Exponential technologies in manufacturing Transforming the future of manufacturing through technology, talent, and the innovation ecosystem Brochure / report title goes here | Section title goes here 2 Brochure / report title goes here | Section title goes here Introduction 4 Transforming the future of manufacturing: 8 Technology, talent, and the innovation ecosystem Exponential manufacturing technologies: A deep dive 26 Call to action 54 Authors and acknowledgments 56 Endnotes 57 3 Exponential technologies in manufacturing Introduction List of interviewees/executive participants The manufacturing industry as we know it Dr. Kevin Shaw Steve Chadwick is fundamentally changing, with advanced Faculty, Networks and Computing, Principal Engineer in Manufacturing IT Internet of Things and Sensors Intel Corporation technologies increasingly underpinning Singularity University global competitiveness and economic Chief Technology Officer John (Jay) B. Rogers, Jr. prosperity. Many leading 21st-century and Co-Founder CEO and Co-Founder manufacturers are converging digital and Algorithmic Intuition Inc. LM Industries, Inc. physical worlds in which sophisticated Andre Wegner Jeffrey J. Wilcox hardware combined with innovative Chair, Digital Manufacturing Vice President, Engineering software, sensors, and massive amounts Singularity University and Program Operations of data and analytics is expected to CEO Lockheed Martin Corporation Authentise produce smarter products, more efficient Jim Phillips processes, and more closely connected Dr. Greg Hyslop Chairman of the Board and CEO customers, suppliers, and manufacturers. Senior Vice President NanoMech Boeing Engineering, Test & Technology Chief Technology Officer Dr. Davide Venturelli As growing numbers of manufacturing The Boeing Company Adjunct Faculty, Quantum Computing companies look to embark on this Singularity University transformative journey and navigate Nathana O’Brien Sharma Quantum Computing Team Lead through a maze of challenges Program Director for Faculty Affairs and Science Operations Manager Faculty, Law, Policy, Ethics and Blockchain USRA Quantum AI Laboratory and opportunities, executives— Singularity University NASA Ames understandably—have questions: What Partner exponential technologies show the Crypto Lotus, LLC Dr. Mehmood Khan Vice Chairman and Chief Scientific most promise? What is the magnitude Dr. Klaus G. Hoehn Officer of impact that can be expected from Vice President, Advanced Technology Global Research and Development adopting and deploying these exponential and Engineering PepsiCo, Inc. technologies? How is the manufacturing Deere & Company Samuel Bouchard industry leveraging these technologies Dr. Lloyd Colegrove CEO and Co-Founder in new and distinctive ways to solve Director, Data Services Robotiq current business issues and/or transform and Fundamental Problem Solving, our future? What does it really mean Continuous Improvement Center Keren Elazari of Excellence Faculty, Cybersecurity to become a Digital Manufacturing The Dow Chemical Company Singularity University Enterprise (DME) of the future, and how might our business model evolve? How Henry Cialone Aaron Frank do we move toward our future vision President and CEO Principal Faculty, AR/VR EWI Singularity University without fundamentally disrupting what we do today? What challenges do we face Shyam Krishnaswamy Ramez Naam and what incentives will we need to drive Senior Manager, Corporate Strategy, Co-Chair, Energy & Environmental change throughout our organization and Innovation and Sustainability Systems Exelon Corporation Singularity University broader ecosystem? Raymond McCauley Dr. Tiffany Vora To better qualify such challenges, provide Chair, Digital Biology Vice-Chair, Medicine and Digital Biology Singularity University Singularity University a reality check in separating substance Principal from hype, and highlight opportunities Exponential Biosciences Neil Jacobstein for manufacturers to embrace Chair, Artificial Intelligence and Robotics exponentials to drive future competitive Michael Vergalla Singularity University Faculty, Robotics, Space and Digital Distinguished Visiting Scholar, MediaX advantage, Deloitte collaborated Manufacturing Stanford University with the Council on Competitiveness Singularity University and Singularity University (SU) to Founder and Lead Researcher Dr. J. Michael McQuade conduct the Exponential Technologies Free Flight Research Lab Senior Vice President, Science and Technology in Manufacturing study, and share the Michelle Bockman United Technologies Corporation resulting insights in this publication. Global Head of 3D Printing Commercial Development and Expansion William Sobel HP, Inc. Chair, Technical Steering Committee MTConnect Institute 4 Chief