Manufacturing businesses have a higher rate of cloud adoption than other industries. Generally, firms switched to the cloud to strategically store and run data as Information Technology (IT) and Operations Technology (OT) automate highly laborious and specialized industrial operations. According to Frost & Sullivan, linked industrial devices will rise at a 15.5 percent compound annual growth rate (CAGR) from 2016 to 2026 as manufacturers invest in Industrial Internet of Things (IIoT) designs that extend the cloud to the edge.
Five Manufacturing Trends in 2021
Half of the workloads in the manufacturing industry are being moved to the cloud (public or hosted private). And, most are using Microsoft cloud for sustainability.
However, that number is expected to rise at a faster rate than other industries over the next five years.
In this blog, let’s take a look at the top 5 manufacturing trends for 2021. Before talking about the value of Microsoft Cloud for nonprofits and other companies for Manufacturing.
1. Resilient Core Operations
Manufacturers must protect their core processes while building scalable and resilient operations. They should also allow for scaling and the development of new business models for robust and diverse supply chains and supplier ecosystems.
2. Products and Services
Manufacturers will place a greater emphasis on producing new goods, implementing sustainable, environmentally friendly methods, forming new collaborations, and exhibiting good corporate citizenship.
3. Operation Resilience
To establish a resilient firm and scalable operations, industrial industries will look to digital capabilities in the future. Operational resilience (supply chain, security, product development, risk management, and so on), as well as vital financial management, will be addressed (cost management, cash flow, spend analytics, supplier performance analysis, etc.)
4. Talent Agility Is the Key
All industrial industries will place a greater emphasis on improving operational agility. Manufacturers may adapt to the pandemic’s disruptions by investing in digital projects that will help them optimize their workspaces and operations. Employees will be equipped with cutting-edge technologies such as artificial intelligence, mixed reality, and automation, which will revolution how they connect with consumers and help the organization innovate its strategic direction.
5. Customer Operations
Manufacturers should have the ability to promote new channels in order to meet the changing needs of customers and partners. As a result, a greater emphasis on customer and partner communications, security, sustainability, safety with good corporate citizenship, and customer management will be required.
Why Microsoft Cloud for Manufacturing?
Because they are designed to enable users to start with the areas where the demand for technology or business change is very high, Microsoft manufacturing processes provide an on-ramp to the full spectrum of Microsoft cloud for financial services and manufacturing services. Industry Cloud Provides a fully integrated user experience by supporting the buyer journey throughout the industry.
The Microsoft Cloud for Manufacturing (MCFM) is intended to provide capabilities that meet the industry’s essential processes and requirements. These end-to-end manufacturing solutions contain new capabilities that enable enterprises to be more resilient. It happened by seamlessly connecting people, assets, workflow, and business processes. MCFM also supports industry-specific standards and groups including the Open Manufacturing Platform, the OPC Foundation, the Digital Twins Consortium, and co-innovation with our diverse ecosystem of partners.
Cloud Imperative in Manufacturing
Manufacturers’ success and challenges are revealed in the 2020 Frost and Sullivan Global Cloud User Survey. Subsequently, this year’s survey yielded some noteworthy results, including:
65% believe they are more digitally advanced:
Manufacturers’ success and challenges are revealed in the 2020 Frost and Sullivan Global Cloud User Survey. Subsequently, this year’s survey yielded some noteworthy results, including:Manufacturing companies are enthusiastic about their digital transformations. And, they believe they are more digitally sophisticated than their competition, with 65% believing they are.
58% implemented collaboration tools:
Manufacturers say collaboration tools will be the most popular technology in 2020. They were able to increase productivity among distant and frontline workers using these tools.
62% are concerned about securing data:
As manufacturers strive to safeguard their products from edge to cloud, security is a major priority.
26% growth in hybrid cloud adoption:
The use of hybrid clouds has increased by 26%. Flexible infrastructure conditions are required for intelligent apps (on-premises, edge, and cloud).
As the industrial industry embraces digital transformation, the requirement for flexible infrastructure to serve applications and data is growing. Manufacturers want updated data management solutions and easy cloud connectivity to pool, process, and safeguard the vital data assets that fuel their intelligent operations. As a result, manufacturing companies are storing and processing their data in the cloud using Microsoft Azure manufacturing.
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Manufacturing industries that have already started their digital transformation path will soon see significant increases in productivity, high business value, employee engagement, better customer experience and other factors, resulting in a more robust and sustainable future. So, manufacturing companies must view the Microsoft supply chain strategy in the cloud as a foundation that will enable them to swiftly and effectively adapt any technology. Moreover, it also applies for today and in the future, to stay competitive.
Get the Microsoft manufacturing location in your area. Now, just relying on Microsoft Cloud for Manufacturing will aid in hastening the transition to a more robust and sustainable future.
Convinced? DFSM team is ready to help you get started. You may ask anything related to dynamics 365 supply chain management or finance and operations. Our team would be glad to assist you.