1、Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology1Resiliency in the makingResiliency in the making Turning adversity into advantage for engineering,supply,production and operationsFrom insights to action,the path to extraordinary

2、 value starts here.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology2Resiliency in the makingDisruption has hit businesses hard in the last few years.Unforeseen fluctuations in demand at the height of the pandemic,geopolitical un

3、rest driving up wages,material costs and energy prices,climate emergencies,and technology innovations have revealed dangerously low levels of resiliency within engineering,supply,production and operations.This vulnerability has caused businesses to miss out on a staggering$1.6 trillion in revenue gr

4、owth opportunity on average each year.Many businesses have responded with short-term fixes,quickly applying them to complex global networks designed for cost efficiency and just-in-time deliveries.Others have resorted to reactive strategies like inventory buildup,which came at a cost.Inventories use

5、d in production have reached a value of$1.9 trillion.1 Executive summaryCapturing competitive advantage in pursuit of durable resilience.$1.6tpotential revenue growth opportunity left on the table each year.40%increase of product order-to-delivery lead times reported in the last 2 years.17%of compan

6、ies say they have a multiskilled workforce today.Only2020 Global pandemic Unforeseen rise in demand for digital products and online experiences Truck driver shortages lead to logistics challenges2021 Cyber-attacks on production lines Semiconductor shortages peak2022 War in Ukraine Raw materials and

7、critical minerals shortages resulting in energy price hikes Key engineering talent in Ukraine and Russia displaced or conscripted to military duties2023 Inflation soars Global talent shortages Extreme weather events Tech breakthrough:Generative AIToday New geopolitical risks2030 The next known unkno

8、wnTimeline of recent disruption+3.6%additional revenue growth that the more resilient companies were able to capture compared to their less resilient rivals.3Resiliency in the makingExecutive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodolo

9、gyAccenture sought to better understand how businesses respond to,and manage,disruption in their engineering,supply,production and operations functions.We developed a framework of 31 capabilities that enable resiliency and then deployed a global survey to over 1,200 senior executives from 11 industr

10、ies to evaluate their investment and maturity in these capabilities.Executives told us they missed out on revenue growth opportunities of between 7.4%-11.0%due to disruption in their engineering,supply,production and operations.When we looked closer,we discovered that the more resilient companies(as

11、sessed in the top quarter of resiliency maturity)capitalized on more opportunities,in turn capturing 3.6%greater The missed growth opportunityFigure 1:Disruptions drove$1.6 trillion in missed annual revenue growthIndustrial EquipmentHigh-TechUtilitiesAutomotive(OEMs)Oil&GasConsumer Goods&ServicesLif

12、e SciencesAutomotive(Ancillary/Parts)ChemicalsMetals&MiningAerospace&Defense$433b$269b$162b$137b$163b$125b$116b$79b$61b$49b$41brevenue than their peers in the bottom quarter of the maturity scale.Better resiliency enabled a competitive advantage that also helped them achieve an additional 1.2 percen

13、tage points in EBIT margin compared to their peers with lower resiliency.These more resilient companies are investing in the right mix of resiliency-focused capabilities and achieving better business results because of it.This report will delve into three actions that companies can take to join them

14、,growing their maturity in the key capabilities that enable greater resiliency in engineering,supply,production and operations,enabling them to harness the power of disruption to their advantage.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is

15、now|Methodology4Resiliency in the making4ResiliencyWe define resiliency in the context of engineering,supply,production and operations as an organizations ability to proactively sense,absorb,adapt to,and recover from disruption so it can produce goods,deliver services,meet and increase customer dema

16、nd,and respond to changes faster than its competitors.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology5Resiliency in the makingA first step toward resiliency6-8ContentsThree actions to build resiliency9-23The time to invest is n

17、ow24-27A first step toward resiliency GloballocalExecutive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology7Resiliency in the makingThe turbulence of the last few years has forced many businesses to address the vulnerabilities in their hi

18、ghly globalized supply and production networks.Companies taking stock of their production and supply chain footprints indicated that they will reduce their dependency on sole sourcing strategic commodities in the next three years.Today,only 42%of respondents are making use of multi-sourcing strategi

19、es compared to 72%who plan to in the future.Regional sourcing is also bouncing back.Numbers are set to leap from 38%of respondents today mostly sourcing regionally to 65%in the next three years.Adopting the best sourcing strategy and identifying new production facility locations will be key to bolst

20、ering resiliency,sustainability and flexibility.Leaders are also prioritizing proximity-based hubs that concentrate production facilities and sales within the same region to streamline logistics,improve inventory management and accelerate response to market demand.We found that the manufacturing of

