Industry 4.0 has created inflection points, opening up endless opportunities with the convergence of various advanced technologies. The cloud is one of the most important dimensions, the virtual focal point for transformation. A study by IDG reports that 77% of organizations
have a minimum of one application in the cloud. It is not just the pervasive presence that makes the cloud a game changer for manufacturing, it is the integration achieved through cloud adoption that makes it lead transformer.From the first moving assembly line of Ford Motors more than a hundred years ago, to the Volkswagen Automotive Cloud, automobile manufacturing has undergone changes that have added massive value to the products. Most importantly, as a tech dependent sector, industries that embraced innovation and technology continue to taste success. This explains the staggering $21 billion expected spending on cloud from the manufacturing sector by 2021, as per IDC’s Semiannual Industry Cloud Tracker
Cloud – the enabler of solutions
Among the various reasons that make cloud imperative, five factors standout as compelling.
A commercial reality, globalization has helped manufacturers tap into expertise and cheaper overheads, to stay competitive. This effectively means that manufacturers have footprints across multiple locations. The need to integrate all operations into a unified process makes cloud the only infrastructure that can meet all needs.
Data driven operations
Data is the new oil and unsurprisingly, IDC statistics confirm that industries that deal with higher volumes of data are the ones that invest heavily on the cloud. This is a clear indication that the cloud offers manufacturers the infrastructure to store, process and retrieve data that originates from multiple locations. In combination with analytics, the synchronization and harmonization of data offers manufacturers the power to achieve seamless process flow.
IoT and embedded cloud across the manufacturing sector
Despite the fact that manufacturing is a lot unlike other sectors that are purely digital, IoT and cloud penetration across manufacturing makes it the leader across industries. A Forrester survey reports that the manufacturing sector leads cloud adoption with a staggering 45% adoption rate. The embedded cloud – sensors, RFID and other systems that work in tandem to collect and process real time data about various performance parameters has transformed assembly lines.
Automation – the giant leap that dwarfs other dimensions in the transformation
The manufacturing sector has attained automation maturity – the numbers speak for themselves. A report by the Boston Consulting Group estimates that by 2025, around 1.25 million industrial robots would have been deployed. Automation productivity demands overarching connectivity in the enterprise. This can only be achieved through cloud integration that will do away with silos, and unconnected applications, creating a seamless workflow.
Green initiatives and slashed energy costs
Going green is now more of a business imperative with stakeholders working towards cutting energy consumption and carbon emissions. Multiple locations for systems result in increased energy costs and impacts carbon emissions. With the cloud, manufacturers get the twin advantage of deploying greener initiatives and making the most of the measures with lesser costs. Power consumption is the second highest operating costs for manufacturers. The cloud is a green initiative which helps manufacturers to cut operating costs across all locations and move to environmental friendly processes.
Undeniably, the cloud is the enabler of solutions, integrating various technologies and facilitating manufacturers to pursue business objectives with greater success. The right ERP solution is the perfect fit for manufacturers who integrate various aspects of business on the cloud. Advanced solutions that integrate with all functions on the cloud, help manufacturers to acquire insights, and take strategic decisions that improve productivity, efficiency and quality. Cloud ERP for manufacturing is the game changer that amplifies the benefits of the cloud, driving business outcomes through technology.