By Sean Er Lim
THE pandemic has not only changed how we live and work but also how businesses operate. Many are currently faced with the challenges of exploring new ways of working combined with the restrictions of doing more with less during an economic downturn.
But there is an argument that the global crisis has proved to be a catalyst for innovation.
A recent survey highlighted how 90% of executives expect COVID-19 to fundamentally change the way they do business over the next five years. More interestingly, technology executives also expect the COVID-19 crisis to be one of the biggest growth opportunities.
Investing in innovation is increasingly being seen as a way of building agility and resilience for manufacturers. As the race to Industry 4.0 intensifies, leaders must prepare to keep pace with changes and grab opportunities along the way.
Strengthening manufacturing networks
It’s no secret that technology like smart robots and artificial intelligence (AI) is ushering in a transformation in manufacturing. But the most exciting aspect of Industry 4.0 is how technologies are converging and interacting with each other while strengthening local and regional manufacturing networks.
Strict lockdowns in big manufacturing countries like China and India revealed the industry’s Achilles’ heel when supply chains were severely impacted. However, this also provided countries in ASEAN opportunities to contribute with their manufacturing expertise and demonstrate their potential as a production alternative.
To position ASEAN as an attractive destination for manufacturing investors, countries build the right infrastructure and partnerships to support growth, remove barriers to innovation, and connect supply chains. This new sense of regional community is also an excellent opportunity for manufacturers to improve standards and create more value for customers.
Critical tools to streamline complex manufacturing processes
COVID acted as a digital accelerant enabling businesses to do away with laborious processes that have held back progress. This new mindset helped companies see the value in AI, machine learning, and e-commerce web solutions to streamline and improve complex procurement, inventory, and production processes.
If not managed well, these processes can be time-consuming, prone to errors, and increase indirect costs.
Manufacturers seeking to boost productivity and optimise processes leverage e-commerce solutions to simplify procurement and inventory management, have better control of inventory and integration with multiple suppliers, and eliminate order and invoice errors.
Moreover, Industry 4.0 and smart technologies usher in a digital era where Internet of Things (IoT), machine learning, and networked products enable real-time optimisation.
Aside from reducing production errors and speeding up decision-making, these technologies also free workers from repetitive and non-value adding tasks, leading to fewer employees on the production floor and allowing people to focus on more strategic and value-adding activities.
Additionally, 5G deployment in the region will also accelerate industrial IoT, cloud platforms, and cybersecurity in the manufacturing industry.
Always connected sensors will collect vast quantities of information, facilitating data-driven business models. Sensors also enable a more proactive approach to maintenance by detecting and predicting possible failures.
Manufacturers are beginning to realise the long-term benefits of digitisation as well as the financial commitment, time constraints, and change management linked to this transformation.
Rethinking the role of innovation
Twelve months ago, exploring new ways of thinking and embracing automation may not have been a priority conversation for many manufacturers. The entire industry has since been challenged with meeting customers’ evolving needs and balancing this with necessary healthy and safety measures.
It has also provided an opportunity to question the environmental impact, rethink how we produce and consume everything, and explore the role of innovation.
If we take time to reflect on the learnings of COVID-19, there is an opportunity to improve processes, drive growth, and secure a return on technology investments.
But it will be a combination of building long term partnerships and making innovation part of the business strategy to help manufacturers not only survive, but also thrive post-COVID. – Feb 11, 2021
Sean Er Lim is the country general manager of Malaysia for RS Components
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
