IDC Manufacturing Insights revealed that value realization of past technology investments and plant modernization would be the top two technology priorities that will receive the most attention this 2016 in Asia Pacific excluding Japan (APeJ). The global researchers analyze and advise round the clock on business and technology issues facing asset intensive, brand oriented, technology oriented, and engineering oriented manufacturing industries.
According to IDC, innovation is a top business priority in the region but companies face challenges to fund investments in innovation processes due to unclear return-on-investment (ROI), preferring to rather invest in factory automation with tangible benefits. Basic infrastructure continues to be a show stopper causing APeJ to lag behind the adoption off global technology trends.
“Technology has started playing an integral role in digital transformation as businesses adopt it in order to deliver business growth”, said S Ramachandran, Principal Research Manager at IDC Manufacturing Insights Asia Pacific.
Last month, the company’s analysts revealed their Top10 technology predictions for the regional manufacturing that’s driven by digital transformation:
#1: Customer-centric investments: Companies will start leveraging digital channels for closer customer connect in both B2C and B2B scenarios to gain 2-3 percentage points increase in market share.
#2: Global standards: APeJ will not just be an adopter of global standards but collaborate and start broadcasting best practices from enterprises that are local to the region and multinational.
#3: Value realization: Organizations will be under pressure to realize value from past investments to prioritize spending on emerging technologies, with new metrics such as percentage of connected assets.
#4: Operating model transformation: Technologies such as Internet of Things will lead to enterprise-wide connectivity of products, people, and processes enabling business models such as product-as-a-service.
#5: Modern logistic networks: 50% of manufacturing companies will leverage upcoming technologies such as 3D Printing, warehouse automation, robotics and micro logistic networks for postponement strategies.
#6: Supply chain resiliency: Real time market insights and visibility will make short term forecasting obsolete and a gradual shift towards pull based models based on actual demand.
#7: Innovation Platform: Innovation Platform, the next phase of PLM, will be integrated with other enterprise systems among 60% of top manufacturing companies with 'product quality' as the key driver.
#8: Digital twin: 40% of companies will use virtual simulation models from products to processes and facilities with real time feedback of performance in the next 1 to 2 years.
#9: Innovation in shop floor: 50% of manufacturing companies will create mash-ups of emerging technologies from mobility to cloud, analytics and IoT for shop floor digitization and modernization.
#10: IT Talent: New multi-disciplinary roles such as process analyst/architect will emerge to understand, consolidate and meaningfully consume insights from the vast amount of data for quick decision making.
In fact, IDC believes that ‘operating model transformation’ will be the most impactful change, as companies realize that 'connected assets' can be leveraged beyond just performance feedback and predictive maintenance to new and creative revenue streams and business models that are service based across the entire life-cycle of products.
"Market leaders in APeJ will be innovative in overcoming regional challenges to keep the lights on while leveraging their inherent strength, partnerships and local advantages to get multiple stake holder buy-in, prioritize funding and implement impactful mash-ups of the 3rd Platform and Innovation Accelerators integrated with the other enterprise systems for digital transformation”, Mr. Ramachandran concluded.