products and services in their capital allocation strategy .
• 57 % of manufacturing leaders admitted to investing in organic growth initiatives and M & A to improve technology , as well as expand their product or services . It also offers a group of initiatives to start deploying AI in a way that addresses those challenges .
“ First , we started by understanding the challenges to deployment ,” says Alison . “ Only by recognising the specific issues of a sector can we propose an effective solution .”
For industrial companies EY found the dimensions of differentiation to be around the supply chain , strategy , people and IT .
“ The crux of the challenges across these four dimensions has to do with manufacturers often having rigid structures , organisationally and of incentives , that leads the decision path to become the one with less risks to finance and operations in the short term ,” Alison adds . “ The consequence is holding off forward looking investments , with less transparent immediate ROI , until it may be too late .”
108 July 2024