The manufacturing industry must work smart to move forward

Yasser Hassan,?Senior Director of Small, Medium?and?Corporate Business,?Middle East and Africa?

?Not only has the Covid-19 pandemic dramatically changed the operating landscape for many industries and organisations that have needed to fiercely accelerate their digital transformation plans, but it has also thrown a harsh spotlight on the unavoidable need for a digital-first mindset.

According to IDC’s COVID-19 IT Impact Survey, from a high of 17 percent in May of 2020, less than 10 percent of manufacturers are still focused on business continuity challenges, and there’s been almost a?doubling of the number of manufacturers who are now focused on growth and innovation in the ‘next normal’?(50 percent).

The Manufacturer Alliance for Productivity and Innovation (MAPI) Deloitte and MAPI 2020 study reported that?manufacturing ecosystems are accelerating digital transformation and results, with early adopters achieving twice the revenue growth, digital maturity and new product/service delivery as their peers.

However, the manufacturing industry has seen a widening digital divide between those manufacturers who were already on the path of digital transformation prior to the start of the pandemic, and those who had not yet started planning for this eventuality. Regrettably, those who had failed to prepare for the digital future will likely face a much more challenging prospect than those companies who are emerging from the pandemic with firm digital transformation goals and strategies.

?The challenges are multiple

For the manufacturing industry, the challenges are many on the road to digitization. Smart factory investments, resilient and robust supply chains, and fully connected enterprises are just some of the concerns for the industry.

MAPI’s 2020 study found that?62 percent?of leaders surveyed are continuing smart factory investments, and?allocating 20 percent more to those initiatives than last year.?It’s a matter of survival for manufacturers to not only operate safe and agile factories, but to also unlock innovation and new services. And, of course, the pandemic has shown us just how fragile our global supply chains really are, prompting a necessary focus on developing resilient and secure supply chains.

Manufacturers are also realising the value of manufacturing ecosystems and digital tools in delivering faster turnaround and enabling better collaboration among partners. In fact, 85% of manufacturers surveyed believe ecosystems are important or extremely important to their competitiveness.

?Digital transformation breeds efficiency

For manufacturers, introducing technologies and solutions into their processes can help improve decision-making capabilities and help avoid costly downtime. IoT, big data and predictive analytics all work together to produce a rich, informed view of manufacturing infrastructure and processes. Used correctly, technology can also improve agility – a must when faced with changing consumer demands and market conditions.

?Microsoft Cloud for Industry offers in-depth understanding of key industry issues

In Turkey, Microsoft customer Martur Fompak International has used Microsoft Azure for a seamless ecosystem that runs everything from design and engineering offices to production lines at 23 manufacturing sites spread across countries. Azure enables the team to process live data from its production systems to provide continuity in case of sudden local outages. The migration to Azure ensures that all machines are active, and systems are fed back against any regional adverse scenarios – an important accomplishment for a company with a global footprint. The company is also using AI tools and machine learning work capabilities to enhance all aspects of their work spanning various departments, such as maintenance, production, and purchasing.

Understanding the specific industry challenges, Microsoft Cloud for Manufacturing provides an end-to-end value chain, connecting functions across manufacturing operations and engineering processes and customer engagements. There is no question that the agile factory of the future will embrace IoT, operational visibility and production operations, using technology to meet and exceed business expectations in the ‘next norm