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Is Your Company Ready for
Manufacturing’s Digital Future?
Spencer Stuart and Manufacturers Alliance for Productivity
and Innovation (MAPI) surveyed 100 manufacturing senior
executives across functions to gain insight into the drivers
of their organizations’ digital efforts, the challenges they
face and the leadership capabilities they need to fully seize
the digital opportunity. Here are some of our findings.
How manufacturing companies
define digital:
>> Internet of Things
>> Digitalization across the value chain
>> Website, Twitter, Instagram, Facebook
>> Web-based content marketing
>> Paperless
>> E-commerce
>> Customer journey
>> Business management
Almost one-third of manufacturing
leaders say business processes and
systems aren’t ready to support digital.
Obstacles to digital transformation:*
“Digital is a new way
of doing things: engaging
with customers, creating
value, improving the
customer experience, using
data to make decisions
and improving efficiency.”
manufacturing
senior executive
60%
Changing customer
expectations have driven
digital transformation for
manufacturing companies.
10%
readiness of business
processes/systems to support digital
the technical and digital
sophistication of the organization
internal culture
keeping pace with digital change
other‡
lack of appropriate talent
adaptability and agility
budget constraints
internal support
17%
30%
14%
9%
8%
7%
6%
6%
2%
*
Percentages may not total 100 due to rounding.
‡
Responses included lack of senior leadership understanding of the need for transformation, willingness to take risk, lack of clarity
around the definition of digital and impact on customers.
Manufacturing
companies began
focusing on digital
transformation in
the last two years.
Manufacturing
companies began
focusing on digital
transformation in
the last six months.
How successful has your organization been in creating the
speed-focused mindset necessary for digital transformation?
The majority of manufacturing leaders look outside their
organizations for digital talent.
Customer-centric mindset is the most in-demand skill for driving
digital transformation. Leaders say cross-functional influence
is the hardest capability to find.
Ω
Responses included a combination of all of the above; others do not have a preference of talent source.
∞
Responses included industry expertise, the combination of technology and leadership expertise, and ability to integrate into the current culture while working to change it.
**
Respondents were allowed to choose multiple responses.
highly successful
successful
moderately successful
unsuccessful
2%
13% 65% 20%
external, outside the industry
internal
external, inside the industry
otherΩ
42% 32% 19% 7%
customer-centric mindset
cross-functional influence and orchestration
results-driven
strong, inspirational leadership
digital marketing and social media experience
willingness to take risks
strong analytical skills
comfortable dealing with ambiguity,
flexible, adaptable
passionate and highly influential
ability to build more diverse and technically
astute teams
metrics-driven
strong general business aptitude
learning focus
intellectual curiosity
highly communicative, transparent
classic marketing experience
general management experience
grasp of current and future security threats
other∞
41%
39%
33%
31%
21%
18%
18%
16%
16%
12%
12%
11%
9%
7%
5%
2%
2%
1%
1%
19%
35%
15%
20%
23%
13%
17%
18%
11%
18%
5%
18%
5%
5%
13%
4%
12%
10%
5%
What skills and capabilities
do senior leaders need to drive
digital transformation? **
What skills and capabilities are
hardest to find? **
Sources of digital talent:
© 2016 Spencer Stuart. All rights reserved. For information about copying, distributing and displaying this work, contact: permissions@spencerstuart.com.

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Is Your Company Ready for Manufacturing's Digital Future?

  • 1. Is Your Company Ready for Manufacturing’s Digital Future? Spencer Stuart and Manufacturers Alliance for Productivity and Innovation (MAPI) surveyed 100 manufacturing senior executives across functions to gain insight into the drivers of their organizations’ digital efforts, the challenges they face and the leadership capabilities they need to fully seize the digital opportunity. Here are some of our findings. How manufacturing companies define digital: >> Internet of Things >> Digitalization across the value chain >> Website, Twitter, Instagram, Facebook >> Web-based content marketing >> Paperless >> E-commerce >> Customer journey >> Business management Almost one-third of manufacturing leaders say business processes and systems aren’t ready to support digital. Obstacles to digital transformation:* “Digital is a new way of doing things: engaging with customers, creating value, improving the customer experience, using data to make decisions and improving efficiency.” manufacturing senior executive 60% Changing customer expectations have driven digital transformation for manufacturing companies. 10% readiness of business processes/systems to support digital the technical and digital sophistication of the organization internal culture keeping pace with digital change other‡ lack of appropriate talent adaptability and agility budget constraints internal support 17% 30% 14% 9% 8% 7% 6% 6% 2% * Percentages may not total 100 due to rounding. ‡ Responses included lack of senior leadership understanding of the need for transformation, willingness to take risk, lack of clarity around the definition of digital and impact on customers. Manufacturing companies began focusing on digital transformation in the last two years. Manufacturing companies began focusing on digital transformation in the last six months.
  • 2. How successful has your organization been in creating the speed-focused mindset necessary for digital transformation? The majority of manufacturing leaders look outside their organizations for digital talent. Customer-centric mindset is the most in-demand skill for driving digital transformation. Leaders say cross-functional influence is the hardest capability to find. Ω Responses included a combination of all of the above; others do not have a preference of talent source. ∞ Responses included industry expertise, the combination of technology and leadership expertise, and ability to integrate into the current culture while working to change it. ** Respondents were allowed to choose multiple responses. highly successful successful moderately successful unsuccessful 2% 13% 65% 20% external, outside the industry internal external, inside the industry otherΩ 42% 32% 19% 7% customer-centric mindset cross-functional influence and orchestration results-driven strong, inspirational leadership digital marketing and social media experience willingness to take risks strong analytical skills comfortable dealing with ambiguity, flexible, adaptable passionate and highly influential ability to build more diverse and technically astute teams metrics-driven strong general business aptitude learning focus intellectual curiosity highly communicative, transparent classic marketing experience general management experience grasp of current and future security threats other∞ 41% 39% 33% 31% 21% 18% 18% 16% 16% 12% 12% 11% 9% 7% 5% 2% 2% 1% 1% 19% 35% 15% 20% 23% 13% 17% 18% 11% 18% 5% 18% 5% 5% 13% 4% 12% 10% 5% What skills and capabilities do senior leaders need to drive digital transformation? ** What skills and capabilities are hardest to find? ** Sources of digital talent: © 2016 Spencer Stuart. All rights reserved. For information about copying, distributing and displaying this work, contact: permissions@spencerstuart.com.