India is at the forefront of the global economic stage. India is the only major economy expected to grow in double digits next year and expected to follow that up with the highest 6.8% rise in the FY23 fiscal. Policy support and vaccines are expected to lift economic activity across the world. How can India turn its latest growth upswing into a sustained rise in living standards and better jobs for its fast-growing labor force? The task is not easy. Very few countries have managed a successful transition from low- to middle- and then high-income status. South Korea is one of them — but it is a much smaller economy. In this article, we'll see how digitization in the manufacturing sector can help India grow.
Digital industry can unlock tremendous value for India.
India’s manufacturing sector needs to give a stronger contribution to economic growth and job creation. The Government of India recognizes this. Its Make in India plan aims to increase the GDP share of manufacturing to 25% of GDP by 2025–30, from 17% currently. As a result it can create up to 90 million additional jobs.
The two pillars of digital transformation in the industry are innovation and disruption. Companies must be attentive to the changing landscape of their industry. They should also be sure to count on the right talent in order to carry out new business models. Training should also be provided to retain the workforce.
Digitization is the application of digital capabilities to processes, products, and assets. This should in return enhance efficiency, increase customer value, manage risk and navigate through new revenue generation opportunities. This transformation is global and therefore involves adopting digital technologies for both internal operations and external ones. This includes sales, marketing, and support efforts. Therefore, to adapt, companies must fundamentally change the way they operate. They should be willing to accept cultural change and rethink their present business methods.
Digital talent and capabilities are key to the transformation and exploitation of new business strategies.
An Accenture study confirms this by claiming that companies need limitless, adaptable humans to thrive in their ever-changing world. The study recommends companies stop viewing their applications, infrastructures, and employees as independent entities. To move on and see them as cross-cutting, and to consider them interconnected systems giving rise to the term industry 5.0.
Digitization in the industry provides an opportunity to combine practices and ways of doing that result in new techniques, skills, and sources of income. Here are some of its key benefits:
1. Reduce Energy Usage
Digitization of your firm can save you money beyond just by increasing productivity. Digital technology allows you to track your energy usage in real-time. Therefore, with this information, you can see what process uses the most energy. To sum up this gives you the chance to make changes and save money on energy costs in your facility. The result boosts your profits.
Read More - Digital Documentation: 5 Benefits for SMEs
2. Improve Communications With Suppliers
Through real-time communications, you can find out where your supplies are at any given time. As a result, this improved supply chain information can help you better manage your operations. Improvements in supply chain management are especially clear in the short-notice aspects of the system.
3. Predict Maintenance
To keep your facility up longer, predict when to conduct maintenance rather than reacting to breakdowns. Regular audits of processes will ensure everything is running smoothly. For example, A large chemical facility digitized its maintenance and saw an 80 percent drop in unexpected downtime.
4. Raise Productivity
Digitization will definitely increase the productivity of your team. Since work will be assigned already and all the discrepancies will also be known, the team will be better at its work.
5. Increase Innovation
With product development, you can increase innovation by cutting the time from development to deployment. Above all, using real-time data, product development can more rapidly meet changing demands. Even higher-tech data evaluation can predict when trends will change, similar to how predictive maintenance works. To sum up, meeting customer demands quickly can reduce the number of unsold products, lowering waste.
6. Boost Efficiency
Operating a facility can be done from a centralized location. This is because it improves the ability of the business owners to see all lines and take control where needed. When working with a digital solution, a business owner can be everywhere in the plant at once. Thanks to controls at his or her fingertips, enacting decisions immediately is simple, cutting on downtime.
7. Make Your Storage Smarter
Digitizing makes your storage facilities smarter. This is to say that you can also make your warehouses and document storage centers more efficient and reliable. Inventory can also be managed more efficiently with no low or dead stocks as it'll be easier to track via a digital solution.
Read More - The Importance of Keeping an Accurate Inventory
Digitalization is reinventing businesses and capturing unique competitive advantages, but companies continue to hold back when the time comes to change their current business models. Digital transformation has been a kind of slogan for many top managers in recent years. According to a Gartner study, 79% of corporate strategists claim to be digitalizing their businesses to create new revenue streams. But so far change has been slow and less than half of the companies that claim to be transitioned bring their digital initiatives to the core of their strategy.
There are a lot of web solutions available for SMEs to digitize their business. But before making a decision it's important to ensure if that solution is affordable for your business and easy to use. TranZact is one such solution. It has helped over 1000 SMEs streamline their business processes from customer inquiry to dispatch. In today's world, digital transformation is not an option. It is necessary to escape the comfort zone, reinvent themselves and compete in this world overrun by technological advances.