Many manufacturers simply don’t have the technology architecture, business systems, automations, workflows, and processes in place to support new ways of doing business, says Michael Guantiero, Senior Director, Solution Consulting, Infor.

Infor is a solution provider at the marcus evans 5th Annual Manufacturing Excellence 2021. 

What are some of the biggest challenges manufacturing industry leaders are facing today?  

Industry 4.0 brings a new era of innovation and competitiveness in manufacturing. With this, it brings key challenges which manufacturers must overcome. These include higher customer demand for product innovation and personalisation, increasingly complex supply chain networks, the need to reduce costs and operational complexity, expansion into new business models and dealing with disconnected, heavily customised solutions which impede the adoption of smart manufacturing.

These challenges are further intensified by the global pandemic. On the one hand, customer demand and behaviours changed overnight for many industries, forcing manufacturers to rethink and revamp their business models within a matter of weeks. On the other hand, they need to operate with an unprecedented level of uncertainty in the supply chain network and complexity in operational environment.

Not only is the magnitude of change amplified, the speed of change has accelerated. Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, said, “In the new world, it is not the big fish which eats the small fish, it's the fast fish which eats the slow fish”. Manufacturers are at risk of falling behind if they are slow to embark on their transformational journeys.  

What do these trends and challenges mean for the manufacturing industry? 

These trends represent a lot of significant changes to the manufacturing industry in a short period of time. Many manufacturers simply don’t have the technology architecture, business systems, automations, workflows, and processes in place to support these new ways of doing business.

Increasingly, business and technology become two sides of the same coin. In Accenture’s newly release Tech Vision 2021, 83% of executives shared that their organizations’ business and technology strategies are inseparable – even indistinguishable. As most manufacturers now see the rising need to self-transform in response to the above challenges, business systems implemented years ago can no longer support today’s complex demands. Whether it's CTO or ETO, IoT, extended supply chains, or servitisation, these demands all rely on utilising modern technology.

At the tactical level, digital transformation of the way manufacturing operates can help promote increased efficiency and effectiveness of existing processes. Strategically, it also opens the door to differentiation—allowing manufacturers to rethink approaches and create new data-driven ways to deliver and elevate products, services, and the customer experience.

From cloud computing and collaborative technologies to mobility and analytics, technology helps solve specific needs and acts as a foundation for future growth.

What are the main areas of manufacturing that need to be optimised to kickstart an Industry 4.0 transformation?

There are 4 key areas that manufacturers should focus on to kickstart their Industry 4.0 transformation. These 4 areas are Process, Workforce, Assets and Customer Experience.

• Process: Use process optimisation to mitigate risk, increase efficiency and automate repetitive tasks
• Workforce: Make changes to help your workforce coordinate, prepare, produce and grow
• Assets: Focus on assets and machinery if mechanic operations and downtime are areas of concern
• Customer Experience: Interface with customers, utilise feedback and initiate changes directly related to customer satisfaction.