Emerging technologies such as the Internet of Things, cloud computing, industry 4.0, additive manufacturing, and robots redefine the manufacturing business and alter the old supply chain.
Smart technology integration is resulting in a more efficient and connected manufacturing firm.
The manufacturing industry is at a crossroads; the fourth industrial revolution will alter the industry’s landscape. New processes will be implemented to transform it into a more efficient, intelligent, and high-performing industry that is better and more responsive to new challenges and needs.
This development is based on new technological advancements. Such as the Internet of Things, cyber-physical systems, additive manufacturing, and robotics, which introduce digital mechanization into the industry. As a result, transform it into a connected one, affecting all processes, products, and business models.
In this way, the so-called smart industry boosts the pace of the production and distribution pipeline. Providing flexibility to manufacturing procedures and allowing for greater adjustment to the demands and expectations of customers. Digitization provides personalization and new functionality that will alter industrial sectors’ competitiveness.
Furthermore, digital automation provides for increased efficiency across the value chain. The value chain may be described as “the process by which firms take raw materials, add value to the raw materials via numerous processes to generate a completed product, and then sell the final product to consumers,” as Michael Porter defined in 1985. The overarching objective is to “provide maximum value at the lowest total cost feasible while gaining a competitive edge.”
As a result, new digital advancements such as data processing and the hybridization of the physical and digital worlds are altering and converting this value chain into a linked chain that will optimize to generate things quicker and more efficiently. New technologies provide:
- Accurate real-time data analysis.
- They enable market or production choices to make with a clear perspective of all potential hazards and the ability to fix them before they occur.
- They are resulting in more efficient strategy and planning.
Furthermore, these developments will impact all aspects of the industry, from operations to human resources and information technology.
This transition is now taking place. In an increasingly global market, digitization provides a critical opportunity to increase the competitiveness of the European manufacturing sector. Industry4.0 and Manufacturing Ecosystems, according to the Deloitte Report, “as the integration of information technology and operations technology evolves, manufacturers will need to assess not only where they are but where they want to be — decisions that will dictate the types of data they will need to gather, analyze, and act on.” To put it another way, any SMEs who wish to thrive in this new digital market must face the challenge of adapting to this new environment by seizing the new opportunities that new technologies provide.