60 minute read
Empowered Workforces Are the Way Forward in 2021
Workforce technology and training, industrial reshoring and preparing for Industry 5.0 will become hallmarks of manufacturing in 2021.
If we learned anything from 2020, it was to expect the unexpected—and it was a learning year for businesses across the board. Those that survived came out the other end looking much different than before—with new processes, procedures, and priorities in place. As we look to 2021, and eventually to a post-pandemic world, agility has become even more critical to a business’ survival. Current research from McKinsey suggests, “The reskilling challenge will be particularly acute in operationally intensive sectors, such as manufacturing, transportation, and retail, and operationsaligned occupations, such as maintenance, claim processing, and warehouse order picking.”
Advertisement
As one of the largest employers of essential workers, manufacturers need to ensure they prioritize the needs of their workforce in order to retain and develop talent and remain competitive. Being able to accommodate these needs in an agile manner through technology and training today will ultimately make organizations more resilient to the rapid change that will continue well into the future.
Three key areas for manufacturers to focus on in 2021. #1: Manufacturing Workforce Training: More Pressure on the Talent Pool
Industry 4.0 technologies, such as digital twins and artificial intelligence, have the power to revolutionize the factory floor – but the workforce must continue to transform alongside production. The race to Industry 4.0 has accelerated exponentially during the pandemic, so going into 2021 workers
need to upgrade their skills relative to STEM: automation processes, repair systems, artificial intelligence, robotics, data analytics, digital security, additive manufacturing and more. Now more than ever, manufacturers investing in digital transformation need to streamline the management of their workforce. It is essential that manufacturers gain access to real-time data to ensure operational efficiency and remain agile to meet the needs of both their future workforce and their business. The difference in manufacturing between a mechanic and an engineer is quickly becoming critical in acquiring and retaining talent for this new era of accelerated automation in a post-Covid-19 world.
#2: Bring Manufacturing Operations Back Home
Although challenges in the manufacturing supply chain were being felt pre-pandemic, the effects of COVID-19 highlighted those issues. Driven by both self-preservation as well as complicated geo-political factors, many manufacturers are looking to move production back to the U.S. We need quick and easy access to the essential goods we have become dependent on due to the corona virus (i.e. PPE, vaccines, which require eggs, pharmaceuticals, etc.), so the US will begin working toward building factories locally
to ensure a steady and controlled supply. In October 2020, the Kenya Association of Manufacturers with the help of KPMG launched a memorandum of agreement “to support manufacturers create, maintain, protect, expand and restore domestic industrial-based capabilities to support the national COVID-19 response.” Ultimately, reshoring has a positive effect on the economy by creating well-paying manufacturing jobs and providing people in lower-paying service and retail jobs an opportunity to become part of a more advanced, skilled workforce. The nation believes that the momentum around reshoring will continue well into 2021.
#3: Preparing for the Advent of Industry 5.0
Industry 4.0 focuses on the interconnectedness of machines and systems in order to achieve optimum performance to improve efficiencies and productivity. Industry 5.0 is touted as taking it a step further and refining the interaction between humans and machines (source). From a staffing, training and reskilling standpoint manufacturers will need to be mindful of and continue to prepare for the rapidly changing nature of how humans and technology interact. The fifth industrial revolution is being driven by continued progress in technologies that drive AI, machine learning, robotics, data and analytics. AI in particular, which enables one to mine for and then act upon data insights, could become a significant benefit for recruiters in terms of getting the right talent pool. Digitizing knowledge from AR/VR simulations, when it really takes off, will eventually find its place in the manufacturing environment and will become especially important in a future work from home scenario. While some organizations continue working toward achieving Industry 4.0, we need to prepare for the advent of Industry 5.0, too.
Over the course of 2020, the future of work that once waited for us on a distant horizon arrived almost without warning. Best practices and technology that could have taken years to implement were put in place within months, and there are many examples in manufacturing to point to.
Reflecting on the incredible changes and unforeseen challenges faced by the sector this past year; it is evident that businesses relying on outdated approaches to workforce management will not survive. Businesses that fail to embrace modern, intelligent technology will become irrelevant. The manufacturing sector’s fundamental ability to recruit, hire, and retain top talent depends on its ability to modernize quickly and with purpose.
Employment growth and workforce development will continue to be a top agenda item for manufacturers in 2021. Organizations that arm their employees with the right technologies, learning, and reskilling opportunities will be better equipped to weather accelerating through the pandemic and beyond.
Pan Paper’s Acquisition Sets Stage for Miller’s Revival
between the Joint Receivers of Pan Paper Mills (in receivership) and a strategic investor has paved way for the revival of the paper miller who will invest $60m. The purchaser of the miller’s assets, Tarlochan Limited, a subsidiary of Rai Group of companies, will take over the running of the once vibrant icon of Kenya’s manufacturing sector. The purchaser indicated that it would invest an estimated KES 6 Billion in the next five to ten years. The Rai group has interests in agro-forestry, farming, saw milling, paper milling, wheat milling, edible oils and fats, and sugar in the wider Eastern Africa region. They also have requisite experiencing in reviving Mufundi paper miller in Tanzania. Pan Paper Mills, which was incorporated in 1969 with Orient Paper industries Limited, Government of Kenya and the International Finance Corporation, as the principal shareholders, was placed under receivership on March 20, 2009, after failing to service its debt obligations. The decision to sell the paper miller was made by the secured lenders who are owed in excess of KES 6 Billion. Speaking during a media briefing, the joint receiver, Mr. Kuria Muchiru said, “We are delighted that the agreement reached with Tarlochan Limited to purchase the assets of Pan Paper Mills is progressive and will lead to the re-birth of an asset on the brink of significant deterioration. This groundbreaking receivership process started with a global search for an investor with requisite capability to restore and grow the local paper milling capacity as well as free the business from mounting debts. Whereas, the lenders may not have actualized the full recovery of their debt, a greater gain with potential positive long term prospects for the region has been realized.” A key objective of the Receivers was to safeguard the interests of the various other stakeholders of the Company as they attempt to realize the assets for the secured lenders. Despite an extensive marketing process having been undertaken by the Receivers both locally and internationally, the assets did not generate substantial interest, with the only offer obtained being the one of KES 0.9
The sale and purchase agreement signed
billion from Rai Group. Speaking during the ceremony, the CS said, “We are pleased with the efforts of the Receiver Managers to have found a solution to a bag of outstanding issues and lay foundation for the revival and long term viability of a manufacturing sector icon in Kenya. The revival and modernization of the plant by private sector coupled with related economic activities is poised to have a tremendous positive multiplier effect on the local economy in Western region and Kenya.” On his part, the Chairman, Rai Group, Mr. Jaswant Rai said, “Our long term plan is to rehabilitate the main plant to ensure restoration of its full capacity. We plan to invest USD 60 million in the next 5 – 10 years. We have the requisite capacity to undertake investments as demonstrated by a similar operation in neighboring Tanzania, and turned it round successfully.
