Industrial digitalization streamlines manufacturing processes with technology and earns the company high returns
The manufacturing industry has undergone two major technological shifts since the late 1970s; Industry 3.0 (the process of automation using information systems such as computers), and post-2010 Industry 4.0 (the era of digitalization of manufacturing). While the former revolutionized industrial processes, the latter will change how large scale manufacturers operate internally and interact with customers.
The manufacturing industry has undergone two major technological shifts since the late 1970s; Industry 3.0 and post-2010 Industry 4.0
Industrial digitalization involves using digital technologies like Artificial Intelligence (AI), Machine Learning (ML), Augmented Reality (AR), and more to streamline industry workflows across the board, from manufacturing to closing sales.
For manufacturers, this enables;
The PwC Digital Factory Transformation Survey from 2022 even showed that companies spending as little as 3% of their net revenue on digital solutions saw up to double-digit investment returns.
Firstly, digital transformation alters company processes. It automates routine manual tasks with AI and machine learning, reducing the number of workers and labor costs. Even a one-time investment in digital transformation improves the overall efficiency of processes.
For instance, integrating AR technology into warehousing can help companies predict the space required to store stock far better than manual processes. In 2020, retailers lost over $626 billion to overstocking. Had they digitalized their processes with the help of AR tech companies like Enhance, they could have easily avoided this loss to their bottom line.
Besides, when companies alter their processes through digital transformation, they also use their existing resources better.
With automation, workers are freed from the need to do repetitive, time-consuming tasks, freeing up time to engage in more productive activities that require human oversight. Alternatively, organizations could implement technology to take over new business operations. Either way, digital transformation allows organizations to adapt and innovate their existing business model to better allocate human resources.
Implementing new digital technology can also allow companies to expand into different industries. Take the case of Amazon. The company broadened its scope from a digital marketplace to a cloud computing service provider by investing in technologies like cloud servers. And it successfully garnered over $19.7 billion in the second quarter of 2022 alone. Few companies made the foray into digital transformation as early as Amazon, and fewer still have been as successful.
Digital transformation also impacts company culture. It integrates the available data, promotes transparency, and improves shareability. All of this allows employees to better understand the organization's working and upskill themselves.
Digital transformation of the manufacturing industry through industrial digitalization is the way ahead. Globally, industrial companies are already investing $1.1 trillion towards it. So, it only makes sense to learn how the process works;
Howden, an industrial solutions provider, wanted to provide their customers with a collaborative customer experience and increase the number of long-term service agreements (LTSAs). They also wanted their consumers to get a glimpse of the service process while providing insight into their equipment. So, they decided to implement AR tech into their buyer journey.
To help potential buyers understand the servicing process, Howden enlisted the services of a Mixed Reality (MR) service provider. They used IoT (Internet of Things) technology to deliver the experience to their customers.
The MR experience showed prospective consumers the equipment, its working, the operating conditions, and the performance of the equipment. It also showed them how to identify various parts of the device and solutions to simple repairs.
Buyers got a clear overview of Howden's products, thanks to immersive MR. And Howden's salespeople saved hundreds of hours explaining machinery repair to potential buyers.