SINGAPORE - In partnership with the Advanced Remanufacturing and Technology Centre (ARTC), McKinsey & Company launched a digital capability centre (DCC) on Thursday as a key hub for Southeast Asian companies.
Part of a global network of five DCCs, the centre will help firms harness the powerful emerging technological changes - known as Industry 4.0 - that are disrupting industries across the world.
"Disruption is now a daily reality for companies; yet today's world of rapid technological change also presents opportunities for leaders to seize," said Dominic Barton, Global Managing Partner, McKinsey & Company.
"To realize the benefits of this disruptive change, even the most successful organisations must continually reinvent themselves, and McKinsey's network of digital capability centres have been designed with this challenge in mind," he added.
The new technologies that come with Industry 4.0 will undeniably upend traditional manufacturing efficiency standards.
McKinsey's survey of 300 manufacturing leaders found that nine out of ten believe Industry 4.0 will alter their operational effectiveness. Despite its potential advantages, only 48 per cent of manufacturers think they are ready for Industry 4.0, said McKinsey.
The DCC network aims to help companies meet the demand of the new disruptions and to support them at every stage of their digital transformation journey.
The centres will present examples of real enterprises that are adopting new technologies - DCC Singapore simulates a gearbox manufacturer with S$2 billion in revenue and 8000 employees.
Companies can also explore over 20 themes related to Industry 4.0. For example, a showcase on predictive maintenance will demonstrate how using real-time data to predict and prevent breakdowns can reduce downtime by up to 50 per cent, said McKinsey.
The DCCs will also provide experiential capability building workshops which will equip workers with the skills to take on digital transformations in the various sectors.
The Singapore facility is in line with the nation's increased focus on becoming a regional hub for advanced manufacturing.
"Working with McKinsey in demonstrating digital capabilities in advanced manufacturing is an important journey where we bring together the best of minds from both organisations as well as from our industry members in developing and demonstrating what the future in advanced manufacturing can be and the benefits when implemented," said David Low, chief executive of ARTC.