Digital Disruption in Manufacturing
The industrial globalization that
the world has experienced in the past decade has exposed new challenges and also
provided equally exciting opportunities to the Manufacturing Industry. Adherence
to Lean Manufacturing and Six Sigma is not sufficient now to gain competitive
advantage and companies have to come up with innovation and more user centric
means to stay in the race. The demographics of the end customers and their
purchasing behavior has seen a tremendous shift and companies have to redefine
their Strategies to cater this. Globalization has not only brought disruption
in the external environment but also in the internal arrangements of the
enterprise such as change in the workforce culture, change to their sourcing strategies, changing energy
costs, shortage of workforce and new regulations etc.
As we see numerous challenges, we
also realize that Manufacturing is entering an exciting new phase of
opportunities. With Globalization and increased competition, it has become
imperative for the companies to manage the labor & material Cost, innovate
new & efficient processes, compete, innovate, grow profitably and improve
safety standards as well as comply with emerging laws. The Goal is to create products
& services that will help satisfy the need of the customer and also to be innovative
and distinct. This includes creating a platform that facilitates the
engineering, production processes, and providing a feedback to get continual
improvement and alignment with the business. These technology
trends are now emerging with more visibility and enterprise must do significant
investment to ride this digital disruption.
Challenges faced by
Manufacturing Companies.
1. Technology changes which has been driven by Social Computing, Cloud Computing, Big Data, Internet of Things and the Mobile.
2. There is a talent gap as the developed world faces lack of In Depth Industry Knowledge experts and knowledge of the management aspect of the Industry
3. With Globalization and Distributed Sourcing, the companies have to manage several partners with respect to quality, Compliance and Risk.
4. The Competition has become fiercer as firms have to defend their local markets from new global rivals
5. There has been increase in the environmental regulatory concerns and
standards
1. Gain competitive advantage by Implementing new manufacturing IT solutions that helps to reduce the cost of development of Product, distribution and increase their Return on Investment
2. Redesign their supply chain and place their production facilities to best cater the change in pattern of demand and increase in complexity of cost and risk
3. Gain access to Skilled Workforce for increasingly sophisticated production methodologies
4. Access
their audit practices and tax strategies to make it more suitable in the
current environment.
We understand that Globalization
and technological shifts are altering the value creation the basis of
competition and in manufacturing. Lower cost is no longer the sole criteria for
success. There are various new materials and new processes that provides an
opportunity to manufacturers ensure more value to their customer. This includes
quicker delivery, enhanced, product customization, and flexible productive
volumes.
Methods for
deriving value
ü Change
in value proposition - All the Product, Services,
Information and customer engagement need to be redesigned using new
capabilities for interactivity and access to information so that these creates
value as well as ROI
ü Change
in operating model -
Information from each activity & process of the Supply chain should be
captured and analyzed holistically to transform the value proposition of the
customer and designing operations for delivering that value proposition. It
will create the following:
• Streamline the product risk mitigation and ensure the regulatory compliance
• Reducing IT costs & Reducing product development costs
• Improve the product quality and also Increase customer satisfaction
• Accelerate the innovation of products & Reduce the time-to-market
We understand that Globalization and technological shifts are altering the value creation the basis of competition and in manufacturing. Lower cost is no longer the sole criteria for success. There are various new materials and new processes that provides an opportunity to manufacturers ensure more value to their customer. This includes quicker delivery, enhanced, product customization, and flexible productive volumes.
