Jabil's Manufacturing Leap
strategy+business|Winter 2019
How one of the biggest companies you’ve never heard of may create the future of manufacturing.
Richard D’Aveni
Jabil's Manufacturing Leap

To understand the future of manufacturing, you have to look at the past. Until the early 20th century, most factories were powered by steam. Enormous central steam engines drove massive shafts, which in turn sent power to individual cutting and shaping machines through elaborate belts and gears. Then came electricity, and most companies replaced their steam engines with electric motors. The rest of the factory — all the shafts, belts, and gears — kept working as before, just with a different power source.

Of course, the factories would have been much more efficient if the companies had seized the moment and replaced that single central motor with individual motors throughout the plant. They could then have revamped the factory to ease production flows as well. But that would have involved redesigning the entire factory layout, an expensive and conceptually radical proposition that many factory owners didn’t even know was possible. What followed instead were decades of slow but steady plant reorganization as the masters of industry sorted out how best to realize the full potential of electric power.

Flash forward to today, and the same issue is present in most versions of Industry 4.0, as the convergence of digital technology innovations in the energy and manufacturing sectors is known. Companies are investing in artificial intelligence (AI), the sensors and connected devices of the Internet of Things, 3D printers, and other advanced manufacturing and supply chain technologies. But they’re keeping the traditional assembly line, complex supply chains, and other long-standing practices intact. The industry is still essentially in a transitional period in which companies are learning about the new technologies and figuring out how best to integrate them into production. With experience, they will gradually drop their current approaches, bringing Industry 4.0 to a new stage and transforming manufacturing altogether.

Denne historien er fra Winter 2019-utgaven av strategy+business.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra Winter 2019-utgaven av strategy+business.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA STRATEGY+BUSINESSSe alt
Transforming information into insight
strategy+business

Transforming information into insight

Focus on six organizational elements to build a world-class data and insights capability.

time-read
8 mins  |
Winter 2020
THE URGENT NEED FOR SOPHISTICATED LEADERSHIP
strategy+business

THE URGENT NEED FOR SOPHISTICATED LEADERSHIP

The pandemic has highlighted a series of paradoxes inherent to the work of leaders. What comes next will depend on how well leaders face up to them.

time-read
10+ mins  |
Winter 2020
The road to successful change is lined with trade-offs
strategy+business

The road to successful change is lined with trade-offs

Rather than trying to convince people your change initiative is the right one, invite them to talk openly about what it might take to implement it: the good, the bad, and the frustrating.

time-read
10+ mins  |
Winter 2020
Sustaining productivity virtually
strategy+business

Sustaining productivity virtually

Maintaining productivity levels among remote employees is an enduring challenge. Here are five ways to help businesses and employees thrive while people work at home.

time-read
7 mins  |
Winter 2020
FORWARD TO normal
strategy+business

FORWARD TO normal

Entertainment and media companies are building business models that are resilient to the enduring changes in consumer behavior ushered in by COVID-19.

time-read
10+ mins  |
Winter 2020
How leaders can promote racial justice in the workplace
strategy+business

How leaders can promote racial justice in the workplace

Embrace four principles to turn today’s diversity, equity, and inclusion initiatives into sustained progress.

time-read
9 mins  |
Winter 2020
CREATING THE OFFICE OF THE FUTURE
strategy+business

CREATING THE OFFICE OF THE FUTURE

In a remodeled world, it is vital for companies to reinvent ways of working.

time-read
10+ mins  |
Winter 2020
Consumer companies must take leaps, not steps
strategy+business

Consumer companies must take leaps, not steps

As shoppers show how quickly they can adapt to external shocks, retailers will need to radically reconfigure their business models.

time-read
7 mins  |
Winter 2020
Businesses can fast-track innovation to help during a crisis
strategy+business

Businesses can fast-track innovation to help during a crisis

“Unrealistic” timelines can actually work. Here’s how.

time-read
5 mins  |
Winter 2020
Agility and experience management work better together
strategy+business

Agility and experience management work better together

Many companies achieve early wins with separate transformational efforts, then stall. But if combined and enhanced using “return on experience,” or ROX, measures, these two programs can unlock each other’s potential.

time-read
7 mins  |
Winter 2020