He added, “We envision that at its peak the plant will directly employ over 1,500 employees and create employment opportunities along the value chain. We have also developed a business plan that takes into consideration the environmental impact of paper production, conservation of forests and safe treatment of waste material. Importantly, as part of our social agenda, we will channel our investments towards improving and enhancing the education facilities within the Pan Paper complex.”
Tarlochan has indicated that its investments will hinge on a much-needed technological upgrade of the factory, application paper manufacturing efficiencies to bring down manufacturing costs and bolster competitiveness.
How Will 2020 Insights Affect Your 2021 Tech Goals?
The COVID-19 crisis has accelerated the adoption of some technologies by as much as seven years. How will this affect manufacturing in 2021?
As we approach the finish line, thankfully, of a year unlike any other year in modern experience, companies around the world find themselves forever changed. According to a recent report by McKinsey, the COVID-19 crisis has accelerated adoption of some technologies by as much as seven years as businesses scrambled to meet the demands of customers’ new online buying habits. These changes, which include supply chain digitization and an increase in digitally enabled products, is expected to remain part of business models next year and into the years beyond.
While these technology shifts were lower and slower in the manufacturing sector and, given the typical B2B business model, such digital shifts were not considered imperative for survival, new technologies have still thrived.
Here are two major technology-based trends from 2020 and how they may affect 2021 business goals 1. Building resilience into the supply chain
In 2019, Kenya manufacturing made up over seven percent of total GDP and employed one out of every twelve people. Even so, the Kenyan manufacturing industry is built upon a specialized sub-manufacturing supply chain with many third and fourth-tier suppliers located somewhere else sometimes in another country. When the pandemic hit, companies found their supply network had collapsed over a necessary but suddenly unavailable component from an unknown vendor deep within their sourcing.
While calls to reshore all manufacturing have increased over the last months–often in response to supply chain pain points caused by the pandemic–this seems an unlikely scenario. In a complex world full of specialization, division of labor goes hand in hand with economies of scale. Decades of globalization will not be undone in a few months or a few years, if ever. Nevertheless, change is not impossible. In a recent podcast from McKinsey, Susan Lund noted that even before the pandemic “trade among neighboring countries was growing faster than trade between countries in different regions,” as a way to improve resilience. Shorter supply chains also act with more speed.
2. Moving forward
In the wake of the pandemic, building resilience should become a priority. Some steps that should be considered include
examining existing supply chains for weaknesses and bottlenecks, forging closer geographic partnerships to decrease response time to negative events, or finding secondary sourcing opportunities within existing supply chains.
Additionally, manufacturers should reconsider the value of maintaining buffer inventory. This may be more efficient than a continued dependence on global transport logistics that has been disrupted several times in the last two decades by occurrences like the pandemic, the 2007/08 post-election violence and financial crisis.
Finally, some may consider if they should bring sourcing of some parts in-house by adding additive manufacturing to their existing capabilities. As shortages occurred in needed medical supplies earlier this year, 3D-printing manufacturers helped to fill the gap. This quick response time and adaptability inherent to additive manufacturing may well become invaluable to more traditional manufacturing companies during the coming recovery period.
Better Data Security, More Up skilling
While on-site jobs are the norm for the industrial and manufacturing sectors where frontline jobs must be boots-on-theground (a war-inspired phrase that seems appropriate for 2020), many companies have shifted certain positions to virtual work environments in response to the pandemic.
This shift has led companies to increase their operational technology and their IIoT security as they seek new ways of meeting business needs. Hardware and software investment has ensured proper tools were in place to meet the changing conditions of this new remote workforce, and training or retraining employees has helped prevent opportunistic cyber attacks. This includes an understanding of email protocol when away from the main office, how to properly safeguard business information, and what to do if a cyber security incident occurs.
Moving forward
Optimizing current employee skills can be critical for future success. Companies should consider how their processes are changing and what sort of skilled workers will be needed in the decade to come. Collaborative efforts to up skill current workers for future demands benefits everyone: it overcomes the skill gap and improves today’s operations while at the same time creating a happier, devoted workforce that feels valued by the company and can be retained and retrained as needed. This also bypasses the cost and time involved with recruiting, including hefty sign-on bonuses.
When the pandemic is over and manufacturing rebounds, the skills gap will remain. Companies will compete for employees with advanced digital skills, extended computer skills, an understanding of cobot systems, and robot/automation programming skills.
It may become increasingly difficult to find qualified workers for newly technical jobs that are quickly becoming the norm. Rather than recruiting and competing for these workers, the solution instead may be to give new technical skills to the company’s existing workforce.
Conclusion
The manufacturing industry is facing remarkable challenges and change. However, with a step-by-step approach and a focus on what needs to be done, transformation can happen in a measured and logical way. The reality created by this year’s pandemic has accelerated changes most already knew were on the horizon. The change underway will likely lead us into one of the most interesting, innovative, and creative decades the industry has ever known.
Kenya Association of Manufacturers Signs MoU to Scout for New
Markets
Kenya Association of Manufacturers has signed a Memorandum of Understanding with a regional trade agency to promote trade and investment for expansion of markets for local goods.
The manufacturers lobby group signed the MoU with USAID-funded East Africa Trade and Investment Hub to aid in the efforts to support policy reform activities and expansion of trading avenues especially under the African Growth and Opportunity Act.
“AGOA offers great opportunities for our local businesses especially the SMEs. It is essential we build their capacity to enable them leverage this partnership to realize financial sustainability for their businesses,” said KAM chief executive Phyllis Wakiaga. “Beyond this we are also looking to diversify our exports through this partnership and increase competitiveness of various agricultural value chains.”
Following the MoU signing, KAM will be organizing and hosting trade delegations, policy and investment promotion activities that will attract investment in the mutual priority sectors which include textile and garment, leather and leather products, agro processing, horticulture, ICT and cotton.
Humans vs. Machines – Why the Machines Need to Win
For enterprises to truly transform their supply chains, the introduction of machine learning is going to be of paramount importance.
By Stephany Lapierre, Founder and CEO of Tealbook As enterprises expand and look for new opportunities, trusted information and data agility has become a huge advantage. When the COVID-19 pandemic hit, the repercussions were felt on a global scale. Supply chain agility, transparency and the ability to pivot were critical needs, and in that moment, enterprises turned to machine learning (ML) as a means to respond quickly to market demands. The results were impressive. For example, ML solutions had the power to find 60,000 PPE manufacturers with ISO certifications within minutes. This information had a life-saving impact on the global supply disruption.
Introducing machine learning to a new industry is always a risk. It often fuels the “humans vs. machines” attitude and can cause fear or confusion over what kind of changes new technologies introduce…and if these changes are truly for the better. However, it’s clear that without the power of AI and machine learning, disruptions to the global supply chain could have had devastating effects. In this way, a “win” for machines was also a “win” for humanity, and by leveraging machine learning to accomplish tasks beyond human capability, we can address problems that were previously thought impossible to solve.
Exploring ML Capabilities
In fact, we have seen unexpected success from machine learning processes in recent years. For example, a fascinating documentary recently profiled an AI project that beat a Master at the Chinese game of Go. And, the transportation industry is utilizing machine learning to identify optimal patterns and
routes to increase profitability, and, in the future, optimize the use of self-driving vehicles developed with machine learning.