21、products across multiple plants is expected to rise from 41%today to 78%in three years time.This rise aligns with the increasing preference for producing goods within the same selling region,which is anticipated to reach 85%in three years,up from 43%.In addition to regional sourcing and proximity-ba

22、sed production,companies are actively exploring relocation and reshoring to reduce their dependency on any one specific country,region or supplier.Todays challenging business environment is prompting executives to re-evaluate diversifying and localizing their sourcing and production footprint.78%of

23、companies will use multiple sites in 3 years time to produce their products,up from just 41%who are already doing this today.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology8Resiliency in the makingAdding multiple new production

24、 and supply options provides more opportunities to be resilient in the face of change.However,as supply networks diversify,complexity grows with the addition of new suppliers,more silos appear and companies quickly find themselves having to navigate varying regulations across different regions and b

25、orders.When making major changes to de-risk networks,it is important to assess the resiliency-focused capabilities and digital maturity of the organization to better unlock value and avoid creating more problems.Fortunately,the rapid technology innovation from the last several years provides ample o

26、pportunity for businesses of all sizes to advance their digital maturity and address disruption strategically.Large global footprint with free-flowing movement of goods and services that serve every customer globally Limited local sourcing Plant specialization is the order of the day(e.g.one plant i

27、n one location,mass producing one specific product)From globalized industrial value chains todayto localized,reconfigurable and decarbonized value chains in the future.Decentralization and localization of plants and suppliers,based on the markets or geo-locations they trade in Systematic double sour

28、cing practices Flexible industrial models with the ability to rebalance production operations across sites De-risking of any over-dependence on a single supply base or location Relocation programs to bring production closer to consumptionCompanies must be mature in resiliency-focused capabilities to

29、 help mitigate against future disruption.Three actions to build resiliency AdaptadvanceExecutive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology10Resiliency in the makingEstablishing resilience requires a total rethink of the business an

30、d operating modelan enterprise-wide strategy that sets the stage for a cascade of transformative changes.In todays fast-moving consumer and tech-driven world,companies who wish to unlock new value and transform in this way need to invest in,and scale up,their maturity across 31 resiliency-focused ca

31、pabilities(see figure 2).Powered by data,digital and AI,these capabilities enable organizations to make broad changesfrom the employee and customer experience to sustainabilityall while increasing revenue and reducing costs.When it comes to building resiliency,piecemeal solutions are inadequate.From

32、 this list of 31 capabilities,we suggest that companies prioritize investment in the 11 emerging capabilities most aligned to better resiliency outcomesthe Resiliency 2.0 capabilities.For example,dynamic and sustainable product development capabilities enable businesses to reach customers fastermovi

33、ng from ideation to production to go-to-market at an accelerated pacewhile making it easier for engineers to design more relevant,sustainable and differentiated products and experiences.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Metho

34、dology11Resiliency in the makingDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable

35、manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end con

36、trol towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDynamic and sustainable product developmentThe ability to design new products and processes in an eco-design and co-engineering approach,leveraging a continuous feedback loop along the li

37、fe cycle.Collaborative approach to digital twin platforms Eco-design approach to embed sustainability by design(e.g.carbon footprint,circularity)Continuous upgrade of offerings to adapt to customer needs(e.g.product services upgrades,product features upgrades based on over-the-air)Agile development

38、methodologies for non-software components(systems,mechatronics,mechanical)Application of resiliency-by-design approach(e.g.standardization,modular approaches,broader supply base alternatives)Digital feedback loop during in-service,based on analytics and IoTAutonomous productionA low-carbon industria

39、l system capable of quickly and seamlessly reconfiguring and correcting to adapt to change.Hyper-flexible and automated production lines concept tailored for high customization or ability to quickly reconfigure to change Dynamic production scheduling capabilities Inventory optimization models Integr

40、ation of sustainability parameters for CAPEXAgile organizationA cross-functional,platform-based organization with flat leadership structures and scaled-up digital foundations built for agility.Decentralized decision making close to execution,with transparency at all levels Remote expertise capabilit

41、ies(leveraging AR,VR and such)Proactive risk management framework and business continuity plans Extensive use of company-wide shared services/resources pools for services and support functions Extensive use of outsourcing of non-core activities Fully deployed cloud IT infrastructure using advanced c

42、ybersecurity practicesFlexible workforceA highly versatile,adaptable and diverse workforce underpinned by a culture of continuous learning.Having a versatile/multi-skilled workforce across the supply chain,production and operations to facilitate resource reallocation Flexible employee contracts allo

43、wing quick adaptation of resources to activity level Skills demand management using analytics and skills ontology allowing quick matching of competence with needs Procedures and methods to ensure team safety for catastrophic events that go beyond regulatory requirements(e.g.natural disaster,violence

