40% Productivity Drop Identified! - Insights Inside [Engineering Industries Must Read]

Recent assessments have uncovered a significant 40% drop in productivity across various sectors (here targeting the Engineering sector). This discovery sends shockwaves through industries, prompting urgent inquiries into the underlying causes.

As organizations scramble to understand the root of this decline, insightful analyses are now shedding light on crucial factors contributing to this unprecedented downturn.

Because The Struggles Are Real When Using Old Tech!

Engineering industries face everyday challenges like managing transit-cycle time, shift scheduling, quality control, and resource scheduling. But first, let’s talk about the elephant in the room—outdated IT infrastructure.

While familiar and functional, legacy IT systems can seriously hamper the growth and success of engineering firms. Here’s how:

Growth Hurdles:

• Limited Scalability: Forbes found that 87% of engineering firms face project delays due to outdated IT infrastructure, affecting their ability to grow.
• Innovation Stagnation: Gartner reports that companies using modern data analytics tools enjoy a 20% higher innovation success rate. Legacy systems? Not so much.

Productivity Pitfalls:

• Inefficiency and Errors: McKinsey reveals that manual data entry errors in legacy systems lead to an average 10% productivity loss. Modernizing can cut these errors down.
• Poor Collaboration: Salesforce says siloed data due to old systems reduces team collaboration efficiency by 33%.
• Downtime and Delays: Outdated systems are prone to failures and require more maintenance, causing costly downtime.

ROI Roadblocks:

• High Maintenance Costs: TechTarget reports that maintaining legacy systems can eat up 80% of a company’s IT budget. Modernization can redirect these funds to strategic investments.
• Security Risks: IBM’s 2023 Cost of a Data Breach Report highlights that data breaches in the manufacturing sector cost an average of $4.24 million. Outdated systems are vulnerable to such breaches.

Other Considerations:

• Talent Troubles: Randstad found that 73% of engineers consider a company’s IT infrastructure when job hunting. Legacy systems can make attracting and retaining top talent tough.
• Missed Savings: Modern AI/ML tools can uncover hidden cost-saving opportunities that legacy systems miss.

So What To Do Now?

Enter Industry 4.0—a game-changer that demands digitization of legacy IT infrastructure to boost automation, efficiency, cost reduction, and product quality. To stay competitive, engineering companies must join this digital revolution.

How Custom Digital Solutions Can Help?

Strategic Infrastructure Assessment: Our experts thoroughly assess your current IT setup to identify bottlenecks and limitations. We then create a strategic roadmap for modernization, detailing the necessary steps and technologies for a smooth transition.

Cloud Computing Solutions: We help you select the right cloud platforms (AWS, Azure, Google Cloud) and develop a robust migration strategy. With hybrid or multi-cloud architectures, you’ll achieve greater flexibility and resilience.

AI/ML Integration: Our AI and ML solutions can revolutionize maintenance and operations. Predictive maintenance models forecast equipment failures, reducing downtime and operational costs. Our AI-driven analytics offer deeper insights for more informed decision-making.

Product Engineering Services: We design and develop custom software tailored to your specific needs, improving productivity, user experience, and operational efficiency.

Security and Compliance: We enhance security measures with advanced protocols like encryption and continuous threat detection. We ensure regulatory compliance to protect against legal and financial repercussions.

At Ace Infoway, we know how to help. Our custom digital solutions can ramp up productivity and revenue by 35-40%.

Get the Right Partner!

Ace Infoway offers advanced, custom digital solutions for seamless integration, cloud migration, and modernization, helping you stay ahead without disrupting ongoing operations. Ready to boost your legacy IT infrastructure? Contact today!