The relevance of machine learning is found in its ability to evolve and make itself better over time. The capability to observe and react to trends and patterns will be the baseline for progress and advancement in many areas into the future. Clearly, organizations who embrace machine learning to future-proof their offerings will be the ones who prosper.
The Data Problem
When speaking to professional teams that rely on data to make decisions, one of my favorite questions to ask is, “How confident are you in the quality and completeness of your data?”
Usually, this question is answered with a bit of nervous laughter. In the minds of many professionals, having complete confidence in their data isn’t attainable.
In order to have good quality information, data needs to be constantly updated for accuracy, checked for duplicates, merged with other data sets… the list goes on. In the case of supplier information, for example, data needs to reflect the ongoing relationship between seller and buyer, sometimes across several different departments. Data inevitably gets siloed, becomes stagnant, and is often neglected. Managing it all is a big task for any person, team, or department. In aspiring to accomplish this enormous task, companies spend millions of dollars getting their data cleaned, categorized, and analyzed over and over again. This is where ML comes in to save the day.
Enriching Data with Machine Learning
There had to be a better way for enterprises to get more value from their data – admittedly, it was a job that humans had failed at, time and time again—and clearly, machine learning was the answer. By utilizing AI and machine learning to aggregate supplier data and by taking the human element out of the equation, manual input and error can be eliminated. The result is a way to improve the quality of data over time, as opposed to letting it sit and degrade. Machine learning can also abate human pain points. Enterprises need easier methods of identification and discovery, and machine learning processes create a tag system that quickly summarizes information.
Achieving Agility in a Global Pandemic
In fact, AI and machine learning have revolutionized the way enterprises treat supplier data, and this became even more evident at the beginning of 2020, when COVID-19 disrupted the global supply chain in an unprecedented way.
With the help of ML technology, governments and companies were able to find viable suppliers and manufacturers of the products needed to shift production lines. In one example, ML enabled a retail manufacturer to pivot into producing 150,000 N95 grade masks per day. ML-enabled technology also helped government departments find qualified suppliers to provide PPE for their essential workers – and auto manufacturers could find qualified suppliers so they could add ventilators to their production line. In short, this pandemic allowed machine learning to aid in the protection of human life.
Humans vs. Machines
While some may think that a scenario of humans vs. machines is fodder for a science fiction novel, thinking about humans and machines as being at odds with each other isn’t a sustainable perspective. In order to scale, humans will require capability beyond our own abilities. Machine learning has allowed enterprises to unlock seemingly unlimited potential for the enrichment of supplier data, not to mention the value creation for the data itself.
Leveraging machine learning is the methodology of the future, across every industry and function. As we move forward, our success as a population will depend on our willingness to allow machine learning to solve those impossible problems, unlock value where we don’t expect it, and change the way we think about our businesses, our capabilities, and our potential for growth.
Big data analytics is the use of advanced techniques to examine large amounts of data. The goal of a management system is to find patterns and draw useful insights.
Industries worldwide have plenty to benefit from using big data management systems in their supply chain management.
From improving transportation to managing communication, using big data analytics can help companies exponentially enhance their productivity. Read on to explore the specific benefits of using these tactics in your business system.
1. Sourcing
The supply chain process begins with procuring high volumes of suppliers’ information for sourcing. Beyond the traditional spending analysis and performance review, big data analytics can help point out any deviations in the delivery patterns. This can, in turn, help with predictive risk management.
The data collection can also be imperative to arrive at strategic decisions. In today’s competitive world, it is crucial for supply chains to be cost-effective. With real-time pricing and availability from suppliers, you can ensure the best quality of products available at the best price.
2. Reinforced Inventory Management
One of the first concerns of any supply chain business should be streamlining their inventory management. In order to achieve that, it is necessary for managers to get an up-to-date review of the operations.
Big data analytics can quickly give you information on inventory levels, consumption levels and point out any bottlenecks that decelerate the supply chain. Inventory data can identify any disparities between supply and demand. You can then weigh decisions such as the prices, timing for promotions, and adding new product lines. You can also identify the best selling products and
optimize the inventory accordingly to meet the demands.
3. Sales and Operations Planning
Much like inventory, the other aspects of the supply chain also involve a data-driven process. Big data analytics have the significant potential to refine the industrial planning process and assess real-time demands to help shape the supply chain. It provides you with end-to-end visibility so you can be on top of the supply chain’s complete process. Product traceability is another critical benefit of big data analysis. It is easy to track a product using barcodes, which will also enable the company to gather accurate product information. Operators can thus stay on top of the distribution cycle, coordinating the sales and operations better.
4. Identify Consumer Behavior and Usage Patterns
Every company with a large amount of cargo is already using big data to enhance their system. It can be used to study usage patterns and habits of their customers. The data gathered can help to retain customers and increase the revenue exponentially when done right.
For instance, Amazon processes data using predictive analysis and automates the process by placing your orders to the nearest warehouses and distributing inventory depending on customer preferences. Vodafone is another company that has invested in big data to tap into opportunities that are more profitable. They even encourage businesses to invest in their data analytics to build business strategies.
5. Manufacturing
As you know, the supply chain is essentially a cycle. Your inferences on the later phases can help you optimize the initial stages of the chain. The valuable data you collect from customer behavior can help you source better. It can also help you streamline your manufacturing. Manufacturers can analyze the quality of their productions with cameras in real time. They can even perform quality assessments for each product remotely. Combined with the internet of things, data analytics can help you find future manufacturing opportunities for your business. It will not be long before an engineer can initiate a production remotely while using augmented reality to design the product from afar.
6. Leverage Unstructured Data
There are several areas in a supply chain, which could possess valuable information. Big data analytics will tap into every data source, guaranteeing they make sense of the unstructured data in all departments. Moreover, as we emphasized throughout the article, this could happen in real time. It will help to tweak the strategies in place to increase success without wasting any time.
7. Better Relationship Management
In essence, big data can help you improve all aspects of supply chain management. Its effect is going to be evident in your customer experience, as well. When you have access to the right customer information, you can utilize it better to offer better services. Moreover, you have a greater chance of fulfilling the demands. You can also predict and fix issues that might come up in the distribution chain.
Every business has to be prepared for unforeseen scenarios. Big data cannot only help establish predictive patterns. It can also allow you to develop swift responses to mitigate any risks. Data analytics can help you to plan better and optimize your responsiveness.
8. E-Commerce and Point of Sales
Whether you are running an online or a retail store, you have to optimize the process for competitive advantages. Data analytics can help you invest in the right categories and locations. You can also prevent products from going out of stock by detecting the lack of supply earlier. You can see where you need more items and manage your inventory through a network of your partners. You can work out a replenishment plan without waiting for the product to sell out.
The data gathering does not stop at this level, either. With products connected to the internet, companies can always predict behaviors and address the demands in realtime. This is evident from the cases we discussed earlier, such as Amazon Alexa.
To conclude, there are several reasons to employ a big data management system in a supply chain business. It can help to reduce costs, decide swiftly, and act promptly. You can also develop products that cater to the client’s changing requirements. Data analytics offer more clarity, accuracy, and a wealth of useful insights.