44、/terrorism)Demand foresightThe ability to anticipate and predict changes in demand and customer needs,as well as greater societal and cultural shifts.Structured analytics tool to predict surge or decline in demand(in addition to customer historical forecasts)Proactive customer segmentation to arbitr

45、ate demand in case of shortage Customer trend control tower collecting data insights(market,connected products,customer journey,sentiment analysis)to design and price new offeringsLocalized and reconfigurable supply chain networksA reduced geographical spread of supply networks to achieve a more loc

46、al,low-carbon supply base and transportation flow.Use of network simulation/optimization tool to optimize production and supply chain footprint changes Alert system to identify risks in the supplier base(from Tier-1 to Tier-N levels)Ability to increase storage or freight capacity Ability to simulate

47、 impact of disruptive scenariosSmart end-to-end control towersVisibility solutions that more quickly anticipate and identify risks,manage disruption and analyze causation throughout the value chain.Dynamic and data-driven planning with“what-if”scenario capabilities Predictive early detection of oper

48、ations issues(poor-quality,breakdowns,maintenance needs,non-conformity)Digital cockpit enabling real-time visibility of end-to-end operations Digital tool to quickly understand impact of supply shortages/production or shipping delays on sales and costsDigitally-enabled organizationAdjustable manufac

49、turing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control to

50、wersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable prod

51、uct developmentFlexible workforceFigure 2:Our study measured maturity across 31 capabilities that enable resiliency in engineering,supply,production and operations.The highlighted capabilities represent the most important areas where companies should prioritize investment.Denotes emerging Resiliency

52、 2.0 capabilities.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology12Resiliency in the makingBut theres work to do.While most executives anticipate advancing their resiliency-focused capabilities over the next three years,they co

53、ncede that today they would rate the overall level of resiliency in their end-to-end engineering,supply,production and operations as quite low.Our analysis shows that on average the companies we surveyed exhibit a maturity score of 56/100(see figure 3)across all 31 capabilities for resilience(see fi

54、gure 2).While many companies are transforming,not all are realizing the benefits of transformation and new capabilities because their ways of working have not changed.These companies are taking a fractured and isolated approach to transformation,resulting in limited benefits and stalled maturity.63F

55、igure 3:Resiliency maturity scores by industryMaturity score(0-100)Transform ways of workingOngoing transformationPartially deployed POC&Pilot 5040302026327808483808779747976717376Aerospace&DefenseUtilitiesAutomotive(Ancillary/Parts)Oil&GasLife SciencesAll industry a

56、verageConsumer Goods&ServicesHigh TechChemicalsIndustrial EquipmentMetals&MiningAutomotive(OEMs)62656555550AverageBottom 25%AverageTop 25%AverageExecutive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|MethodologyResiliency in the making

57、Action 01Invest in visibility,predictability and continuity-focused techAction 02Adopt“shift left”engineering capabilities to embed resilience in designAction 03Develop a multi-skilled workforce for agilityFor companies to increase their resilience and generate more revenue,they need to focus on thr

58、ee important actions.13Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology14Resiliency in the makingCCA AABBBCAAction01 Invest in visibility,predictability and continuity-focused tech Early predictive fault detection Proactive cust

59、omer segmentationCompanies need the capabilities to visualize and control their operations.This enables real-time insights and data sharing across suppliers,factories,plants,distribution centers,logistics carriers and customers.But this is far from the norm.Only 16%of companies surveyed have these c

60、apabilities,and only one in 10 have near real-time alerting.This lack of visibility hinders their ability to be made aware of,act on,and recover from shocks efficiently.Our research reveals that the average time from being alerted to a disruption to staging a full recovery is three months,and it can

61、 even reach five months(see figure 4).For 57%of companies it takes a week or more just to be alerted to production or supply network disruptions.Even then,almost 80%of executives say it takes an additional week or more to assess the disruptions impact.Disruption refers to an event that has a materia

62、l impact on the client,product,plant site or sales.Recovery refers to the time needed to reconfigure the supply chain in terms of planning and sourcing or restarting a production line or plant site.Fastest companies is average performance of top quarter response performance.Slowest companies is aver

63、age performance of bottom quarter response performance.Time to be alertedTime to understand and reactTime to recoverDisruptionPerformanceFastest companies2Time (days)Average companiesSlowest companiesABCFigure 4:Resilient companies are alerted to disruptions faster,meaning they also under

64、stand,react to,and recover from disruptions sooner.Digitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled orga

65、nizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain net

66、worksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDy

67、namic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDynamic and su

68、stainable product developmentLocalized and reconfigurable supply chain networksAutonomous productionDemand foresightSmart end-to-end control towersAgile organizationFlexible workforce Dynamic,data-driven planning Hyper-automated production linesDigitally-enabled organizationAdjustable manufacturing

