StockNews.AI
III
StockNews.AI
201 days

AI and ML Shake Up North American Manufacturing

1. North American manufacturers are investing in digital technologies and AI. 2. Companies are changing their business models to include services like asset-as-a-service. 3. There’s a growing emphasis on cybersecurity for operational technology systems. 4. Supply chain resilience is prioritized through advanced analytics and cloud technologies.

9m saved
Insight
Article

FAQ

Why Bullish?

Increased investments in technology and AI should positively influence ISG's service demand.

How important is it?

The report highlights trends affecting ISG's core service areas that could influence demand.

Why Long Term?

Sustained focus on digital transformation indicates long-lasting growth potential for ISG.

Related Companies

ISG
STAMFORD, Conn.--(BUSINESS WIRE)--Manufacturing enterprises in North America are investing in new technologies and services to compete during a period of significant change, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm. The 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for North America says economic shifts, evolving customer expectations and advancements in technology are forcing companies to adapt or replace traditional approaches to product design and production. Many are changing the way they run factories, optimizing supply chains, increasing sustainability and integrating after-sales services into their business models. “North American manufacturers have embraced the factory of the future,” said Bob Krohn, partner at ISG. “Working with service providers, many companies are using AI and the cloud to make production systems more efficient and resilient.” Companies in the region are aggressively investing in digital technologies, especially AI and ML, for product design and production, ISG says. Under pressure to bring new products to market faster, manufacturers are using AI-enabled tools for more efficient design and rapid prototyping. Generative AI platforms are already in use at some companies, streamlining product design and engineering. To increase both revenue and customer satisfaction, North American manufacturers are introducing services alongside or instead of traditional products, the report says. They are partnering with service providers to implement business models that may include offering subscription, pay-per-use and asset-as-a-service options. An increasing focus on after-sales servicing, repairs and condition monitoring can also help companies extend product life cycles. Growing cybersecurity threats and data privacy regulation have made security a major focus for manufacturers, ISG says. In North America, they are especially focused on the cybersecurity of critical infrastructure. Most operational technology (OT) systems are outdated and lack built-in security, while OT networks are becoming more complex and harder to protect as they incorporate new kinds of devices. Manufacturing supply chains have gone from one disruption to another in recent years, from COVID-19 to wars and increased tariffs, so North American manufacturers are investing in new technologies and strategies to gain resilience, the report says. To predict and avoid disruptions, they are adopting cloud-based supply chain management, advanced analytics, real-time IoT tracking and AI-enabled optimization. Moving production to closer countries, such as Mexico, is also part of manufacturers’ playbooks. “The changes of the past several years have spurred manufacturers into action,“ said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Digital transformation and a culture of continuous improvement can position them for long-term success.” The report also explores other manufacturing industry trends in North America, including the growing use of AI in employee training and an increasing focus on sustainability in response to regulatory and investor pressures. For more insights into the challenges faced by North American manufacturing companies, including laying the groundwork for effective use of AI and attracting skilled workers currently drawn to the IT industry, plus ISG’s advice on addressing these issues, see the ISG Provider Lens™ Focal Points briefing here. The 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for North America evaluates the capabilities of 35 providers across five quadrants: Product Design and Development Services, Smart/Digital Factory Solutions, Manufacturing Supply Chain and Procurement Services, Aftermarket Services and Industry Transformation Services. The report names Accenture, Capgemini, Cognizant, HCLTech, IBM Consulting, Infosys, TCS and Wipro as Leaders in all five quadrants. It names Deloitte, NTT DATA and Tech Mahindra as Leaders in three quadrants each. Akkodis, EY, HARMAN, LTIMindtree and LTTS are named as Leaders in two quadrants each. Genpact and PwC are named as Leaders in one quadrant each. In addition, Akkodis, Cyient, Hexaware, Hitachi Digital Services, Kyndryl and NTT DATA are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each. In the area of customer experience, Capgemini is named the global ISG CX Star Performer for 2024 among Manufacturing Industry Services and Solutions providers. Capgemini earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. A customized version of the report is available from LTTS. The 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for North America is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens™ Research The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. About ISG ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Related News