Home > Resources > Articles > How Manufacturing Digitalization Benefits Businesses in 2022

How Manufacturing Digitalization Benefits Businesses in 2022

Bhagyashri Kambale | December 14, 2021 | 737 views
MANUFACTURING DIGITALIZATION BENEFITS BUSINESSES
The manufacturing industry has evolved to new heights of innovation, productivity, and excellence with digital transformation. Manufacturing digitalization has made operational procedures more skilled, accurate, and time-savvy.

“Many companies simply are not willing to change or think they are done once they make a change. But the truth is technology; consumer demands, the way we work, human needs and much more are constantly changing.”

Michael Walton, Director, Industry Executive (Manufacturing) at Microsoft

With a CAGR of 19.48 percent between 2021 and 2026, the digital transformation in the manufacturing market is expected to reach USD 263.93 billion by 2026. Manufacturing plants adopt digital technology to improve, automate, and modernize processes as part of Industry 4.0.

So, what are the key benefits of digitalization for manufacturers? This article will elaborate on the top five benefits of digital manufacturing transformation.


How to Define Digital Manufacturing?

Manufacturing digital transformation involves integrating digital technologies into processes and products to improve manufacturing efficiency and quality. Manufacturing's digital transformation aims to increase operational efficiency and reduce expenses. The digital transformation techniques ensure product quality. It also makes work more efficient, safe, and stress-free.


What Is Included in Manufacturing Digitization (Industry 4.0)?

Industry 4.0 is the digitalization of manufacturing. Cyber-physical systems, IoT, and cloud computing are current trends in manufacturing automation and data exchange. Connected devices, cloud computing power, and the modern emphasis of lean, efficient operations enable Industry 4.0 to construct advanced and innovative smart factories.

Industry 4.0 includes design, sales, inventories, scheduling, quality, engineering, customer and field service.


Five Benefits of Digital Transformation in Manufacturing

Manufacturing organizations can benefit from digitalization in a variety of ways. It can help make the work more efficient, decentralized, and secure. It further creates new business opportunities and attracts new talent to the industry. Additionally, integrating products into a digital ecosystem increases their value and appeal. Let’s dig deeper into each of the five key benefits.


Reduces Costs

Technology is an invaluable companion in reducing the manufacturing company's expenses in the future. The incorporation of digital technology results in the transformation of procedures and the digitization of documents, resulting in overall process optimization. Therefore, a reduction in labor costs might be expected as a result of the elimination of unnecessary expenditures.

Additionally, digitization enables businesses to assess and estimate expenses considerably more precisely, ensuring that budgets stay on track. Additionally, it eliminates andsubstitutes inefficient jobs within processes, significantly increasing their efficiency. This efficiency is translated into time savings, which results in a substantially more cost-effective manufacturing process.


Decentralized Production

Manufacturing digital transformation allows organizations to supervise manufacturing remotely, allowing production to continue uninterrupted. In rare cases like Covid-19, digitalized businesses have not had to cease or even slow down production. These systems can work without interruptions for much longer than any worker.

Digitalization also boosts methodology flexibility and reactivity. For example, if a production plant has a problem, an automatic alert is generated, and the issue is resolved regardless of the day, time, or presence.


Improved Operational Efficiency

Smart product connectivity allows devices to connect and communicate with each other (M2M). This connectivity enables decentralized decision-making. Many duties no longer require an employee to be physically present. New manufacturing and production models minimize boring, risky activities while increasing accuracy, efficiency, and responsiveness.

Transforming businesses through digital means making better decisions based on real-time data. Training, changes, and repairs are no longer issues due to reduced frequency and automation.


New Business Opportunities

New digital technologies enable the manufacture of previously unviable products and services, generating new revenue streams. Also, new services (innovation or reorientation) are launched considerably faster. Companies may utilize big data and AI to experiment, anticipate trends, and predict about new advancements. These technologies can help organizations become more eco-friendly and create products that are less detrimental to our environment.


Attracts New Talent

Professionals with fundamental talents in this complicated and disruptive environment are drawn to digitalizedorganizations that are up-to-date with trends and processes. Also, if the change is managed well, it will lead to higher profitability, increasing employee satisfaction. Human motivation, along with excellent digital technologies, will reflect in the company's production and profitability.


