Managing the impact of digitization

Adaptability is a hallmark of the Electronics industry, with its history of changes ranging from incremental to radical. Traditional manufacturing has shaped worldwide trade flows and built industry structures based on economies of scale, as well as supply chains that are both multi-tiered and global. But today, three new technology revolutions – 3D printing, intelligent robotics and open source electronics – promise unprecedented supply chain upheaval. In this report, we show that these newer technologies will produce an average 23 percent unit cost benefit and reduce entry barriers by an astounding 90 percent. Yet half of our survey sample has no manufacturing strategy to manage the impact of digitization. To compete in this fast-approaching future, companies and governments must understand and prepare for this new software-defined supply chain.

About the author

Veena Pureswaran

Veena Pureswaran
Electronics Lead
IBM Institute for Business Value

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