69、and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceResiliency 2.0 capabilities featured:52 Demand surge/decline analytics15Resiliency in the makingExecutive Summary|A first step t

70、oward resiliency|Three actions to build resiliency|The time to invest is now|MethodologyCompanies that want to shorten these recovery times should adopt demand foresight and smart end-to-end control towers.They should strive towards reconfigurable supply networks and autonomous production to gain re

71、al-time visibility and control over the entire value chain,from suppliers to customers.Demand foresight capabilities provide the structured analytics and customer trend insights to drive new offerings and help arbitrate demand in times of shortages.Smart end-to-end control towers provide scenario an

72、alysis and real time end-to-end visibility to provide early detection and correction of operations issues.Reconfigurable supply chain networks and autonomous production provide the flexible backbone to dynamically change operations at a site or shift from one site to another to maintain production l

73、evels when faced with ongoing volatility.The increased visibility,reconfigurability and ability to ramp-up automated assembly processes at speed in response to a sudden shift in consumer preferences will enable companies to proactively streamline operations,optimize resource allocation and adjust pr

74、oductivity levels to respond to disruptions in real-time or near real-time.This does not only help with resiliency:As consumers continue to seek out hyper-personalized and customized products,companies will need to be adept in autonomous production capabilities to capture these revenue growth opport

75、unities.Looking ahead,generative AI can support even greater cross-organizational collaboration by creating action plans for meetings based on shared data,translating meetings in real-time for attendees in separate geographies and even automating information exchange across departments.Executive Sum

76、mary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology16Resiliency in the making16The challengeA multinational company producing heavy and high-value equipment struggled to ensure operational efficiency and continuity in meeting production goals d

77、ue to a lack of real-time visibility into its production processes.The solutionThe company implemented a cloud-powered,smart,connected factory via an industrial internet of things(IIoT)technology platform.Integrated sensors and connectivity tools linked physical assets in the factory to the digital

78、world,providing valuable real-time insights.Case study:Enhancing resiliency by increasing the visibility of production and operational continuity.The outcomeWithin six months efficiency soared by 25 percentage points,resulting in higher productivity and reduced waste.However,equally important was th

79、e enhancement of operational continuity.The factory floor now enjoys improved visibility and data-sharing capabilities that empower supervisors to make proactive,data-driven decisions to prevent disruptions and downtime.This comprehensive approach ensures better efficiency and minimizes potential ri

80、sks,making the production process more resilient and adaptable to challenges.The success of this implementation proves that investing in visibility,predictability and continuity-focused technology can revolutionize operations,while still being scalable for future growth.Executive Summary|A first ste

81、p toward resiliency|Three actions to build resiliency|The time to invest is now|MethodologyExecutive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology17Resiliency in the makingBusinesses are under pressure to increase resiliency while at t

82、he same time reduce costs,improve cycle times and enhance product quality.A“shift left”strategy upends the status quo to help them achieve these goals.It enables resiliency in engineering by moving activities earlier in the development process,allowing companies to get products,processes and ways of

83、 working right the first time and address potential issues before production begins.Resiliency 2.0 capabilities centered around dynamic and sustainable product development can help businesses successfully implement a“shift left”strategy.These capabilities help companies see the potential impacts of

84、disruption on the product at the time of design.They also help reduce lead times,and improve customer and revenue retention.Digital twin solutions help build resiliency by enhancing transparency and offering real-time visualization of production activities.As digital replicas of physical production

85、facilitiesdown to individual assembly lines and machinesthey allow product designers and engineers to proactively identify and troubleshoot potential prototype issues or defects and iterate the design before production begins.Digital twin solutions also democratize access to valuable product data an

86、d insights,fostering improved collaboration during research and design phases.Our survey found that two out of three executives anticipate a shift in the next three years towards a fully embedded collaborative approach that incorporates stakeholders across all operations.Digitally-enabled organizati

87、onAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksE

88、nd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic

89、and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled or

90、ganizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceResiliency 2.0 capabilities featured:Collaborative approach to digital twin platforms Continu

91、ous product offering upgrade Eco-design for sustainabilityDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceAction02 Adopt“

92、shift left”engineering capabilities to embed resilience in designDynamic and sustainable product developmentLocalized and reconfigurable supply chain networksAutonomous productionDemand foresightSmart end-to-end control towersAgile organizationFlexible workforce18Resiliency in the makingExecutive Su

93、mmary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|MethodologyAdditionally,our survey found that the number of executives planning to increase designing for resiliency will jump from 17%today to 63%over the next three years.This involves incorporating pr

