Digital transformation in production and future trends

In the era of technological advancement, digital transformation has become an inevitable trend. Applying digital transformation in production not only helps businesses optimize performance but also opens up opportunities for further development in the future. Let's explore the information in this article with 1C Vietnam to better understand the importance and impact of integrating digital technology into the manufacturing industry!

1. What is digital transformation in manufacturing?

Digital transformation in manufacturing includes the use of digital technology to integrate into the activities of each business unit, thereby changing the way of operation and business model, thereby helping to increase performance and efficiency. reduce production costs.

2. Current status of digital transformation in the manufacturing industry

The digital transformation market in the manufacturing industry is growing strongly globally, experts predict there will be impressive growth when the CAGR rate (compound annual growth rate) reaches 21.2% over the year. 2023-2033. This promising land of digital transformation is expected to reach 592.2 billion USD this year.

In addition, the impact of digital transformation in the manufacturing industry is creating significant advances that bring improvements in safety, product quality and sustainability. With the goal of reducing costs and maintaining competitiveness in an increasingly fierce market, applying digital transformation is not only a choice of individual businesses but also becomes a necessary factor to meet the needs of businesses. increasingly high expectations from customers.

Currently, a series of technologies such as Internet of Things (IoT), Cloud Computing, 5G networks and Artificial Intelligence (AI) are considered key technological developments that manufacturing businesses place their trust and expectations on. big. In particular, cloud technology also plays an important role in collecting data from sensors more easily.

3. Benefits of digital transformation for the manufacturing industry

Digital transformation brings extremely important benefits to manufacturing businesses, including:

• Optimize production processes: Digital transformation helps businesses optimize and automate production processes, from line management, quality control to production planning, thereby improving performance as well as minimizing waste of labor and costs.
• Improve product quality: Digital transformation allows the department responsible for monitoring and controlling product quality in real time, helping to enhance quality and meet increasingly stringent market requirements.
• Enhance labor safety: Provide smart safety solutions along with monitoring systems to reduce labor accidents and increase worker safety.
• Cost savings: Manufacturing businesses through digital transformation will use less labor, thereby helping to reduce costs.

4. Challenges of digital transformation in businesses

It is undeniable that the above trend brings many significant benefits, however, digital transformation in the manufacturing sector also brings some challenges that businesses need to pay attention to:

• Large initial investment costs: Implementing digital transformation requires businesses to have a large initial capital to invest in new technology, hardware, software and employee training. This can create pressure on the majority of businesses in Vietnam today, mainly small and medium-sized enterprises.
• Information security risks: Using multiple devices connected at the same time and storing data can cause information security risks. Businesses need to ensure that confidential data and information systems are tightly protected to avoid losing important information or prevent cyber attacks.
• Cultural and management change: Digital transformation not only involves technology but also requires cultural and management changes within the organization. Training employees to use new technology is also a big challenge for many businesses.
• Difficulty in managing data in large quantities: The large amount of data generated along with the collection from connected devices can create challenges in data management, processing and analysis effectively so that businesses can make relevant business decisions.
• Personnel training becomes a burden for businesses: To successfully digitally transform production , training personnel and establishing workflow processes are extremely important. This task requires a lot of investment in time and effort, it can even affect the production schedule and increase many other costs. That is also the reason why human resource training has become one of the challenges of digital transformation for many businesses.

5. Future trends in digital transformation of manufacturing industry

In the future, the manufacturing industry will continue to witness the rapid development of digital technologies, with the following main trends:

5.1 Automation in production

Process automation through the use of robotics (RPA) is becoming increasingly popular, especially in the manufacturing industry. This technology plays an important role in helping businesses carry out and achieve related goals that businesses aim for such as: cutting costs, optimizing operations, improving customer experience, minimizing costs. errors as well as easy management of the operating system.

According to Forrester's forecast, the cost of RPA software is expected to reach 2.9 billion USD by 2021. RPA plays an important role as a prerequisite factor in evaluating the feasibility of transformation programs. Changing numbers in smart factories.

5.2 Analyze data to make decisions

Data analysis plays an important role in the digital transformation process such as providing detailed and accurate information to help businesses optimize production processes, predict problems and market demand, and manage inventory. , improve product quality and even create data-driven business strategies.

5.3 Using artificial intelligence and machine learning

Digital transformation in the manufacturing industry places emphasis on the important role of artificial intelligence. The flexible combination of artificial intelligence and machine learning will help businesses collect data, conduct analysis, and then apply it to build progressive production models in the future.

Machine learning is used to accurately predict supply and demand fluctuations in factories, as well as analyze and predict the condition of machinery and equipment systems. Besides, the use of artificial intelligence also helps develop Digital Twins - a virtual version of production systems.

5.4 IoT applications

IoT is no longer a strange technology for businesses today with more than 34% of manufacturing factories planning to integrate IoT applications into production processes in the future. In the manufacturing industry, IoT plays an important role by providing intelligent connectivity between devices, machines and production systems, through which equipment performance can be safely monitored at a distance, predicts potential problems, allowing technicians to fully understand the problem and suggest potential solutions.

6. Digital transformation solutions for manufacturing businesses from 1C Vietnam

The application of digital technology in Vietnamese businesses is still facing many challenges, including issues with human resources, infrastructure and investment costs or risks of information security. . Understanding the above difficulties, 1C Vietnam would like to introduce to businesses a series of solutions to support the application of digital transformation in the manufacturing industry.

Some outstanding advantages of comprehensive management solutions from 1C Vietnam include: improving production efficiency through optimizing and ensuring available resources; Optimize production materials; costs and human resources for warehouse management; Production costs are accurate and precise and help promote continuous, uninterrupted production.

Digital transformation in manufacturing has marked an important step forward, creating significant changes in the way businesses in Vietnam approach and carry out their production processes. This brings benefits to both businesses and customers.