Catching Up & Be Safe: How to Use IoT to Recover
Manufacturers can use the Internet of Things (IoT) to get back on track following disruptions caused by the pandemic.
When the corona virus came to Kenya in the early March, companies across the country closed their doors and shut down operations. Moreover, while many industries felt the toll of the pandemic, none was hit as hard as the manufacturing industry, which saw a 12-year low in both employment and new orders.
As factories, plants and warehouses continue to reopen and operate under new guidelines, many manufacturers are looking to make up for lost time. However, this is easier said than done as the country faces yet another surge of cases and the chance of more disruption.
To get back on track while keeping employees safe, manufacturers should consider using the Internet of Things (IoT) as they continue to ride out the up and downs of the pandemic. IoT solutions can collect valuable data that can help companies make informed decisions about workers’ safety and plant operations, while also reducing costs.
Here are a few ways the Internet of Things can help manufacturers resume operations and reach goals, while keeping employees safe:
Ensure Efficient Operations
With so much disruption already taking place in 2020, the last thing manufacturers need is a leak or broken machinery slowing down production once again. To prevent this from occurring, manufacturers must ensure that maintenance is happening regularly and before disasters occur.
With IoT-enabled sensors attached to key pieces of machinery or utilities throughout the plant, facility managers can be automatically alerted in real-time when key metrics move outside of normal ranges or a piece of machinery is performing below normal levels. For example, if a water pipe’s pressure looks unusually high, the facility manager can send someone to look at the pipe before it bursts. In addition to water pressure, IoT devices can also monitor metrics like the pressure and vibration in machinery, as well as temperature, humidity, switches and voltage through the facility. Likewise, these sensors can also detect openings, leaks, battery charge, current, tilt, flood and more in pipes and equipment. By monitoring these key metrics, manufacturers can avoid disruption and inefficiency through predictive maintenance, allowing them to keep operations running smoothly.
Secure Warehouses and Goods
However, it is not just about making sure plants are running efficiently. Ensuring the machinery being used and goods being manufactured are secure is also critical. After months of low orders, manufacturers cannot
afford to take on more losses due to theft, which is why security is critical and should be top of mind.
While IoT might not come to mind when thinking about a security system, it can be extremely effective when it comes to preventing break-ins. Most security alarms are connected via the Global System for Mobile communications (GSM), but with GSM jammers now widely available, almost anyone can break-in. However, IoT-enabled alarm systems running a 0G network backup communication medium can allow manufacturers to secure any building at low cost and tackle the problem of jamming.
0G transmissions use ultra-narrowband technology and thus are resistant to jamming and can help ensure alarm systems continue to operate normally, even if an intruder attempts to disrupt the signal. This added layer of security can keep goods and machines safe – especially in unpredictable times. A Security system can also be 0G enabled secondary connection to provide a “last gasp” message in the event of a “smash and grab” scenario, or a malfunction.
Minimize Spread
While keeping goods secure and operations running smoothly are top of mind right now, manufacturers also need to make their employees feel safe at work and see that guidelines are being followed.
Luckily, the IoT can help with this as well. By placing IoT-enabled body temperature detection at the entrance of work sites, manufacturers can see who may have potential symptoms and can quickly inform the worker and protect co-workers. help decision-makers see how many people are in a given building at one time, and whether or not the building’s capacity has been reached. It also can serve as a quick way to contact trace within a given work site, should any worker test positive for COVID-19. Likewise, IoT-enabled occupancy management sensors attached to workstations can detect if employees are appropriately social distancing, and even signal to the shift manager when stations need to be cleaned. While the COVID-19 has slowed down operations at many plants and factories, IoT can help manufacturers make up for lost time, while also keeping employees’ safety top of mind. With the Internet of Things, manufacturers can continue to manage the ongoing challenges of the pandemic, while also setting them up for success for the rest of this year, and beyond.
Big Financial Factors for Manufacturers during COVID-19
Manufacturers must recognize how COVID-19 has affected these variables in order to remain competitive in an uncertain market landscape.
Following the onset of COVID-19, economies across the world were stunted and forced to adapt to new policies and protocols put in place to keep people safe.
Manufacturing facilities were among the many industries that were significantly impacted when COVID-19 restrictions mandated that individuals could no longer safely work together for extended periods in tight quarters. According to a recent survey, 78.3% of manufacturers anticipate financial impact due to COVID’s effect on their business operations. Outside of the immediate changes needed to accommodate safety concerns brought about by COVID-19, CFOs and financial decision makers for manufacturing-based businesses are beginning to consider the extent to which they will lay off workers and/or scale down production to remain financially self-sufficient.
Manufacturing workers across the country will be adversely impacted by COVID-19 for two main reasons. First, most manufacturing jobs involve material movement, which cannot be done via video conference — manufacturers need boots on the ground. Second, and perhaps more significantly, the slowed economic activity resulting from COVID-19 has reduced, and will continue to reduce demand for industrial products. As we enter a new year riddled with uncertainty, manufacturers must address the following factors that will directly affect
their bottom lines and future sustainability:
Workforce Safety
If the outbreak of COVID-19 has shown us anything, it is that many of our current operational structures are not built to support work during a global health crisis — particularly for workers who cannot execute their jobs remotely. Despite the significant costs and losses that businesses may incur, workforce safety must remain the top priority to ensure that workers feel safe and that production (perhaps in limited capacity) can continue. Accommodating new health guidelines for workers may limit manufacturers’ ability to function at full capacity. If additional space is needed to safely house workers in manufacturing and fulfillment facilities, businesses may consider either limiting the number of people in a given facility or even scaling their facilities up or down to accommodate new worker and market needs.
Financial Crisis Management
We have already seen the impact of COVID-19 force manufacturers and businesses alike to dip into cash flow reserves to support their ongoing operations. COVID-19 restrictions will continue, and manufacturers must ensure their reserves do not run dry. This can be done by mapping debt obligations, future spending, and expected income, as well as identifying when it is time to cut overhead. While analyzing spending projections for the future, manufacturers must also determine how to keep the lights on today. Within their crisis response and analysis, manufacturers should be considering all options and solutions available, including investing in automated technologies that can help reduce worker density in facilities even while continuing to move products out the door.
Supply Chain Bottlenecks
COVID-19 has underscored that all industries — even one as robust and global as the US manufacturing sector — have bottlenecks. In particular, small suppliers have been disproportionately affected by the pandemic and have less flexibility to scale down production due to large overhead costs and smaller capital reserves.
The first step in mitigating the risk of being stuck in a supply chain bottleneck is to identify where these bottlenecks exist. This can be done by auditing existing supply sources and identifying potential weak links — especially in heavily affected areas. Once issues are identified, decision makers are prepared to pivot to alternative suppliers as needed.
Financial Reporting
Ensuring that numbers are accurate, given that COVID-19 has drastically changed figures across the board, is key to ensuring that making any needed adjustments will have the desired effect. Providing overly optimistic financial disclosures is not only unethical, but could result in a business thinking that it is doing better than it actually is.
