1、CLOUD RADARMANUFACTURING INDUSTRY REPORT2|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Knowledge InstituteContentsExecutive summary 5Cloud works for design and R&D 8Cloud-powered generative design 9Cloud in manufacturing 10Cloud in aftermarket 11Manufacturing cloud

2、 spending a bit below average 12A decade on,cloud has changed 14Industry cloud 16Sophisticated clouds bring new challenges 17Recommendations 19Appendix:Research approach 20Knowledge InstituteCloud Radar:Manufacturing Industry Report|3External Document 2024 Infosys Limited Knowledge Institute4|Cloud

3、Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Cloud computing has moved up the product value chain for manufacturing.The most popular use cases for cloud are essential research,development,and new product design.Companies unlock innovative capabilities on cloud,yet they m

4、ust also navigate challenges such as cost,security,and governance.New product development has long been a strategic activity in the product life cycle(Figure 1).Pandemic-induced shutdowns in 2020 drove manufacturers to shift to cloud-based product development and remote collaboration.This shift was

5、both immediate and substantial.Infosys Cloud Radar 2021 Executive summaryranked cloud-based engineering and product development as the industrys second most popular cloud computing use case,behind quality control visibility.“There is a narrow window of opportunity for manufacturers to reimagine busi

6、ness and harvest todays opportunities to thrive tomorrow,”says Jasmeet Singh,executive vice president and global head of manufacturing at Infosys.“With end products becoming more software-intensive,connected and sophisticated,manufacturers are accelerating digital engineering to innovate and disrupt

7、,while drawing on the efficiencies and flexibility offered by cloud.”Knowledge InstituteCloud Radar:Manufacturing Industry Report|5External Document 2024 Infosys Limited 6|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Knowledge InstituteFigure 1.Cloud-based product

8、life cycle:from engineering to manufacturing toaftermarketSource:Infosys Knowledge InstituteCADPLMCAEIoTCRMCAMMESERPAMSDesign engineerManufacturing engineerService engineerDesign to engineerEngineer to manufactureAftermarketMES Manufacturing execution systemAMS Asset management systemIoT Internet of

9、 thingsERP Enterprise resource planningCAD Computer-aided designCAE Computer-aided engineeringPLM Product lifecycle managementCAM Computer-aided manufacturingNew product development is currently grappling with supply chain and talent challenges.These issues contribute significantly to model launch d

10、elays,especially in the automotive sector.Thirty-four percent of vehicle launches in 2023 experienced production delays,a nearly seven-fold increase from 5%in 2018.Vehicle electrification and emerging technologies such as sensors increase complexity in ways beyond typical supply chain and talent iss

11、ues.Cloud-based engineering mitigates product development risks through a unified,secure platform for visibility,collaboration,and timely alerts.In Infosys Cloud Radars latest research report,research and development(R&D),and product development has emerged as the highest-ranked use case for cloud c

12、omputing in manufacturing and automotive.Beyond new product development,industrial executives move to cloud for growth and transformation,specifically to integrate acquisitions or subsidiaries,access new technologies,enable new revenue streams or products,and update outdated systems(Figure 2).Manufa

13、cturers hesitate to invest in cloud systems for mature functions like testing and quality control.Instead,they prioritize cloud for system integration across the enterprise.Cloud Radar:Manufacturing Industry Report|7External Document 2024 Infosys Limited Knowledge InstituteFigure 2.Companies want gr

14、owth and transformation from cloud“Cloud has become the locus for innovation and collaboration among manufacturers,”says Anant Adya,executive vice president for Infosys Cobalt.“From design and engineering phases all the way to supply chain management,companies can operate with more clarity and adjus

15、t rapidly to changing business environments.”“Cloud technologies offer tremendous opportunity for product design and manufacturing.This is accomplished through virtually unlimited cloud storage,high-performance computing,and global scale,”says Wendy Bauer,vice president and general manager of automo

16、tive and manufacturing at AWS.“Working collaboratively with customers and implementation partners,the industrial sector is on the precipice of unlocking the next evolution in modern manufacturing and is realizing the benefits of infusing cloud technology for a better customer experience.”Source:Info

