Mastering Process Debt and Key Insights from Lighthouse

by The Leader Report Team

The Evolution of the Global Lighthouse Network in Digital Transformation

The Global Lighthouse Network (GLN) has expanded immensely, growing from just 16 locations in 2018 to almost 200 across 33 nations and 35 sectors as of early 2025. This wave of growth highlights significant advancements in leveraging cutting-edge technologies to achieve notable economic advantages.

The most recent Lighthouses, recognized in late 2024 and early 2025, uphold the foundational principles established at the network’s inception. Their leaders understand that the essence of transforming a business lies not merely in technology or unique applications, but in the capacity of people and processes to harness technology for comprehensive enterprise value creation.

Strategic Investment in Process and People

Analyses reveal that Lighthouses prioritize enhancing processes and people over chasing every technological innovation. For instance, they allocate $4 to people and process development for every $2 invested in new technology. In comparison, other manufacturers tend to only match their tech spending one or twofold with similar investments in enabling resources.

The emphasis is on four core strategies to cultivate and sustain impactful transformation:

  1. Mitigating process debt
  2. Enhancing capabilities in people, processes, and technology
  3. Developing assets for scalable solutions
  4. Adopting a localized strategy for the implementation of solutions by frontline talent

Mitigating Process Debt

Chief Information Officers (CIOs) have long recognized the perils of technical debt, which can accumulate as disparate solutions are introduced over time. For Chief Operating Officers (COOs), an equivalent issue arises in the form of “process debt.” This occurs when new technologies are deployed without optimizing or refining the underlying processes, leading to inefficiencies that diminish the potential value of these technologies.

Lighthouse sites actively counter process debt by refining interactions between personnel and material flows, ensuring that new technologies not only function efficiently but are also supported by redesigned processes that maximize value extraction. For example, they channel data from newly integrated sensors to the most appropriate personnel to facilitate quick decision-making.

Enhancing Capabilities

The commoditization of AI tools has empowered Lighthouses to develop more solutions internally, showing a 37% increase in in-house capabilities compared to previous years. This trend reflects a strategic decision to maintain greater control over their information value chain while selectively outsourcing aspects of their technology stack.

Additionally, many Lighthouses are forming “extended thinking partnerships” that enable deep collaboration between internal teams and external partners, clearly defining ownership and responsibilities for jointly developed technology.

Assetization for Scalability

Assetization refers to the strategic management and deployment of reusable digital assets aimed at fostering scalable transformations. Unlike prior attempts that relied on trial-and-error, modern Lighthouses are implementing mature solutions such as production scheduling and predictive maintenance as foundational elements of their operations.

Composability—designing systems that are adaptable and can be configured in multiple ways—has become central to Lighthouse strategy, enhancing their ability to respond to changing business needs quickly and effectively.

Localized Adoption Strategies

The key to successful digital transformation lies in effective adoption of new technologies. Lighthouses prioritize a human-centered approach in their design and implementation processes, focusing on enhancing rather than replacing human capabilities.

By integrating frontline operators in solution design, they cultivate environments that encourage continuous improvement and innovation. For example, they create user-friendly interfaces that not only facilitate interaction with technology but also empower operators to solve problems directly.

Investing in the Frontline Workforce

On average, Lighthouses dedicate approximately 10% of their resources to workforce-centric priorities, which benefits their operational efficiency significantly. Reports show that these efforts yield a 25-30% improvement in labor productivity while reducing non-value-added tasks by 10-20%.

This comprehensive investment in employee capabilities contributes to a more empowered workforce, reinforcing the idea that transformation requires a collaborative and inclusive approach.

This analysis draws from insights published by the World Economic Forum regarding the Global Lighthouse Network and its role in advancing digital manufacturing practices. The initiative, co-founded with McKinsey & Company, aims to reshape the future of global manufacturing through collaboration with industry leaders.

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