Smart, sustainable manufacturing: 3 lessons from the Global Lighthouse Network

Launched in 2018, when more than 70% of factories struggled to scale digital transformation beyond isolated pilots, the Global Lighthouse Network set out to identify the world’s most advanced production sites and create a shared learning journey to up-level the global manufacturing community.

In the past seven years, the network has grown from 16 to 201 industrial sites in more than 30 countries and 35 sectors, including the latest cohort of 13 new sites.

This growing community of organizations is setting new standards for operational excellence, leveraging advanced technologies to drive growth, productivity, resilience and environmental sustainability.

But what exactly is a Global Lighthouse and what has the network achieved?

The Global Lighthouse Network is a community of operational facilities and value chains that harness digital technologies at scale to achieve exceptional performance in productivity, supply chain resilience, customer centricity, sustainability and talent.

"From AI-driven control towers to zero-code workflows, Lighthouses exemplify sustainable innovation, setting benchmarks millions can follow to drive transformational change across the entire ecosystem," explains Kiva Allgood, Managing Director and Head of the Centre for Advanced Manufacturing and Supply Chains.

On average, Lighthouses have seen 50%+ productivity, 80%+ defect reductions, 30% CO2 reduction, among other step-change improvements. They are holistically the world’s best operators.

Through the network, the Lighthouses share knowledge and insights to accelerate their transformation journeys, with 65% of new Lighthouses saying they have learned from at least three other Lighthouse sites - often outside their sector.

To date, the network has collected more than 1,000 use cases and over 2,000 operational metrics to generate insights and share key lessons. Those who follow the Lighthouse transformation playbook have achieved ROI of two to three times over three years and four to five times over five years.

The initiative’s most recent whitepaper, Global Lighthouse Network: The Mindset Shifts Driving Impact and Scale in Digital Transformation, spotlights some of the most impactful innovations and key milestones achieved by the community.

AI integration

One of the most significant trends in the Global Lighthouse Network has been the rapid adoption of artificial intelligence (AI), transforming industries and redefining the possibilities of modern production.

In 2019, only 10% of Lighthouses had significant AI implementations. By 2023, all new lighthouses were deploying advanced AI use cases at scale. This shift underscores AI's central role in the future of manufacturing, with Lighthouses increasingly focusing on scalable AI solutions that can be expanded across global networks.

In the most recent cohort, the share of AI and generative AI (GenAI) enabled use cases has grown, enabling up to 50% of the implemented top use cases. These showed diverse impact such as 41% decrease in product defects, 28% decrease in energy consumption, and 44% decrease in cycle time.

Productivity gains

The latest cohort of Lighthouses has observed an average 40% boost in labour productivity and 48% reduction in lead time attributed to various digital solutions such as AI, machine learning (ML), advanced analytics and more.

Sustainability focus

Environmental sustainability has become a core focus for the network of Lighthouses, which are demonstrating that 4IR technologies can drive both business value and environmental stewardship.

For the value chains flowing through Lighthouse sites, adopting AI and other digital solutions has delivered 50% reductions in new product introduction times, realized 30%-50% reduction in Scope 1 and Scope 2 emissions, as well as an average 30% reduction in material waste and 25% in energy and water consumption.

Global expansion

The network has consistently expanded its global reach. The latest cohort of 13 Lighthouses and spans China, Mexico, France, Thailand, Türkiye, Singapore and newcomer Qatar.

This diverse representation ensures a rich exchange of best practices across industries and geographies.

1. Scalability is key

Lighthouses have learned the importance of scalability in their 4IR initiatives. Successful organizations are not just implementing technologies in isolated instances but are deploying them at scale across their operations and value chains.

They are tackling the digital “scaling slump” through an 'assetization' mindset - packaging use cases for speed and scale of deployment, while partnering with their frontline workforces to localize adoption.

Lighthouses know that most scaling-up endeavours are born locally – and invest first at the site-level, optimizing processes, cultivating capabilities and deploying use cases suited to local needs.

For example, GlobalFoundries’ Fab 7 in Singapore implemented over 60 4IR use cases to meet surging demand, including ML-powered quality control and workflow digitalization. These efforts improved labour productivity by 40% and cut prototyping time for new products by 30%.

Meanwhile, Lenovo’s Monterrey site in Mexico, the company’s largest in North America, deployed more than 60 AI and GenAI-enabled solutions across a vast supplier and SKU base. The site reduced lead time by 85%, logistics costs by 42% and carbon emissions by 30%, while boosting productivity by 58% — becoming a global digital model factory for Lenovo.

2. People-centric approach

While technology is at the heart of the 4IR, the Global Lighthouse Network has highlighted the critical role of people. Lighthouses are investing in frontline workforce development, recognizing that success is deeply rooted in the interaction between technology and talent.

Focusing on productivity and stability in equal parts, Lighthouses are designing a range of talent solutions specifically tailored to develop and engage each site’s local workforce.

For example, at Haier’s Refrigerator site in Chongqing, China, leadership adopted the RenDanHeYi model, shifting from management-driven to service-oriented teams. By rolling out 35 digital talent-empowerment solutions – including personalized promotion pathways, a point-based innovation platform, and AI-enabled workforce planning – the site reduced attrition by 40% and boosted employee participation to 61%.

When digital talent is scarce, an ecosystem of partnerships enables Lighthouses to offer a suite of programmes suited to an employee’s unique skillset or development goals.

3. End-to-end sustainability

New Lighthouses are building on top of the tech-enabled eco-efficiency solutions pioneered by early Lighthouses with investments in value chain data and new partnership models, which will underpin circularity in the future.

For example, Hisensehitachi’s Qingdao site in China deployed IoT and advanced analytics to reduce refrigerant leakage by 56% and cut Scope 1 and 2 emissions by nearly half, while tailored control strategies for customers reduced Scope 3 emissions from product use by 28%.

In France, Schneider Electric’s Guichainville distribution centre transformed into the company’s first circular hub, implementing digital platforms for take-back and refurbishment of 3,000+ SKUs and circular solutions in packaging and transport. These initiatives cut single-use plastic by 40% and energy consumption by 18%.

As the Global Lighthouse Network continues to evolve, it is clear that the future of manufacturing will be shaped by the seamless integration of advanced technologies, sustainable practices, and skilled workforces.

The network serves as a beacon for other manufacturers, illuminating the path toward a more efficient, resilient and sustainable future.

The Chinese language version of the latest white paper can be found here and the Japanese version is here.

The application window for the next selection round of the Global Lighthouse Network will open in December 2025. Learn more and apply here.