McKinsey took upon itself to understand the key disruptions manufacturing companies will face over the next five years. These five years are expected to see more disruptions than those witnessed last twenty years. The study was conducted across several key sectors such as automotive, defense, power equipment, machinery and industrial technologies. More than three-hundred top executives belonging to startups, think-tanks, government, incumbents, industry associations and distributers were tapped for this study. One key insight that emerged is that industry incumbents are coming to terms with five major disruptive elements such as – cybersecurity, artificial intelligence and electrification. Data warehousing is now very big business as it is being monetized through models such as pay-per-use. Disruption is making several industries unrecognizable as has happened with the exponential rise of the drone market expected to top US$23 billion by 2024. Challenges will also emerge in talent recruitment and retention as several jobs will be lost, many others remodeled. With a lot of activities set to get automated, a lot of the present jobs will get redundant, but new skills will be in demand. Incumbents are grappling with ideas to still remain relevant in the market. Companies need to behave more courageous and inclusive but must also understand that the transformation needs to be more than mere technology alone.

Source:https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/how-industrial-companies-can-respond-to-disruptive-forces?cid=other-soc-twi-mip-mck-oth-1804&kui=qutxEeSPeump0zdVqik26Q

Uploaded Date:10 July 2018