The realization that a digital strategy can improve any business has spread throughout various industries, and the manufacturing world is no exception. Companies like GE, Caterpillar, BMW, and other manufacturing giants have used digitization of their business operations to improve various aspects of enterprise processes and the workplace. However, in a recent survey conducted by Oxford Economics, business executives across the globe were asked which industry they believed would be most transformed for the better by digital technology over the next five years. IT and Technology hit the top at over 70%, while Manufacturing wavered at only 25%. There is still an incredible amount of room for manufacturing businesses to take off in the digital world, especially as competition increases and digital technologies are easier to get ahold of. Big name leaders in the industry prove that digital strategies are a necessary component of a larger organizational strategy, and we’ve lined up the most important reasons manufacturing companies should be moving toward the adoption of a digital strategy.
Through digital innovations such as prototyping and simulation software, corporations can reduce risks associated with typical testing. Digital tools used to test products allow for a more efficient production process, as well as a platform for sharing and developing knowledge in an easier way. While implementing these innovations may get costly, a digital strategy also allows manufacturing corporations to lower costs through digitizing their analytics and paperwork, allowing digital planning and information to be shared throughout the workforce without excess manufacturing and engineering costs. These costs can also be greatly reduced by utilizing an AWS cloud services partner to help cost effectively launch and optimize and initiative your organization is undertaking.
With increased optimization also comes quicker time-to-market by automating processes and integrating digital strategies within the workforce. When processes are automated and made clearer throughout an organization, collaboration and manufacturing can happen quicker, allowing products to move from the floor to the market in a more efficient way. Faster time-to-market doesn’t just benefit the company, it benefits the customer, which, in turn, fosters an important relationship between the organization and its customers.
Digital tools have a significant impact on the fostering of innovation and new ideas for manufacturing businesses. Empowering employees through unique, improved technology allows for an environment of change and modernization. Technology connects users, and this allows collaboration, sharing of vital information, remote meetups and conversations, greater idea generation, and accelerated development. By empowering your employees with a digital strategy, you provide your business with a new atmosphere of innovation.
A digital strategy naturally leaks its way into marketing and sales, and this is not a bad thing. Pushing your digital strategy outside the boundaries of your workforce allows customers to be exposed to your brand in a whole new way. Digital campaigns and targeted marketing improve customer satisfaction and increase brand awareness, positively impacting sales. Digital advancement also allows manufacturing corporations to improve business operations that directly impact customers, such as offering customer-specific solutions and, overall, improving customer satisfaction.
A digital strategy can help streamline processes in the workplace, creating an optimized work environment that flows more efficiently and allows employees to do their jobs more easily. Technologies such as factory virtualization, online paperwork, digital planning and processing tools, remote communication software, and online collaboration allow employees to be more productive on the floor and in the office.
Utilizing digitization of supply chain management allows manufacturers to become competitive in the global market. When a supply chain management system is digitized, real-time analytics, virtualization of the supply chain, online order tracking, and efficient material flows all occur, giving the manufacturer a leg up in a globally competitive market. Also, enabling a digital supply chain allows for the opportunity to outsource certain areas of the process, integrate external suppliers, as well as digitally check product quality in real-time. These benefits put the manufacturer in an key competitive position.
Manufacturers have a unique opportunity presented to them- in a market that is lacking in digital strategy, the ability to mobilize the workforce and digitize processes creates an incredible advantage that could transform a business. Through the design and implementation of a digital strategy and working with the right app development company for any software needs, manufacturers could achieve all the above benefits and more.