5 Reasons Why All CEOs Love Software

The events of last year only accelerated an existing trend, with firms across all industries digitalizing more and more of their operations. Introducing remote-access solutions, optimizing supply chains and reducing dependencies have become a matter of survival. At T-Systems, we see the change in our clients’ requirements as a new market reality. There is no doubt that this will continue into the post-Covid recovery.

The competitive edge offered by digitalization can be seen acutely in manufacturing. Software is at the heart of this. We think of software as the oil for the machinery – without it, machines do not work. We have identified the five main areas of competitive advantage that software can offer:

1.    Speed-to-Market

Replacing lengthy prototyping processes, product development can now take place virtually. A “Digital Twin” – a software-based representation of the factory floor – can be used to rapidly simulate the many iterations of defining a product. We saw the potential this technology can offer as the biotech industry rushed to develop a Covid vaccine. Development times which normally take a decade were brought down to a matter of weeks.

A new product used to mean installing new machinery and extensive retooling. Now, software allows remote reconfiguration of existing factory infrastructure. By shortening the time between the start of development and reaching the customer, firms reduce costs and increase their competitiveness.

2.    Flexibility

A programmable factory also creates flexibility. The same production line can be reconfigured remotely to produce different products. Software is opening up new possibilities for manufacturers to cater to new markets.

Artificial intelligence (AI) is equipping production facilities with predictive analysis capabilities. This minimizes the need for manual inspection, allowing firms to be more flexible in their planning.

3.    Resilience

The pandemic threw a light on the vulnerability of global supply chains. Analytics software provides data on material flows, transport and the consumption of production materials. This allows firms to optimize their supply chains, reducing their dependencies and exposure to shocks.

Software can protect production facilities against attacks. Automated updates of machinery can eliminate vulnerabilities as soon as they are identified. This boosts manufacturers’ defenses against malicious attacks.

4.    Efficiency

Software is connecting up multiple factories and integrating logistics across production locations. This optimizes resource allocation and eliminates redundancies, generating efficiency gains for producers.

Predictive maintenance and real-time supply-chain analysis are eliminating downtimes. Firms who invest in these technologies are gaining a competitive edge, with a higher utilization of their production capacity.

5.    Sustainability

Factories’ Digital Twins are a huge boost to sustainability. Taking product development into the virtual world saves valuable resources. It also allows engineers to fine-tune less energy-intensive production methods.

AI can analyze data and identify the most effective, efficient levers for minimizing our material and energy consumption, as well as eliminating waste. Sustainability affects us all and customers increasingly expect it in the products they buy. It can be a real differentiator for firms’ offerings.

A growing number of firms are recognizing the potential on offer. This shift is generating its own momentum; As Digital Twins and programmable factories boost manufacturers’ creativity; customers are in turn demanding more choice and personalization. This underscores our philosophy at T-Systems: A digital mindset is not “nice to have”; it’s the foundation of firms’ future competitiveness.