How a Digital Factory Concept Will Greatly Benefit the Businesses?
Published on : Saturday 15-08-2020
The digital factory movement is gaining momentum as manufacturers embrace transformative technologies that are helping them achieve greater productivity and update their business models for the current market. From artificial intelligence to advanced robotics systems, Industry 4.0 is changing the way manufacturers run their businesses, creating opportunities for efficiency and productivity that would be impossible without deep use of digital solutions in the factory.
In simplest terms, the move toward digital factories gives manufacturers the ability to make more informed decisions as they work to optimize operations. This begins with building data into every process and eventually leads to sustained innovation as the lessons learned from that data fuels progress. While the move toward such digital factory systems is already well underway in the form of modern enterprise resource planning systems and Internet of Things projects, transformative technologies could take the movement to another level.
Transformative Technology Drives Digital Factory Innovation
Transformative is a term thrown around a great deal in conversations surrounding digital technologies, but it is more than a buzzword. An IHS Markit study asked business leaders about six technologies the research firm dubbed transformatively. The technologies were AI, 5G networks, the IoT, blockchain, cloud computing/virtualization, and the move toward video everywhere. Approximately 56% of those polled said these technologies will have a highly disruptive impact in their sectors within the next three years. Just 4% said they aren't expecting such disruption.
Digital technologies are starting to drive major changes in how companies operate. IHS Markit explained that the disruption being driven by today's emerging technologies will likely lead to major operational changes, creating new market opportunities, and changing how the competition unfolds within an industry.
This is evident in manufacturing, where the digital factory movement is changing many longstanding perceptions. Among major disruptions driving this change are:
- Increased ability for small manufacturers to compete by offering specialized, highly customizable products.
- Heightened use of robotics and software that deepens the role of automation through better real-time data transmission.
- Accelerated adoption of modernized supply chain strategies that reduce operational costs and streamline production.
- A greater capacity for forecasting and inventory optimization to better adapt capabilities to market demands at a given time.
These efforts to drive operational excellence are leading to the move to digital factories as businesses seek ways to create new revenue opportunities in highly competitive markets.
The Conclusion
The formation of organizations or businesses to allow for innovation isn’t easy. Most don’t get the balance right and miss out on the huge potential digital factories can provide. By the use of current advanced technologies, businesses can break down the corporate hurdles and form the right team with the focus on creating a great experience of digitalization and disrupt the competition to stay ahead in the global market.
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