In this series, we explore the challenges and goals, core solutions and core products facing manufacturers on their journey to digital transformation.
Though cloud computing is one of the critical pivot points of Industry 4.0 and the Industrial Internet of Things (IIoT), a significant portion of manufacturers have yet to adopt it. Delays in adoption are caused by several issues, such as integration challenges, lack of congruence on value derived versus capital investment, data privacy and/or security concerns and change management anxiety.
However, the imperative to embrace cloud and begin the transformational journey is as strong as ever. In this post, we examine the motivations behind digital transformation, why manufacturers should embrace the cloud and what considerations manufacturers should keep in mind when selecting the right provider.
The manufacturing industry is undergoing a transition towards smart manufacturing, where operational processes are digitized. Smart deployment of industrial applications and systems is essential to a company's plans to win, service, and sustain customers. As manufacturers turn to IIoT, the cloud is a critical part of the industry's IT and OT infrastructure, as it directly contributes to three key factors that successfully lead to a profitable future offering:
Finding a partner who is at the forefront of change is challenging for many manufacturing companies, as is keeping up with the pace of innovation. Cloud providers play an important role in bridging these divides.
The overarching benefits of cloud can be boiled down to four key outcomes:
Many manufacturing companies struggle to fully embrace cloud services due to three main obstacles:
Running and operating a software-defined data center, whilst building and running cloud-native applications, demand different competencies compared to traditional IT departments, as well as adequate talents with cloud technology skillset to implement.
Some legacy systems and applications were never designed to migrate to the cloud, so need be redesigned and rebuilt, which is a huge investment in time and cost.
Digital transformation provides tremendous opportunities, but only for companies who are not only willing to react fast to customer and market requirements, but fail fast too. This is sometimes in contrast to philosophy of many manufacturing companies, who have established themselves and being successful before the digital age.
The market is vast, with a myriad of providers offering a large number of services. Before manufacturers can select a suitable provider, they need to understand their specific business needs. They should also take into account existing partnerships, contracts, and procurement processes. Here are six common areas of focus that manufacturers can pay attention to when evaluating a service provider:
What kind of ecosystem is offered by the cloud vendor? How large is the addressable market the provider supports? This is important especially for manufacturing companies since supply chains are complex and span different regions.
Providers that comply with recognized standards and quality frameworks demonstrate an adherence to industry best practices. This can be very helpful when shortlisting potential suppliers.
Cloud providers need to be able to react quickly to critical feature requests by their end-customers. This enables a fast time to market, which is key in today's competitive manufacturing landscape.
The possible locations manufacturers' data resides in, and the subsequent local laws, is a key part of the selection process. The provider's information security controls should be demonstrably risk-based and clearly support manufacturers' own security policies and processes.
The provider's relationship with key vendors, their accreditation levels, technical capabilities, and staff certifications is an important criterion, especially in complex delivery projects.
SLAs demonstrate availability, reliability, and robustness of the platform. This is a make-or-break criterion for every cloud selection process. For companies who run their mission-critical workload on a cloud platform, it is mandatory from a legal and contractual point to have ensured SLAs.
Manufacturers have many aspects to consider when transitioning to the digital space. But by following the steps outlined, and employing a smart strategy in selecting the right provider, the transformation can reap rewards.
Alibaba Cloud is a world-class cloud provider and the No.1 public cloud service provider in China and Asia. To find out more about how your manufacturing business can succeed in the digital era, download Multinational Corporation (MNC) Manufacturing Industry whitepaper today.
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