17、sys Knowledge InstituteGrowth and transformation initiatives emerged as the highest-ranked use cases for cloud computing in manufacturing.We asked:Why has your company moved to cloud?Integrate business subsidiaries or acquisitions,16%Access industry-specifc capabilities,12%Connect to external data s

18、ources,collaboration tools,and partners,10%Reduce costs,5%Reduce greenhouse gas emissions,3%Access new technology or software development capabilities,17%Enable a new revenue stream or product,16%Replace or update systems,18%Cloud works for design and R&DCarrier is a leading manufacturer of HVAC sys

19、tems,and the company has a deceptively complex ecosystem to procure,design,build,distribute,install,and maintain its offerings.Their ecosystem includes dozens of engineering applications with more than 3,000 global users,tightly integrated with other enterprise systems.This Infosys client needed an

20、engineering digital thread to connect its manufacturing data structures,while protecting and maintaining its engineering assets.Product innovation tool enhancement was also needed,while updating and extending primary engineeringtools.Carrier migrated its engineering tools from on-premises to AWS clo

21、ud,achieving operational,security,reliability,performance,and cost targets.The new system reduced costs by 40%and provided flexibility to scale up or down,with a 50%performance improvement for specific use cases.Knowledge Institute8|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Inf

22、osys Limited Cloud Radar:Manufacturing Industry Report|9External Document 2024 Infosys Limited Knowledge InstituteCloud-powered generative designGenerative design offers manufacturers the ability to generate hundreds of different design options based on constraints selected by the user,such as mater

23、ial type,weight,cost,and manufacturing methods.Enhancing those capabilities via the cloud increases manufacturer productivity and accelerates time-to-market by optimizing work definition and streamlining task execution.PIX Moving is the innovative partner of Autodesk and UC Berkley,becoming the next

24、 generation of smart vehicle production,specializing in autonomous mobility device and vehicle design.The firm used Autodesk generative design(via AWS cloud)to create its Robobus,which uses its famous“ultra-skateboard design”as the cornerstone of smart vehicle production at scale.This autonomous dri

25、ving vehicle is equipped with a customizable interior,which customers design according to their needs.PIX Moving markets Robobus to retailers and enterprises with custom requirements,with use cases ranging from mobile cafes and yogurt stores to on-demand offices.Designing Robobus presented unique ch

26、allenges;PIX Moving needed to balance weight and structural strength and to optimize the bus interior to maximize space.Using generative design,the company overcame these obstacles and produced Robobuss interior decoration in less than two months.Generative design only scratches the surface,however.

27、With the power of generative AI,manufacturers can apply additional technology across their processes and operating models to unlock rich data insights.They can then optimize product feature road maps,supply chains,and even end-customer experiences.Cloud Radar:Manufacturing Industry Report|9External

28、Document 2024 Infosys Limited Knowledge InstituteIn 2016,computer hard drive manufacturer Western Digital acquired Hitachi GST and SanDisk.That meant merging three different cultures,three heavily customized enterprise resource planning(ERP)systems,three data sources,and three thousand applications

29、across manufacturing,supply chain,planning,and finance departments.Regardless of the underlying post-merger integration complexity,Western Digital needed to maintain its agility during and post-acquisition.This required Western Digital to harmonize and standardize processes across these three Fortun

30、e 500-sized companies,and cloud-first infrastructure improved accuracy and trust in the system.Cloud in manufacturingThis Infosys client used Oracle Fusion as its cloud-based ERP,and the initial program phases transitioned finance,indirect procurement,and order management functions to cloud for fina

31、ncial reporting.Later phases focused on transforming manufacturing,inventory operations,and intercompany finance across 10 manufacturing plants in five countries.The client realized faster time-to-market with reduced operations cost,enhanced collaboration,harmonized processes,and a single ERP system

32、.Knowledge Institute10|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Cloud Radar:Manufacturing Industry Report|11External Document 2024 Infosys Limited Knowledge InstituteElevator and escalator industry leader KONE,in its pursuit of new business streams,partnered wi

33、th Infosys to build a digital core on AWS cloud.Beyond traditional installations and servicing,KONE aimed to create novel customer experiences in the flow of urbanlife.Cloud in aftermarketThese experiences mirror our research findings.Companies surveyed say they are pleased with what cloud delivers.

