Manufacturers need to be agile and flexible to remain competitive
IDC predicts by end of 2024, 40 per cent of Asian-based supply chain organizations will have rebalanced resiliency efforts to reflect the realities of inflation and necessary efficiency to recover 2 percentage points of margin.
Rising inflation, supply chain disruption, talent shortage, cybersecurity risk and mandatory sustainability compliance are the key challenges for all manufacturers. As organizations continues to build resiliency and agility, they need to embrace technology to increase operations visibility and monetize data to extract insights to help in decision making.
“Asia/Pacific manufacturers need to be agile and flexible to remain competitive in a dynamic and fast-paced market and continue to generate business revenue, meet customer expectations and comply with stricter environmental standards. This can be achieved with prudent strategic planning and close collaboration with ecosystem partners. It is crucial for manufacturers to recognize the value of establishing an ecosystem-wide synergy in connectivity, visibility, and traceability for short- and long-term sustainability goals and other new opportunities for the business,” says Wai Yee Lee, Research Manager, Manufacturing Insights, IDC Asia/Pacific.
IDC’s top 10 manufacturing predictions provide guidance to business leaders on how trust can be achieved and maintained as they navigate the changes ahead:
Business Resiliency: By the end of 2024, 40 per cent of Asian-based supply chain organizations will have rebalanced resiliency efforts to reflect the realities of inflation and necessary efficiency to recover 2 percentage points of margin.
Data Monetization: Due to rising customer expectations, by 2026 30 per cent of Asia-based 1000 (A1000) OEMs will mine service interactions and work order data in real-time to inform product development decisions and achieve quality targets.
5G for Safety: By 2026, digital-first operations enabled by 5G connectivity will improve worker safety, resulting in a 40 per cent reduction in safety incidents in Asian-based manufacturing.
IoT Cybersecurity: By 2028, 50 per cent of Asian-based organization will deploy IoT cybersecurity with a dynamic security layer at the sensor level, powered by machine learning algorithms, resulting in fewer operational cyber incursions.
Multi-shoring Supply Sourcing: By 2024, 40 per cent Asian-based manufacturing companies will have implemented more balanced multi-shoring sourcing strategies to better address risk that result in a 15-percentage point improvement in supply reliability.
Digital Literate Workforce: By 2025, 30 per cent of Asian-based manufacturers will prioritize digital literacy as a key skillset during the talent acquisition/retention process to support digital transformation & enterprise-wide technology adoption.
AI-Supported Decision By 2025, 25 per cent of Asian-based manufacturers will have deployed enterprise-wide AI-based tools to support the decision-making process and maximize the value of data, resulting in up to 5 per cent improvement in revenue/profit.
Carbon Footprint Tracking: By 2026, regulations and sustainability linked lending will drive over 40 per cent Asian-based manufacturers to adopt product carbon footprint as a key metric to operationalize sustainability beyond reporting.
Ecosystem Quality Management: By 2026, 50 per cent of Asia-based 500 OEMs will take an ecosystem approach to quality management, providing designers with real-time feedback on quality issues, improving product success rates by up to 25 per cent.
Metaverse Applications: By 2025, 5 per cent of A1000 manufacturers will include industrial metaverse into their digital transformation roadmap (addressing the advanced simulation, cross-domain collaboration, and safety).
Tags: IDCmanufacturing
