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Cloud Computing has become the focal point for driving today’s industries, through the use of advanced technologies like AI, ML, Blockchain, Voice Recognition, Big Data Analytics, and geoprocessing. In just a few years’ time, it has become the top priority of every organization and the pandemic has increased this need manifold. Though many industries like IT, Finance, and e-commerce have already been using cloud-based products and services for a long time and are reaping the benefits, there are still some sectors that are yet to fully utilize the capabilities of cloud computing – the manufacturing Industry being one of them. According to Nasscom, the amount companies spending on cloud computing is expected to reach $7 billion by 2022, which is a 30% growth each year. And when it comes to specifically the manufacturing sector, another report by Market research future states that the cloud manufacturing market is expected to reach $111.90 billion by 2024. These numbers are a testament to the growing demand and fast adoption of cloud computing in the manufacturing sector.
How Can Cloud Computing Benefit Manufacturing Industry?
The manufacturing industry must fulfill large volumes of production at a faster delivery rate while at the same time being cost-effective and flexible. Cloud computing can help the industry fulfill these needs. Connectivity is a major prerequisite for the manufacturing industry. Manufacturers can utilize cloud-enabled services to stay connected with the supply chain and the end consumers. According to the IDC Manufacturing Insights survey, manufacturers in the Asia Pacific region are already using a mix of public and private clouds with an adoption rate of 49% and the numbers are growing exponentially. For others who are planning to integrate cloud computing into their business now is the best time and any delay would be a major reason for falling behind.
4 points on how cloud computing can benefit manufacturers:
Many manufacturers are still using many legacy software that is connected in silos. Using cloud-based applications will enable these manufacturers to eliminate these silos and let them collaborate across geographies. Innovations in AI, IoT, Mobility and Geo Processing can also help manufacturers to predict equipment failures and advanced analytics-based applications will enable them to work with partners across the supply chain by sharing interactive dashboards.
The current infrastructure of manufacturers is labor-intensive with high costs and unpredictable productivity where the demand and planning are insufficient. Using CRM, cloud-based analytical, and enterprise mobility tools while transforming the production process and enhance accuracy. The speed of production, cost, and accuracy in the production cycle will witness a drastic change. Cloud-based applications will dramatically transform the entire supply chain management for better monitoring and tracking.
Worldwide hybrid cloud adoption is gaining a lot of momentum in the manufacturing industry as it helps manufacturers to move away from traditional ERP systems and implement cloud-based systems to create web-based applications, mobile apps, and different software testing modules that enable them to create new capabilities within their manufacturing plants.
Controlling Production level
Manufacturing does not involve production at the same level throughout the year. Cloud-based applications can help manufacturers to keep an eye on and monitor production seamlessly. Depending on the changing market needs and various other scenarios, manufacturers can bring down the level of production and also increase it. It can also help them understand the level of raw materials needed to ramp up or slow down production.
Cloud Computing is the future for the entire world and manufacturers should not fall behind. With the government’s impetus on both manufacturing and IT, it is high time for all manufacturers to implement cloud-based applications and reap the benefits in the years to come.
The above article is authored by Sachin Nigam, CTO & Co-Founder of Goavega Software India Pvt Ltd.