By Judy Cubiss, Director and Global Marketing Lead for Industrial Manufacturing, SAP
From increasingly sophisticated large language models to impressive analytics capabilities, AI has demonstrated that it’s much more than a passing trend. But will that be true for asset-intensive industries like industrial manufacturing?
Industrial manufacturing has a record of adopting technology in silos. Automation is driven by robots on the factory floor. New business models are introduced with IoT sensors in machines, while shipments are tracked with RFID codes. Each of these cases emerged from a focus on applying specific technologies in one location or factory for a single purpose.
But, according to research from The Futurum Group, change is on the horizon. The latest AI-enabled smart manufacturing capabilities are beginning to extend the benefits of digitalization from the manufacturing floor to the entire company.
Approaching the precipice of true transformation
Organizations are grappling with shifting customer expectations while navigating supply chain constraints and other global challenges. In response, they are turning to emerging technologies, such as AI, to enhance resiliency, improve worker productivity, and adapt to new business models.
In many instances, this approach has led to a complete rethinking of operational processes. The Futurum Group’s report points to the adoption of AI as a central component of this transformation. However, it notes that getting started can require significant resources and a steep learning curve.
“The reality is that today’s tech environment is more complex than ever before and navigating it successfully requires a full-on mental shift in how work is done and where money needs to be invested to move the company forward,” states The Futurum Group.
Fortunately, an increasing number of manufacturers are already embracing AI in modern business process solutions, cloud ERP, and other technologies. As a result, these industry players of various sizes and growth stages are not only improving efficiency but also pioneering innovative approaches to meet the demands of a dynamic market.
Creating a more transparent business in all areas
Bosch Rexroth AG, a wholly owned subsidiary of Robert Bosch GmbH, is a prime example of a manufacturer leading the charge. The global automation solutions provider uses enterprise architecture and business process management tools to crowdsource and verify data across its application portfolio and IT landscape. This move democratized data access, enabling collaboration and creating a unified source of truth.
Marco Walter, head of landscape management at Robert Bosch GmbH, shares the importance of this effort: “Because application architecture is very specialized, it’s important to connect it with business processes and the people who are actually going to use the applications.”
Establishing the foundation for expansive growth
Komax Group elevated the value of integrating business processes and people even more. Understanding that AI, Industry 4.0, and the IoT are radically changing the manufacturing industry, the growing technology company rethought its technology foundation to harvest those innovations and connect acquired subsidiaries worldwide.
The company now operates on stable, reliable, and innovative cloud ERP that provides process standardization and simplification. The ERP’s modern capabilities are integrated with a business network and third-party master data management software – providing secure and consistent access to information on customers, suppliers, products, and personnel. In return, Komax is prepared to integrate future acquisitions into its existing system and processes with greater ease.
Driving momentum in sustainability innovation
FREYR Battery is another fast-growing manufacturer that’s taking advantage of this trend. Setting the stage for its initial public offering and an expansion into the United States, the sustainable lithium-ion batteries manufacturer implemented cloud ERP to optimize its operations. This impacts how the company establishes process best practices, reports finances and compliance, sets up new factories, and hires new talent.
“As a startup, we knew that having standardized processes from the very beginning was an advantage. We avoided having to design everything from scratch and then go through a business engineering process to roll it out. With a set of best practices to follow, our operations can be compliant with best practices from the get-go,” says William Dennett, chief digital officer of FREYR Battery.
Bringing digitalization to the whole manufacturing business
The rapid advancement of technologies with the inclusion of AI is revolutionizing the industrial manufacturing landscape, pushing companies to move beyond their traditional, siloed approaches. And as technology continues to evolve, the integration of AI within the industrial manufacturing industry will fuel a new era of opportunity and excellence.
Look at how the industrial manufacturing industry is energizing a massive transformation. Read The Futurum Group report, “How Manufacturing Organizations Drive Business Impact from Digital Transformation,” co-sponsored by SAP.