Dusseldorf@Germany: The Deloitte Digital Factory

The digital factory in Dusseldorf provides a flexible setting for innovative workshops and training, bringing together the old and new worlds of supply chain and industrial operations to provide a seamless experience. Specific use case examples, as well as the digital solutions sector, will motivate and encourage businesses to get on their digital transformation journeys, making use of the most up-to-date technologies in the process.


Final Words

Manufacturing digitalization has a lot to offer the industry, and many manufacturers are capitalizing on this new phase of the industrial revolution by incorporating cutting-edge technologies into manufacturing and business operations. As said previously, the benefits of digital transformation in the manufacturing business are increasing the importance of digitalization in the industry. Transform your traditional manufacturing operating processes with these new manufacturing trends and observe the results that other benefitting manufacturing businesses have achieved.


FAQ


Why is digitalization vital in manufacturing?

Manufacturing process digitization improves overall business performance. But the results are seen across the factory. Digital transformation improves working conditions for employees and streamlines daily operations.


How are digitization and digitalization different?

Digitalization is a transformation of data and processes. Digitalization is the use of digital technologies to collect data, identify patterns, and make better business decisions.


How digital technologies are applied in manufacturing?

Digital manufacturing technologies enable the integration of systems and processes across all stages of production, from design to production and beyond.

Spotlight

Clarion

Manufacturer of automotive audio systems, navigation systems, CD changers, mobile audio/video components, amplifiers, alarms and SD/CD/cassette receivers. An Original Equipment Manufacturer for the Automotive Industry as well as a supplier of aftermarket products.

OTHER ARTICLES

Achieving Interoperability in an Industry 4.0 Factory

Article | February 11, 2020

As a part of the Industry 4.0 movement, factory engineers are increasingly adopting some form of industrial Ethernet to interconnect the machines and other equipment implementing their production processes. Ethernet has been around in multiple forms for over 40 years. Most of it serves the IT community by interconnecting PCs and other equipment to a company LAN. Because of its flexibility, Ethernet has been adapted to many industrial uses.

Read More

The Impact of Coronavirus on Electronic Manufacturing

Article | February 11, 2020

Wuhan, the epicenter of the outbreak, is considered a crucial hub in the middle of China, a place of high importance for the production of automobiles, electronics, optics, and fiber optics. Wuhan and surrounding cities in the Hubei province are currently on a government-imposed quarantine at a scale the world has never seen before, some Chinese officials have referred to the situation as warlike.

Read More

Digitalizing Your Manufacturing Ecosystem

Article | February 10, 2020

Making digitalization work for you requires an understanding of your manufacturing ecosystem. Standards - such as ISA-95 - only guide you on a journey to more deeply comprehend the workings of your unique process for manufacturing your products. A batch manufacturing ecosystem often includes campaign management. Campaign management is not mentioned in ISA-95, which only speaks generally of order processing.

Read More

4 Food and Beverage Manufacturing Trends on Tap for 2020

Article | February 10, 2020

It’s the food and beverage industry’s job to appeal to consumer tastes by keeping tabs on what’s hot and what’s not. In the 1990s, for instance, fat free or reduced fat was all the rage, evidenced by the variety of products with such descriptions featured in bold typeface on cartons, cardboard and boxes. Fast forward to today, thanks in part to advancements in nutrition science, fat is back and is recommended in low-carb diets such as Atkins and Keto.

Read More

Achieving Interoperability in an Industry 4.0 Factory

Article | February 11, 2020

As a part of the Industry 4.0 movement, factory engineers are increasingly adopting some form of industrial Ethernet to interconnect the machines and other equipment implementing their production processes. Ethernet has been around in multiple forms for over 40 years. Most of it serves the IT community by interconnecting PCs and other equipment to a company LAN. Because of its flexibility, Ethernet has been adapted to many industrial uses.

Read More

The Impact of Coronavirus on Electronic Manufacturing

Article | February 11, 2020

Wuhan, the epicenter of the outbreak, is considered a crucial hub in the middle of China, a place of high importance for the production of automobiles, electronics, optics, and fiber optics. Wuhan and surrounding cities in the Hubei province are currently on a government-imposed quarantine at a scale the world has never seen before, some Chinese officials have referred to the situation as warlike.

Read More

Digitalizing Your Manufacturing Ecosystem

Article | February 10, 2020

Making digitalization work for you requires an understanding of your manufacturing ecosystem. Standards - such as ISA-95 - only guide you on a journey to more deeply comprehend the workings of your unique process for manufacturing your products. A batch manufacturing ecosystem often includes campaign management. Campaign management is not mentioned in ISA-95, which only speaks generally of order processing.

