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.
1. 80% of manufacturers will place data at the center of their processes by 2020
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.
2. There will be 50% of lesser planning intervention by automating repetitive operational tasks by 2020
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.
3. 40% of manufacturers will place digital transformation initiatives by 2021
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.
4. 60% of manufacturers will empower shop floor workers by 2021
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.
5. 90% of manufacturers will leverage equipment and asset performance data to self-diagnose issues in advance by 2021
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.
6. 35% of manufacturing organizations will implement AI-centric platforms by 2022
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.
7. 25% of manufacturers will engage in cross-industry collaboration by 2022
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%.
8. 50% of the spend on digital transformation initiatives will come from digital transformation budgets instead of IT or LOB by 2023
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).
9. Over 60% of G2000 manufacturing organizations will rely on AI to drive digital transformation by 2024
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.
10. 50% of manufacturers will network-relate products and asset digital twins into a digital twin ecosystem by 2024
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.