Digitalization Transforming the Manufacturing Industry


It’s 2021, the digital age where even complex tasks can be simplified with digital technologies. Digitalization has revolutionized industries and their processes, making them simpler than ever before especially in the manufacturing industry.

In manufacturing businesses, there are complex processes that were earlier dealt with by manual tasks and reworking, but thanks to the digital technologies that have changed the whole scenario. 

In this blog, we will study how digital transformation has transformed the manufacturing industry and the reasons why a manufacturing business should invest in digitalization.

What is Digital Transformation?

Digital transformation means integrating digital technologies in all areas of business and shifting from manual to autonomous processes and operations. The technologies that are aiding the digital transformation are: 

Artificial Intelligence (AI) and Machine Learning

Artificial Intelligence (AI) and Machine learning (a subset of AI) is not a new trend, but it is going to stay top trending in the years to come. 

AI and Machine learning is advancing new possibilities and opportunities to manufacturing businesses by accelerating the growth and access of data. AI optimizes cloud processing, enables the deployment of faster computers and improves operational efficiency. 

Machine learning makes the manufacturing business process safer, efficient, and profitable by making the processes automated, predictive maintenance, and analytics.

The Cloud

The cloud refers to the servers accessed over the Internet. The software and databases run over the cloud servers located in data centers across the world. 

Cloud computing makes the data storage, computing power, and computer system resources available on-demand without active management by the user. 

Cloud computing transforms modern manufacturing by providing infinitely scalable computing resources and benefits manufacturers to innovate, be more competitive, and reduce their costs. Also, cloud computing allows manufacturers to use new production systems like the Internet of Things, 3D Printing, and industrial robots. The cloud is significant for manufacturing because it brings operational efficiency, enhances security, data storage management, and analytics.

Big data

Big data means a variety of unstructured and structured large volume data that is analyzed to extract information and reveal trends, patterns, and associations. Big data analytics processes a massive quantity of data and generates information that helps the manufacturers to make informed decisions. Also, big data has benefits with real-time reporting that helps in access information in real-time.

Internet of Things

Among the different digital transformation technologies Internet of Things is the most prominent one. Internet of things is a network of devices that are interconnected and embedded with sensors, software, and other technologies for transferring data with devices and systems over the Internet.

Manufacturers are gaining their major digitalization benefits such as agility, productivity, enhancing customer service, and meeting the dynamic market demand with insights obtained by IoT.

These are the transformation technologies that are making the manufacturing processes more agile.

Digitalization Shaping Smart Manufacturing

Smart manufacturing is simply the byproduct of digital transformation in manufacturing. All the digital technologies we discussed, IoT, big data, AI, and Machine learning, results in the formation of a smart factory. Any manufacturing business initiates digital transformation it means it employs these digital technologies in its business operations to streamline the manufacturing processes. Smart manufacturing has automated processes, predicts errors or abnormalities before they arise and meet ever-changing customers demand in modern style.

Digital transformation is uniting the manufacturing processes and making them faster, and shaping the future of manufacturing.

Why should Your Manufacturing business invest in Digital Transformation?

We have discussed how digitalization is transforming and what technologies play a major role in this transformation. But many manufacturers are still relying on the same old practices. The decision to invest in digital technologies is yet to be made in many manufacturing businesses. So, here is the prominent reason that will answer why you should embrace digitalization and invest in digital transformation for your manufacturing business.

Improved Data Collection

Every manufacturing business has to deal with mountains of data and analyze the data to gain insights that can help in making crucial decisions. Inaccurately optimizing the data can impact business decisions negatively. Digital transformation creates a sophisticated system for gathering the data and consolidating it fully for business intelligence at a greater level. With this system, every functional unit in the organization can translate raw data into insights.

Minimizing Costs and Increasing Profits

Investing in Digital transformation in your manufacturing business cannot go wrong. If you handle things well, you will see a visible change in your organization’s costs (decreasing, of course). As reported by SAP Center for Business Insights and Exford Economics, 80% of organizations that went for digital transformation increase their profits.

Also, you get greater visibility by insights such as delivery and demand status, inventory levels, production, etc., which helps you in reducing unnecessary costs, minimize wastages and eventually save costs.

Improve Processes and Enhance Productivity

When you employ digital technologies in your manufacturing business, your processes become streamlined, and you don’t need to waste your time on rework, downtime, and manual operations. Also, with digital solutions, you can simplify your performance monitoring. By saving a huge amount of time and money, you can use the funds and time more efficiently and increase your productivity.

Increase Customer Satisfaction with Customized Manufacturing

When we hear of manufacturing, we think of the same kind of products being manufactured in bulk. But digitalization is transforming this general idea of manufacturing. With digitalization comes the power of your manufacturing processes are you can customization options to your customers and at the same time maintain the quality of the products. 

Customized products are in high demand among modern customers.  The customers would not settle for something that everyone has. You can customize your products with digitalized manufacturing processes and increase customer satisfaction.


Change is inevitable, especially when it comes to digital transformation. Many businesses might cease to exist if they do not implement the latest digital innovations and technologies in their operations. If you want to satisfy the modern customer with your service, you need to modernize your operations. So, embrace the digital and implement the digital transformation to create a better version of your manufacturing business.

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