Three Trends in Manufacturing Smart Transformation
Trend

Three Trends in Manufacturing Smart Transformation

With the complexity of geopolitics, the shortage of talents, the popularity of 5G, and the maturity of Industry 4.0, can companies respond to future challenges? Future manufacturing trends will focus on three main directions: experience, innovation-driven energy, and supply chain restructuring.
Published: Jun 05, 2020
Three Trends in Manufacturing Smart Transformation

Trends in manufacturing smart transformation

Global manufacturing sees digital transformation as a matter of urgency. However, digital transformation involves a wide range of aspects, from operational thinking, business models to talent transformation, etc., which are issues that companies must ponder under the topic of digital transformation. At present, enterprises are faced with the four problems usually encountered in digital transformation, including the lack of cross-border innovative thinking, data governance, information security, and talent transformation. He further pointed out that, for example, the current definition of digital transformation by many manufacturers in Taiwan usually still focuses on equipment investment. Under cost considerations, they hope to improve production efficiency, but they rarely lack the thinking of cross-border innovation.

Now the trend of manufacturing styles is changing, such as the change in the way end consumers obtain product information, the shortening of the early-adopting period, which intensifies the pressure of product manufacturing, or the change in sales channels. Therefore, the market has also begun to link the consumer side through digital methods. Some industries have started cross-border cooperation through breakthrough innovation, which will be a major trend in digital transformation.

For the three major trends observed in enterprise smart transformation, he pointed out that there are more and more smart manufacturing issues returning to the experience demand, including enhancing the experience of consumers and customers and even focusing on how to improve the experience of factory employees. Reduce the risk of factory accidents. In addition to the experience requirements, information security and risk considerations are also becoming more and more urgently focused on by manufacturers. Now many industrial computer manufacturers such as Advantech and NEXCOM are beginning to seek transformation, instead of simply providing hardware, but from Smart systems provide customers with complete software and hardware solutions, but at the same time, end-users’ doubts about security may affect the willingness of the solution to be introduced. Therefore, these manufacturers are now beginning to incorporate related IoT security companies through mergers and acquisitions. Become part of the solution to increase the trust of the industry.

The second trend is the driving energy for growth and innovation. In the process of smart transformation, more and more companies are beginning to seek new business opportunities, such as from the government's implementation of the "5+2" policy, whether it is renewable energy, medical technology, etc., are emerging industries that investors invest heavily in. Also, many manufacturers are driving service-oriented transformation. Wen Shaoqun pointed out that many manufacturing industries have begun to transform into ODMs, brands, and even service providers, and those originally doing R&D talents have turned to sales or marketing business, and there have been innovations in talent mobility.

The third trend is in the current process of restructuring the global supply chain. The layout presents diversification including centralization, globalization, or localization. In recent years, under the change of supply chain, Wen Shaoqun observed that companies are also looking for talents. Change, and there are two types of talents that are needed by companies in the future, one is digital transformation talents, and the other is strategic procurement, especially strategic procurement talents, in response to supply chain transfers, especially in the face of the current unfinished trade war and production bases Where it is located will determine the cost of production, and also in response to the trade war, when citing advanced technology, it is necessary to pay attention to whether the intellectual property right is prohibited by mistake, which is also closely related to strategic procurement.

With the complexity of geopolitics, the shortage of talents, the popularity of 5G, and the maturity of Industry 4.0

Can companies respond to future challenges?

The manufacturing industry is undergoing a large-scale digital transformation. The so-called fourth industrial revolution has already arrived. Not only are they largely replacing inefficiencies, high costs, inflexible production lines, slow time to market (Go-To-Market), etc. The transformation of traditional manufacturing, at the same time, manufacturers who embrace Industry 4.0 are constantly introducing destructive power products, services, and even business models.

However, in the modern era in which the pace of transformation is accelerating and many technologies are gradually maturing, the world has encountered the worst epidemic of this generation. Problems such as loss of production capacity, broken supply chains, and a drastic reduction in demand have seriously affected the prospects of manufacturing. Countless manufacturers Affected, some even declared bankruptcy.

