Digital Transformation A Manufacturing Perspective

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eBook
DigitalTransformation AManufacturingPerspective
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Table of Contents

• 1) Introduction.
  . 3
• About the eBook
• 2) Manufacturing Industry on The Threshold of a
  New Revolution.. 4
• Small and Mid-Size Manufacturing Firms Surviving
  the Industry 4.0 Revolution
• Strategies for Manufacturing Firms to Make a
  Smooth Transition to Industry 4.0
• 3) Embarking on Digital Transformation
  Journey 6
• Two-step Digital Strategy Enhancing Operational
  Capabilities and New-to-
• Market Efficiencies
• Collaborate to Resolve and Conquer
• Building a Robust Platform to Increase Process
  Efficiency and Collaboration
• 4) Accelerating the Digital Journey
  ..........10
• Case Study Research

2 Title of the book
3
Introduction

• This eBook explores the trends of Industry 4.0
  and what opportunities and challenges
  manufacturers must face to sustain and grow in
  the market. In the eBook, it has been discussed
  how digital transformation can help small and
  medium-sized manufacturers to reshape their
  business process and process to enhance process
  capabilities and achieve expected customer
  outcome.
• Since digital transformation also requires a
  technology culture and collaborative ecosystem
  within and outside the organization, in this
  eBook, readers will find a discussion on the
  effective implementation of technology to
  enhance collaboration and a case study research
  on how renowned manufacturers have transformed
  their businesses to attain their business
  objective.
• It will help the readers to
• Understand the changing dynamics in
  manufacturing
• industry.
• Assess the capabilities of manufacturers and
  need to begin the digital transformation
  journey.
• Identify the key benefits and prevailing best
  practices to implement digital transformation
  solutions.

