IIC Journal of Innovation 6th Edition - Page 7

How Democratized Artificial Intelligence Can Move Manufacturing to a New Evolution Pace Many transformations provide opportunities for manufacturing companies to differentiate themselves from the competition. Threats are introduced by opening the door to new entrants in businesses that had been considered strong fortresses for many years. The current challenge facing operations across the globe can be summarized as follows: Make an increasing variety of products, on shorter lead times with smaller runs, but with flawless quality. Improve our return on our investment by automating and introducing new technology in processes and materials so we can cut prices to meet local and foreign demand. Mechanize – but keep your schedules flexible, your inventories low, your capital costs minimal, and your work force contented. A few years ago, it was not imaginable to have new Dr. John Carrier, System Dynamics Group at the MIT Sloan School entrant in the aerospace market such as SpaceX 3 ; and a new A RTIFICIAL I NTELLIGENCE IS B ECOMING automaker entering from scratch in just a A K EY T ECHNOLOGY FOR few years, as Tesla accomplished. But those M ANUFACTURING technology and business successes and subsequent disruption already happened in In the short introduction above, you have other legacy industries including Amazon®, read some keywords: real-time, anticipation, Google®, Netflix®, Easyjet®, Paypal®, Uber® simplification, trustable, connected, and AirB&B®. Learning from large volumes learning, data, fast, next best action. of data captured from the field was a key That is where Artificial Intelligence (AI) and driver of making those changes a success. other emerging technologies are looking to Manufacturing companies have to move help to achieve excellence. AI helps to adjust fast to learn from data and adapt their the execution level from awareness, to pace of evolution to avoid having new guided, to autonomous thinking and acting entrants becoming leaders in their own on, more and more, the operations that industry domain (from 1955, only 12% of must be executed. brick and mortar companies are still in the Fortune 500) 4 . AI is a scientific domain historically preserved for researchers, data scientists, and large companies, and in most of the cases, very difficult to implement in real-life 3 https://disruptionhub.com/disruption-aerospace-industry/ 4 http://www.aei.org/publication/fortune-500-firms-1955-v-2016-only-12-remain-thanks-to-the-creative-destruction-that- fuels-economic-prosperity/ - 6 - November 2017