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Digital Transformation for Manufacturing Industry: Top Benefits, Trends & Technologies
The notion of digitalization or Industry 4.0 varies among the diverse industries of the economy. While some industries have embraced the idea, some are hesitant to put it into practice. Industries that have embraced digitalization have benefited from improved internal and external value chains, streamlined transactions, and more precise product delivery. 91% of businesses are engaged in some form of digital initiative, and 87% of senior business leaders say digitalization is a priority, according to Gartner.
Almost every sector is speeding up the implementation of digital technology, and manufacturing is the forerunner. According to IBM and The Manufacturer’s 2021 Digital Transformation Assessment Survey, 67% of firms accelerated their digital projects following COVID-19.
What does Digital Transformation mean for Manufacturing Industry?
The manufacturing industry is witnessing a substantial revolution in digital transformation. Growing customer expectations, improved connections, and technological advancements are some of the key drivers of this ongoing digital revolution. The long-term advantages of digital transformation are beginning to become a selling point for many businesses.
The effects of digital industrial transformation on manufacturing companies, their suppliers, clients, and other third parties are staggering. It can be helpful in numerous ways, whether you’re selling construction materials or fine gear online. Digital technologies assist manufacturers in increasing operational efficiency and streamlining many business processes, including supply chain management and product development. A Gartner survey says that 83% of manufacturing leaders understand and acknowledge the need to invest in smart manufacturing.
So, where will your Digital Transformation transit take you?
There is no one-size-fits-all approach to digital transformation. The journey will differ for every manufacturer, depending on the size of the business, the maturity of its technological infrastructure, and the sector in which it operates. But a good digital transformation initiative will take you to:
Digital transformation initiatives help manufacturers use data to discover the best opportunity for business growth to stay ahead of the competition and open doors for innovation. Manufacturers can prevent disruptions and reduce the potential risks of legacy systems by integrating remote monitoring, troubleshooting, and proactive maintenance, along with data at their fingertips.
It will enhance productivity, increase revenue with an incredible ROI and cut operational costs. The smart manufacturing system lowers production costs by utilizing data analytics. Cost cutting is made possible by technologies like augmented and virtual reality.
As consumers’ demand for eco-friendly activities grows, manufacturers are looking for solutions to save resources and energy. Smart manufacturers use technological advancements to deliver the right solutions and meet customer demands. AI-controlled machines are one solution that helps to develop products using less energy and resources. Environmental sustainability is indeed an important business ethics after all!
Manufacturers can produce better-quality products with more sensors, automated testing, and quality control throughout the manufacturing process. In addition, manufacturers can use the device’s Machine Learning capabilities to adjust any manufacturing line to lower errors and enhance procedures.
Resilience is essential to stay ahead of the competition. By utilizing flexible automation, operating remotely, and tying the supply chain with a cloud-based infrastructure, digital technologies support manufacturers in identifying capability gaps to reduce operational costs, eliminate unnecessary risks and create compelling marketing tactics.
The advent of digital transformation enables manufacturers to offer more customized services. Data-driven production machinery reads and implements custom parameters right on the assembly line. It reduces the production facility’s risk factors.
Now that you know the benefits digital transformation can unravel for your business, let’s dive into the major technologies and trends.
Key Technologies & Trends
IIoT (Industrial Internet of Things) devices track and measure industrial operations. They can be used in the field, in industrial facilities, or at other sites where information about the performance of diverse equipment is gathered. For example, there are many different IIoT devices, like pressure sensors that track changes in air pressure around a device, temperature sensors that track changes in the temperature of an object or process, and gas sensors that gauge the amount of oxygen in a specific area. The manufacturing industry is transforming because of IIoT technology, which allows companies to track the production process in real time and use manufacturing analytics to make more data-driven decisions. By 2025, the IIoT market, according to McKinsey, will be worth $500 billion.
AI, Automation & Machine learning
Thanks to AI-powered digital transformation, manufacturing organizations are becoming smarter, more efficient, and safer. The ability of Artificial Intelligence (AI), Automation, and Machine Learning (ML) to increase productivity in manufacturing organizations is one of the valuable aspects of these technologies. They enable manufacturers to speed up production and cut waste while enhancing quality control and trend prediction.
The term “Big Data” describes the expanding volume, velocity, and diversity of data that businesses produce and retain. It is crucial for companies as it can monitor performance and increase overall efficiency. It also allows organizations to build better data models to identify trends and predictions. As a result, manufacturers can intelligently make decisions on supply chain, product development, marketing, and customer service.
One of the most revolutionary manufacturing technologies in recent years is 3D printing. It helps companies to produce complicated objects faster and cheaper. One of the most frequent uses of 3D printing in manufacturing is product prototyping. First, it creates objects out of digital data. Then, it applies layers of material using lasers, which harden to form the item.
By 2030, Augmented Reality and Virtual Reality (AR/VR) technology might boost the global economy by $1.5 trillion, according to PwC. Although the terms AR/VR are often used interchangeably, they are very distinct. VR is when a person is fully immersed in a virtual environment, whereas AR is when a user’s surroundings are enhanced by computer-generated information. It helps manufacturers rapidly prototype virtual models to get an idea of the finished product before starting to work on it.
A digital twin represents a physical object in the digital world for a system, product, or device, enabling organizations to make model-based decisions. It supports predictive maintenance, logistical optimization, and product customization. A digital twin of an Organization (DTO) is a virtual representation of the entire business rather than a specific product, another application of digital twins. Businesses can derive insights from DTOs about their past performance, business objectives, models, and processes.
Your company’s data can be stored in the cloud by a cloud-based ERP system, giving you access to it from anywhere. Implementing a new ERP allows employees to work together on projects or access information when they aren’t at their desks. Additionally, manufacturers can manage their inventory, warehouse operations, client interactions, and maintenance costs with cloud-based ERP software.
Read our blog and explore how cloud can solve the top 5 challenges of manufacturing industry.
Eleviant’s Digital Transformation Prowess
Digital transformation is not a silver bullet. It takes careful planning and execution to succeed. Manufacturers must find the right partner to assess their business needs and objectives carefully, then determine which digital technologies can help them achieve their goals.
With over a decade of experience in digital transformation, Eleviant has derived, developed, and implemented digital strategies, especially for manufacturers looking to improve their operational efficiency. Our expertise and experience are applied 100% in preparing manufacturers for the digital trends that lie ahead. We’ve brought more than 1,000 creative, cutting-edge digital solutions to life for our clients across various technologies, helping businesses achieve today’s goals and tomorrow’s vision.
Download our case study and learn how our cloud-based solutions streamline operational visibility and decision making for a manufacturing conglomerate.
Businesses must include the appropriate technological approach because not all investments in new digital technologies will lead to a successful digital transformation. When planning digital transformation initiatives: people, processes, and technology go hand-in-hand to build and achieve the fundamental goals. Get a quick chat with our digital experts to accelerate digital transformation for your organization.