Smart Factories: How can manufacturers realize the potential of digital industrial revolution – found that the investments that manufacturers are making in smart factories are set to deliver benefits of up to $1,500 billion over the next five years. Investment levels varied widely between industries, but it was notable that automotive was one of the most bullish sectors in this domain. We were keen to understand whether this enthusiasm has led to tangible success. Drawing on the 220+ auto executives we surveyed last year, we surveyed a further 100 executives. Our analysis has some significant findings and implications for the automotive industry: 1. Smart factories could add up to $160 billion annually to the global auto industry as productivity gains by 2023 onwards. 2. The automotive industry is the most enthusiastic about smart factories – it is making larger investments and setting higher targets for its digital manufacturing operations than any other sector. 3. However, few automotive manufacturers have translated this enthusiasm into real progress –42% of smart factory initiatives are struggling and the digital maturity of their manufacturing operations is below par. 4. Those that are making the best progress invest 2.5 times more than the companies that are struggling. Additionally, they are involving their leadership teams, developing their talent, and investing in the right areas. By the “right areas,” we mean those smart factory components that are critical for the future, such as manufacturing intelligence and predictive maintenance. 5. More manufacturers could make a success of this opportunity if they follow in the footsteps of a cohort we call the “digital masters.” This is a group that, in particular, has manufacturing operations functioning at a high level of digital maturity.