Daniela Leyton Luna
Copywriter at Pangea Group
She graduated with a bachelor's degree in Creative Writing from Central University in Bogota, Colombia. Skillful in style correction, translation, and B2B content.
Microsoft Dynamics 365
International Data Corporation (IDC) released the Worldwide Manufacturing 2019 Predictions, a study that shows how the manufacturing industry will change in the following years. In the IDC study, the protagonist is the subject of digital transformation (DX). Enterprises all over the world are improving their processes through technology and automation. These predictions for the future of manufacturing show what to expect and how it will impact manufacturers’ IT investments in the years to come.
In this blog, I am going to briefly show ten crucial predictions, hoping that it would help you to plan your manufacturing business for the near future.
New factories and smart manufacturing are driven by the term data hungry. In other words, data will be the center for every process and every step of the way. From the input to the final product release, data will be involved: embedded information about genealogy, suppliers, workers, machines, business applications, and more, will be gathered to optimize operations.
The future of manufacturing comes with less planning interventions and touchless sales. Modern supply chain provides more knowledge and deep expertise in business and strategies. When given the proper data and equipment with workflow and decision-making capabilities, the company can automatically function for most of its efforts.
Driven by the success of early adopters, manufacturers will impulse their digital transformation. DX will impact every functional field and change the way companies value success and source talent. Across industries, the amount to an opportunity for annual economic value-add is $18.5 trillion, or 25% of GDP. Manufacturing represents a $4.5 trillion of $18.5 trillion opportunity that focus efforts into beginning DX.
The future of manufacturing is based on the decision-makers’ ability to bring the necessary flexibility into their roles. By using AR/VR, intelligent apps, Cobots, and more, productivity can be increased by 7% while enhancing the work environment. DX will also create competition between manufacturers to attract the best talent.
AI and machine learning sense issues before a failure occurs and notifies it, even on the slightest signs of degradation. This proactive technology gathers the information and quickly identifies anomalies and triggers a service call or event to provide the future of quality service.
The adoption of DX is creating a space for companies to reimagine how they do business; to change their models and strategies. Innovative thinking will be the outline of how manufacturing is valued, along with customer experience and service capabilities. Various AI platforms are rising to create spaces for coordination, collaboration, exchange of data, marketplace, commerce, and more that will automate 50% of a company’s processes.
Customers don’t see manufacturers as simple suppliers of a product; they look for an end-to-end solution. Product functionality without the trouble of maintenance, personalize services, convenience and control will enhance cross-industry collaborations to maximize the experience of ownership through multiple complementary services while augmenting revenue by 10%.
The future of manufacturing arrives with the idea of funding initiatives regarding DX that need to take into consideration three groups to achieve success: IT organizations, line of business/functional organizations and a digital transformation budget. These are teams dedicated only to digitally transform within manufacturing; many companies are undertaking these processes to the point of naming a Chief Digital Officer (CDO).
DX will improve the supply chain and increase productivity gains of over 20%. Supply chain networks have grown in complexity over the years, amounting to $316 billion and growing. The data generated, monitored and consumed, will bring automation into the critical points of decision-making ability and thinking supply chain to turn data into value.
You will be able to manage every aspect of your manufacturing business with digital twins (virtual representations of products and assets). This will allow an up to date view of the assets, products, plants, and facilities to gather data of the past, present and future performance. This will bring a reduction of 5% in cost of quality.
The technological world is expanding, and to properly adapt we recommend using the right tools. There are many softwares, AI platforms, ERPs (Enterprise Resource Planning) and more that will help you achieve your goals in an easy, efficient way.
In this blog, you just read that digital transformation is inevitable for the future of manufacturing. How are you going to face it? We recommend Microsoft Dynamics 365 Supply Chain Management to optimize your business and adapt to the technological world of manufacturing.