According to Forbes, 21% of the organizations have already completed the implementation of digital transformation while another 40% is expected to do it sooner rather than later. Also, 56% of the CEOs agree that digital transformation has increased their revenue. Well, the stats related to digital transformation do not end here and there are many more on the list. 

This goes without saying that digital transformation has played a pivotal role in disrupting a number of industries. Let’s take, for example, the manufacturing sector. We have already witnessed the transformation here with the evolution of futuristic trends such as Industry 4.0, Industrial Internet of Things (IIoT), Artificial Intelligence, Augmented Reality, and the advanced ERP systems.  

In this blog, we will discuss the top 7 digital transformation trends that will fuel the manufacturing industry in 2020.

Role of IIOT and AI 

The introduction of the Industrial Internet of Things (IIoT) and Artificial Intelligence has paved a new way for the manufacturing sector. It means that manufacturers can harness new possibilities and transitional changes. In fact, according to the study, the manufacturing IoT expenditure will increase to $200 billion by this year.

More and more business organizations are excited about implementing the digital transformation after going through the various IIoT successful case studies. With the passage of time, we are expecting that more technological innovations will take the center stage streamlining the production and providing more effectiveness, and improved visibility.

The industrial internet of things is seen as the forerunner of Industry 4.0, which is based on creating a web of sensors, detectors, and automatons. In addition, artificial intelligence has collaborated with Big Data and analytics tools to take the manufacturing process to the next level. 

Predictive Maintenance Improves Operational Efficiency

Experts believe that predictive maintenance will ascend to new heights in the current year. In fact, a study revealed that a machine’s downtime has cost companies about $2.6 million per hour, which is a hefty loss. This is because, in a traditional approach, the manufacturers have to schedule routine maintenance of the machine, which costs both time and money. 

But the good news is that organizations are adopting predictive maintenance on a large scale, which has indeed helped them decrease maintenance costs by 20% and cut down unplanned downtime by 50%. Also, according to Mckinsey & Company, the inventive technology is increasing the life-span of your machinery.

Again, predictive maintenance technology makes use of a number of tools and metrics to monitor the status of the equipment. The manufacturing units can collect data through IoT sensors and understand how the systems operate. You can carry out the tests while the equipment is in operation. 

ERP Software Will Continue Streamlining Business Operations

Businesses of all sizes have identified the importance of implementing an enterprise resource planning software into their system. Yes, there is no doubt that an advanced ERP system will provide a competitive advantage to your business.

Enterprise Resource Planning helps to streamline the business process through operational automation to provide real-time insights and details. This, in turn, will provide real-time information and even help to reduce the time and cost. This will also prevent delays and disruptions in manufacturing. Furthermore, real-time information helps them to make quick decisions.

Traditional ERP systems may consume a lot of time and implementation can be frustrating. But SAP S/4 HANA is an advanced ERP business suite that provides swiftness, accuracy, and affordability.  You can get in touch with an expert SAP Consultant Company to integrate SAP S/4 HANA effectively into the business process.

AR and VR will continue the digital disruption

Both augmented reality and virtual reality will continue to disrupt the manufacturing sector in the coming years. This will create a friendly relationship between the man and the machine. For instance, VR technology allows product manufacturers to use computer-aided designs and make modifications when further designing it. Similarly, AR-enabled devices help the workers to provide real-time data when performing the tasks. 

So, AR and VR have been one of the biggest assets of digital transformation for manufacturers that have allowed them to manufacture accurate products and meet strict deadlines.

Digitizing the Inventory Management Process

Managing the inventory and stock of goods is one of the most crucial aspects of the manufacturing sector.  They often have to deal with a few challenges that include delays in loading and unloading of the manufactured products and missing rolls. 

But the good thing is that digital transformation has introduced the concept of RFID and barcode scanning. It will speed up the loading and unloading process with the added benefit of full traceability.

For instance, you can implement the RFID rolls for inter-plant operations and use the bar code technology to streamline customer sales. SAP can help a great deal to minimize the loading time with S/4 HANA and cloud-based solutions. It also can reduce the number of loading points, providing more accuracy in the job. In fact, you can also use SAP services to conduct the right customer mapping along with validating the rolls and choose the right packaging methods for the specified goods. 

Revolutionizing the Internal Operations

SAP Solutions has rightly merged with innovative digital technology to revolutionize the internal operations of an organization. The enterprises are blessed to have next-generation BI tools such as SAP BI, Managed Analytics, and Power BI, etc. that have automated many tasks. 

Let’s take, for instance, Business Intelligence has enabled enterprises to speed up their decision-making process and bring more accuracy in it. Also, it has eliminated different traditional approaches where the finance and accounting team had to prepare monthly reports or MIS using Excel. Also, collecting accurate data was one of the pain points faced by the sales team.

But all thanks to the advanced BI tools, the scenario has undergone a transitional change. Tools like SAP BI and Power BI have simplified the task to a great extent. Anyone can view the finance and sales reports from their system at any point in time. In addition, these tools have also introduced the concept of auto-generated emails, where business managers can send proposals and quotations at a specific time. 

Since the reports can be viewed in real-time, the key decision-makers can plan to implement new strategies and trends with respect to the manufacturing and conversion ratio.

Introducing Robots in Manufacturing Sector

Did you ever imagine that robots will become a centralized part of the manufacturing and production process? We have so far imagined robots performing repetitive and hectic tasks but with the passage of time, their dexterity has incredibly increased.

The robots are technologically advanced to perform even hazardous tasks with ease.  They are proficiently trained to provide a safe working environment for the employees and workers. In fact, these robots can even work at remote locations and are controlled by operators. They are fed with data and sensor-enabled technology, which makes them no less than smart machines. 

Also, they can identify any mechanical or technical issues and fix the same in an accurate manner. They help boost productivity and lower delays. 

Conclusion

There are many more digital transformation trends that manufacturers can follow and implement to take their business to the next level. But you also need to see which innovative technologies will suit best for your industry.