This is the “smart manufacturing” transformation and it impacts every part of a manufacturer’s business — from the actual manufacturing itself to warehousing, inventory, quality, maintenance, environmental impacts, and health and safety concerns.

Not surprisingly, this transformation is taking place in new “smart factories.” Specifically, the smart factory is:

• Connected: There is electronic connectivity between departments, suppliers, and customers.
• Optimized: Processes are highly automated with minimal human involvement.
• Transparent: There is visible data capture for analyzing customer orders, production schedules, and other metrics.
• Proactive: There is a predictive capacity for ordering inventory and materials.
• Agile: There is a flexible approach to production, testing, and accuracy.

This transformation is a key part of the Fourth Industrial Revolution (4IR). A quick recap: The first industrial revolution involved the emergence of mechanization from water and steam power. The second was based on mass production assembly lines driven by electricity. The third was computer- and automation-driven. The 4IR, however, is using artificial intelligence (AI) to automate the production process, provide full visibility into the value chain, and offer greater alignment with customer demand.

The starting point: automation and artificial intelligence

Smart manufacturing starts with automation: turning manual functions into automated tasks.

Automation has been around for a while as manufacturers worked hard to control costs, drive efficiencies and ensure accuracies. Take a tour of any modern manufacturing plant and you’ll undoubtedly see robots doing many of the tasks where assembly line workers once stood.

AI takes automation to the next level by connecting operations and integrating data from across the entire value chain. It uses a constant stream of data from system-wide physical, operational and human assets to learn and adapt to new demands. AI could make it possible for manufacturing machines to understand far more complex processes than those they currently execute.

At the Siemens electronics manufacturing plant in Amberg, Germany, computers autonomously handle as much as 75 percent of the value chain. The parts and machines communicate through a product code which specifies the production requirements.

Meanwhile, retail giant Amazon paid $775 million in 2012 to acquire a leading robotics company. The company is now building computer-driven machine-learning systems to drive efficiencies in its distribution centers.

The growth potential in this area is significant. McKinsey research found that manufacturing is second only to the food services industry for its automation potential. Allied Market Research reports that the global market for industrial robots will reach $41 billion by 2020.

Broader and deeper: strengthening visibility across the value chain

Smart manufacturing significantly improves a company’s visibility into its process, network and value chain. It creates an environment where all available information — from the plant floor through the full supply chain — is captured in real time and made actionable through detailed insights.

In a unique example of the Internet of Things (IoT), manufacturers can give each of their physical assets a digital identity. This enables them to know the exact location and condition of assets in real time throughout the production process.

A 2015 report published in Industry Week said: “Batch-level visibility is being replaced by unit-level visibility.” The IoT takes management vision beyond high-level production metrics. Instead, C-suite executives and plant managers can now drill down to the individual units to assess accuracy, precision, and customization.

Greater analytics: leveraging big data for strategic insights

This broader and deeper visibility, along with specific connections from the entire value chain, provides a comprehensive dataset for analyzing performance.

It’s the next step in the big data revolution that is affecting every industry. It is predicted that by 2020, there will be 50 times more digital content than what exists today.

By combining the value chain data with data from other sources — such as databases, social media, websites, digital communications, accounting software, and CRM software — manufacturing companies can use more sophisticated analytics to drive their competitive strategies.

Greater alignment with customers

The smart manufacturing transformation uses advanced technology to meet objectives that stem from a customer-centered model. Companies must respond to increasing customer demand for speed, precision, and a positive customer experience.

There are plenty of ways in which a manufacturer can leverage technology to benefit their customers. Just consider these possibilities:

• Sales reps at customer sites can use their tablets to check customers’ orders or anticipate re-orders
• Plant managers can view real-time production data from their offices and ensure that production is on track
• Executives can accurately predict future demand, allowing them to order supplies and hire staff accordingly

The digitized manufacturing environment closely aligns with the customer desire for fast, responsive, personalized service.

Embracing the smart manufacturing transformation with CRM software

A great customer relationship management (CRM) solution should be part of every manufacturer’s digital toolkit.

A CRM acts as a centralized resource for customer data, allowing your team to provide excellent service to every customer. Meanwhile, the best manufacturing CRMs will also offer the ability to automate key tasks and integrate with key tools. This creates a streamlined work experience for your entire team, from the C-suite to the plant floor.