• Find the

growth
opportunities and how manufacturers,
regardless of size, can capitalize on the
opportunities rapidly.
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Manufacturing on The Threshold of a New
Revolution
The changing dynamics of the manufacturing
industry, such as high-level of competitiveness
and emergence of new technologies is increasingly
forcing the companies to review their business
processes. During the first Industrial
Revolution, beginning from somewhere in 1760,
there was a transition from hand-based
production methods to machines. A similar
transition can be experienced today where most
of the manufacturers are moving from machines to
Smart Machines. These Smart Machines are now
switching places with humans the benefits are
improved speed, high efficiency, low cost, and
excellent collaborative environment everything
that a manufacturer wants. The transition from
machines to Smart machines has a vision of
interconnected factory, comprehending with the
trend of automation, data collection, and data
sharing. The dependence on humans is declining
with advancing manufacturing technologies,
including Cyber-physical Systems, IoT, Cloud
Computing, and Cognitive Computing. This
advancement turns a factory into Smart factory,
enhancing the capabilities of machines to
communicate with each other and with humans, and
that too in real-time, both within and outside
the organization.
Where big giants quickly transform their
practices and processes, after analyzing the
impact, the small and mid-size manufacturing
companies face the real challenge. Maintaining
the same standards of information transparency,
getting the technical assistance, and supporting
the decentralized decision-making.
Small and Mid-Size Manufacturing Firms Surviving
the Industry 4.0 Revolution The process of change
behind revolution is not instant, it begins with
a new perspective, followed by breakthrough
ideas, and implementation, adoption, and
overcoming the challenges. Here, adoption of
the technology is vital, as only
those technologies are adopted which are convenien
t and cost-effective. In the case of Industry 4.0
revolution that was first used by the German
government in their effort to computerize the
manufacturing processes and was later revived at
the Hannover Fair in 2011, and gradually leading
manufacturers began implementing the idea, which
was received well by small manufacturing
entities and consumers.
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Improving Coordination and Knowledge Exchange
Sharing and exchange of knowledge can help
companies remain updated and identify the change
to better accommodate in the future. An
essential part of future planning, coordination
and knowledge exchange on the levels of
government, experts, and business will empower
the manufacturers to spearhead policymaking on
the grounds of Industry 4.0.
Strategies for Manufacturing Firms to Make a
Smooth Transition to Industry 4.0 These
strategies are extracts from the proposals and
policies set by the most innovative country in
2017, according to Bloomberg, South Korea,
followed by market trends supporting a Smart
Factory.
Support Research and Development Small ventures
can take the assistance from third parties to
engage in constructive research and development
work that could help in understanding the
business trends and requirement of the customers.
Emphasis on the Development of Skills Skill
development to cultivate human resources that can
work with new inventions will enable the small
and mid-size manufacturers to adopt automation
easily.
Focus on Improving Processes Small manufacturing
ventures need to focus on their end- to-end
processes to identify the gaps and introduce
automated processes for different company
functions.
Enhance Information Management Companies need to
create a bridge between management and
production teams and make available information
wherever required. This will help them to
increase accountability and traceability, while
also increasing overall performance. Create a
Digital Environment Develop a committed
leadership to manage a transition to the digital
environment that could connect your consumers
with new products, services, and platforms. In
an appropriate digital environment, manufacturers
can enhance the speed with which they reach to
their customers, identify their preferences, and
can meet their needs.
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Embarking on the Digital Transformation Journey
In order to withstand the new wave of innovation
and take the lead, manufacturers need to adopt
innovative practices to maintain the level of
quality and reach out to their customers in
fastest and flexible way possible. Before a
manufacturing company embark on their digital
journey, they must understand their paths are
not the same as companies from other vertices. If
you see the results of Harvard Business Review
Analytics Services Survey, December 2016, you
will find that only 27 of manufacturing
companies feel their industry will be disrupted
by digital trends.
Image Source https//www.clickz.com/the-rising-op
portunity-of-digital- transformation-what-
businesses-need-to-know/110987/
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This is because most manufacturers lack how
digital transformation can help their business
grow. In 2017 study by Boston Consulting Group,
researchers revealed that process manufacturers
and to some extent discreet manufacturers will
rely on these three drivers of IoT Predictive
Maintenance It will help material cost saving,
reduce equipment downtime, and maintenance
planning time. Self-Optimizing Production
Managing and optimization of the production
process in real time through interconnected
factories and supply chains. Automated Inventory
Management Generate insight into the status of
inventory and supply chains to speed up the
response time and enhance in-time
production. These drivers form the base for
automation and integration with the machine and
modern communication systems to create a
collaborative environment and technology culture
within the organization. It will help them to
speed up the response time to incidents, develop
adaptable processes, and empower their employees
with the right capabilities. Two Step Digital
Strategy Enhancing Operational Capabilities
and New-to-Market Efficiencies New to the Market E
fficiencies
Effective communication with customers can
increase new-to- the- market efficiencies. For
the same, manufacturers need to connect with
their customers and vendors to share information
and analyze their preferences and feedback
Improving Operational Capabilities For
companies from
industry verticals like communication, retail,
and education, the value they expect from
digital transformation and the
ways through which they can achieve it is
completely
different the way a manufacturer can extract the
benefits of a digitization of business.
Manufacturers are required to focus on enhancing
their operational capabilities with respect to
people, process, and machine to achieve their
digital transformation objectives.
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Building a Robust Platform to Increase Process
Efficiency and Collaboration
Collaborate to Resolve and Conquer
Data collected by a Market Intelligence Aberdeen
Group, reveals that top-performing
Company, businesses
are innovating their business processes to reduce
friction and enhance flexibility. According to
this data, around 46 of are promoting
collaboration and 29 are focused on achieving
goals than following traditional processes. The
key takeaways are

1. Collaboration between business processes and
   business units
2. Task based on goals rather than processes
3. Creating intelligent Workflows
4. Making the business process more efficient
5. Decreasing response time
6. Digitize processes