In this extremely efficient industry, this epidemic has severely thwarted the development of the manufacturing industry, but at the same time, many manufacturers have reflected on their own operating models, and supply chain risk management and organizational resilience have once again entered the industry. The mainstream of development drives the next wave of transformation.

If we use a few words to describe the recent manufacturing environment, then "persistent confusion" may be more appropriate. The first is that the Sino-US trade war has led many foreign investors to withdraw from China and transfer investment targets. Many companies have stopped purchasing from the Chinese market because of tariffs. Although Taiwan is a beneficiary, the decoupling from China has also hurt many companies that rely on the Chinese market.

The second is the epidemic that is ravaging the world. Initially, the worst epidemic in decades has caused many manufacturers to rely on Chinese manufacturing to break the chain. Later, as the epidemic in Europe and the United States was severe, global demand fell sharply, causing many businesses No orders at all, no business to do. Now, the epidemic situation seems to be improving in many countries, but in developing countries such as Brazil, Russia, India, and Mexico, the number of people infected with the epidemic is increasing, and such uncertainty has also increased the pressure on many operators.

Finally, the maturity of Industry 4.0 technology, technological advancement, and many destructive digital technologies continue to surface, and also squeeze the survival space of traditional manufacturers. Digital transformation is imminent.

More mature Industry 4.0 technology

Many technologies in Industry 4.0 have exploded in the past five years. At the same time that the maturity of AI has greatly increased, the ease of use has also increased significantly, so that more and more businesses can use it. The growth of 3D printing technology has also Let it be no longer just a tool for making prototypes, but one of the tools that can be applied on a large scale; the maturity of the hybrid cloud model also allows operators to better manage data and so on.

B2B2C sales model and channel changes

The maturity of digital technology has not only changed the sales model of manufacturers but also changed the relationship between OEMs and end-users. Now, operators can have more and more touchpoints in the end user’s customer journey and thus improve the core competitiveness of the brand. Such a change also means that the boundaries of many existing operating models such as B2B sales, distribution, and agency will become blurred, and this model is often referred to as B2B2C.

Highly resilient supply chain management model

Although the concept of supply chain resilience was put forward decades ago, with the intensification of globalization and the current pressure of market competition, the risk of supply chain seems to have become the legacy code of many companies, making the team timid. However, this epidemic once again brought the theme of "resilience" back to the mainstream, driving many companies to establish a supply chain management model that is more aware of risks, resists attacks, and can quickly recover.

After-sales service will become the core competitiveness

In the current situation of slowing demand and intensifying competition leading to the compression of gross profit margins, manufacturers must find new growth strategies in this market-driven by technology, economic development, and new sales models. Sales of pure products will no longer be the primary goal of manufacturers but will focus on strategies to improve the growth of after-sales service. Today's manufacturing is no longer just the production and foundry of physical products but includes growing products and services.

5G popularity

What 5G brings is faster, more stable, and extremely low-latency network transmission. Just as a few years ago, the increase in computing speed drove the vigorous development of the entire artificial intelligence industry. With the gradual deployment of 5G in the world, the benefits it will bring will further drive factories to become more intelligent and connected. Stronger and more diverse business models will flourish. A study even found that 5G will create a value of 13.2 trillion dollars by 2035.

The new normal in the manufacturing

Brexit, the China-US trade war, and the epidemic that raged across the world. The market in 2020 is full of uncertainty. The pace of globalization seems to be slowing down. Many players even believe that the recession, the epidemic does not know when it will end. At the same time, China-US trade the war has not yet reached a conclusion. For manufacturers, such uncertainty will greatly increase the difficulty of doing business, but it will also be the new normal of the entire manufacturing industry.

Published by Jun 05, 2020 Source :digitimes, Source :oosga

Further reading

You might also be interested in ...

