The Value of Digitizing Manufacturing Environments

Abstract

There is significant variability and dispute around the value of digitally transformed manufacturing environments and no single methodology is broadly accepted. The variability stems from time-dependencies, implementation effectiveness, and the dynamic environments digital solutions are deployed in. However, an accurate accounting of this value is essential to company strategic planning. The research outlines how to approach this variability, cost parameters to consider, primary sources of value generation, and best practices for implementing Smart Factories. A tool that addresses these issues was successfully developed and deployed at Stanley Black & Decker, helping the company to assess performance of the digitization efforts and tailor the delivered solution to optimize manufacturing performance. Results from this tool showed a positive expected return on investment and are provided to contextualize efforts in similar areas.