Modern day manufacturers must understand that
innovations are not the revolution instead form
the very core of the technology, which is to
remove complexity and promote convenience. Since
technology change is a permanent phenomenon,
they need to prepare themselves to move
To accomplish this, manufacturing firms need a
robust technology platform integrated with
processes and business unit that bring together
every stakeholder involved from suppliers to
customers.
the way forward, with little
reluctance.
On to this connected platform, information
whether it is about processes or business units,
customers or employees, everything can be
shared. Besides, it could provide us with the
details of the real-time situation and generate
insight into the processes.
From the digital perspective, they need to
recognize that simply building a digital
business wont do, rather they must focus on
creating operating models and value supply
chains, which create more value for the business.
According to the latest Accenture survey of
executives, only 13 of companies are taking out
maximum benefit from their digital initiatives
for higher efficiency and increased growth.
Source Aberdeen Group 2015
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To enable companies to build technology platforms
for their business value and cost, we, at
Finoit, combine technology and econometrics.
Recent findings from the MIT Centre for
Business show that companies which have
embraced digital transformation are 26 percent
more profitable than their average industry
competitors and enjoy a 12 percent higher market
valuation.
Our reinvention of processes and practices to
lower the cost and drive top-line growth are
Creating Smart Applications Through smart
applications, create self-monitoring processes,
generate data, identify the change factors, and
predict the future.
Data-Sharing Connected Platforms Develop a
collaborative environment among people,
processes, and machines in real-time with the
help of data sharing platforms.
Help Develop Enterprise-wide Technology Culture
With
custom-built applications, instil
an enterprise-wide
technology culture with the focus on increasing
speed and efficiency.
Creating Valuable User-Experiences Promote
adaptive interactions to create valuable
experiences for customers.
According to PWC, out of 2,000 manufacturers,
86 expect to see cost reductions and revenue
gains from their digitization efforts over the
next five years.
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AcceleratingThe Digital Journey
According to the 2018 KPMG Harvey Nash CIO
survey, 78 of nearly 4,000 CIOs worldwide say
their digital strategy is moderately effective or
worse. Based on the survey, it has been
revealed that most of the companies do not focus
their digital strategy across the enterprise to
enhance the deeper operational capabilities,
rather only on front-end. To truly adopt
Digital Transformation, it is essential for
the companies to focus on the following Develop
capabilities in operations Digitization can
help you integrate total enterprise capability
to achieve strategic and current operational
goals. Business Analysis Through proper
business analysis, output, resources, and
performance can be analyzed to increase the
efficiency of the business unit and close the
gaps.
Building Robust IT-Business
Relationship The IT personnel of the
business must be
to Oxford Economics/PTC
According research, embraced
aware of the business objectives and
44 of companies who well defined digital
should promote initiatives to help achieve the
goals.
transformation strategy and also seen as high
performers in services have seen an increase in
their profit margins of over 20.
Promote Vision, Engagement, and
Governance Create a digital strategy that
is focused on promoting vision,
engagement, and governance to help a
culture of performance and uniformity among
employees
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Case Study Research
balance
Heres a list of manufacturing companies from our
intensive research that has created a between
core production systems and people through
effective digital strategy.
Facilitated Collaboration and Derived Insight
from IoT Data
Coats Group The company moved its computing,
data, and files to the cloud to reduce its
dependency on hardware. The attempt of the
company can be defined as moving from
industrial age to the digital age" to improve
its security, enhance forecasting capacity for
servers, and keeping itself updated. The
company is also building a data lake to generate
insight from its IoT data and predict inventory
costs.
. Built a Digital-Ready Workforce Nissans CIO
Tony Thomas focused on creating a Digital
Workplace to streamline and unify its previously
siloed business units. His team is also
mobile-enabling employees so that they can
access corporate applications from their
Smartphones and tablets.
Moreover, he also refined Nissans
ERP systems to help
safely between systems and
information flow freely but generate business
insight. .
Lean and Agile Principles to Create a Sense of
Urgency and Business Transparency The CIO of this
150-year-old manufacturer of ceilings, Dawn
Kirchner-King said that adopting lean and agile
practices introduced transparency, which
increased their confidence in what they were
doing. As a CIO, she upgraded Financial
Applications and migrated travel management to
Concur. Apart from investing in a new website,
she also explored analytics to enable Armstrong
anticipate quality issues with its manufacturing
process
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Re-architecting New Ecosystem- Where to Begin
From?
Why Finoit?
Finoit has extensive experience in
If being a manufacturer, this question
frequently comes to your mind, then to begin
with you can follow this two-step strategy.
creating applications that empower
decision-makers to analyze and compare gaps in
processes and capacity and support
1) Analyze the real-time situation of your
business behaving in the current market scenario.
of opportunities and risks. can help you drive
new
identification Further, we opportunities
experiences customers.
and create personalized for your employees and
2) Engage into application development to
capture data into descriptive, diagnostic,
prescriptive, and predictive information.
We are trusted by more than 400 companies from
different verticals, including small and
medium-sized enterprises to create data-
driven applications.
References https//bit.ly/2OuBftY
https//accntu.re/2MGtPC6
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Finoit is transforming how global enterprises
address their business execution demands and
problems with implementation of mission-
critical applications.
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With our technology consulting and
implementation services using web, mobile and
IoT development technologies, we have
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