Business 4.0
Four Steps for Future-Proof Manufacturing By: Tom Nall, Senior Industry Director, Manufacturing, Avanade
T
o say that times are challenging for manufacturing is an understatement. The last year has seen manufacturers navigate tariffs, a trade war, and now even more uncertainty. However, one thing is certain: some manufacturers will be positioned to bounce back and thrive in a new economy and some won’t. How can businesses prepare to emerge as one of those winners? Well, for starters, it will take more than just broad talk about digital transformation. Here are some steps to pave the future path.
1.
Incorporate Manufacturing for Social Good Into The Fabric Of Your Company
Tom’s Shoes, Patagonia, and Lego are among the companies leading the way in a trend not only to make great products, but also to give back to the community. French fragrance manufacturer LVMH and Scottish craft beer company, BrewDog, are both now producing hand sanitizer and providing it at no cost to those in need. Manufacturers that give back to the community will be better suited to earn trust from existing and new customers, especially in times of uncertainty.
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10 IMD MAY 2020
2.
Modernize Your Business Applications
Manufacturers know that data and analytics are a crucial investment area over the next few years. Yet, they sometimes overlook the key role that business applications – such as ERP, CRM, and SCM – should play in their data strategy. Business applications are the lifeblood of business –they are the primary tools people need to do their jobs. Sadly, most manufacturers are still running on decades-old legacy business applications that are inefficient and difficult to access. Today’s cloud-based business applications have proven more functional, usable and scalable. They also serve to greatly reduce costs and enable access into new markets, products, and lines of business. According to recent research by Vanson Bourne, 94% of industrial equipment manufacturers (IEMs) agree that their marketing, ERP and CRM systems are no longer fit for purpose. This means that most manufacturers are faced with the need for an overhaul of business application systems and create a more futureproof model and weather through the next few decades.
