Digital Transformation within the manufacturing industry
Digitalization will have a disruptive effect on how the manufacturing industry will do business. It will not only enable organizations to improve the efficiency along the value chain but also lead to innovative business models. All enterprises in the market will have to rethink the way of doing business. Focus on specific customer requirements and individualization of products will become the key elements of their future success.
New players in the market will dominate the interface to the customer. Data collection and data processing provide new opportunities for value creation. Algorithm based models complement or replace traditional decision making. Therefore, all established companies have to rethink their business model in times of Digital Revolution.
Flexibility as well as the ability to create an agile value network is essential for gaining and securing a competitive advantage. Horizontal integration is the way for different stakeholders to concentrate on their core competencies while offering individualized products and solutions in a variety of markets. Additional digital opportunities are efficiency gains by seamless integration of the value chain and automation of processes. Furthermore, the transparency of the whole distribution network can be increased.
However, the digital transformation will only be successful when people are involved intensively from idea to implementation. Clear strategic goals are important for the entire organization and individual needs must be considered carefully when realizing new solutions. Therefore, managing the human side of change should not be underestimated in digital times.