Demand recovery will be uncertain as the economy fluctuates; it will be unequal across geographies, sectors, product categories, and consumer segments; and it will be slow to return to pre-crisis levels. While a few industries will see abnormally high demand, many others will confront periods of structural overcapacity. These businesses must painfully rightsize their cost base and capital in their operations, supply chains, and organizations as a whole, as well as aggressively transfer their fixed expenses to variable costs whenever possible. The fact that historical data and forecasting models will be of little value in predicting where pockets of demand will arise and where supply will be required complicates issues for leaders as they try to figure out how to deal with an uneven recovery. To guide operational decisions, new data and totally rebuilt analytical models will be required.
We are now in the fourth industrial revolution, often referred to as Industry 4.0. Industry 4.0 is defined by digital transformation and its impact on real-time decision making, productivity and a company’s ability to be flexible in changing circumstances. With increased automation and smart machines and factories, companies can manufacture products more efficiently across the value chain. Manufacturers are also able to use data to better meet customer demands. The data that is collected directly from the manufacturing process can be married with operational data so that a factory can easily make better and more informed decisions about their production.
There are many opportunities for automation in manufacturing. Automated factory machines are equipped with wireless connectivity and sensors allowing for monitoring the entire manufacturing process and autonomous decision-making. With investments in automation and 5G, wireless networking and machine augmentation will be substantially advanced, resulting in faster response times and allowing for near-real-time communication between systems.
Big data analytics assists businesses in harnessing their data and identifying new opportunities. Data analytics results in smarter business decisions, more effective operations, higher profits, and happier consumers. When business leaders have insight into what’s going on within their organization from a data perspective, they are in a position to make more accurate and timely decisions that impact their employees, customers and stakeholders.
eCommerce has grown at such a fast pace over the last two decades that it has fundamentally altered the structure of the company. Every day, millions of individuals shop online, with many of them making purchases more than once a week. This has resulted in profitable business opportunities that were not available prior to the internet. Businesses are no longer restricted to local customers and can use eCommerce companies to reach geographically distant customers. They can also provide a real-time view of inventory for the manufacturer.
A winning e-commerce strategy is dependent on the right technology, data, and people. If you have questions regarding eCommerce adoption and digital transformation, contact us today for more details on how to get started.