The Rise of Digital Manufacturing Ecosystems

The formation of value-added digital networks in manufacturing is underway, leading to new ecosystem partnerships that will reshape the industry in the years ahead.   

As digitization becomes ubiquitous in the manufacturing ecosystem, the biggest opportunities and most powerful transformation drivers may well emerge from outside the walls of the enterprise.

The manufacturing paradigm is evolving with highly interdependent industry coalitions and cross-pollination of business interests among industry corporate players, blurring once-clear boundaries. Inter-enterprise relationships are becoming increasingly integrated in the digital world. The result is a highly amalgamated manufacturing ecosystem that requires new rules, gives rise to new business drivers, and exerts new influences on manufacturers’ focus and actions.

Democratization of Manufacturing

As disruptions from the pandemic and a global re-balancing of supply chains continue to settle, digitally integrated manufacturing options, and changing levels of intelligence in products, will drive the democratization of hardware manufacturing, leading to commoditization.

Additive manufacturing, for example, is engendering agile and innovative manufacturing models. As additive manufacturing becomes prevalent and commoditized, direct on-demand manufacturing-from-design will become more frequent. This in turn will create new digitally savvy supply or insource options for manufacturers.

We already see increasing levels of additive manufacturing components in products today. As levels rise further, supply and sourcing options will get redefined. This will cause some manufacturing operations to abandon their current products and methods and pivot into newer possibilities.