Read More

4 Food and Beverage Manufacturing Trends on Tap for 2020

Article | February 10, 2020

It’s the food and beverage industry’s job to appeal to consumer tastes by keeping tabs on what’s hot and what’s not. In the 1990s, for instance, fat free or reduced fat was all the rage, evidenced by the variety of products with such descriptions featured in bold typeface on cartons, cardboard and boxes. Fast forward to today, thanks in part to advancements in nutrition science, fat is back and is recommended in low-carb diets such as Atkins and Keto.

Read More
MORE ARTICLE

Spotlight

Clarion

Manufacturer of automotive audio systems, navigation systems, CD changers, mobile audio/video components, amplifiers, alarms and SD/CD/cassette receivers. An Original Equipment Manufacturer for the Automotive Industry as well as a supplier of aftermarket products.

Related News

PROCUREMENT & SUPPLY CHAIN

Tempo’s New System Update to Solve Electronics Manufacturing Supply Chain Issues

Tempo Automation | January 31, 2023

On January 30, 2023, Tempo Automation Holdings, Inc. has updated its Accelerated Electronics Manufacturing Platform with new management tools to provide real-time visibility and manage the inventory aspect across projects and prototype buildings, protecting clients against potential supply chain problems in the electronics sector. At the core of this new update lies Tempo’s very own inventory management system and will manage and update the status of every electronic component in real-time, from receiving, storage, manufacturing, and production. It is designed specifically for the requirements of quick-turn electronic manufacturing with a high, mix or low volume. CEO of Tempo, Joy Weiss, said, "Our customers rely on us to rapidly source materials from numerous vendors, then consolidate inventory into our warehouse to support their product development." She further added, "Given the impact that industry component shortages have had on our customers, we invested in upgrading our platform to provide real-time, traceable inventory management at the customer, project, and component level." (Source – Globe Newswire) It will protect clients against instability in the market of electronic components, warn about critical components beforehand. It will also help them assign the components to their prototype and demanded product builds to market quickly and avoid re-design expenses. It also offers solutions to domestic electronics manufacturing at crucial times. It provides rapid Printed Circuit Board Assembly (PCBA) prototyping, on-demand manufacturing, digital thread from design to delivery, and virtual tours in the factory. Its PCBA capabilities include HDI, rigid, fine-pitch BGA and QFN assembly and stacked micro-vias. Its class 2 and 3 productions have ISO9001:2015, AS9100D, and ISO13485:2016 certifications. About Tempo Automation Tempo Automation is one of the prominent software companies providing electronics manufacturing solutions and launching electronic products in the market. It's Accelerated Electronics Manufacturing Platform assists with PCBA manufacturing to offer fast and the best solution to low-volume manufacturers. Headquartered in San Francisco, California, the company’s digital automation, data intelligence and vast network enables its clients to cope with the competition. Tempo provides solutions to various industries from rockets, robots, autonomous cars, drones, technology, medial and space.

Read More

MANUFACTURING TECHNOLOGY

Infinite Electronics, Inc., Announces the Acquisition of Bulgin

Infinite Electronics, Inc. | January 20, 2023

On January 19, 2023, Infinite Electronics, Inc., the leading global supplier of electronic components, announced the acquisition of Bulgin Ltd, a UK-based developer and manufacturer of connectors and related components for harsh-environment applications. Equistone Partners Europe, a renowned European mid-market private equity firm, was the previous owner of Bulgin. Bulgin has over a century of expertise designing, developing, and producing IP66, IP67, IP68, and IP69K severe environment connectivity solutions for customers in various industries. Bulgin is focused on bespoke services and custom capabilities, as well as fast prototyping and a Rapid Response Team (RRT) to meet customers' urgent needs. Since Equistone acquired the company in 2019, Bulgin has expanded dramatically, opening a new site in Tunis, Tunisia, as well as new headquarters in Cambridge, UK. Bulgin has over 600 distributor locations across 60 countries and six continents. It employs 680 people worldwide, including its headquarters in the United Kingdom, businesses in Tunisia and Santa Fe Springs, California, as well as a foothold in the Asia-Pacific region. This acquisition expands Infinite Electronics' presence in Europe. It follows the company's announcement of entering a definitive agreement to acquire Cable Connectivity Group (CCG) from Torqx Capital Partners and TKH Group NV, a leading producer and distributor of specialty cables and cable connectivity solutions. These acquisitions are prominent milestones in Infinite Electronics' six-year rapid growth. These slew of acquisitions are the latest milestones in Infinite Electronics' aggressive expansion over the last six years. About Infinite Electronics, Inc. Based in Irvine, California, Infinite Electronics is a leading global electrical component supplier, meeting engineers' urgent needs through a family of well-known and trusted brands. It offers a diverse range of components, assemblies, and wired/wireless connectivity solutions and serves the aerospace/defense, industrial, government, consumer electronics, instrumentation, medical and telecommunications markets. Infinite's brands include Pasternack, Fairview Microwave, L-com, MilesTek, Aiconics, KP Performance Antennas, PolyPhaser, Transtector, RadioWaves, ShowMe Cables, Integra Optics, INC Installs and NavePoint. By working quickly to supply goods, solutions, and real-time support to its clients, its brands help move the world's innovators forward.