94、ocess standardization to drive cost efficiencies,modular design approaches to increase flexibility,and alternative supply base options to reduce vulnerability.By involving suppliers and customers early with a“shift left”approach,companies can also address evolving customer needs and expectations bef

95、ore they lead to dissatisfaction.Companies can achieve these goals by seeking customer feedback during product development or service enhancement stages,and then use that feedback to continuously upgrade offerings.Companies can also leverage digital twin solutions to bolster this capability.Tighter

96、environmental regulations mean that companies must also add sustainability considerations to product design processes such as their carbon footprint,environmental impact and circularity.By using an eco-design approach that“shifts left”,companies can integrate sustainability principles into product d

97、esign from the outset and embed them throughout the value chain.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology19Resiliency in the makingThe challengeA leading global biopharmaceutical company faced increasing pressure to exped

98、ite the delivery of its new emerging products portfolio while still ensuring safety,compliance and an exceptional customer experience.To maintain its position as one of the most valuable pharmaceutical companies globally,it sought to enhance resiliency by revolutionizing the handover of information

99、from R&D to production in order to address potential design issues early in the development process.The solutionThe company deployed a“shift left”strategy by investing in digital twin technologies that could simulate a future state operating model with precision.It worked with a trusted partner to d

100、esign a smooth and digitized handover process,promoting better collaboration between R&D and production teams.19The outcomeThe impact of the“shift left”strategy went beyond operational efficiency.The tech transfer cycle time was significantly reduced from 12 months to just seven to eight weeks,enabl

101、ing the company to bring life-saving products to market faster.This accelerated timeline improved the companys competitive edge and strengthened its resiliency.By identifying and addressing potential issues earlier in the development process,the company achieved a heightened ability to recover from

102、potential setbacks.The approach ensured supply chain readiness to manage a more complex product portfolio.As a result,the organization demonstrated agility and adaptability to evolving market demands,underlining its resiliency.The“shift left”strategy empowered the company to embrace resilience as a

103、core value.The ability to identify,anticipate,and address potential hurdles early on enabled faster,safer,and more compliant product launches,which solidified its position as a leading global pharmaceutical company.Case study:Reinforcing resiliency through a“shift left”strategy in a biopharmaceutica

104、l tech transformation.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|MethodologyExecutive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology20Resiliency in the makingAction03 Dev

105、elop a multi-skilled workforce for agility Resilient businesses need decentralized decision-making where frontline teams can quickly make decisions close to where the operations happen.These teams should have access to emerging predictive and data-driven tools that enable them to make prompt decisio

106、ns and improve recovery times in the face of disruptions.But for this more agile organizational model to work,employees will need the skills to effectively leverage these advanced capabilities.Accentures biennial Global Skills Survey 2023 revealed that the C-suite is overestimating the skills readin

107、ess of its workforce.While 50%believe their organization is effectively preparing their workforce for the skills needed for future growth,only 28%of workers feel the same.And while 54%of C-suite leaders are certain their workers job skills will be useful and valuable in three to five years,only 34%o

108、f workers agree.2While specialized knowledge in areas like procurement,operations,production and logistics will always be important,digitally literate,multi-skilled and cross-functional thinkers who understand the big picture will also be invaluable in helping companies adapt to new complexities.For

109、 example,workers will need to know how to use predictive and visualization tools and make data-driven decisions to navigate the complexities of modern supply chains.These complexities are not easily solved by siloed functional teams and require employees who can work across operations.Our survey dat

110、a reveals that more than 68%of companies are investing in developing a multi-skilled workforce while improving demand management using analytics and skills ontology tools,and increasing flexible contracts for employees to tap into a wider talent pool.By leveraging these data insights,companies are i

111、ncreasingly identifying employees in their current organization who would be good candidates to fulfill demand for emerging skills(see figure 5).Digitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation c

112、apabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceD

113、igitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocal

114、ized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk antici

115、pation capabilitiesDynamic and sustainable product developmentFlexible workforceDigitally-enabled organizationAdjustable manufacturing and productionLocalized supply chain networksEnd-to-end control towersDemand and risk anticipation capabilitiesDynamic and sustainable product developmentFlexible wo

116、rkforceDynamic and sustainable product developmentLocalized and configurable supply chain networksAutonomous manufacturingDemand foresightSmart end-to-end control towersAgile organizationFlexible workforceDynamic and sustainable product developmentLocalized and reconfigurable supply chain networksAu

117、tonomous productionDemand foresightSmart end-to-end control towersAgile organizationFlexible workforceResiliency 2.0 capabilities featured:Decentralized decision making Remote expertise capabilities(leveraging AR,VR and such)Versatile/multi-skilled workforceExecutive Summary|A first step toward resi

