The COVID-19 pandemic has highlighted the critical role manufacturing and supply chain systems play in powering the global economy. But while most companies have been able to adapt to the unprecedented disruptions by leveraging and deploying technologies across factory sites, manufacturing and supply chain leaders need to enhance their efforts if they want to remain competitive in the current environment.

The new challenges posed by consumers and society at large require leaders to go beyond operations, productivity and efficiency improvements (Section 1). The most successful companies will be those able to leverage their investments in advanced manufacturing not only to optimize operating models, but also to unlock new business models that create and deliver new value to all stakeholders, including the companies themselves, workers, society and the environment. Three essential stages, from point solutions to end-to-end digital infrastructure and integration to new business models, are necessary for the transformation (Sections 2 and 3).

Given the complexity of the journey towards business model innovation, five key strategies most commonly used by leading players illuminate the way forward: 1) start with leadership and culture shifts; 2) forge system-wide collaborations; 3) adopt new metrics to measure success; 4) leverage core manufacturing strengths to close the gaps with digital natives; and 5) relentlessly pursue the broader purpose (Section 4).

This White Paper aggregates the views of over 50 leaders from manufacturing companies, services providers and academia, and highlights successful case studies from those who have already started to unlock business model innovation by adopting advanced manufacturing. The objective of this paper is to inspire manufacturing and supply chain leaders to start or accelerate the business model innovation journey and ensure it can achieve and deliver its full potential for driving responsible industry transformation and growth.