Read More

MANUFACTURING TECHNOLOGY

Matterport’s Digital Twin Platform to Support John Deere’s Worldwide Operations

Matterport | February 01, 2023

Leading spatial data firm, Matterport,Inc., recently announced the selection of its 3D capture technology and Digital Twin Platform by John Deere. The implementation allow remote management of over 60 John Deere’s facilities spread across South America, North America, Asia and Europe via a virtual operation center. The company’s platform will create digital replicas of John Deere’s manufacturing facilities, allowing teams to collaborate, plan the site changes, and track progress. To enhance site operations, John Deere will take 4K resolution digital twins with spatial accuracy using Matterport's Pro2 and Pro3 cameras. Employees at John Deere can remotely access any facility's digital twin using Matterport's digital twin technology in order to track materials and assets, keep an eye on vehicles, and integrate real-time IoT data streams. Within the digital twin, real-time collaboration increases productivity while lowering the need for expensive site visits. Jay Remley, Matterport’s Chief Revenue Officer, said, “We’re proud to support John Deere on their journey to reinvent manufacturing operations.” He further added, “For global businesses with facilities spread across several regions and time zones, the ability to remotely optimize each space based on its own unique parameters is a critical unlock for operations management. Our digital twin platform enables companies to reap real productivity gains and cost savings by digitizing their operations for more efficient maintenance, remote monitoring and improved decision making.” (Source - GlobeNewswire) About Matterport Matterport is leading spatial data solutions provider. The solutions are targeted at indexing and digitizing the built environment. Using a digital twin, enterprises can transform their built spaces into immersive, accurate digital twins to create, plan, comprehend, operate and promote any environment with Matterport’s proprietary 3D data platform. The spatial computing platform helps convert build structures into data, using every location and enhancing the overall value.

Read More

PROCUREMENT & SUPPLY CHAIN

Tempo’s New System Update to Solve Electronics Manufacturing Supply Chain Issues

Tempo Automation | January 31, 2023

On January 30, 2023, Tempo Automation Holdings, Inc. has updated its Accelerated Electronics Manufacturing Platform with new management tools to provide real-time visibility and manage the inventory aspect across projects and prototype buildings, protecting clients against potential supply chain problems in the electronics sector. At the core of this new update lies Tempo’s very own inventory management system and will manage and update the status of every electronic component in real-time, from receiving, storage, manufacturing, and production. It is designed specifically for the requirements of quick-turn electronic manufacturing with a high, mix or low volume. CEO of Tempo, Joy Weiss, said, "Our customers rely on us to rapidly source materials from numerous vendors, then consolidate inventory into our warehouse to support their product development." She further added, "Given the impact that industry component shortages have had on our customers, we invested in upgrading our platform to provide real-time, traceable inventory management at the customer, project, and component level." (Source – Globe Newswire) It will protect clients against instability in the market of electronic components, warn about critical components beforehand. It will also help them assign the components to their prototype and demanded product builds to market quickly and avoid re-design expenses. It also offers solutions to domestic electronics manufacturing at crucial times. It provides rapid Printed Circuit Board Assembly (PCBA) prototyping, on-demand manufacturing, digital thread from design to delivery, and virtual tours in the factory. Its PCBA capabilities include HDI, rigid, fine-pitch BGA and QFN assembly and stacked micro-vias. Its class 2 and 3 productions have ISO9001:2015, AS9100D, and ISO13485:2016 certifications. About Tempo Automation Tempo Automation is one of the prominent software companies providing electronics manufacturing solutions and launching electronic products in the market. It's Accelerated Electronics Manufacturing Platform assists with PCBA manufacturing to offer fast and the best solution to low-volume manufacturers. Headquartered in San Francisco, California, the company’s digital automation, data intelligence and vast network enables its clients to cope with the competition. Tempo provides solutions to various industries from rockets, robots, autonomous cars, drones, technology, medial and space.

