The pandemic has pushed the digital transformation forward as it has heavily impacted the manufacturing industry.foto:
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The pandemic hit down hard on manufacturers. Out of 230 manufacturers, 94% report that the pandemic has caused long-term effects on their business. While manufacturers have implemented actions to respond to the ongoing crisis digital capabilities have become essential.
The pandemic has certainly accelerated change and innovation across departments as businesses have needed to adapt to “the new normal”. According to Fictiv, manufacturers are transforming their business processes to become more agile and resilient and additionally heavily invest in research and development to prepare for disruptions that can come their way.
Technical capabilities have become a competitive advantage not only in production processes but also in operations. Fictiv recounts that 91% of the investigated companies reported increased investment in digital transformation this past year. This number is not very surprising as several companies also report that issues in their supply chain have resulted in a cost increase.
Digitization of manufacturing processes and operations lays the foundation for an efficient work environment. By leveraging technology such as the industrial internet of things (IIoT), artificial intelligence, and advanced data analytics, manufacturers have adapted their businesses to streamline and automate their supply chains. Additionally, this type of technology has made it possible to remotely monitor and run manufacturing processes.
Maddie Walker, Industry X Lead at Accenture stated in an interview for Manufacturing global that:
“This movement really sees the intersection of connectivity, data, and intelligence, with smart technologies like AI, digital twins, robotics, and IoT supporting growth and increasing profitability with digital-first business models and more agile production systems”.
As result businesses can increase their productivity, cut costs, and become more flexible.
However, not everything is sunshine and roses. As manufacturers are embracing digital technologies and consequently transforming processes within the business with the help of cloud computing, there are raised concerns regarding IT and security risks due to digital operations. It is therefore essential that companies have adequate and integrated IT and cybersecurity strategies to manage and mitigate potential risks.