Manufacturers play a critical role as suppliers for essential functions, including hospitals, emergency responders, and other critical path providers. Therefore, they should go beyond what is required in quarterly and annual financial disclosures and disclose as much information as is available and practicable, thereby opening the door to financial assistance in the form of debt resettlement or stimulus funding.
Trade and Logistics
With trade and shipping logistics deeply impacted by COVID-19, global economies are shrinking due to increases in price and risk moving materials across borders. From a manufacturing standpoint, these fluctuations directly impact the amount of manufactured product moving out of the door and the amount of money coming in. Being able to understand the malleability of these variables outside of manufacturing facilities may be key to aptly managing operations inside of it. Plotting out recovery timelines is next to impossible given that there is still so much uncertainty surrounding the duration of the pandemic and how deeply it will impact economic conditions down the road. Even manufacturers who planned with a business contingency plan were likely unprepared for the scale and speed of the virus’ impact. Nonetheless, manufacturers must develop a plan in this time of unprecedented change to ensure that product continues to move and citizens are able to access the resources they need.
Manufacturing Trends in 2020: Food Manufacturing
2020 is the end of a whole decade. There has been a lot of use of technology and digitalization in this decade. Many things have turned from one phase to another and it is expected to grow even further. Like other industries, the food manufacturing industry has also gone through some valuable changes.
Here we have highlighted some of the top trends used by the food manufacturing industry in 2020. Let’s have a look: More and more reliability on technology: For the past few years, technology has been changing and evolving. Experts are advancing it to make the manufacturing process smooth. Many private label sauce manufacturers have been taking advantage of technology in different ways. There are machines that keep track of items made in the machine. It works as a digital ledger. These technical machines also make the process transparent for all people involved in the manufacturing process. drainage system is used in factories. The idea is to clean the food-manufacturing place by sanitizing it quickly. These drainpipes are slim and capable of cleaning the whole system in a quick and easy way. These slots drain systems are made with food-grade stainless steel. It is pre-sloped and pre-assembled. The stainless steel makes it incredibly durable. It can withhold heat and cold easily. The use of stainless steel is also bacteria-resistant, chemical- resistant, and capable of handling
the weight of heavy equipment. Sustainability in products and packaging: There is a rising surge in opting for sustainable packaging all over the world. So many companies are now shifting towards sustainable packaging even for food products. It is a good initiative and companies are happy to adopt this trend. Every company whether it is a beverage company or food manufactures, everyone can opt for custom packaging for their food. If you are creating custom hot sauce, you can opt for customized glass bottles. trend is plant-based. People prefer a plantbased diet to a meat-based diet. It is not for any other reason, but people are considering healthy nutritional choices for themselves. It does not mean your meat sauce will not sell because people are not leaving barbeque at all. So, if you are creating custom hot sauce, make sure it is specific for a vegan and meat-based diet. You would not want to be insensible to their choices after all.
Safety transparency: There have been incidents where rubber, coli, and plastic things have been found in food packaging.
This type of behavior is not going to favor any food company. To avoid that, there are procedures at food factories where everything is double-checked. Even if there is something wrong, the manufacturers are transparent to their clients about the issue.
Functional food: Now, people are opting for food that is functional. This means it is fulfilling the needs of the human body. If not, it is at least causing any illness or problem in the body.
Why Tech Companies Are Investing in Electronics Design
Tech companies that keep their electronic designs relevant and innovative are richly rewarded.
Often the most deciding factor in a consumer making the choice to pick up a product is how well it works, and how long it will last. Electronic design requires multiple components of a tech product to operate together and access power in an efficient way and the design phase is often the most crucial in determining if a product idea is feasible, if it complies with regulations, and if it can be produced in a cost effective manner.
Why Design Matters to Tech Companies
When designing components such as motherboards, companies are paying attention to a lot of different things like circuitry, power usage, and whether or not components will be compatible. Cost estimation is also critical to ensuring that the final product will not be incurring losses.
Therefore, strong design is critical if technology companies wish to market, their goods and many companies pay keen attention to this aspect of their development. The majority of established companies are actively investing in the design process by sending research and development teams to build prototypes and schemas for products, and then testing out with focus groups to see if there is any appeal before they will ultimately enter final production and the market.
Why Marketing for Products Highlight Design
Marketing teams tend to highlight unique aspects of a design as a major selling point, for example, every time Apple releases a new iPhone model, they take special care to inform customers about new design changes and even provide marketing material that displays the circuits and motherboards for all to see.
A badly designed product is an inherent risk to businesses because its appeal to customers is inherently limited, as it runs the risk of breaking down or not functioning. In order to retain the most customers, electronic design needs to be functional autonomously so that consumers never have to wonder what is inside the technology they are using, just that it works. Tech companies also have to focus on making sure each aspect of the product functions the way it is intended, and the only way to do that is by ensuring their design foundation is a strong one.
Sometimes, even the smallest details might make a huge difference, for better or worse, which is why technology companies and their marketing departments take the steps to lock down a strong schematic early on during the production cycle. When taking initial design planning into consideration, many tech companies turn to electronic design services in order to ensure that their products meet visual standards, from concept to production.
When the customer has a well-designed product in their hands, they will most certainly be encouraged to check out more by that same company, and will likely maintain loyalty for the brand as they move forward. Tech companies who are just starting out rely on this positive word of mouth to gain a strong foothold in a competitive environment. Keeping their electron designs relevant and innovative is often the most challenging yet important tasks tech companies face, but those that do it right are richly rewarded.
KenGen set to earn KES118 million from Olkaria II Clean Development Mechanism (CDM) Project
Power demand in Kenya is rising considerably due to the country’s economic growth. This rising demand, combined with insufficient investment in new generation capacity, could result in blackouts during peak hours and unreliable supplies of electricity.
The country has abundant geothermal and hydropower resources, but investment in new geothermal exploration has been constrained by substantial capital requirements and investment risks.
In electric power generation, Kenya Electricity Generating Company (KenGen) is the leading company, supplying about 80% of all power consumed nationwide.
KenGen has a total of six registered Clean Development Mechanism (CDM) projects under United Nations Framework Convention on Climate Change (UNFCCC), which includes; Olkaria II Geothermal Expansion, Olkaria IV Unit 1 & 2, Olkaria I Additional Unit 4 and 5, Redevelopment of Tana Hydropower project, Optimization of Kiambere Hydropower project and Ngong Wind 5.1 MW.
To increase the capacity of Olkaria II Geothermal Power Plant, KenGen added a third power generation unit with a capacity of 35MW to the existing plant.
According to World Bank Group, this geothermal expansion project earned carbon credits under CDM and was registered with the UNFCCC in December 2010.
CDM allows developing countries, with emission-reduction commitments under the Kyoto Protocol, to implement emissionreduction projects. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one ton of CO2, which can be counted towards meeting Kyoto targets. KenGen is set to earn about KES 118 million in the next seven years from Olkaria II CDM Project, after UNFCCC recently made a decision, to renew the expansion of the power plant’s CDM Project. According to the Star, KenGen’s CEO, Rebecca Miano said that with the estimated CER of 78,640 metric ton of CO2 equivalent per annum, KenGen expects 550,480 metric tons of CO2 equivalent, with potential earnings of KES 118 million, based on a conservative market value of USD 2/ton of CER during the extended period, up to 2024.
