The Future of Manufacturing: Retrofitting and Beyond
Retrofitting is a long-standing practice in industrial plants. Companies upgrade and replace machinery to keep up with new technology. It’s a great way to maximize the potential of existing equipment. You can update key components instead of replacing everything. This process can lead to significant savings and efficiencies. Retrofitting will likely remain a mainstay for manufacturers. This is true even with the trend toward flexible and modular machinery.
Product innovation is increasing. This includes new knowledge-based services and intangible products. As a result, companies must prioritize thinking about, designing, and creating the future. Organizations need to future-proof or futurefit™ to stay ahead of the curve. It’s like a surfer. You must get in front of the wave as it grows. You swim hard and get on your feet at the right moment. Once you are up, you are using the wave’s power. The same is true with technology and future trends.
The New Waves of Transformation
The Fourth Industrial Revolution is underway. Its accompanying digital transformation is also happening. But it is still far from the norm. Many companies have retrofitted or revamped their factories. Many more have not. A similar phenomenon is occurring with digital transformation. Digital products and technology augment business capabilities. Yet this alone is not enough. The Fourth Industrial Revolution and Digital Transformation are the waves. They power those who can surf them. They also affect those caught in the periphery.
Technology is not an end in itself. Instead, it provides organizations with the tools to serve their clients better. This evolution in value creation goes beyond machinery. Our current understanding of human and organizational dynamics shows that change is needed. This change must happen across different dimensions of a company. We believe there are six key areas of transformation in the strategic landscape of the future:
- Industrial and digital transformation
- Ecosystems and platforms
- Individual and corporate purpose
- Evolution of work
- Sustainability
- Diversity and inclusion
These areas are all intertwined. Our research indicates that they are essential for organizations to survive and thrive. This profound change is even more urgent now. The results of the pandemic are still being felt. Society is evolving into a new reality. Holding on to the past holds both individuals and organizations back. In the long run, inaction is unsustainable and costly.
Preparing for Profound Change
For companies that aren’t futurefit natives, the scope of change is massive. It is a transformation composed of multiple transformations. Organizations must redesign how they work. They also need to change employee mindsets. They must find how they express and pursue their purpose. This can be done through their products and services.
World-leading companies have already started this journey. They have a significant head start. Those who haven’t must be strategic. They need to prioritize and plan these changes. They will need to muster the energy and resilience to take on this challenge. Newly formed companies must have the vision to build these capabilities. They face the added challenge of doing so while designing, developing, and scaling.
Upskilling, Reskilling, and Culture
Organizations must upskill and reskill their people. The capabilities needed to face these changes are not yet widespread. A growing number of companies are building their organizational abilities. These include change management, agile, and human-centered design. But many have not yet started.
Education is important. But a change in culture and mindsets is also needed. Companies must focus more on emotional intelligence and psychological safety. These humanizing aspects help us move from a primarily industrial workforce. We are moving toward a more balanced one. This includes all the knowledge-based products and services. Developing this kind of culture boosts a company’s ability to innovate. It offers a safe and empathetic environment where creativity can thrive.
Stay tuned to our company page. We will further discuss what each transformation entails. We will also cover what it might mean for your organization. Leaders must prioritize and plan long-term developments. This ensures the strategic use of resources and change management. It will create a sustainable and effective transition.
Originally published on LinkedIn, July 2021. Edited 2025
