Flevy Management Insights Q&A
What emerging technologies are shaping the future of automation in smart manufacturing?
     David Tang    |    Automation


This article provides a detailed response to: What emerging technologies are shaping the future of automation in smart manufacturing? For a comprehensive understanding of Automation, we also include relevant case studies for further reading and links to Automation best practice resources.

TLDR Emerging technologies like IoT, AI, robotics, and blockchain are revolutionizing smart manufacturing by driving Operational Excellence, efficiency, and predictive capabilities.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Interconnectivity in Manufacturing mean?
What does Predictive Analytics mean?
What does Collaborative Robotics (Cobots) mean?
What does Blockchain in Supply Chain Management mean?


Emerging technologies are fundamentally reshaping the landscape of smart manufacturing, driving efficiencies, and enabling unprecedented levels of operational excellence. As organizations strive to stay competitive in an increasingly digital world, understanding and leveraging these technologies becomes critical. This discourse delves into the core technologies that are at the forefront of this transformation.

Internet of Things (IoT) and Industrial Internet of Things (IIoT)

The Internet of Things (IoT) and its industrial counterpart, the Industrial Internet of Things (IIoT), stand as pivotal elements in the evolution of smart manufacturing. These technologies facilitate the interconnectivity of machines, devices, and systems within the manufacturing environment, enabling real-time data exchange and analysis. This connectivity not only enhances operational efficiency but also provides organizations with the ability to perform predictive maintenance, thereby reducing downtime and extending the lifespan of machinery. According to a report by Accenture, organizations implementing IoT solutions can expect to see a significant increase in productivity and a reduction in operational costs.

IIoT platforms harness the power of big data analytics and machine learning to optimize manufacturing processes. For instance, General Electric's Predix and Siemens' MindSphere are leading IIoT platforms that offer advanced analytics, machine learning capabilities, and comprehensive digital twin technologies, enabling manufacturers to predict failures before they occur and optimize their operations in real-time.

The adoption of IoT and IIoT technologies necessitates a robust cybersecurity strategy. As manufacturers integrate more devices and systems into their networks, the potential attack surface for cyber threats widens. Organizations must prioritize securing their IoT devices and networks to protect sensitive data and maintain operational integrity.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Artificial Intelligence (AI) and Machine Learning (ML)

Artificial Intelligence (AI) and Machine Learning (ML) are transforming manufacturing operations by enabling smart automation and predictive analytics. These technologies allow organizations to analyze vast amounts of data to identify patterns, predict outcomes, and make informed decisions. For example, AI algorithms can optimize production schedules and supply chains for maximum efficiency, reducing waste and improving delivery times.

ML models are particularly effective in quality control, where they can identify defects and anomalies in real-time, significantly improving product quality and reducing the need for manual inspection. A study by McKinsey highlights that AI and ML can reduce supply chain forecasting errors by up to 50% and lower inventory costs by 20-50% in some industries.

Implementing AI and ML requires a strategic approach, including the development of a data strategy, investment in talent and technology, and a culture that embraces digital transformation. Organizations must ensure they have the infrastructure and skills necessary to leverage these technologies effectively.

Robotics and Cobots

Robotics technology has been a staple in manufacturing for decades, but the advent of collaborative robots (cobots) is revolutionizing the way humans and machines work together. Cobots are designed to operate alongside human workers, enhancing productivity and safety. Unlike traditional robots, cobots are equipped with sensors and AI capabilities that allow them to adapt to their environment and perform a wider range of tasks with greater flexibility.

According to a report by Gartner, the deployment of cobots is expected to grow significantly in the coming years as organizations seek to improve efficiency and worker safety. Cobots are particularly beneficial in ergonomically challenging tasks, where they can reduce the risk of injuries and allow human workers to focus on higher-value activities.

The integration of robotics and cobots into manufacturing processes requires careful planning and change management. Organizations must consider the impact on their workforce and develop training programs to ensure workers can effectively collaborate with these new technologies.

Blockchain Technology

Blockchain technology is emerging as a powerful tool for enhancing transparency and security in manufacturing supply chains. By providing a decentralized and tamper-proof ledger, blockchain enables all parties in the supply chain to access real-time, verifiable data on the origin, quality, and status of products and materials. This transparency can significantly reduce fraud, improve compliance, and build trust among stakeholders.

Organizations like IBM are leading the way in applying blockchain technology to supply chain management. IBM's Food Trust Network, for example, uses blockchain to trace the provenance of food products, enhancing safety and reducing waste.

Implementing blockchain requires a collaborative approach, as the value of the technology is maximized when multiple stakeholders across the supply chain participate. Organizations should start with pilot projects to demonstrate the benefits and build a business case for wider adoption.

In conclusion, the future of automation in smart manufacturing is being shaped by a convergence of technologies, including IoT, AI, robotics, and blockchain. Organizations that strategically embrace these technologies can expect to see significant gains in efficiency, quality, and competitiveness. However, success requires more than just technology; it demands a holistic approach to digital transformation, encompassing strategy, people, processes, and culture.

Best Practices in Automation

Here are best practices relevant to Automation from the Flevy Marketplace. View all our Automation materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Automation

Automation Case Studies

For a practical understanding of Automation, take a look at these case studies.

Education Sector Automation Enhancement Initiative

Scenario: The organization is a mid-sized educational institution grappling with outdated administrative processes that hinder its operational efficiency and scalability.

Read Full Case Study

Robotic Process Automation for Ecommerce in Competitive Landscape

Scenario: The company, a mid-sized ecommerce player, has been struggling to maintain competitive advantage in a rapidly evolving digital market.

Read Full Case Study

Automation Enhancement for Semiconductor Fabrication

Scenario: The organization is a leading semiconductor manufacturer that has recently expanded its operations to meet surging global demand.

Read Full Case Study

Automated Precision Farming Solution for AgriTech in North America

Scenario: In the competitive sphere of AgriTech in North America, a firm is grappling with the integration of advanced automation technologies to enhance crop yield and operational efficiency.

Read Full Case Study

Automation Enhancement in Specialty Retail

Scenario: The organization is a specialty retailer in North America that is struggling to maintain its market position in the face of increased competition and evolving consumer preferences.

Read Full Case Study

Smart Automation in Building Materials Production

Scenario: The organization is a leading producer of building materials in North America, grappling with the challenge of integrating advanced Automation into its manufacturing processes.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it give me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

    – Royston Knowles, Executive with 50+ Years of Board Level Experience
  •  
    "As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

    – Michael Duff, Managing Director at Change Strategy (UK)
  •  
    "Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

    Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

    In today's environment where there are so "

    – Omar HernĂ¡n Montes Parra, CEO at Quantum SFE
  •  
    "As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

    – Jim Schoen, Principal at FRC Group
  •  
    "If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

    – Debbi Saffo, President at The NiKhar Group
  •  
    "The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

    – Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
  •  
    "As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

    – Michael Evans, Managing Director at Newport LLC
  •  
    "As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

    – David Coloma, Consulting Area Manager at Cynertia Consulting



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.