She further stated that, the project contributes towards greenhouse gas (GHG) emission reductions, by displacing fossil fuel-based electricity in the Kenyan grid with clean geothermal power.
The project will contribute to national sustainable development, by providing clean energy, which ensures improved environmental quality, positive health
impacts, and increased productivity. While the sale of the CERs generated by the project will boost the production of clean energy in the country, communities living near the company’s installations will also benefit from projects funded by carbon revenues.
Three Ways to Grow Your Brand in 2021
Business branding in 2021 will be as important as ever. Here are a few ways to approach it.
Whether you are a small business owner, an executive for a midto-large-sized company, or a freelance entrepreneur looking for new opportunities, 2020 was a turbulent year. While not all businesses suffered losses because of the Covid-19 pandemic, many did, and even those that did not have been forced to appraise their operations and plan for cutbacks.
Branding, as you well know, is a central task in business growth. During the pandemic, you have seen companies of all sizes forced to tailor their brand story in response to the health crises, economic impact, lockdown and quarantine measures, and even managing their workforces. Virtually any major company website you visit right now will feature a branded Covid-19 action plan front and center. As we move into 2021, business branding will remain tricky and yet just as important as ever. Here are a few ways to approach it in this unprecedented environment:
Outsource to a PR firm
Public relations is, of course, a major part of branding. How you interface with the public ties directly into your brand story. For this reason, many companies hire a third party firm to handle their PR. During a pandemic, brand awareness remains critical but also uniquely challenging. Utilizing the guidance of a nutrition, wellness, or lifestyle PR agency can allow you to synchronize your public messaging and tap influencer marketing.
PR agencies typically offer the following services: strategy development, messaging, media relations, content marketing, social media marketing, events/experiential marketing, and influencer relations. Each one of these is important. Together they form a comprehensive blueprint for brand growth. No matter how solid your in-house PR or marketing team may be, there is no substitute for an experienced PR firm. It is not a sign of weakness to outsource; it is actually a sign you possess strategic awareness and the raw potential for long-term growth.
Create new portals and platforms for virtual business
There is no doubt that the pandemic is going to continue well into 2021. This means that it will continue to be important for your company to offer customers and clients’ virtual services.
Are you selling products? Make sure your sales portal is flawless and that you offer contactless delivery. Are you taking on new
clients? Make sure you can interface with them remotely. There is simply no reason to expect potential clients to risk their wellbeing for an in-person meeting during a deadly pandemic. Are you on boarding new employees or contractors? Either purchase a business plan for the use of premium virtual conferencing tools like Zoom or Skype or develop an in-house system using Slack or even a proprietary system.
Allowing employees and contractors to work remotely is a great brand move and just common decency. Highlighting a comprehensive strategy for virtual engagement is a must-have brand strategy for 2021.
Offer your employees healthcare
Healthcare has become a highly contentious and politicized issue in recent years but the simple fact is companies that offer their employees solid healthcare plans have higher retention rates and stronger company loyalty. In fact, a great number of people stay with their employers specifically because of the
healthcare benefits they get. During a pandemic, healthcare is most people’s number 1 priority. If you expect your employees to stick around with you for the long haul, give them healthcare. Even if you have to furlough some of your employees, try to continue extending healthcare plans to them until they return.
How does this pertain to branding? Simple! How your employees perceive you is eventually how the public will see you. How companies take care of their employees during the pandemic is perhaps one of the most visible signs of effective branding.
2020 was a buzz saw of a year for branding. There were the companies who failed to respond effectively to the pandemic and those that prioritized their response to the biggest health crisis in a century.
2021 is likely to be just as challenging. Even if Covid-19 is brought under control, the economic and health impact will be ongoing. How your company responds to it will shape your brand for years, possibly decades to come.
The Ministry of Information, Communication and Technology, through the ICT Authority recently launched the construction of 630-kilometer high-speed fiber optic cable, at Nadapal – a community in Rift Valley Kenya near the border of South Sudan. The Kenyan government and the World Bank jointly fund the KES 3 billion projects. Besides the construction of fiber optic cable, World Bank will also finance the construction of 338-kilometer road from Lokichar to the border of South Sudan and build Kainuk Bridge, which will enable all-season transport between Turkana and West Pokot counties. The two projects are part of the KES 54 billion South Sudan-Eastern Africa Regional Transport, Trade and Development Facilitation Program (EARTTDFP) that connects Kenya and South Sudan through the laying of a fiber-optic cable and construction of a superhighway. In an article placed on ICT Authority’s website, Turkana County Governor Josephat Nanok said that upon completion, the project would promote cross-border trade with South Sudan and benefit communities, government agencies and businesses in the North Rift region. Representing the Ministry of Transport and Infrastructure, Eng. James Kungu said that the project, which has been under implementation from November 2015, is set for completion in December 2021. During the ceremony, the ICT Authority CEO Dr. Katherine Getao said that the Authority has completed the rehabilitation of fiber optic cable from Eldoret to Nadapal, with part of the route being completed using a wireless solution. She also stated that with a speed of up to 100 gigabytes per second (GB/s), internet connectivity will be used by the towns and facilities along the fiber cable corridor. This includes hospitals, government offices, schools, and telecommunication operators in Trans Nzoia, Uasin Gishu, Turkana, and
West Pokot ICT Authority Chairman Prof. Fredrick Owino said that they were delighted to successfully complete the project that was designed to deliver socio-economic transformation to North Western Kenya and to commence the main build, which will develop a huge information highway from the heart of Kenya to the border of South Sudan.
The World Bank representative, Eng. James Theuri noted that as a development partner, the activity on rehabilitation of the FOC is complete and ICT services restored in the four Counties.
Industry Experts Look Ahead to 2021
There is no doubt that 2020 presented many challenges for organizations across the globe. The shift to remote work drove the tech industry to respond to an increase in cyber attacks, heavier reliance on the cloud and the emergence of new technologies.
As 2020 rapidly nears its end and organizations continue to navigate the changes caused by the pandemic, we must also look ahead to 2021. Below, we spoke with industry experts to get their thoughts on what the coming year may look like.
Andy Skrei, VP, worldwide sales engineering, Exabeam
“Analysts will identify major gaps in their threat hunting tools and techniques and move to quickly modernize their security posture. Protecting businesses from security threats on an ongoing basis is essential, but many organizations have continued to use outdated threat hunting procedures that put them at greater risk. The key to steering toward a proactive security posture is to look at tactics, techniques, or procedures, also known as TTPs.
Instead of waiting for an incident to happen and setting off alerts or relying purely on IOCs, TTP monitoring looks for certain behaviors that are telltale signs of an impending attack. TTPs are all about attacker behavior, and the only way to move to a TTP based approach is to leverage analytic capabilities. analysts adopting this approach. By introducing analytics to the equation and pairing them with TTPs, security professionals will be able to filter out those everyday activities. Instead of monitoring for specific risks, analytics watch for changes in patterns, which can help prevent alert fatigue that comes from too many false positives. When a business is aware of the activities happening across its network, it’s better prepared to protect itself against security breaches.”
