The manufacturing industry today faces stiff global competition, and its business environment is evolving quickly. It is tough to determine a market demand which was relatively stable and predictable in the past. Hence, it is vital to develop a new production system that can quickly and flexibly manage production volume changes and product life.

Technological transformations have generated numerous benefits for the world of business. New and innovative concepts like Cognitive Computing, IoT, Digitalization, and Cyber-Physical Systems (CPS) have earned pertinence across industries, particularly in manufacturing. These terms redefine Industry 4.0, the German high-tech approach by Hofmann and Rusch.

• Industry 1.0 came to Britain to offer machines into production by the fag end of the 18th century. The design of steam engines kick-started the first industrial revolution.
• Industry 2.0 or the Technological Revolution made conceivable the vast railroad networks and the telegraph that enabled the faster shift of thoughts and people.
• Industry 3.0 or the Digital Revolution came about the transformation from mechanical and analog systems to digital systems.

The coming year brings new hopes for the manufacturing industry as they try to recover their footing amidst extended volatility in costs and policy decisions. Manufacturing leaders should develop flexibility in their operations and focus on core portfolio.

Levers to assist this include building “digital muscle” across sectors like the supply chain, assembling partnerships within their ecosystem to push targeted business goals.

Manufacturing leaders should begin by analyzing current supply networks and thinking about building additional agility throughout. It includes adding digital technologies that improve visibility to drive flex production and resources as needed.