How to Become a Digital Champion in Manufacturing: A Practical Guide

Reinhard Geissbauer

Dr. Reinhard Geissbauer heads the Industrial Product Team and Supply Chain Management Services at PwC Management Consulting. With more than 18 years of hands‑on experience across multinational industrial equipment manufacturers, transportation firms, and automotive suppliers, he brings deep expertise in navigating the complexities of digital transformation.

Recently, I presented at an Industry 4.0 conference in Amberg, Germany, where 240 participants discussed the present state and future prospects of digital manufacturing in German industry. The discussions reinforced a clear reality: the pace of change has accelerated dramatically, and every company—from global conglomerates to SMEs—must adopt a robust Industry 4.0 strategy to stay competitive.

Current State of Industry 4.0 in German Manufacturing

Our latest survey shows that 20 % of respondents already have highly digitized supply chains, and by 2020, we expect that figure to rise to about 80 %. Over the next five years, further breakthroughs are anticipated, such as advanced data collection capabilities. For instance, a printing‑machine manufacturer could offer highly digitized equipment that streams real‑time condition data, enabling predictive maintenance and rapid response to faults.

Maturity Framework for the Digital Enterprise

We categorize Industry 4.0 maturity into four distinct stages:

• Digital Novice – Companies with digitized and automated sub‑processes and an initial digital product portfolio. They can measure and analyze isolated data to enhance quality, efficiency, and cost savings.
• Vertical Integrator – Firms that have mastered internal process and data flow digitization. Their digital product and service offerings rely on software and data as key differentiators.
• Horizontal Collaborator – Companies that have integrated processes and data with customers and external partners, delivering end‑to‑end solutions that cross supply‑chain boundaries.
• Digital Champion – The pinnacle: fully digitized, integrated partner ecosystems with virtualized processes, complemented by innovative services that create real value. Digital champions analyze data to launch new services—for example, forklift manufacturers tracking truck movement data to advise customers on capacity optimization.

Source: Bosch.IO

Three Simple First Steps

1. Measure – Deploy sensors across manufacturing equipment to capture data from as many machines as possible. For example, vibration sensors can detect subtle differences in workpieces, allowing operators to reject defective parts early and improve overall quality.
2. Label – Attach a unique identifier (e.g., QR code) to every raw material, part, or finished product so that sensor data can be accurately linked to the specific item.
3. Analyze – Use the collected data to uncover insights that drive quality improvements, efficiency gains, and cost reductions.

Data Is at the Heart of Industry 4.0

Consider a tool manufacturer that uses ball bearings across diverse applications. When a bearing fails, pinpointing the root cause retrospectively is challenging. By embedding sensors in the bearings, the manufacturer collects real‑time data on load, temperature, and operating conditions. This data enables precise diagnostics, informs product development, and supports the production of specialized, durable bearings—solidifying the company's reputation for reliability.

Do you have examples of how your organization is becoming a digital champion? Share your success stories and insights—we’re eager to learn from your experiences.