The human-centered future of production

The Fourth Industrial Revolution (4IR) is ushering in a fundamental change in the way we work. While for some, it may conjure up images of robots, the 4IR is actually a human endeavor that requires a new mix of workforce skills and capabilities.

Many leaders in industrial sectors are already well aware that talent gaps are the biggest barrier to digital transformations: only 32 percent of leaders feel prepared for the 4IR’s potential impact on roles and skills.

With the majority of manufacturers unprepared for the changes on the horizon, what can we learn from the few that are ahead of the curve?

To find out, McKinsey collaborated with the World Economic Forum (WEF) to gather insights from the Global Lighthouse Network, a collection of some of the most innovative manufacturing facilities around the world, selected by an independent panel from thousands of sites scanned.

These advanced manufacturers see 4IR as a journey that needs people for the cognitive skills, creativity, and other very “human” qualities – things that simply have no AI equivalents. The changes these leaders made may help other organizations lay the groundwork for 4IR transformation.

 Several key tactics stand out:

• Empowering frontline workers to innovate: By leveraging technology and data, successful organizations get their workforces accustomed to thinking about and seeing constant change and innovation.
• Proactively building workers’ capabilities: Lighthouses focus on both technical and soft skills, tailoring their reskilling programs according to each worker’s needs.
• Making changes to their organizational structure: 71 percent of Lighthouses are making adjustments to enable and make 4IR transformation a priority.
• Implementing new ways of working: Lighthouses are embracing agile methodologies and increased transparency, guiding decisions with real-time data and facts rather than gut instinct and precedent.
• Thoughtfully deploying automation and related technologies: Rather than simply replacing operators, Lighthouse sites use “cobots” to take over repetitive, manual tasks, freeing workers for more complex assignments.

The single most important lesson from our research is that for manufacturers that aren’t leading, time is running out. Leaders in deploying 4IR technologies have built a significant head start. But there’s still an opportunity to move quickly and generate momentum.

Read the report to learn how.