Bottom Line Drives Manufacturers’ Digital Transformation
Blog: Software AG Blog - Reality Check
From leveraging the Internet of Things to analyzing and acting upon streaming data, digital technology is transforming the manufacturing industry. A digital transformation for manufacturing in 2016 will not just stimulate market disruption but it will also translate into bigger revenues— if the industry gets it right.
This does not mean that they will shut down factories and turn into software companies; instead manufacturers will adopt digital technologies that will transform their operating models and drive financial success straight to the bottom line.
“Digital is how the U.S. wins in manufacturing,” says William King, chief technology officer of the government-backed Digital Manufacturing and Design Innovation Institute (DMDII).
The digital trend is still relatively new to the industry, but the pace is picking up rapidly, said consultants at Cap Gemini. “Compared to other industries, digital has not had a visible disruptive impact on manufacturing yet,” said Cap Gemini in the report Digitizing Manufacturing: Ready, Set, Go!
“However, we are deeply convinced that the fourth industrial revolution will be driven through digital transformation. And as in earlier industrial revolutions, organizations ignoring the need for adaptation and change will be forced out of the market very rapidly.”
In 2016 we foresee manufacturers digitally connecting processes, events, actions, internal associates and external partners using integration technology both in the cloud and on premise. This will enable them a single view of events, allowing them to develop global standards that are flexible enough to accommodate regional, customer or product requirements.
Information from IoT sensors will be combined with internal and external data about product usage, production capabilities, customer requirements and market requirements. This data will be ingested, analyzed and shared faster than ever before, enabling a more customer-centric approach.
This customer-centric vision will be central to manufacturing strategy and will be the lynch pin for all major initiatives, and its adoption will be directly measured by immediate and longer term financial outcomes. The bottom line will determine the success or failure of each digital initiative, as they will become almost immediately measurable.
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