Annemie Vanoosterhout, release and project manager, Datadobi
“Ransom ware will become more active and visible in 2021, creating the need for companies to protect their businesscritical data. Organizations will need a data protection strategy that outsmarts sophisticated
adversaries conducting ransom ware attacks. The traditional two-folded system with a primary recovery source on-premise and a secondary system either on-premise or in the cloud will not be enough. If disaster strikes and both systems fail after an attack, an organization will suddenly face an existential risk and have to shut down business – which can cost thousands of dollars or more.
In order to create a disaster-proof business continuity plan, companies must know what data is business-critical and protect it in a “bunker” — either on-premises or in the cloud. This “golden copy” of data is a simple, cost-effective way of complimenting a traditional disaster recovery plan. The bunker is completely isolated from the primary and secondary storage systems, which creates an air gap that inhibits ransom ware or other human errors that could disrupt primary and secondary copies from affecting the third copy. The air-gap also shifts control from a large number of employees to a limited set of company administrators. Even the few selected to have access will also have to complete a number of steps before opening the bunker.
Being unable to access business-critical data can cripple businesses. Adding a golden copy of this data to complement traditional business continuity plans can give organizations the peace of mind while also protecting from the devastating effects of ransom ware during the New Year and beyond.”
Bill Kalogeros, advisor, public sector, Tempered
“Attacks on electric grids, water supplies and other critical infrastructure systems will become a more frequent reality. Cybercriminals will only continue to ramp up their attacks in 2021, so it’s up to those in charge of critical infrastructure to ensure their systems are armed with the latest network security technology. Critical infrastructure systems, typically controlled by the public and industrial sectors, maintain and enable our society. If cybercriminals gained access to the networks that control a city’s stoplights, monitor its water supply and even keep the lights on for its citizens, it would invoke utter chaos. Moreover, incidents like NotPetya and Sandworm in recent years prove it is not just a theoretical threat — it’s 100% possible. That is why in 2021, all critical infrastructures must adopt Zero-Trust approach to security. With Zero Trust, only those who are given explicit permission can gain access to a network, and even then, they are only able to perform actions that have been approved.”
Steve Cochran, CTO, ConnectWise
“In 2021, we will continue to see heavy investment in and expansion of remote work tools like Zoom and Microsoft Teams. While these technologies will continue to evolve, bad actors will constantly try to take advantage of the remote situation. The software industry needs to respond from an application security standpoint. It will be more important than ever to maintain your team’s security training, awareness, and factor in security from the beginning, as most security breaches come from within the application.
There will be many opportunities for growth for companies willing to take the time to understand their customers. For example, businesses around the world are reinforcing their remote work strategies and need a trusted advisor to strengthen their advanced security solutions and ensure that employee’s devices are protected. There is also a huge opportunity for the channel to educate SMBs about regulation, compliance and best practices.”
Flint Brenton, CEO, Centrify
“Ransom ware incidents will triple — and data exfiltration will overtake encryption as the attackers’ end game. Since the beginning of 2020, research has shown global ransom ware attacks are rapidly increasing. In Q3 2020 alone, the daily average number of attacks essentially doubled in frequency. While ransom ware variants also continue to evolve into more sophisticated threats, perhaps the most troubling data point is that the U.S. has become the most targeted country, with attacks jumping as much as 98% in the same timeframe.
These statistics illustrate a persistent onslaught of threat actors that could indicate 2021 will be our most challenging year yet in combating ransom ware in the enterprise. What is important to understand is that the attacks don’t just attempt to execute a lockout or encryption of data anymore,
but are increasingly aimed at extraction or stealing data from organizations. While some cybercriminals may sell the data on the Dark Web, others may threaten to leak the data for a higher payout on the ransom. We predict that this will become hackers’ ransom ware end game — though the risk of detection rises along with the potential payday. Granting ‘least privilege’ is essential in preventing unauthorized access to business-critical systems and sensitive data by both external actors and malicious insiders. Striving towards zero-standing privileges and only granting just-enough, just-in-time access to target systems and infrastructure can limit lateral movement that could lead to data exfiltration and additional damage.”
JG Heithcock, GM of Retrospect, a StorCentric company
“This year, organizations have been busy responding to the rapid shift to remote work and the cyber risks that were heightened as a result of bad actors using the pandemic as a catalyst to continue carrying out their crimes against organizations through phishing, malware distribution, false domain names, and other attacks on teleworking infrastructure. With a distributed workforce, organizations of all sizes and across industries have relied on email to maintain business continuity, especially in a world that was already trending towards a greater adoption of flexible remote working opportunities. Unfortunately, email attacks have raised and will likely continue to increase, making them prime targets for enacting cyber crime, especially if providing information about COVID-19 testing, resources and research.
While we continue to navigate the uncertainties of the pandemic in 2021, it is important to reiterate simple steps to avoid or minimize attacks on businesses: Identify suspicious senders, exercise caution before clicking on links or opening attachments, and instill a backup strategy that utilizes the 3-2-1 backup rule. A strong 3-2-1 backup plan includes having at least three copies of your data across multiple locations: the original, a first backup stored onsite and a second backup located offsite. Although the new year will certainly bring new risks, we have the tools to build a foundation that actively protects us from them.”
Amanda Regnerus, EVP, products and services, US Signal
“Cloud projects will become more diverse and creative. The sudden attraction to cloud computing stems from the shortcomings of enterprise IT infrastructures. With statemandated lockdowns and closures, IT professionals are unable to maintain systems that need physical support. This creates a standstill in productivity and profitability. Due to this period of immense change, in 2021, we expect to see a transition in the way businesses use cloud computing. For example, cloud projects may begin to revolve around business-critical systems as opposed to solely being utilized for data consolidation and process integration. To adjust to changing markets, businesses of all sizes will use cloud-based analytics software
to cope with changes in demand and supply chain disruption. To facilitate these diverse use cases, it will be crucial for businesses to work with a cloud service provider that has the necessary network connectivity and redundant architecture for maximum response and uptime, even at times of peak demand.”
Robert Van der Meulen, global product strategy lead, Leaseweb Global
“Expanding enterprises can start quickly if they design their infrastructure in a flexible way with hybrid cloud. With IT spending under scrutiny in the midst of the current economic climate, enterprises and SMBs alike are going to be eager to move out of the public cloud. Public cloud is satisfactory if you need a lot of scalability in the short term, but costs greatly increase for this flexibility. Companies are going to be more risk averse, cost effective and grow in dependence upon connectivity as the remote work trend increases in all industries. The drive for connectivity and bandwidth will lead enterprises to move to areas that have prioritized connectivity, such as China and other Asian-Pacific countries and certain parts of Europe.
Hybrid cloud will be a key tool for expanding enterprises and allows companies to procure flexible capacity and experience easy growth start-up when developing in a new region. Once revenue begins to come in they can work with infrastructure providers to move to more effective solutions such as collocation, bare metal servers or content delivery networks depending on the need. Infrastructure providers who specialize in hybrid solutions can evaluate your business needs and workloads to match the right type of technology to your requirements. With the right hybrid infrastructure in place, organizations can rest assured that their expansion will start off on the right foot.”
