Why Manufacturers Need to Rethink their Digital Strategies
(2 minute read)
In the past decade, advances in technology have enabled supply chain and manufacturing operations to become significantly more efficient. In fact, companies that have embraced these technologies early are already seeing a 7% revenue growth advantage over their peers, according to McKinsey & Company.
The challenges presented by the current pandemic will only serve to create a deeper divide between manufacturers that have just started to digitize versus those further ahead on their digital journeys.
Challenges for Manufacturers in the ‘New Normal’
Many manufacturers had some type of digital transformation initiative in place before the pandemic, yet some found themselves unprepared to deal with rapid change. This fact became glaringly obvious in the current environment, shining a harsh light on business processes and technology that need to be addressed.
Although manufacturing is comprised of several industry sub-segments, for purposes of this discussion we are focusing on some common challenges across the discrete manufacturing, industrial machinery & components (IM&C), and high tech industries.
- Volatility in the Supply Chain: Every major manufacturer is experiencing supply chain disruptions for parts and raw materials, mostly driven by global supply chain constraints. Looking ahead, manufacturers can benefit significantly by taking steps to optimize the entire supply chain network.
- Poor Item Availability and Customer Commitment: In the current environment, manufacturers are finding it difficult to accurately plan and commit to availability of specific items. To help mitigate these issues in the future, manufacturers will need to gain a clear picture of the supply network and provide advanced visibility to suppliers to ensure supply of critical materials and mitigate possible shortages.
- Non-Existent or Poor e-Commerce Capability: The lack of digital selling and service capabilities is hindering customer engagement and revenue opportunities. Manufacturers will need to focus on accelerating the shift to e-commerce in a world where having a robust e-commerce capability has become a necessity.
The Path Forward Requires a New Approach
It’s not surprising that manufacturers further along the path to digital transformation are adapting to the ‘new normal’ better than their peers. The changes made to their business models and working processes allowed them to pivot more rapidly or accelerate changes already underway.
However, it no longer makes sense to take on large-scale transformation projects; especially when no one can see far enough ahead to make long-term plans. Manufacturers need a new approach to transformation that is fast, flexible and forgiving – even in times of uncertainty, frozen capital expenditures and a heightened aversion to risk.
This new approach delivers digital transformation as a service. It’s designed to replace the traditional series of lumbering projects with a service that provides a smarter way to respond to changes in technology, your industry, and your business.
- A dynamic technology roadmap to plot your course
- A flexible delivery model so you can pivot, as needed
- Subscription pricing – simple, easy, affordable
This new approach can help you break down barriers so your business can continue to grow – even in these uncertain times.
For more information about how manufacturers can rethink their digital strategies, I encourage to download our e-book, Rethinking Digital Transformation for Manufacturers.