Digital transformation: Does digitalization bring value to manufacturers?

Computers, tablets, cellphones, internet and other technological innovations are part of the most common words used in our era! Not many years have passed from their invention and their application and synchrony with users has already made a disruption in how tasks and services are done.
Every day, people find new uses for technology or notice new necessities, where technological devices could be useful to solve small or complex issues. Therefore, in this digital era, enterprises have understood the importance of using technology to boost customer-related processes and to eliminate excessive paperwork.  

By analyzing the insurance industry, we can notice that this sector is addressing the users’ need for simpler, more transparent and trackable processes. Insurers are making huge changes in their “traditional” processes, by aligning the technological evolution with users’ expectations.. This is resulting in improved financial revenues and efficient processes and higher customer satisfaction (Brüggemann et all, 2018). Other examples that show how digital transformation have changed the process are found in banking, health and retail industries (Hillestand et al, 2005).

Then is it possible that digital transformation fits in the manufacturing industry, producing a positive effect in businesses? To answer this question, we need to understand how the current labor force interacts and uses technological devices. According to Hertel, through the introduction of a massified internet connection, the communication and organizational processes suffer a disruption (Hertel, Geister, & Konradt, 2005). On one hand, cellphones are a massified product used by a large percentage of the labor force, who show proven expertise in handling these devices. On the other hand, manufactures who want to remain competitive, are aware of the importance of changing processes to seek efficiency and control.
Nowadays, digital transformation in manufacturing is required to ensure transparency on the shop-floor, by taking advantage of labor force use of mobile devices. The expected results are real-time process tracking, paperless practices and visibility of performance indicators. In the future, digital transformation must integrate employees as internal clients in the systems, especially MES (Manufacturing Execution Systems) and ERP (Enterprise Resource Planning), by adding value to their daily tasks, by suggesting best practices, by tracking data and showing inefficiencies, among other possibilities. Digital transformation must not be feared, this is a change in how the work is organized and tracked (Strohmeier Dr. Emma & Professor, 2014). The Digital Era presents an opportunity to define stronger business models, by integrating technologies in the shop floor processes. This will enable the empowerment of managers and employees, who will be able to know their performance in real-time. That is why we are sure that, even though technology can have some weaknesses, this is the best pathway to success.

To find out more about the value that a Manufacturing Software like Prodsmart can bring to your manufacturing company, sign up now or reach out to our sales team.

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