Harness the power of digital transformation in the manufacturing industry
July 1, 2022 | Digital Transformation, Technology | No Comments
Industry 4.0 has been a game-changer in the manufacturing space. It has brought innovative business solutions by integrating improved technologies like cloud computing, artificial intelligence (AI), and the Internet of Things (IoT). Smart factories are built by deploying smart machines that make informed decisions to increase efficiency across the value chain. With the help of the Industrial Internet of Things (IIoT), manufacturers are blending in data from factory floors to achieve visibility in the process. They are rapidly switching assets from manual to automatic to reduce equipment downtime.
The rise of advanced sensors, no-code machine learning (ML) platforms, embedded software, and robotics has been a blessing for small and medium-sized businesses. Manufacturers can break down previously siloed informational data by consolidating data from production operations and operational data from ERP and enterprise systems to achieve transparency. This helps manufacturers gradually change the industry by avoiding colossal expenditure.
What is Digital Transformation in the manufacturing industry?
In the digital transformation across industries, there is no single silver bullet to race ahead of the competition. It is the strategic integration of digital technologies across businesses to have an efficient and effective impact on our daily lives.
Digital transformation in the manufacturing industry is a wholesome combination of:
- Replacing legacy systems or obsolete assets.
- Combining traditional manufacturing equipment with modern systems.
- Improving flexibility and delivering real-time solutions.
The pandemic played a significant role in the playbook of manufacturers. Although it derailed production, distribution, and supply chain activities, it presented new opportunities for the manufacturing industry to explore. IDC's report stated, “There will be an influx in investment in digital transformation by 2024". Digital transformation possesses the power to reduce workload, boost production, deliver consistent quality and enhance customer experience. It gives significant benefits to the manufacturers by improving bottleneck functions.
Bottleneck functionalities predict failures and prescribe AI-driven remedies like interpreting data to alleviate issues. Also, an advanced quality management system helps the digital journey for organizations much more manageable. It reduces operational error and solves problems faster. It also helps to cut down on specified inspectors by automating the processes. With advanced technologies and an intuitively built platform, digital transformation promises to disrupt the manufacturing segment.
What are the challenges in the manufacturing industry
Adopting digital solutions brings many benefits to the industry in terms of higher ROI and improved customer experience. Along with the digital game, it presents fundamental challenges to implementing advanced technologies. Let's look at some top challenges manufacturing companies face that hinder digital transformation.
Digital transformation is done across each business process, from the front desk to factory floors. If the manufacturing company is not highly invested in its own company, implementing new technology in a project will eventually fall off. So, it is highly imperative to have organizational alignment within the company as it will help in the success of long-term projects, and proper evaluation will help to realize organizational gaps.
The bandwidth to engage with higher financial investment might not be an issue for larger enterprises. But small and mid-size manufacturers require meticulous budget planning before implementing digital solutions. It is imperative to lay out a financial guide addressing the bigger picture of project ROI. Without structured financial planning, there is a high risk of the project becoming a failed investment.
Advanced technologies bring benefits like improving data analysis transparency, reducing operational downtime, and enhancing efficiency. But these benefits must be carefully introduced to retain and gain customers by investing wisely.
When it comes to digital skill challenges in the manufacturing industry, it is faced with two types of hindrances, i.e., acquiring the right talent and providing training to the existing employees. Although both are expensive, considering the opportunity cost and the benefits of digital solutions providers, bridging the digital gap is a must.
Manufacturing leaders must address this issue by partnering with third-party service providers to help train factory floor operators and managers. And hire the right set of skilled employees for the required project.
Digital technology is pacing at a higher speed, and organizations working with legacy systems are falling behind the organizations that are fast at digital adoption. When technologies grow old and outdated due to changes in customer preferences or the launch of new technologies, it becomes highly challenging to make the existing one compatible or let of existing employees.
The challenge can be combatted in two ways: retraining the existing employees and hiring a fresh batch of skilled employees, and carefully testing and integrating modern technologies in a completely digitized environment.
For example, ERP systems like Microsoft Dynamics 365 Business Central connect all systems across the organization and drive efficiency. It is essential to have a discussion to gauge the benefits of these technologies as it will help to draw a clear picture of whether traditional assets are more beneficial than digital solutions.
What are the benefits in the manufacturing industry
For transitioning from a traditional manufacturing organization to a smart factory, the initial cost amount and a well-planned strategy might be a stumbling block on your digital embarking journey. But we are here to tell you the significant benefits you can access when you have covered the challenges mentioned above.
By introducing new technologies, manufacturers have prevented late deliveries and error-prone solutions. The technologies help to solve untimely production issues and adjust supply quantities accordingly. For example, an ERP solution can leverage your supply chain issues and enhance decision-making capabilities.
Digital adoption in case of customer satisfaction takes care of the availability of customized production. With the help of software solutions, manufacturers can forecast customer requirements based on region, demand cycle, and feedback. It also gives a window to have a different eCommerce platform which adds more value to the customer.
Manufacturing assets' operational value is beneficial when automated and optimized workflow. Real-time solutions like ERP, CRM, and intelligent logistics also help manufacturers manage their data efficiently.
Digitizing inventory reduces operational overhead and increases the efficiency of the workforce. Resources can be better utilized in a more productive form of work, reducing expenses and getting over mundane work progress.
What is Digital transformation with ERP
In a digital transformation landscape, a manufacturing organization must have an ERP system in its operations. A study by Gartner stated that 30% of organizations like manufacturing enterprises would deploy ERP business capabilities. Implementing an ERP system in a manufacturing process allows an organization to avail of benefits that come with Industry 4.0, including AI, cloud computing, ML, and robotic process automation (RPA). It helps manufacturers stay agile and quickly bounce back from potential risks and adversities.
For example, Microsoft Dynamics 365 Business Central ERP is flexible and adaptable to a dynamic technological environment. Its real-time solutions for inventory data and cloud-based functionalities act as a digital backbone for manufacturers. It is the steppingstone as a digital platform that allows manufacturers to streamline warehouse processes and control various supply chain activities.
The added benefits of adding ERP solutions to your manufacturing business are:
- ERP system speeds up productivity by simulating machinery and optimizing warehouse processes. It not only has the capabilities to boost plant floor strategies but also improves workflow.
- Disparate systems slow down managing processes, and data cannot be better utilized, so an intelligent ERP provides real-time access to business processes and KPIs. It allows easy data integration and flows within departments, resulting in better collaboration and communication.
In essence, it is a single source of truth for manufacturers by combining digital technologies and having a granular view of production cycles. So, ERP is the best ally of a manufacturer who aims to minimize costs, speed up the process of semi-finished goods, and have a good investment ROI.
How to embark on your digital transformation journey now
Digital transformation has cornered the traditional manufacturing industry. Deploying growing technologies has sped the industrial companies' progress through thorough engineering. It has connected IT with mechanical and electrical machinery and is changing the landscape.
We at Great Innovus will help you visualize your organization's digital roadmap and assist you in your journey towards it. Our skilled professionals will address any complex business solution and transform your vision into reality. We will guide you in advancing your evolution and assist you in automating solutions for a better future.
Let's get started here.
