Why Global Manufacturers Need to Address Digital Maturity Today

As someone with over two decades of experience in global manufacturing and electronics supply chains, I have witnessed the incredible growth and evolution of the industry from a wide range of perspectives. Like many others, however, I have also seen and felt the impact of ever-growing risk and disruption.?

The global manufacturing landscape is defined by cycles that oscillate between relative normalcy and periods of shortage, volatile pricing, and shifting lead times. This shift is inevitable, but new forms of intelligence and technology have created new ways to “weather the storm” and maintain efficiency, even during the most turbulent seasons.?

Given this reality, we at Supplyframe developed our DSI Maturity Model to help organizations understand where they are on their digital transformation journey, how to accelerate it, and how to reap the rewards. Join me as we explore this new roadmap for the future of global manufacturing.?

Why Digital Maturity, and Why Now??

Today’s supply chains drive incredibly complex product designs across every industry. This complexity is creating the need for digitization and automation options. A recent Deloitte survey in the aerospace and defense industry showed that 78% of respondents agree that digital solutions could enhance visibility and transparency across their supply networks.?

Beyond this, AI technology is pivotal in A&D and other industries. It enables more effective design and sourcing decisions and enables engineers to be more productive and effective in their problem-solving capabilities.?

Over the last decade, multiple shifts in the market have pressured global manufacturers to accelerate the digitization of their supply chains, yet many are still behind the curve. This is due to the lack of a clear industry roadmap, which has led to more and more conversations around the concept of digital maturity and, more specifically, digital maturity models.?

Digital maturity measures how an organization leverages advanced technologies, data analytics, and its overall enterprise structure to increase efficiency, boost profitability, and mitigate risk.?

It’s a broad concept with several nuances that are hard to measure effectively without some sort of guiding light. Even so, organizations focusing on reaching higher maturity levels tend to be far ahead of their competitors.?

Supplyframe’s DSI Maturity Model began as an industry survey that we used to gather relevant data. We tailored our questions to provide results that would map to our full Maturity Model and its various categories.?

Based on the survey results, we assigned a score from 1 to 5 within each category, which allowed us to create an industry average. According to the survey, global manufacturers average at level 2 on the scale, with plenty of room to improve.?

We compiled the full maturity model and survey findings into a free report, which you can download here. Here are a few of the industry stats that stood out to us:?

• Only 16% of organizations have some level of collaboration between teams.?
• 75% of respondents are still using spreadsheets for their sourcing?
• Only 1% of organizations can accurately identify critical events before they impact the business

Yet another interesting finding is that the A&D industry is the most digitally mature, with an average score of 2.1 out of 5. This is due, in part, to the industry’s focus on digitization and adoption of the digital thread to streamline design, sourcing, and sustainment.?

As we developed our maturity model, we focused on five key areas: organizational structure, people and talent, design for supply chain, technology and systems, and analytics and performance. Within these categories, global manufacturing organizations can effectively drive real and lasting change, which was the primary motivator for developing our DSI Maturity Model.?

How to Get Started?

Once you’ve read the full report, the next step is to benchmark your organization and find out where you land on Supplyframe’s maturity model. For this exact purpose, we’ve also prepared an online self-assessment using the same criteria as our industry survey.?

You can take the survey today and receive tailored results across the five categories of the maturity model. With this information, you can create a roadmap to the highest levels of digital maturity.?

That’s not all, though. I am also excited to announce an upcoming webinar series that will dive into the industry-specific challenges surrounding the road to digital maturity. It’s not an event to be missed!?

The first webinar in the series will discuss the state of the aerospace and defense industry and key areas of focus to accelerate digital transformation and maturity. I will be joined by @Todd Tuthill, Siemens' Vice President of Aerospace, Defense, and Marine Industry, and Norman Eng, Siemens' Vice President for US Defense Digital Strategy.?

Hear from these influential voices in the industry and discover how A&D organizations can circumvent risk and seize revenue opportunities with higher levels of digital maturity. Register today to watch the webinar on Thursday, September 9th!