34、Of 412 manufacturers and automotive companies surveyed by Infosys,73%say cloud migration efforts are very effective or extremely effective(Figure 3).This aligns with the sentiments of most large companies in our survey.Figure 3.Cloud migration initiatives are very effective or extremely effective fo

35、r 73%of respondentsSource:Infosys Knowledge Institute(N=412)Cloud Radar:Manufacturing Industry Report|11External Document 2024 Infosys Limited Knowledge InstituteExtremely efective or very efectiveModerately efective or lower27%Percentage of respondentsCloud migrationefectiveness73%Knowledge Institu

36、teKnowledge InstituteOur research found that manufacturers spend$30 million annually for cloud services,slightly less than our global average across industries(Figure 4).Manufacturing cloud spending a bit below averageKnowledge InstituteFigure 4.Average cloud spend comparison,with automotive and man

37、ufacturing slightly less than the global averageAverage cloud spend in millions($US)Automotive and manufacturingHealthcareEnergyBankingTelecommunicationsHigh techRetail and CPGIndustry$29$31$32$33$37$38$30Source:Infosys Knowledge Institute12|Cloud Radar:Manufacturing Industry ReportExternal Document

38、 2024 Infosys Limited Cloud Radar:Manufacturing Industry Report|13External Document 2024 Infosys Limited Knowledge InstituteManufacturers tell us they have increased cloud spending and that will continue in the year ahead(Figure 5).Two out of three respondents increased cloud spending in 2023,and fo

39、ur out of five will do so in the following year.This is in line with overall corporate cloud trends.As cloud systems develop additional capabilities,companies increasingly turn to cloud to replace outdated technologies and add new functionality.While manufacturers are ready to spend for new cloud,ma

40、ny arent using all the cloud they have already committed.Our survey found that manufacturers and automotive companies have consumed only 48%of their cloud commitments(Figure 6).Figure 5.Cloud spending continues to increaseFigure 6.Percentage of consumed cloud servicesSource:Infosys Knowledge Institu

41、teSource:Infosys Knowledge InstituteAutomotive and manufacturingAll industriesDecreasedStayed aboutthe sameIncreased2%3%33%29%65%68%DecreasedStay aboutthe sameIncreased1%0%20%19%80%80%How did your cloud spend changefrom last year?How will your cloud spend changefrom next year?Unutilized cloudcommitm

42、ents52%Cloudconsumed48%14|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Knowledge InstituteAmazon Web ServicesMicrosoft AzureGoogle Cloud Platform200620072008200920102011201220132014201520162017201820192020202120222023Prime era of cloud migration1%0%2%3%9%7%15%16%17

43、%12%6%5%3%2%1%0%Source:Infosys Knowledge Institute14|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Knowledge Institute14|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Figure 7.Initial cloud migration by yearThe nature of corporate c

44、loud has changed.Most companies,including manufacturers,began their cloud journey a decade ago.The prime era of initial cloud migration came in 2012-2014(Figure 7).Those first steps were typically about adding storage and replacing outdated tech infrastructure.Interestingly,cloud adoption wave among

45、 manufacturers surged a touch earlier.After little cloud uptake in its early years,manufacturers jumped to it in 2010.Some 9%of all migrations to AWS,Microsoft Azure or Google Cloud Platform in manufacturing and automotive began their migration that year.A decade on,cloud has changedCloud Radar:Manu

46、facturing Industry Report|15External Document 2024 Infosys Limited Knowledge InstituteFigure 8.The number of cloud service providers engagedSource:Infosys Knowledge InstituteManufacturing and automotiveOne,10%Two,9%Three,34%Five,11%More than fve,7%Four,29%Today,cloud is not about infrastructure or s

