Digital Transformation for Manufacturing

Modern Manufacturers Avoid Commoditization Trap 

Many manufacturers are strategically moving from traditional product models, to product-as-a-service. This transformation from production to product-as-a-service changes manufacturers whole mindset, and their business from end-to-end.

Forces driving change include:

1. 90% of supply chain fulfillment will be cloud based - Gartner estimates that over 90% of SCE spending would be allocated to Cloud supply chain solutions, which it says 65% of companies see as a source of competitive advantage in the marketplace.
2. 86% of buyers will ​pay more for a better customer experience - According to a Walker study, by the year 2020, 86% of customers will pay more for a better customer experience. 
3. 70% expected increase in demand for products and services based on AI - Research from Gartner has validated this investment in AI, finding that worldwide business value derived from AI reached $1.2 trillion in 2018, a growth of 70%.  AI slated to grow to $3.9 trillion by 2022.
4. $1T global spend on cybersecurity products and services by 2021 - Cybersecurity Ventures predicts global spending on cybersecurity products and services will exceed $1 trillion cumulatively over the five-year period from 2017 to 2021.
5. Smart factories driving $344B in value by 2023 - Capgemini believes that as many as 50% of automotive factories have the potential to be smart factories by 2023.3 

Digital Trends Are Changing Manufacturing   

Benefits of Modernizing with Cloud, Data, & AI

How much can you save? How much more revenue can you earn if you modernize? A Keystone research study demonstrated companies in the top quartile for “investing in their data platform” vastly outperformed companies in the bottom quartile .With double the operating margin, they are crushing the competition.

The study concludes, companies who use data effectively follow a different trajectory for profits, with gross margins that are 18 percentage points higher and operating margins that are 4 percentage points higher. These differences translate into margins that are an average of $100 million higher, a consistent gap that holds across industry and company size.

The above strategies are all critical components to achieving modern manufacturing. What is unique and hard to find, is a technology partner that provides all these capabilities in-house. InCycle can not only do that, but also wants to help you achieve the next level of success. Contact us today to get started.

Happy Customers

The ability to view data in real time gives our customers unprecedented transparency into their processes. This provides valuable insights to inform production line actions.