Strategy Officer VIMANA Exponential technologies in manufacturing About this study The Exponential Technologies in Manufacturing study explores how exponential technologies are transforming the future of manufacturing and how global manufacturing companies can best tap into this disruptive shift to evolve, grow, and thrive. Exponential technologies are those that enable change at a rapidly accelerating, nonlinear pace facilitated by substantial progress (and cost reduction) in areas such as computing power, bandwidth, and data storage. Between May 2017 and December 2017, senior leaders at Deloitte held discussions with more than two dozen senior executives (chief executive officers, presidents, chief technical officers, chief research officers) and subject matter experts (SMEs) at some of the world’s largest manufacturing organizations, Singularity University, and several small technology start-ups. These companies—both public and private enterprises—represent large swaths of manufacturing employment, including diversified manufacturing, chemicals and specialty materials, process and industrial products, consumer products, automotive, aerospace and defense, technology, and life sciences. Participating companies included members from the Council on Competitiveness—such as Deere & Company, Intel, PepsiCo, Lockheed Martin, NanoMech, Boeing, United Technologies Corporation, and Exelon Corp.—as well as others, including Robotiq, Dow Chemical, Hewlett-Packard, and Local Motors, to capture the voices of the manufacturing industry and technology domain experts. The interviews were conducted on an individual basis, often face-to-face in the executive’s office, but sometimes by telephone. These hour-long dialogues sought the executives’ perspectives on: How exponential technologies are How exponential technologies How manufacturers can delivering real impact and value are shaping company strategy mitigate risks and realize the for manufacturing enterprises and new business models potential promise, application, and rewards of adopting these exponential technologies The interviews were supplemented with detailed perspectives written by SMEs from a dozen technology domains and comprehensive secondary research of data from respected think tanks, key academic institutions, and industry literature. The study aligns with Deloitte’s mission to address industry’s greatest challenges and drive lasting impact; with Singularity University’s core mission to educate, inspire, and empower leaders to apply exponential technologies to address humanity's grand challenges; and with the Council on Competitiveness’s mission to drive long-term productivity and economic growth and increase the living standards for every American. 5 Exponential technologies in manufacturing Key findings and insights from the Exponential Technologies in Manufacturing study Among the exponential technologies that can enable transformational growth in manufacturing are: 3D printing (additive manufacturing); advanced analytics; advanced materials; advanced robotics; artificial intelligence (AI) (including machine learning); biotechnology/ biomanufacturing; blockchain; Talent continues to be a key cybersecurity; digital design, simulation, competitive differentiator within and integration energy storage; high the manufacturing industry. Yet performance computing; Interface of talent shortages and the need Things (AR/VR/Mixed reality, wearables, for new skill sets remain a critical gesture recognition); Internet of Things issue across the globe. Attracting (IoT) (deep dive technology section, and retaining top talent and page 26). exploring new approaches to accessing talent will become more important than ever (page 16). There is a clear and compelling Innovation enabled by exponential Exponential technologies are case for manufacturers to leverage technologies can help manufacturers also dramatically changing exponential technologies and grow faster, be more agile, and the “what” (technology and incorporate digital transformation unlock new forms of value (page 15). automation), “who” (talent and throughout their organization (page But while exponential technologies’ the open talent continuum), 10). The fourth industrial revolution roles are more important than ever, and “where” (workplaces, is enabling unprecedented change, the pace of their adoption is seen as physical location) of work across and the pace of this change is no relatively slow among manufacturers. manufacturing organizations longer incremental; it is exponential, Interviewed executives cite several (page 18). As manufacturers look disruptive, and nonlinear. It is barriers, including structural and to increase their pace of change imperative that manufacturers quickly cultural challenges, regulatory