In the ever-evolving landscape of manufacturing, global digital transformation is gaining momentum. Customers now demand more from manufacturers, compelling them to invest strategically to secure growth, enhance product quality, and dominate in competitive markets.
Why Invest in Digital Transformation?
Embracing ‘Intelligent’ Enterprise Applications
The evolution from legacy enterprise applications to ‘intelligent’ ones, such as ERP, CRM, marketing automation, finance, and HR, is underway. Large organizations, having automated numerous processes over the past few decades, now face diminishing returns. A paradigm shift is occurring towards what industry leaders of Digital Transformation terms as “optimization” – an era driven by advanced planning.
The Significance of Advanced Planning
Advanced planning, a complex challenge, finds solutions in emerging technologies like artificial intelligence (AI), big data, and the industrial Internet of Things (IoT). These technologies address optimization problems in manufacturing and the supply chain, embedding intelligence into applications and automating decision-making processes.
Focus on Shop Floor Processes for Digital Transformation in manufacturing
It is imperative that manufacturing leaders to concentrate on shop floor processes for true optimization. Despite technological advancements in areas like ERP and supply chain, many organizations still rely heavily on manual processes on the shop floor.
This inefficiency restricts the potential for growth, with some manufacturers experiencing raw equipment effectiveness as low as 60 or 70 percent.
These new changes are creating opportunities for the new manufacturing trends like Industry 4.0 or smart factory automation.
The Risks of Standing Still
Manufacturers facing stagnant processes risk losing their competitive edge. The pressure to produce faster, cheaper, and better products is compounded by the shift in consumer behavior – a decrease in brand loyalty and the ability to compare products globally. Failing to address these challenges may lead to marginalization in the future economy.
The Imperative of Digital Transformation
Beyond Technology: Creating Value
Digital transformation extends beyond technology; it is a holistic approach that aligns with strategic objectives. The value lies not just in technology itself but in its application to create capabilities. It’s not about running applications; it’s about procuring capabilities that drive transformation.
C-Suite Receptivity to Technology
A new wave of C-level executives, adept in information technology, is steering large manufacturing organizations towards technological adoption. Conversations with these executives now focus on intelligence and analytics, marking a shift from traditional concerns about process management.
The Cloud Revolution
Digital Transformation Leaders passionately advocates for the cloud as the de-facto computing model. Manufacturers stand to benefit from the flexibility and scalability of cloud computing, particularly in harnessing technologies like AI and machine learning. The economic aspect is crucial, as paying for cloud resources as needed becomes the norm.
Overcoming Barriers to Digital Transformation in Manufacturing Industries
Talent Acquisition and Project Initiation
Talent acquisition remains a challenge for larger organizations embarking on digital transformation. A catch-22 situation arises – attracting talent becomes difficult without ongoing digital transformation projects. Senior managers also grapple with knowing when to initiate these projects, especially in traditional cultures resistant to change.
Navigating Global Upheavals
Technology plays a pivotal role in mitigating the effects of global upheavals for manufacturers. Creating a digital environment that responds to market changes in real-time is essential. Rapid responses to issues like labor availability, Brexit, or trade wars are critical to maintaining competitiveness in the dynamic global economy.
In conclusion, digital transformation is not just a technological shift; it’s a strategic imperative for manufacturers aiming to thrive in the competitive landscape. Embracing advanced planning, optimizing shop floor processes, and leveraging technology intelligently are key steps towards a successful and resilient future in manufacturing.
Softweb Technologies’ Digital Transformation services, brings in the best of the industry practices for the manufacturing units. Implementing IoT along with sensors and AI based data analysis of the readings helps you understand the entire working of your shop-floor real time. These data in long run helps you attain the predictive maintenance, where you will be to decide which machineries needs preemptive maintenance without hampering your production efficiency.
