Manufacturers are pouring in moneyto set up smart factories56% of the survey respondents have invested more than US $100 in last five years

Distribution of manufacturers based on their smart factory investments in the last five years

Smart factories to add

from $500 billion to $1,500 billion in the next 5 years annually*

*in eight major economies

We estimate that smart factories can

more than double operating profit and margin

Manufacturers predict quality indicators to

improve annually at 12 times the rate of growth since 1990 thanks to smart factories

IndustrialManufacturing

Automotive Aerospace & Defense

Energy & Utilities

Pharma, Life Science,

BioTech

Consumer Goods

Average realized overall productivity gains from smart factories so far

What is a smart factory?A factory that makes intelligent use of cutting edge digital technologies and smart features to gain considerable advantage in terms of productivity, efficiency, quality and flexibility.

The Size of the Smart Factory Prize is Too Large to Ignore

Manufacturers across segments are already harnessing the potential of smart factories

$500 bn $1,500 billion

A research by Capgemini's Digital Transformation Institute

Digital masters are reaping the rewards of their digital maturity

How can manufacturers become digital masters?

Digital Maturity Matrix

However, only 6% of manufacturers are truly advanced in their digital transformation

Digital Intensity dimension: - measures the level of digitization of crucial processes, and the level of use of digital technologies.

Transformation Management Intensity dimension: - measures management aspects such as smart factory vision, governance, and the digital skills of manufacturers’ workforce.

All the surveyed countries and industries, on average, are quite far from becoming digital masters

Proportion of categories based on digital maturity across industries

Realized Gains - Beginners Vs. Digital Masters

Contact us: dti.in@capgemini.com

Manufacturers across countries are enthusiastic in embracing smart factories

North America Western Europe India and China

US54% France

44%

Germany46% India

28%

China25%

UK43% Sweden

39%

Italy33%

Penetration level: 50 - 60% 40 - 50% 30 - 40% 20 - 30%

Percentages indicate the share of companies in the respective country that has a smart factory initiative ongoing

17% 18%

16% 17% 18%

17%

29% 27% 27% 26%

24%

21%

Productivity Direct laborCost

Raw Material,Logistics &

Tranportation

OverallEquipment

Effectiveness(OEE)

Quality & Scrap Selling, General &

Admin Costs

Beginners Digital Masters

Fashionistas Digital Masters

Beginners Conservatives

Establish a roadmap and rally supportof key leaders

Measure and monitor business valueof digital initiative and kill unprofitableones

Bridge the digital talent gap bypartnering with ecosystem players

Craft a holistic vision; establish afoundation of strong leadership andgovernance

Invest in digital initiatives aligned withthe vision

Launch proofs-of-concept anddemonstrate early wins

Ensure agility is factored in yourgovernance models

Prioritize and execute on your digitalinitiatives

Scale your initiatives to theorganizational level

Maintain focus on your roadmap

Sustain the momentum by keepingyour people engaged

Strive for a digital culture and mind-set as you advance your initiatives

Source: Capgemini Digital Transformation Institute analysis

20% 19%17%18% 17%18%

Capgemini Smart Factory Framework

84% 85% 80% 81%

65%

86%

13% 11% 15% 16%

20%

11%1% 1% 1%

1%

1% 4% 5% 3% 4%

Aerospace and

Defense

Automotive and

Transportation

Consumergoods

Energy & Utilities

Industrialmanufacturing

Biotech & Pharma

Beginners Conservatives Fashionistas Digital Masters

5% 4% 5% 5% 6%

11%

6%7% 6% 7%

6%

4%5% 6%

28%

16%18% 18%

56%

20%

Less than$50M

Between$50 - $100M

Between$100 - $250M

Between$250 - $500M

More than$500M

Both Greenfield & Brownfield Brownfield Greenfield Yet to be decided

Fashionistas 1%

Beginners 78% Conservatives 15%

Digital Masters 6%

Low High

Low

Hig

h

Transformation Management Intensity

Dig

ital I

nten

sity

The information contained in this document is proprietary. © 2017 Capgemini. All rights reserved.

Smart Factories: How to realize the potential of the digital industrial revolution

Manufacturing Digital Transformation

Complex System Simulation: Product, Process, Flow

Industrial Cybersecurity: Product, Process

Smart System

Collaboration

Usage feed-back

Digital Twin

Remotemonitoring

AutonomousOperations

OperationsTechnology

Product Quality

Preventive &Predictive

maintenance

Mobility &Remote

Augmented /Virtual reality

Health SafetyEnvironment

Operations Management

PLM Digital AssetManagement

IndustrialControl System

ManufacturingIntelligence

DigitalOperator

DigitalMock Up

From Scan… to Print

Product and Asset Management

3D Continuity

3D Platform

IoT Platform

Smart Factory

5%

1%

1%

14%

Audi’s €1 bn smart factory

in San José Chiapa, Mexico

Faurecia’s $64 million smart

factory in Columbus,

Indiana

Adidas’ high-tech

Speedfactory in Ansbach, Germany

Siemens’ smart plant in

Amberg, Germany

GE’s “brilliant Factory” in Pune, India

ABB’s smart plant in Beijing,

China

$2x$ $ 12x

7%

ManufacturingOperations

Management

EnterpriseAsset

Management

EAM

MOM

CollaborativeRobots

Smart Planningand Forecasting

PredictiveMaintenance

DigitalLean/Lean 4.0

Enhanced Productivity

Improved Efficiency

Superior Quality

AutomatedMaterial Handling

EnergyAnalytics

ManufacturingIntelligence

Track and Trace

Smart Factory FeaturesHigh Flexibility

Technology Enablers

IndustrialIoT

Big DataAnalytics

Arti�cialIntellengence

AdvancedRobotics

AugmentedReality

CloudComputing