Read More

MANUFACTURING TECHNOLOGY

Infinite Electronics, Inc., Announces the Acquisition of Bulgin

Infinite Electronics, Inc. | January 20, 2023

On January 19, 2023, Infinite Electronics, Inc., the leading global supplier of electronic components, announced the acquisition of Bulgin Ltd, a UK-based developer and manufacturer of connectors and related components for harsh-environment applications. Equistone Partners Europe, a renowned European mid-market private equity firm, was the previous owner of Bulgin. Bulgin has over a century of expertise designing, developing, and producing IP66, IP67, IP68, and IP69K severe environment connectivity solutions for customers in various industries. Bulgin is focused on bespoke services and custom capabilities, as well as fast prototyping and a Rapid Response Team (RRT) to meet customers' urgent needs. Since Equistone acquired the company in 2019, Bulgin has expanded dramatically, opening a new site in Tunis, Tunisia, as well as new headquarters in Cambridge, UK. Bulgin has over 600 distributor locations across 60 countries and six continents. It employs 680 people worldwide, including its headquarters in the United Kingdom, businesses in Tunisia and Santa Fe Springs, California, as well as a foothold in the Asia-Pacific region. This acquisition expands Infinite Electronics' presence in Europe. It follows the company's announcement of entering a definitive agreement to acquire Cable Connectivity Group (CCG) from Torqx Capital Partners and TKH Group NV, a leading producer and distributor of specialty cables and cable connectivity solutions. These acquisitions are prominent milestones in Infinite Electronics' six-year rapid growth. These slew of acquisitions are the latest milestones in Infinite Electronics' aggressive expansion over the last six years. About Infinite Electronics, Inc. Based in Irvine, California, Infinite Electronics is a leading global electrical component supplier, meeting engineers' urgent needs through a family of well-known and trusted brands. It offers a diverse range of components, assemblies, and wired/wireless connectivity solutions and serves the aerospace/defense, industrial, government, consumer electronics, instrumentation, medical and telecommunications markets. Infinite's brands include Pasternack, Fairview Microwave, L-com, MilesTek, Aiconics, KP Performance Antennas, PolyPhaser, Transtector, RadioWaves, ShowMe Cables, Integra Optics, INC Installs and NavePoint. By working quickly to supply goods, solutions, and real-time support to its clients, its brands help move the world's innovators forward.

Read More

MANUFACTURING TECHNOLOGY

Matterport’s Digital Twin Platform to Support John Deere’s Worldwide Operations

Matterport | February 01, 2023

Leading spatial data firm, Matterport,Inc., recently announced the selection of its 3D capture technology and Digital Twin Platform by John Deere. The implementation allow remote management of over 60 John Deere’s facilities spread across South America, North America, Asia and Europe via a virtual operation center. The company’s platform will create digital replicas of John Deere’s manufacturing facilities, allowing teams to collaborate, plan the site changes, and track progress. To enhance site operations, John Deere will take 4K resolution digital twins with spatial accuracy using Matterport's Pro2 and Pro3 cameras. Employees at John Deere can remotely access any facility's digital twin using Matterport's digital twin technology in order to track materials and assets, keep an eye on vehicles, and integrate real-time IoT data streams. Within the digital twin, real-time collaboration increases productivity while lowering the need for expensive site visits. Jay Remley, Matterport’s Chief Revenue Officer, said, “We’re proud to support John Deere on their journey to reinvent manufacturing operations.” He further added, “For global businesses with facilities spread across several regions and time zones, the ability to remotely optimize each space based on its own unique parameters is a critical unlock for operations management. Our digital twin platform enables companies to reap real productivity gains and cost savings by digitizing their operations for more efficient maintenance, remote monitoring and improved decision making.” (Source - GlobeNewswire) About Matterport Matterport is leading spatial data solutions provider. The solutions are targeted at indexing and digitizing the built environment. Using a digital twin, enterprises can transform their built spaces into immersive, accurate digital twins to create, plan, comprehend, operate and promote any environment with Matterport’s proprietary 3D data platform. The spatial computing platform helps convert build structures into data, using every location and enhancing the overall value.

Read More

Events