To boost efficiency and automate your workflows, consider integrating with Method CRM. See how Method helped a shipping container company’s revenue double in just three years below.

With the right tools on hand, manufacturing businesses will be ready to embrace the smart transformation of the 21st century.

Ready to get started with workflow automation? Try Method free for 14 days.

Image credit: Pavel Danilyuk via Pexels

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As Chuck Robbins, CEO at Cisco Systems, explained in 2017: “Billions of devices, tablets, cars and most importantly — people — are on the brink of being connected over the next decade. Technology is fundamentally changing the way we live, work and solve problems.” He’s correct. And this digital transformation will certainly continue to change the business world.

Tomorrow’s leaders will increasingly use technology to build smarter strategies, enhance operational efficiencies, deliver faster services, and expand their reach into global markets. In its Top 100 Global Technology Leaders report, Thomson Reuters reviewed successful companies and confirmed that current leaders like Amazon, Walmart and Citi are embracing technology to drive productivity in both management and operations.

At the same time, the rapid pace of technological advancement can make it challenging to stay ahead of the curve. In 2016, Forrester interviewed 30 consulting firms, including large players like Deloitte and boutique firms like Senn Delaney, about the future of digital. Every firm said they anticipated significant changes, such as an emphasis on analytics and customer experience, to become more prevalent by 2020.

Smart companies will work hard to understand these trends and think creatively about ways in which they can leverage the power of technology to achieve their own business goals.

The power of digital transformation

We can think about digital transformation by focusing on three key concepts: reach, relevance, and resonance.

Reach

“Reach” is your company’s ability to foster connections between clients, partners and employees.

In some cases, digital transformation is making connectivity more complicated. A 2016 MacAfee report revealed that the average organization uses 210 different collaboration tools, including email apps, file-sharing solutions, workflow managers, office software suites, accounting software and more.

At the same time, companies on digital journeys are driving greater “field productivity,” allowing their people to access and share information anytime from any mobile device.

These new options for connectivity make it possible for work to happen faster. Just imagine a sales rep using their smartphone at a client site to give an immediate quote on additional work, or a C-suite executive using their tablet in a boardroom to access financial data for strategy planning.

Relevance

“Relevance” refers to  your company’s ability to hit the right targets and focus your energy on high-payoff areas. A PWC Annual Global CEO survey found that 74% of respondents believed their ability to harness digital technology would become  their differentiating factor.

However, certain industries — such as construction — may be lagging behind other sectors in this regard. Research from PWC in its 2017 Engineering and Construction Trends found that construction firms are facing higher customer expectations and different financing requirements.

In response to these challenges, the report advised construction firms to implement digital tools to adapt to changes in RFP processes, better understand their market position, and take a closer look at their cost structure.

Resonance

“Resonance” refers to the impact your company has on its industry and marketplace. Is your digital journey adding value to your products or services, driving efficiencies, and opening up new opportunities?

Recent advances in technology offer significant opportunities for companies to shake things up and take their industries by storm. Some possibilities include:

• Using artificial intelligence (AI) to automate formerly manual and repetitive tasks
• Diving into big data analytics for a better understanding of customer behavior and industry-wide trends
• Embracing cloud software and mobile technologies so your teams can expand into new areas and markets

Embracing digital technology for a successful future

In today’s tech-savvy world, companies must be focused, nimble, data-driven and organized. Your digital tools should be as integrated as possible, with different parts of your business connecting to yield immediate information and valuable insights.

Admittedly, small businesses in sectors like construction and consulting may feel that adopting new technology is too expensive or intimidating. However, companies aiming to expand their reach, improve their relevance, and deepen their resonance will surely find that digitization is their best investment.

Digital transformation is the path to a successful tomorrow.

Digital transformation with CRM software

Are you ready to embrace digital transformation? If the answer is yes, then powerful customer relationship management software is an ideal starting point.

CRM software provides a digital platform for connecting every part of your organization — from the C-suite and finance department to your sales and customer service teams.

Remember those businesses that are using 210 separate tools to manage their day-to-day activities? An effective CRM consolidates many of these functions into a single system, including lead tracking, customer management, and workflow automation. A comprehensive, shared platform is an invaluable tool for growth, driving better employee collaboration, greater mobility, and stronger customer relationships.

The future is digital — and a great CRM is a key step in your digital journey. To embrace the power of technology in your own business, try Method:CRM free for 30 days.

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