As we approach the end of 2023, it’s essential to look ahead at the technology-driven industry trends that will shape 2024. While we’re not anticipating a year of revolutionary change, 2024 will be a year of consolidation and further adaptation to technology for businesses. Companies that have already embraced core technologies, both physical and virtual, will solidify their business stability and offer enhanced value to their customers. Here are some specific predictions for the upcoming year:
1. Increased Use of Artificial Intelligence (AI) and Machine Learning (ML) by Operational Teams: CHATGPT and other AI advancements have raised expectations and sparked exploration. In 2024, we will see operational teams increasingly harness AI and ML to gain insights that drive productivity, boost profitability, and increase revenue. A platform-centric and composable approach will be favored, ensuring ongoing improvements.
2. Collaboration and Interoperability Are Essential: Real-world disruptions in supply chains have raised operational and financial risks. Companies will recognize that fighting for lower supplier pricing often leads to unintended consequences. Collaborative and interoperable solutions are no longer optional for delivering exceptional customer service and managing supply chain complexities.
3. Servitization Will Unlock New Market Opportunities: The success of “as a service” concepts in the electric vehicle sector will drive a similar transition in machinery and equipment manufacturing. Companies will offer traditional and electric equipment as services, while also focusing on sustainability and the circular economy. This approach will provide valuable operational data, deepening the understanding of product usage for future improvements.
4. Near-Shoring and Friend-Shoring on the Rise: Near-shoring and friend-shoring practices will continue to grow. While initial costs may appear higher than traditional outsourcing, the holistic view of expenses, including inventory, transport, and quality costs, makes these approaches cost-competitive. Additionally, they offer increased flexibility and risk mitigation in supply chain management.
5. Additive Manufacturing Finds Its Niche: Additive manufacturing, commonly known as 3D printing, will find specific applications that align with its capabilities. To be effective, there must be high-definition, closed-loop data flows across research and development, new product introduction, manufacturing, and quality control. Organizations will gain confidence in the suitability of 3D printing for specific tasks and materials.
6. Augmentation of Business Activities for Platform-Centric Companies: Organizations that have already built foundational platform capabilities will find more opportunities to augment business activities in 2024. A non-fragile approach will maximize the benefits of technology integration.
For companies not yet on this path, now is the ideal time to start. While cash may remain more costly, industries with slightly suppressed customer demand have a unique opportunity to make necessary changes. History has shown that those who embrace change come out ahead in the long run.