118、liency|Three actions to build resiliency|The time to invest is now|Methodology21Resiliency in the makingPilot project to partially embeddedPilot project to partially embeddedPilot project to partially embeddedFully embeddedFully embeddedFully embedded17%17%14%67%68%69%83%83%86%33%32%31%Use of flexib

119、le employee contracts is increasing(%of respondents)Multi-skilling the workforce is increasing(%of respondents)Demand management using analytics and skills ontology is increasing(%of respondents)TodayTodayTodayIn 3 yearsIn 3 yearsIn 3 yearsTechnology is the foundation for improving agility during di

120、sruptive events that may cause critical skills shortages.For example,companies can leverage AR/VR to empower employees who have the necessary skills in one geography to help peers successfully complete tasks in a completely different location.Figure 5:Overall,companies are significantly increasing t

121、he level of versatility in their workforce through flexible contracts,upskilling and skills demand management.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology22Resiliency in the makingCurrent roleMachine OperatorFactory automati

122、on potential:HighAI augmentation potential:LowTransferrable skills Time management Verbal communications Equipment maintenance Documentation Workplace safety Adaptability Commitment Responsibility Teamwork CommunicationsFuture roleAutonomous Production Maintenance Team LeadFactory automation potenti

123、al:LowAI augmentation potential:HighRequired skills Maintenance safety Electrical code Factory automation Generative AI Predictive maintenance Workplace safety planning Time management Equipment maintenance Documentation Sensor instrumentation Digital twin Adaptability Commitment Responsibility Team

124、work Communications Personalized learning pathwayIdentify the skills to train Electrical code Factory automation Generative AI Predictive maintenance Maintenance safety Sensor instrumentation Digital twin and transition from a production role to one focused on ensuring factory uptime targets are met

125、.Source:Accenture Research based on analysis of World Economic Forum Consumer Industries Task Force of Future of Work Pilot,Occupational Information Network(O*NET),US Dept.of Labor;US Bureau of Labor Statistics.Figure 6:Reinventing roles machine operator to autonomous production maintenance team lea

126、dFundamentally,securing durable resiliency will hinge on an upskilling and reskilling strategy that brings people and technology together.Creating tailored interventions known as personalized learning pathways(see figure 6)is a viable,scalable and cost-effective way to bridge the skills gap.With thi

127、s strategy,businesses can expect to better navigate shortages in critical skills,create a culture of agility and provide fast,flexible upskilling.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|Methodology23Resiliency in the makingThe chal

128、lengeA national oil and gas company with nearly 50,000 employees sought to accelerate its digital transformation journey,develop new lines of business and meet its sustainability targets faster.To achieve this,the company needed a resilient workforce capable of decentralized decision-making and usin

129、g emerging predictive and data-driven tools to improve recovery times during crises.However,to enable this model and use these advanced capabilities,the employees required upskilling and reskilling.The solutionThe companys management team implemented a comprehensive upskilling and reskilling strateg

130、y.A gamified learning platform powered by AI was developed to promote baseline digital fluency across the organization.This innovative platform encouraged continuous learning and empowerment among employees at all levels,from the CEO down to teams on the ground.Additionally,a first-of-its-kind,cloud

131、-based solution was built to analyze 10 years of performance data,identifying workers suited for new digital roles in procurement and IT functions.This data-driven approach saved talent management time and eliminated managerial bias and allowed employees to assess and close skill gaps proactively.Th

132、e outcomeThe upskilling and reskilling strategy transformed the companys ways of working and fostered a culture of agility and adaptability.As a result,the organization stands resilient in the face of uncertainties,ensuring long-term success and sustainability in the ever-evolving oil and gas indust

133、ry.23Executive Summary|A first step toward resiliency|Actions to build resiliency|The time to invest is now|MethodologyCase study:Digital reskilling strategy empowers decentralized decision making at an oil and gas company.The time to invest is nowRiskrewardExecutive Summary|A first step toward resi

134、liency|Three actions to build resiliency|The time to invest is now|Methodology25Resiliency in the makingMany companies are still in the early stages of their resiliency transformation and plan to invest heavily,but what stands in the way of success?The number of executives enhancing their resilience

135、 by investing(see figure 7)in facility relocations,automation and digitization is increasing in the next three yearsranging from 2.5x to 4x todays investment levels,which currently stand at 4.5%of average revenues or just over$1 billion.Companies are also balancing their investments in reshoring/rel

136、ocations($450 million)with building their digital maturity,including increased automation($575 million)(see figure 8).However,big plans dont yet confidently translate into competitive advantage.Only a third of companies regard themselves as significantly advanced compared to their competitors.Why?Th

137、ese are big,costly changes that are not undertaken frequently.As a result,any decisions must stand the test of time.And while these changes are considered,the business must also maintain shareholder value and reduce costs.Therefore,organizations will need a compelling vision and clear accountability

