Digital Transformation Drive in Manufacturing

YRSK | Published: 11-03-21
As one may have thought, the digital revolution has not only touched the marketing and sales verticals but left quite an impact on the manufacturing sector as well. CIOs are looking at a disrupted industry that feeds off hyper-competition to ensure “survival of the fastest.”

To add to the mix, the landscape is facing heavy volatility due to erratic markets, economic conditions and policy changes. A cumulative effect of these parameters has led to a major overhaul. Coordinated network facilities of 5G, IoT ecosystems, Industry 4.0, machine learning and predictive analysis, are here and here to stay. 

The upright integration of digital technologies into business models has fundamentally changed the operating procedure and value creation. Decision-makers are now looking at smart factories capable of inherent communication through a connected platform. 

In fact, the Fourth Revolution is being backed by comprehensive digitization across the market to meet the updated consumer demands. Replacing the need for mass production, the users now aim for mass customization in the offerings. It essentially translates to agile development of the products, customer service and supply chain. 

What is Digital Transformation in Manufacturing?

The newly coined term is Smart Manufacturing. In an attempt to bypass the traditional methods, this trend sees the incorporation of data analytics and AI into the process. The end goal as always is to streamline the entire process, resulting in fulfilled demands, predictable errors and quick adaptability. The factories shall be digitally linked, able to learn the techniques, generate orders and assign tasks independently. 

In line with the original wave, this change drives the manufacturing sector towards a consumer-centric approach. The products developed and produced shall be a direct consequence of big data and trend analysis. With a touch on demand predictions, production shall be optimized to match the sales speeds. The move shall further derive personnel, time, shipping and engineering models as well as timelines. 


Start with Internet of Things, to blockchain, to data science, to artificial intelligence, the fresh potential of emerging technologies is astonishing. And while many of these are becoming easier to use, understanding how any particular technology contributes to transformational opportunity, adapting that technology to the specific needs of the business, and integrating it with existing systems is extremely complex.

Key Areas of Digital Transformations.

Until now, significant components such as sensors, cloud computing hardware, and analytical tools are only privy to large-scale players. Given the revolution’s blanket effect, affordable and accessible alternatives have created a space for small and mid-size enterprises, giving them their time in the sun. 

But, the trail doesn’t end at what’s already out there. Advanced manufacturing entities would need to go beyond the known to create algorithms and applications that set them apart from the rest. A keen eye would be of crucial stature, giving the manufacturing leaders ample time to manage the change and capitalize on the opportunities at hand. 

Nevertheless, all roses are not equally red. The unforeseen transformation shall be a hard sell to the upper management. The digital makeover may require all the growth concepts and prowess of an already under-developed IT department. Workplace realities shall be upheaved, forcing the need for a new generation of digitally-skilled employees. With everything being dynamically altered, it shall also add to the pressures of managing a cash-sensitive setup. One may even be looking at apparent resistance to the adjustment as the benefits are not entirely immediate. 

As companies go forward, there shall be tangible advantages to bank on. Firstly, with an excess influx of data, deep monitoring will be available from the factory to the warehouse. Improved processes shall lend added efficiencies, optimizing the machinery for multiple cycles. Outsourcing may find its way up the tree, thanks to remote checks, maintenance and risk elimination. 


Most organizations are redefining their objectives to get in line with the digital transformation. A clear strategy is being set for innovation and implementation, erasing any spaces for human error. Although, transformation shall all boil down to how the stakeholders respond to the said changes and what new is being taken to the table.