Data-Driven Intelligence, Empowered Workers Continue to Drive Quality
It seems like it was only yesterday when we joined companies everywhere to share our insights and opinions about the trends and solutions that would drive the new year in quality. As we hit the mid-way mark of 2024, it’s a good time to revisit those predictions and see where we nailed it and where we may have missed the mark.
The easiest prediction to ace was the rise of generative AI (GenAI), which has taken off even more than what we could have imagined at the beginning of the year. In fact, new research from Omdia found that GenAI software revenue will grow by 124% in 2024, revised from the previous forecast of 100%. The competitive climate and availability of open source GenAI offerings are making it a less risky and affordable way for manufacturers to test out AI and determine new ways of using it in their enterprises.
Mid-way through 2024, manufacturers are focusing on how to fit AI into their tech stacks, how to govern it and empower it as a key quality driver. We’re finding that manufacturers of all sizes are beginning to experiment with it to produce training and user manuals, or to develop employee and supplier communications, for example.
Consider the state of other ETQ predictions that were made at the end of 2023:
Integrated Data is Fueling Actionable Insights. Manufacturers have been able to successfully gather data within various departments for several years now, yet the challenge was how to integrate it to connect the dots between various departments. Manufacturers are moving closer to realizing an environment where a single source of data truth is available enterprise wide. Yet, a new challenge is emerging. Now that there is an abundance of available and integrated data, how do they make sense of it all? The next big thing is data analytics, systems that enable them to leverage all that data to derive actionable insights – that truly is becoming the hallmark of a data-driven manufacturer.
Plant Floor Workers are Becoming Connected. Deloitte estimated that when frontline workers are provided a thoughtful and strategic mix of technology to perform their jobs, productivity increases on average by 22 percent. We’re continuing to see the empowerment of warehouse and plant personnel through wearable devices and digital tools that enable them to do their jobs safer and more efficiently. This focus on the plant worker is accelerating partly because of the continued shortage of workers, but also because of the increasing understanding of the power of integrated data across the enterprise, which is the conduit to a connected quality ecosystem.
Are Manufacturers Really Getting Real About Sustainability? We predicted in December 2023 that manufacturers would finally be making a more concerted effort to put sustainability practices into action. While large manufacturers have been making sustainability a strategic initiative and making great strides in this area, the reality is that many manufacturers are not yet reaching their sustainability goals, as continued economic concerns and other factors put non-essential sustainability on hold for the time being. Yet, as industry and government regulations are enacted, intended to reduce carbon emissions, enable new sources of power and instill greater product development transparency, manufacturers will adapt to ensure compliance. Gartner predicted that by 2027, 25% of CIOs will see their personal compensation linked to their sustainable technology impact. That too, will drive greater sustainability throughout the coming years.
Unfortunately, Economic Uncertainty Prevails. We said in December that weakness in the economy would be a major concern of manufacturers everywhere, and that remains on point. High interest rates, inflation and slower growth remain stubborn as we enter the mid-year point. While there are signs emerging that the economy could be improving, manufacturers, and more specifically, CIOs continue to be discretionary and judicious in how they allot their IT budgets. Every digital initiative needs to show proven ROI and profitability before costly investment is put into its deployment. Quality solutions, where it’s hard to ignore the cost savings and reduced risk, will continue to grow in usage because of the critical role they play and the easy proof of ROI they offer.
If ETQ had to give itself a score for its 2024 predictions to date, I’d say we deserve a B+. The ubiquity of GenAI, empowerment of workers with digital connectivity and rising need for data analytics are continuing to increase in 2024 and promise to bring greater manufacturing quality along in its wake. As the rest of the year unfolds, I’m sure we’ll continue to see new trends, solutions and issues that will surprise us and continue to change the trajectory of manufacturing quality. The only constant is change, but anticipating the change and planning accordingly is how quality will always prevail.
How are your predictions stacking up? We’d love to hear from you. Please reach out to emarketing@etq.com.