138、 underpinning any investment to ensure they provide both short-term value and a foundation for long-term transformation.$500m on reshoring or relocation$500m on industrial automation of plant sites and warehouses$100m on supply chain&production digitization%of respondents who say they will spend.Tod

139、ay In three years timeFigure 7:The number of companies who plan to make significant investments in reshoring/relocation,industrial automation and digitization is increasing in the next three years.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest i

140、s now|Methodology26Resiliency in the makingTotal average investment by companies in production and supply chain resilienceFigure 8:Companies are enhancing their resilience by investing in relocation,automation and digitization.Reshoring,relocating or new investments$450m$325m$250m$1BTotal average in

141、vestment*Industrial automation of plant sites and warehousing Digitization of production and supply networks*Based on$23B average size of companies we surveyed.This is ultimately a journey,not a step change.Different tactical investments in operational efficiencies must be pooled to bring increased

142、proactive and predictive visibility and transparency.The IT and OT functional departments must be brought together to help solve a broader problem set,but with tactical first steps aligned with their operational priorities.And business should look at the combinatory impact of investments across relo

143、cation,digitization and automationand how to balance those investments.Without this,investments(and technology)will be fragmented,lacking a broader view of what resilient operations of the future should look like and how to untap value while getting there.Those that drag their feet in the name of co

144、st-cutting or priority paralysis could miss the opportunity for long-term resiliency.Resiliency in the makingExecutive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|MethodologyThe unprecedented disruptions affecting every industry sector worldwide

145、 have highlighted the critical need for resilience across all operational areasfrom engineering and production to operations and supply chain.The net result is that companies must adapt and embed resilience-focused capabilities into their operations to ensure products are manufactured cost efficient

146、ly,safely,on-time and sustainably.Our analysis has demonstrated that businesses investing in resiliency-building capabilities and improving digital maturity significantly outperform their peers.Early adopters(i.e.the most resilient companies)who have embraced these practices are already generating a

147、dditional annual revenues Assembling the pieces for resilience27Resiliency in the makingof$830 million on averagedepriving the least resilient companies from sharing in the success.With an estimated$1.6 trillion of potential revenue left on the table each year on average,its a prize worth fighting f

148、or.To build resiliency,companies should focus on three core areas:Visibility:Enhanced visibility across the supply chain and production processes allows for real-time tracking and collaboration,enabling quicker decision-making and responsiveness during disruptions.Resiliency in design:Moving activit

149、ies earlier in the development process allows companies to get products,processes and ways of working right the first time and address potential issues before production begins.New ways of working:Equipping the workforce with the necessary skills and decentralized decision-making enables them to nav

150、igate through disruptions.Companies need to invest in upskilling and reskilling programs to create a resilient and agile workforce.Executive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|MethodologySo,how can companies get started on the actions t

151、hat build resiliency in engineering,supply,production and operations?Evaluate current capabilities within each of the areas in scope to identify gaps.Develop the“North Star Vision”for what a resilient future-state function could look like and host collaborative open-door workshops to share the visio

152、n and iterate as needed.Look at investment needs holistically.Are relocation,digitization and automation investments balanced to deliver results?Build the financial and executional governance so that IT and OT budgets and solutions can be combined to streamline and accelerate digital maturity.Those

153、who invest in developing resiliency capabilities and the supporting digital foundation will capture market share from those who delay.The time to invest is now,and at an accelerated pace,before the next disruptive event comes knocking.28Resiliency in the makingExecutive Summary|A first step toward r

154、esiliency|Three actions to build resiliency|The time to invest is now|MethodologyAbout the researchSurveying across our key capabilities framework1 Including petrochemicals;2 Consumer/enterprise technology including components;3 Includes biotechnologies and medical technology Americas43%(524)EMEA37%

155、(461)APAC20%(245)8022112#of respondentsAerospace&DefenseChemicals1High-Tech2Metal&MiningAutomotiveOEMIndustrial EquipmentAutomotive Ancillary/PartsLife Sciences3Consumer Goods&ServicesUtilitiesOil&Gas 112Accenture developed a framework of the 31 key capabilities that foster res

156、iliency.We then deployed a global survey to evaluate companies maturity in strengthening and establishing these capabilities.We surveyed 1,230 engineering,supply,production and operations functional leaders across 11 industries and with a global reach representing 14 countries across the Americas,EM

157、EA and APAC regions.The countries and regions we surveyed included Australia,Canada,Brazil,France,Germany,Mexico,Italy,China,Spain,India,UK,Japan,Sweden and the US.We assessed their strategies for sourcing and production,responsiveness to disruptions and steps towards resiliency against those disrup

