By 2025, asset intensive manufacturers will decrease their capex investments focused on smart factory technologies by at least 25%.

Manufacturing CIOs need to navigate a range of obstacles when it comes to influencing CEOs and LOBs to justify investments. The obstacles they face include clarity on supply chain alignment, organizational complexity, scalability and internal politics. Manufacturing CIOs must also break the vicious cycle of continuous and predictable cycles of heavy upfront investments, as well as localized investment and (often financial ROI-based) value realization. To make the business case for smart and new funding models, manufacturing CIOs will need to:

  • Shift investment planning to an agile model that rebalances the capex/opex ratios. 
  • Leverage composable thinking and composable business architectures to limit traditional project-based approaches and drive scale. 
  • Accelerate buy-in from C-level executives and/or LOBs by using early adopter incentives and risk-adjusted metrics.