Internet

Manufacturers Stand on the Edge of a Tech-Driven Revolution

Here are the three things keeping industry leaders awake.

David M. Chapman is vice president of the Central region for CDW's corporate business.

Jill Klein is the head of emerging technology and the Internet of Things for CDW.

Not since the late 19th century has the manufacturing industry been regarded as an agent of innovation. During those days of the Second Industrial Revolution, the industry was key to America’s shift away from its agrarian roots toward a more modern economy.

The story has been different in more recent years; manufacturing has not been seen as a central player in the current information age. But now, the sector is on the precipice of a tech-driven revolution, with modern manufacturers rethinking their organizations from top to bottom.

Everything from data management and cybersecurity to processes and supply chains are undergoing change in the industry. The confluence of two big factors is driving the updates.

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The Cause of the Manufacturing Revolution

The first is the industry’s own changing imperatives: To compete in a global market, modern manufacturers must become nimble and innovative, secure and cost-efficient. The second is the advancement of technology critical to achieving those goals, including the rise of artificial intelligence and the Internet of Things, advanced robotics, digital twins, augmented and virtual reality, and data analytics.

So, how is this playing out inside individual manufacturers? The leaders we spoke to say that three things are keeping them awake at night.

Agility and innovation. Let’s face it: This is not an industry notorious for its embrace of rapid change, but change has come. To succeed, businesses must analyze every process they undertake and every data point they produce. That requires the right approach to data storage, governance and analytics as well as advanced sensors connected to equipment in the field, gathering vital data on a machine’s performance so that insights can be gained and predictions made about upcoming maintenance.

Cybersecurity. Manufacturers and other industrial businesses operate with complex security challenges, in large part because they must secure physical machines in addition to information systems. The convergence of old operational technology and modern IT systems is what makes possible the kind of insights businesses need to drive efficiency. But the exposure of OT, for the first time, to networked systems is also a boon to cybercriminals.

Cost-effectiveness. Manufacturers compete in a global marketplace, and operating costs are higher in wealthy societies than in developing nations, so U.S. manufacturers must squeeze every dollar of inefficiency out of their operations. On a recent tour of a manufacturing floor, a company leader told us that every hour a particular machine was down cost the business $1,000. At the same time, a successful cyberattack on a manufacturing facility could cost the business millions.

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The Stakes Are High for Manufacturers

Organizations will have to blaze their own trails to meet this moment. Some manufacturers may need to think through full-scale data governance and security strategies as they connect more of their OT to web-enabled sensors. Others might be struggling with efficiencies of certain manufacturing processes, such that building digital twins of their operations could deliver previously unseen insights.

In the manufacturing business, the problems are often clearer than the solutions. That’s why it’s crucial to work with an experienced partner that’s seen it all and possesses both technology and manufacturing expertise. In an industry where the stakes are high, you can’t afford a misstep.