158、tions.29Resiliency in the makingExecutive Summary|A first step toward resiliency|Three actions to build resiliency|The time to invest is now|MethodologyThe capability insights underpin the actions for resiliencyBy analyzing the maturity of the 31 capabilities across industries and during disruption

159、we were able to identify three actions for resiliency:Invest in visibility,predictability and continuity focused tech.Adopt“shift left”engineering capabilities to embed resilience in design.Develop a multi-skilled workforce for agility.Analysis of disruption impactWe then evaluated the capabilities

160、against business performance during a widely accepted period of prolonged disruptions.Analyses of the impact of disruptions were based on revenue impact,margin erosion,recovery times,EBIT and lead times.We also looked at the performance of supply networks and production in terms of the estimated tim

161、e(in days)it took our respondents to be alerted to,understand and recover from disruption.Maturity model constructionWe developed a maturity model based on expert interview responses related to the current adoption of the 31 capabilities for resiliency.For example,we inquired about investments in re

162、location/reshoring,automation,digitization and inventory.We analyzed capability maturity and its impact on business performance based on a regression framework where results are controlled by industry,company size,location,production and sourcing strategies and investments in automation and digitiza

163、tion.We awarded a numeric score to each of the capabilities based on a scale from“not started”to“fully deployed and ways of working have changed.”01020330Resiliency in the makingAuthorsContributorsRushda AfzalPascal BrossetStephane CrosnierLiam FrielInge OosterhuisMike PolandCamille ProstMaria Rey-M

164、arstonAakarshuk Sarna Nigel StaceyMatt ThomasKris Timmermansand Professor David Levi Simchi,MITAcknowledgments The authors would like to acknowledge Alexa Mouta,Catalina Rodriguez,Deepak Tantry,Iys Suyambulingam,Laura Kopec,Marcin Bodzial,Pierre Hure,Somioranjan Mekap,Taurai Nyaruwata,Yeye Xiao,Ajay

165、 Sivaramakrishnan,Ruth Keane,Terence Paul and Jamie Byrne for their contributions.Max BlanchetGlobal Supply Chain&Operations Lead,Accenture StrategyJeff WhelessPrincipal Director Industry X,Accenture ResearchSunita SuryanarayanNorth America Supply Chain&Operations,Resiliency LeadStephen MeyerPrincip

166、al Director Supply Chain&Operations,Accenture ResearchSef TumaGlobal Engineering&Manufacturing Lead,Industry X 31Resiliency in the making1.Manufacturing inventory hits record$1.8tn worldwide Nikkei Asia,June 20222.Becoming a skills-driven organization,Accenture Skilling Study,2023References31 capabi

167、lities The 31 technologies and tools that,if invested in,drive resilience in engineering,supply,production and operations.Agility The ability of organizations to adapt to changes measured by the time it takes to be alerted to,understand and recover from a disruption.Co-engineering A collaborative pr

168、ocess involving internal and external stakeholdersfrom engineering,product R&D,design,operations,marketing,cybersecurity and sustainability teams,suppliers and customersthat enables joint decision-making when designing and manufacturing a product.Design A process to develop and test a product,includ

169、ing includes R&D and design engineering.Digital Twins Virtual replicas of physical systems or processes that can be used to simulate and optimize behavior in real-time.Disruption Events such as geopolitical shifts,extreme weather or technological breakthroughs that impact an organizations engineerin

170、g,supply or production operations.Efficiency Processing a product with no downtime and no defects.Lead time The duration between product order and product delivery.GlossaryMore or highly resilient companies A company that has invested in more of and better established the 31 capabilities.OEE Overall

171、 Equipment Effectiveness(OEE)is a performance metric used to measure the effectiveness of equipment,production lines or facilities by calculating equipment availability,performance rate and output quality.Operations executivesThese are senior professionals in engineering,manufacturing,supply chain a

172、nd operations who manage operational activities to improve efficiency,meet goals,manage budgets and work with other senior leaders to meet organizational objectives.Production To make or manufacture a product from components or raw materials using discrete or process manufacturing and engaging R&D,e

173、ngineering or maintenance,repair and operation functions.Quality Production rejects or field failures such as infant mortality or latent design defects.Resiliency We define resiliency in the context of engineering,supply,production and operations.as an organizations ability to proactively sense,abso

174、rb,adapt to and recover from disruption so it can produce goods,deliver services,meet and increase customer demand and respond to changes faster than its competitors.Supply Supply chain,logistics and related operations.ReferencesExecutive Summary|A first step toward resiliency|Three actions to build

175、 resiliency|The time to invest is now|Methodology32Resiliency in the makingAbout Accenture Accenture is a leading global professional services company that helps the worlds leading businesses,governments and other organizations build their digital core,optimize their operations,accelerate revenue gr

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