Smart Manufacturing / Digitalization / IIoT / Leadership Skills

Perspective: The only way manufacturers can survive

By Vijay Govindarajan and Jeffrey R. Immelt for MIT Sloan Management Review

Mar 12, 2019

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Leading a corporate transformation of any kind is difficult, and it hasn’t become any easier over time. But starting and sustaining a digital transformation in a manufacturing company? That’s tougher than managing any other change initiative — from total quality management to Six Sigma to lean manufacturing — and, believe us, we’ve lived through, or seen, them all over the last three decades.

Becoming digital is a requisite for survival today. However, while waves of technology — automation, additive manufacturing, AI — are washing over the corporate world, redefining the nature of work and productivity, there are no playbooks and few best practices for manufacturers’ digital transformation. Few industrial companies even paid attention to digital technologies until recently. Just nine years ago, for instance, General Electric didn’t track them closely, never thought about how they could fit in with the machines it manufactured, and, above all, didn’t realize it could make money from them.

Read the full opinion piece, "The only way manufacturers can survive," at sloanreview.mit.edu.