47、torage,and its a singular noun.Cloud is operated as multicloud,and most often hybrid multicloud.Manufacturers hire three to four cloud providers today.In 2021,Infosys found that most companies used two or three cloud providers,and 21%lived in a monocloud world(Figure 8).In 2023,the monocloud communi

48、ty for manufacturers is down to 10%.Thats actually still above the moncloud average for most industries.Industry cloudIndustries have unique nuances at each product life cycle stage,and addressing these requirements creates greater potential benefits from industry cloud platforms.Gartner notes that

49、these platforms address specific needs in vertical industry segments,where generic solutions fall short.IT and business functions have converged to tackle industry-specific challenges through cloud solutions.Here are a few examples.Cloud-based infrastructure.Engineering cloud technology orchestrates

50、 and integrates an organizations engineering functions.A large global elevator manufacturer,expanding both organically and through acquisitions,sought to consolidate its product data in a single product life cycle management(PLM)system with distributed file vaults worldwide.This Infosys client imple

51、mented a cloud-based infrastructure to host their product data in a single,consolidated PLM system.They scaled infrastructure on demand and reduced PLMs total cost of ownership by 30%.Standard parts duplication reduced by 25%across locations.Data warehouse on cloud.Toyotas vehicle data warehouse tra

52、cks all its cars manufactured in North America.Previously,Toyota operated an on-premises data warehouse that generated high maintenance costs and database technologies that were expensive,outdated,and not scalable.The client modernized its vehicle data warehouse by migrating to Amazons cloud-based o

53、ffering.Sustainability cloud.Investors and customers seek sustainable practices from solution providers.Enterprises prioritize sustainable operations,with their ERP as the system of record.Infosys leveraged SAPs tools to develop a solution to identify,track,predict,and refine carbon emissions and en

54、able organizations to make sustainable decisions.Knowledge Institute16|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Cloud Radar:Manufacturing Industry Report|17External Document 2024 Infosys Limited Knowledge InstituteSophisticated clouds bring new challengesCloud

55、technology performs well with sophisticated tasks,yet advancements introduce added complexity.Our research reveals that manufacturing cloud managers are generally confident Figure 9.The three factors cloud executives are least confident to managein running their systems.But they are least confident

56、in monitoring,predicting,and optimizing cloud costs(Figure 9).To control cost,firms review cloud applications,their usage,opportunities to consolidate and optimize underutilized instances.In addition to cost,sophisticated cloud systems open up new challenges for system security.Around 44%of manufact

57、uring respondents allow any department head or IT manager to deploy new cloud infrastructure,software,or applications.While this might be considered lax from a security perspective,that must be balanced against the dynamic,changing demands placed upon manufacturers.Cloud applications must be designe

58、d for security from the start of the project,not as an after-thought.52%46%48%0102030405060Monitor costsPredict costsOptimize costsManufacturing and automotiveSource:Infosys Knowledge InstituteCloud Radar:Manufacturing Industry Report|17External Document 2024 Infosys Limited Knowledge Institute18|Cl

59、oud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Knowledge InstituteThe realm of cloud computing requires collaboration between business and IT stakeholders.Modern cloud requires many processes,tools,and people to work together smoothly,and that requires both technical a

60、nd strategic thinking.However,when we surveyed respondents over a range of critical cloud decisions,they indicated 43%of these decisions are made in isolation(Figure 10).In this new era,cloud saturates every aspect of the corporate enterprise.Cloud decisions need to involve business leaders,technolo

61、gists,and end users from initial stages for acceptance and successful adoption.Enterprises benefit the most when they extend cloud beyond storage and computing and deploy for strategic initiatives.Cloud aids all product life cycle stages for faster decision making and data monetization.Industry clou

62、ds are specialized versions of the technology.Migrating to industry clouds enables best practices across industries,as cloud vendors implement established approaches as cloud features.Figure 10.Responsibility for four major cloud decisions compliance,deploy/retire,purchase,securityCloud decisions43%

