Winning the Race for Survival: How Advanced Manufacturing Technologies Are Driving Business-Model Innovation

Abstract

The shock brought by the pandemic is liberating firms to make numerous experiments. Some will fail, while others will succeed. This creates a tipping point for a long overdue conversation about new business models in advanced manufacturing and supply chains. As organizations settle into either a new normal or plan their return to pre-pandemic operations, the question rises as to whether firms will “snap back” to normal or settle on some new equilibrium. We may be on the precipice of “Operational Darwinism”, wherein mere reductions in costs may not be enough to compete against leaders who make manufacturing a rapid and key part of their digital innovation edge. In this paper, we explore what new business models might look like and how they are likely to interact with both existing operating and business models in the context of the new normal brought about by the pandemic.