Headline
Trend
Grinding Robots and Human Machine Collaboration
The integration of robotics into grinding processes can greatly transform traditional manufacturing into dynamic environments where human workers and robots collaborate seamlessly. While robotics offers precision, consistency, and efficiency, skilled operators are essential for the efficient operation of advanced grinding machines. Training programs are important to provide hands-on education, certification, and expertise in setup, operation, and troubleshooting for optimal performance.
Headline
Trend
Keyless Digital Electronic Door Locks: The Evolution of Security
We've all had the experience of returning home with our hands full, juggling packages while fumbling for keys. However, there are innovative solutions that prevent this predicament by eliminating the need for traditional keys. Keyless digital electronic door locks utilize a variety of technologies to provide secure, flexible access control without the traditional key. Advanced technologies that use various forms of authentication, such as codes, biometrics, and smartphones, not only streamline your entry process but also enhance the security of your home.
Headline
Trend
The Role of Artificial Intelligence in Autonomous Vehicles
Utilizing machine learning and neural networks, artificial intelligence (AI) plays a crucial role in enabling the autonomous operation of self-driving cars. These vehicles leverage a combination of sensors, cameras, radar, and AI to navigate between destinations without the need for human intervention. For a car to be considered fully autonomous, it should demonstrate the capability to independently navigate predetermined routes without human input, even on roads that have not been specifically modified for autonomous vehicle use.
Headline
Trend
Worldwide Bicycle and Electric Bicycle Market Overview
The global increase in environmental consciousness has resulted in a shift for bicycles from primarily sporting and recreational roles to becoming popular modes of commuting. Notably, the rising adoption of electric bicycles is driven by factors such as an aging population, contributing to a significant upsurge in the global production of electric bicycles in recent years.
Headline
Trend
Confronting the Era of Digital Advancement, Facial Recognition Technology Has Enhanced
Recently, there has been widespread discussion about Artificial Intelligence, Machine Learning, Deep Learning, and Big Data. These technologies find application in various domains such as the financial industry, logistics, business analysis, unmanned vehicles, computer vision, natural language processing, and more, permeating every facet of daily life.
Headline
Trend
Can 3D Printing Be Applied in the Die and Mold Industry?
As the utilization of 3D printing expands across the broader spectrum of industrial manufacturing, the significance of this technology extends beyond its role as a rapid prototyping tool. This article provides an overview of the applications of 3D printing in the fabrication of molds and dies for processes such as injection molding and die casting.
Headline
Trend
Industry 4.0 Propels the Global Industrial Market Towards Automation
In the present day, conventional industries are blending Internet of Things technology to drive the evolution of Industry 4.0 and the advancement of smart manufacturing.
Headline
Trend
The Essence of Additive Manufacturing
Additive manufacturing is playing an increasingly important role in the manufacturing industry and is mainly used in toolmaking and prototype construction.
Headline
Trend
Exploring the Concept of Advanced Manufacturing
Advanced manufacturing is the use of innovative technologies to improve products or production processes. Related technologies are called "advanced", "innovative" or "frontier". Advanced manufacturing technology is gradually maturing, integrating innovative technology into products and manufacturing processes to enhance competitiveness and increase value.
Headline
Trend
Cement Industry's Initiative to Achieve Net Zero Carbon Emissions
With technological progress and industrial restructuring, the cement industry is actively introducing a circular economy and has become an international pioneer in net-zero carbon emissions through alternative fuels, alternative raw materials, waste heat power generation, green power development, and carbon capture technologies.
Headline
Trend
The Current State and Future Trends of the Biotechnology Pharmaceutical Sector
The growth of the overall global biotech pharmaceutical market is slowing down. Europe and the United States have entered a mature period, and global development in the overall biotech pharmaceutical industry market has slowed down in recent years.
Headline
Trend
Could Low-Carbon Production Be the Answer to Global Climate Change?
Countries are actively developing heavy industries, manufacturing, and infrastructure to drive market growth, but they often pay environmental costs accordingly. Approximately 70% of global greenhouse gas emissions come from infrastructure construction and operations, such as power plants, buildings, and transportation. What will be the effect of promoting society's emphasis on low-carbon manufacturing?
Agree