63、of cloud decisions are made in isolation26%17%56%Responsible partyIT aloneBusiness aloneIT and business jointlySource:Infosys Knowledge Institute(N=412)Migrating to industry clouds enables best practices with established approaches implemented as cloud features.Cloud Radar:Manufacturing Industry Rep

64、ort|19External Document 2024 Infosys Limited Knowledge InstituteRecommendationsManufacturing leaders can use cloud to improve their innovative applications through the following recommendations:During cloud migration,organizations should uphold an enterprise-wide,integrated life cycle perspective,as

65、 a siloed approach incurs high costs for design,implementation,and maintenance of integration between systems.Further,cloud migration that focuses on localized issues puts limits on interoperability.Along with the capability to scale rapidly,interoperability across systems and data sharing among sys

66、tems are key functions of cloud.Cloud interoperability and data sharing greatly enhance the ability to share information among partners and across supply chains.Cloud spending for engineering and manufacturing functions will plateau in short to medium term;growth lies in aftermarket for connected pr

67、oducts that tap into generated data streams.Aftermarket opens up revenue streams from the basic sale of spare parts,ongoing services such as maintenance and repair,to new business models.Infotainment and usage-based insurance are examples in the automotive industry.Connected products generate useful

68、 insights and build goodwill with users.This enhances loyalty and customer engagement in the near term,which potentially yields deeper insights into long-term product management and offerings.Business leaders must progress beyond generic cloud applications to niche,industry cloud applications to lev

69、erage best practices.Industry clouds are optimized for performance and cost.Organizations should reengineer their business processes to adapt industry cloud solutions,controlling costs of application customization,migration,training,and upgrades.An enterprise-wide cloud approach empowers organizatio

70、ns to offer end users customized cloud-based industry tools.The full power of cloud-driven technologies,combined with industry specialists expertise,enables companies to rapidly innovate and solve emerging business challenges at a 21st-century pace.Cloud Radar:Manufacturing Industry Report|19Externa

71、l Document 2024 Infosys Limited Knowledge Institute20|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Knowledge InstituteAppendix:Research approachQualitative interviewsTo enrich insights,we conducted phone interviews with more than 50 industry practitioners,executive

72、s,and subject matter experts.Quantitative surveySource:Infosys Knowledge InstituteSource:Infosys Knowledge InstituteRespondents by regionRespondents by industryAutomotive111Manufacturing301Healthcare403Telecommunications401Retail and CPG400Banking399Energy and utilities305High tech203US34%Australia

73、andNew Zealand11%UK20%France5%Germany20%Nordic countries(Norway,Sweden,Finland,Denmark,and Iceland)10%Cloud Radar:Manufacturing Industry Report|21External Document 2024 Infosys Limited Knowledge Institute22|Cloud Radar:Manufacturing Industry ReportExternal Document 2024 Infosys Limited Knowledge Ins

74、tituteAuthors Jeff Kavanaugh|Infosys Knowledge Institute,DallasChad Watt|Infosys Knowledge Institute,Dallas Ramachandran S|Infosys Knowledge Institute,BangaloreAbout Infosys Knowledge InstituteThe Infosys Knowledge Institute helps industry leaders develop a deeper understanding of business and techn

75、ology trends through compelling thought leadership.Our researchers and subject matter experts provide a fact base that aids decision making on critical business and technology issues.To view our research,visit Infosys Knowledge Institute at or email us at .Cloud Radar:Manufacturing Industry Report|2

76、3External Document 2024 Infosys Limited Knowledge InstituteKnowledge Institute 2024 Infosys Limited,Bengaluru,India.All Rights Reserved.Infosys believes the information in this document is accurate as of its publication date;such information is subject to change without notice.Infosys acknowledges t

77、he proprietary rights of other companies to the trademarks,product names and such other intellectual property rights mentioned in this document.Except as expressly permitted,neither this documentation nor any part of it may be reproduced,stored in a retrieval system,or transmitted in any form or by any means,electronic,mechanical,printing,photocopying,recording or otherwise,without the prior permission of Infosys Limited and/or any named intellectual property rights holders under this document.For more information,contact I|NYSE:INFYStay Connected