement

23

9

43

34

Accelerated time to market

21

9

33

24

Improved profitability

19

7

38

31

Global expansion and ability to scale business

19

4

35

31

Increased revenue

18

9

35

26

Decreased costs/greater efficiency

17

4

35

31

Greater shareholder value

12

7

15

8

Source: ESI ThoughLab Cognizant 'The path to digital leadership: Industrial Manufacturing, 2020'13

Where to begin? Start by modernizing your data
When you get a report in your company, do you believe it? Are you thrilled by how easy it was to get? Does it help to make better decisions?
Does it improve customer experiences?
Most executives answer “no” to many or all of these questions. The problems underlying these issues are often related to data.
Traditional companies already have the insights they need for success—hidden in massive amounts of data acquired over years ofserving customers as well as coming from new digital streams. Nearly every company is drowning in data. It’s expensive, strewn across theorganization, and impossible to access or use effectively.
What’s needed is a clear, structured way to transform how your organization sources, interprets and consumes your ever-growing volumes
and varieties of data. By doing so, it creates a clear competitive advantage over digital upstarts.

Firms face challenges at every step in the data modernization process.
Analytics Platform
Implementation Challenges

Scaling AI
Challenges*

Open-Source
Challenges**

55%

49%

58%

Quality of data

Employee talent

Speed of change

50%

48%

55%

Employee talent

Quality of data

Maintanence (e.g., constantupgrade, support, etc.)

41%

41%

55%

Data science talent

Data science talent

Skills to implement

Base: 291 big data and analytics decision-makers who have implemented an analytics platform.
*Base: 263 big data and analytics decision-makers who have implemented AI/deep learning tools.
**Base: 279 big data and analytics decision-makers who would consider building a platform with open source.
Source: A commissioned study conducted by Forrester Consulting on behalf of Cognizant, April 2019.

14

Becoming a data-driven business
isn’t an event—it’s a journey
What is thestate of youroperation today?

Where do you
want to go?

What are themissing links andhidden obstructions
to get there?

This should result in a strategic plan with quantifiable business outcomes and a clear roadmap thatcovers priorities, people, processes, skills, technologies and security.
Each stage builds upon the next one and adds more value—you move from data to information toknowledge to wisdom and action.
Market leaders carefully balance adopting new technology and processes while recognizing the deep
cultural changes required to anticipate new customer needs and quickly adapting to unforeseen risks.
There is a big gap between the leaders that have a long-term strategy and the rest.
•

It’s clear that ad hoc and siloed initiatives, by far the majority of initiatives, won’t cut it unless they'repart of a strategic journey.

•

Often they're not, leading to fewer results than expected or failure.

15

Prepare to be nimble in uncertain times—and never stop
The good news is there are clear steps to take to harness data—­­from inside and outside the company—to meet the businessneeds of the modern enterprise.
Focus on quick wins bymodernizing data andlegacy applications.

As the plan progresses, findthe right pace to reshape theorganization.

•

•

•

By moving to the cloud,you can retire on-premise
infrastructure, freeing
funds for innovation
Making software
products easier to adapt
to changing consumer
expectations provides acompetitive edge

Not so fast that it disrupts
operations, not so slow thatthe business succumbs tomore nimble, cloud-nativecompetitors•

Start with discrete projects
and products that havemeasurable business impact
rather than back-office or“safe” projects•

Build on these successes
to introduce new thinking
and processes across theorganization

17

Above all, cultivate themindset that innovation andtransformation aren't one-time
events but continuous processes.
•

Unpredictable events happen
all of the time•

Transformation efforts
need to be ongoing so thebusiness gets ever betterat anticipating change andalways innovating to stay one
step aheadCognizant’s data modernization offering
Cognizant’s AI Data Modernization is the fastest way to achieve an AI-driven data foundation with a proven method and platform to source,
structure and analyze the data that matters and deliver enterprise-wide intelligence.
Our reference model is a foundation for creating a cloud-first, AI-driven data ecosystem that enables your organization to generate maximum
business value from unique data assets. Our platform can be deployed in one month with full value realized in six months.
••

Our engagements help drive down the cost of managing yourdata infrastructure by up to 60%, deliver 30%–60% faster time
to market and reduce data storage costs by up to 40%.

Unlike other providers, our deep experience, tools and platforms
enable us to help companies migrate to a modern data platform
typically in 40% less time than doing it themselves.

Adaptive Data Foundation Enables Intelligence
Objective

Sub-Objectives

Attributes

Responsive Data
Architecture

Cloud-Enabled Architecture for Scale
Delivers Data in Different Grains, Schemas & Temporal Values
AI-Driven Metadata

Alternatives

Optimize

Autononous Data Integration
Smart and Open Data Access
Enables Decision Science
Unifed Security model

CustomerIntelligent DataManagement

Universal Metadata Management
Self-Healing Data Quality

ADF Lite

Active Data Governance

Product

Data as a Service

Operations

Automated Data Lifecycle Management

Intelligence

Smart Operations
Responsive Model Management
Delivery at Scale

Enable Experiments as a Service

ADF

Data Ops
Dev Ops
Data QE
Asset-Based Development
Cognizant confidentialWhy
Cognizantfor data modernization?
Our cloud-based data modernization approach provides
a highly accessible, useful and compliant platform thatdelivers cost savings and powers the analytics to enhance
personalization and optimize forecasting.

25

years of experience
providing data,applications and processes
for F200 companies

Platform and tools that accelerate transformation byembedding machine learning in the data chain
Manage petabytes of data through the data foundry andbig decisions platform

Unique enterprisemethodolgy anddata modernization
roadmap

Cognizant is eminently capable of helping clientstransform all ideas and experiments into ROI- HFS top 10 Microsoft all services 2019

Cognizant named a Leader in the 2019 Forrester all
consultancies wave

Global data engineeringsolution centers forco-innovation and rapid
engineering capabilities

Deep expertise acrossall industries, on a
global scale

The dawn of a smart manufacturer

in the post-COVID-19 era

The COVID-19 pandemic has catalyzed every company’s need, across virtually every industry, to become
data-driven and software-centric. How well the company can deliver quality data and software products that
address real needs—and master virtual teams that can work from anywhere—will have a direct effect onrevenue, costs and customer satisfaction.
Innovating in a post-pandemic world will pose new challenges—from unpredictable shifts in customer
behavior and the supply chain to development and operations teams that work from home by necessity or
choice. Adapting quickly to new risks and opportunities requires a modern infrastructure and applicationarchitecture, new processes and a culture that rewards experimentation.
Traditional manufacturers must develop greater resilience and be able to quickly respond to a greaterlevel of uncertainty and disruption. Manufacturing firms that seize opportunities to accelerate theirtransformation now will unlock a new future.

Are you ready for the next normal?

Let’s connect
The journey to become a customer-centricmanufacturer begins with a robust digital maturity
assessment. Write to Modern Business for a
personalized consultation with our experts toknow where you are in the digital maturity model.

About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology models for thedigital era. Our unique industry-based, consultative approach helps clients envision, build, and run more innovative and efficient businesses. Headquartered in the U.S.,
Cognizant is ranked 185 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps clients lead withdigital at www.cognizant.com or follow us @Cognizant.
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