CGI: Highlighting the Importance of Data in Manufacturing
In a volatile economic landscape, manufacturers are strategically focusing on cost optimisation and business model adaptation to ensure long-term resilience.
Simultaneously, sustainability has emerged as a critical priority, while AI is poised to accelerate fundamental operational transformation.
In a bid to understand their top priorities, as well as how they are preparing for and adapting to the key trends shaping their organisations, IT consultant CGI spoke to more than 200 manufacturing executives from its client base for the Voice of Our Clients 2024 analysis.
Leaders identified the following as business and IT priorities:
Business priorities
- Expanding footprint through diversification and market growth
- Focusing on cost control and optimisation
- Enabling smart manufacturing through data and digital continuity
IT priorities
- Accelerating digital transformation across the organisation for digital continuity
- Offering stable and secure IT/OT
- Consolidating, streamlining and modernising the IT landscape
Data-driven decision-making ‘essential’
CGI discovered from its conversations with executives that the focus on data-driven decision-making has deepened, with a significant majority (90%) revealing operational decision-making as their top data priority.
However, it appears more data groundwork is needed. While more than three-quarters (79%) of manufacturing leaders are exploring generative AI (Gen AI) and traditional AI implementations are up, just 14% have a highly-mature data strategy.
Helena Jochberger, VP Corporate Services and Global Lead for Manufacturing at CGI, claims manufacturers must build a strong data foundation to truly unlock the benefits of AI.
“Data-driven decision-making is essential and requires a comprehensive data strategy, robust governance and improving data maturity across the organisation,” explains Helena.
“Unfortunately, many manufacturers still struggle with legacy systems, which are often a major barrier to digitisation. Modernising these legacy systems is crucial, whether that means migrating to cloud-based solutions or optimising existing application portfolios.
“In North America, for example, we’re seeing companies plan significant upgrades to their application landscapes over the next two years. This modernisation is key to creating a more flexible, scalable approach to data management that can support real-time, insight-led decision-making."
The importance of strategic partnerships
Elsewhere, strategic partnerships emerged during CGI’s analysis as a key factor for growth, with Helena describing them as “more important than ever”.
Researchers detected a discernible shift from numerous, smaller partnerships to fewer but more strategic alliances, particularly in areas like defence and commercial manufacturing.
In fact, across the board, organisations are seeking deeper and stronger strategic relationships, with 84% of clients having 10 or fewer strategic external partners.
“The geopolitical environment is influencing this trend, with the Russia-Ukraine conflict and expansion of NATO to include new members like Sweden and Finland, reshaping the landscape,” continues Helena. “In defence, this means enhanced collaboration for data sharing and systems interoperability, which is crucial for long-lifespan assets like ships and aircraft.
“In commercial sectors like automotive, initiatives like Catena-X are forming to enable more effective data-sharing ecosystems. These partnerships drive resilience by allowing companies to anticipate and react to market changes or supply chain disruptions more effectively.”
AI remains top trend
Unsurprisingly, CGI’s research saw AI come out as the top emerging macro trend overall, but priorities varied at a sub-industry level.
Aerospace executives, for example, cited accelerated defence production as a top emerging macro trend, while the metals and mining and pulp and paper industries highlighted climate change (89%) and sustainability (80%).
Automotive manufacturers said they were most impacted by technology acceleration (79%), yet lead in producing expected results from digital strategies.
Focusing on AI and its more advanced offshoot, Gen AI, Helena adds: “Gen AI is a hot topic. In fact, our Voice of Our Clients research reveals that nearly 80% of manufacturing executives are exploring its use. Adoption is still in its early stages, but there's strong recognition of its potential to transform operations, especially in optimising core processes, customer service and R&D.
“However, it's not just about implementing AI for the sake of innovation. There are real challenges around ensuring responsible use of AI and meeting regulatory requirements. That’s why we're seeing a strong emphasis on explainable AI, data governance and establishing AI councils or guidelines to oversee adoption and use. Companies are being cautious to avoid any unintended consequences.”
CGI’s recommendations for driving innovation
CGI offers six recommendations for companies looking to improve data and operations to drive innovation:
- Build a solid data foundation to turn data into actionable insights that deliver business outcomes.
- Build resilient and agile supply chains to prepare for opportunity and growth.
- Optimise your IT landscape while leveraging managed services to drive down costs.
- Strengthen IT-business alignment to maximise diversification opportunities and quickly respond to change.
- Analyse AI use cases to identify opportunities that support optimisation and innovation.
- Implement an end-to-end IT-OT security strategy to continue securing and safeguarding the business.
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