Charles Burger, Global Director of Assureon Solutions, Nexsan, a StorCentric Company
“Historically, data migration, data replication, and data synchronization have been complicated endeavors that result in creating obstacles, instead of delivering the strategic business value, IT benefits, and budgetary advantages for which they were intended. Consequently in 2021, data mobility will climb the priority list of virtually all data center professionals – especially, as they accelerate their integration of multiple cloud providers, alongside existing infrastructure. It will therefore be critical that they employ strategies and solutions that enable seamless movement of data across heterogeneous onpremises, remote, and cloud environments.”
Bob Davis, CMO, Plutora
“The further development of predictive analytics will shape the future for companies that adopt VSM. Over recent years, value stream management (VSM) platforms have improved the way organizations develop software, but what is going to really move to the forefront in 2021 is that VSM predictive analytics will shape organizations’ knowledge and foresight of what their customers need. The need for visibility into the software delivery process will enhance the ability to make informed decisions based on that insight and become a differentiator for companies that rely on software. As we go forward, companies will have to embrace VSM platforms if they want to become a software player. But it will be the improved visibility and utilization of predictive analytics that VSM provides that will enable companies to understand what technology and products matter most to their customers so they can move in that direction. The importance of visibility also points to the vitality of gathering data. While many companies talk about visibility, they do not discuss what it takes from a data perspective. Collecting data requires a common data model across the value stream. If you want visibility, the ability to fix things fast, and measurement of the value you’re delivering, it’s always about proving you know how to do it and convincing the powers that be to invest in that vision. VSM platforms will provide clear advantages for those who choose to use them through the power of data driven decisions.”
Ericsson is one of the leading providers of Information and Communication Technology (ICT) to service providers. Over the past 140 years, the company has been a global leader in ICT solutions; from manufacturing some of the first telephones, to managing networks that process 40% of the world’s data.
Through their website, the company announced that it has completed the acquisition of Cradlepoint –the world’s foremost providers and experts in wireless edge 4G and 5G solutions.
The acquisition was done barely two months after Ericsson announced its intention to acquire Cradlepoint. This investment move is a key to Ericsson’s on-going strategy; to get hold of market share in the rapidly expanding 5G enterprise space. This acquisition is also important to Cradlepoint, as it will greatly help the company to expand internationally. The company is expected to start contributing to Ericsson’s operating cash flow in the year 2022. During the acquisition, Ericsson paid about US$1 billion for the company.
Cradlepoint will still operate as a stand-alone subsidiary within Ericsson, and continue to build on the current market momentum. The company will be part of Ericsson’s Business Area Technologies & New Businesses division. According to the press release, Cradlepoint’s sales for the year 2019 were USD $134 million with a gross margin of 61%. Ericsson’s operating margins are expected to be affected negatively by approximately 1% in the next two years, where a half of the impact will be related to amortization of intangible assets– arising from the acquisition. Through Cradlepoint’s solutions, companies can connect sites, vehicles, mobile workforces and IoT devices in a simple and secure way.
By combining these solutions to Ericsson’s network solution, the company will be able to create a valuable new revenue stream for its customers; by supporting 5G-enabled services for enterprises and at the same time boost returns on investments in the network.
The senior vice president of Ericsson; Asa Tamsons was quoted saying that he was excited to welcome Cradlepoint to the Ericsson family; and that with Cradlepoint’s market-leading solutions, they will strengthen their enterprise offering and take an important step to lead the next wave of enterprise network transformation.
250 SMEs to Benefit from KIEP Project
The government today launched the Component 2 of the Kenya Industry and Entrepreneurship Project (KIEP 250+) micro website and the SMARTME platform, an online application tool that will identify and select Small Medium Enterprises (SMEs).
The SMEs will be selected for the six cohorts to be undertaken during the remaining four years of the KIEP project, whose aim is to increase innovation and productivity in select private firms by creating linkages between startups, traditional industries and international networks.
Speaking at the launch at a Nairobi hotel where the industrialists and innovators had gathered to celebrate the Africa Industrialization Day, the Cabinet Secretary (CS) for Industrialization, Trade and Enterprise Development, Betty Maina said KIEP would target over 250 SMEs where large corporations or organizations will nominate potential SMEs suppliers in its supply chain.
She said those selected will partake in the upgrading program funded through a performance contract where they will be incorporated into the performance contracts and grants disbursed upon attainment of the respective deliverables.
“This program is crucial as it will empower the SMEs with managerial and technical skills that will enable them improve their capital and upgrade their machinery and equipment for more productivity,” she said. Maina encouraged SMEs to take advantage of the facility and log into the website portal KIEP250+go.ke for more information. The CS at the same time announced that the government is negotiating with the United States for a Free Trade Agreement to open the way for more trade and investment opportunities. “We want Kenyan goods to have access into the vast American market duty free and quota free at the expiry of African Growth and Opportunity Act (AGOA) in 2025,” she said. The CS also stated the government is also negotiating with the United Kingdom government for an Economic Partnership Agreement to have more market for export for the local industries and SMEs. She also urged Kenyans to promote locally made goods and services in support of domestic industry, noting the support will enable the industries create employment and reduce poverty. Maina said the latest reports indicate that the country total exports increased by Sh30 billion, thereby recording KES 480 billion for the period between January and September this year, up from 450 billion over the same period in 2019.
She said the total imports decreased by KES 128 billion to register KES 1,199 billion in January to September 2020, down from KES 1,327 billion as compared to the same period in 2019.
“This is an indication that the balance trade deficit improved by KES 160 billion to record KES 718 billion in trades in January to September this year down from KES 878 billion over the same period in 2019,” she added.
The CS also commended Kenyan manufacturers for producing medical supplies for Covid-19 which she said had reduced the cost of the personal protective equipments, hygiene products, ventilators, temperature thermo guns and face masks, sanitizers, washing stations and high dependence unit beds among others. Speaking at the celebrations, the KIEP 250+ Team Leader, Mr. Maarten Susan said, currently Kenya does not have enough SMEs that can compete internationally with large corporations. Then he noted that the project would link inspiring SMEs to the world academia, researchers and financial institutions.
“We will help SMEs foster innovation, promote market linkages for them and link them the best specialists so that they can make
Kenya proud,” said Maarten. In her remarks, the United Nations Industrial Development Organization (UNIDO), Industrial Development Officer Bucyana Kawira said Africa has the potential to compete in the global market and encouraged Kenyans to exploit the available trade opportunities fully.
She also encouraged Kenyans to support the local industries and buy their products in order to boost the local manufacturers and SMEs. “We are also appealing to development partners to support the activities of the local manufacturers for industrial development,” she added.
Present at the Africa Industrialization, Trade and Enterprise Development Day celebrations themed ‘Inclusive and Sustainable Industrialization in Africa Continental-Free Trade Area (AfCFTA) and the Covid-19 Era’ was the ‘Inclusive and Sustainable Industrialization in Africa Continental-Free Trade Area (AfCFTA)
