Press Release

Manufacturers Reduce Human Intervention by Accelerating Digital Adoption

LOS ANGELES, DECEMBER 11, 2020 Historically, manufacturing has been highly dependent on the human workforce and a little conservative in adopting advanced digital technologies such as robots, immersive reality, and IIoT to replace the human intervention. However, this changed drastically when manufacturing companies reported losses due to workforce shortages during pandemic, as they started relying on AR/ VR based solutions for remote assistance and training, bots for technical assistance on shop floor, IoT for reducing onboarding time and simplifying reskilling, and AI-based visual inspection to detect defects. The investments on real-time monitoring and AR/VR-based remote assistance could help manufacturers realize 11% productivity gains through reduction of human intervention.   These emerging trends are covered in Avasant’s new Manufacturing Digital Services 2020-2021 RadarView™  report. The report is a comprehensive study of digital services in manufacturing space, including top trends, analysis, recommendations, and a close look at the leaders, innovators, disruptors, and challengers in this market.    Avasant evaluated 30 providers using three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of those 30 providers, we recognize 21 as having brought the most value to the market during the past 12 months.   The report recognizes service providers in four categories:  
  • LeadersAccenture, CapgeminiHCL, IBM, Infosys, TCS 
  • Innovators: Atos, Cognizant, LTI, Wipro 
  • Disruptors: DXC, Genpact, NTT DATA, Tech Mahindra, UST Global 
  • Challengers: Birlasoft, CGI, Mindtree, SofttekVirtusa, Zensar  
Figure 1 from the full report illustrates these categories  Joe Frampus, a partner with Avasant, congratulated the winners noting, “Unforeseen challenges such as lockdown restrictions, global trade disruptions, workforce shortages, and working capital crunch have motivated manufacturers to revisit their business and operational strategies. With the emergence of new opportunities for increased demand of preventive measures, healthcare equipment, and essential items, manufacturers must redirect resources to prioritize SKUs and invest in different business and operating models. Additionally, to hedge supply chain disruptions, all manufacturers must restructure their supplier network to adopt ‘China Plus One’ strategy.”    Some of the findings from the full report include the following. Manufacturers should  1. Digitalize supply chain for improving visibility and effective warehouse management: 
  • Integrate AI and predictive analytics for supply chain disruption. Analyze supplier data and reoptimize inventory level based on demand. 
  • Digitize the warehouse by leveraging robots, drones, IoT, and analytics to facilitate order picking, product assortment, and real-time inventory monitoring for reducing cost and manual efforts. 
2. Focus on employee safety and training/upskilling : 
  • Leverage digital training options such as AR/VR-based remote learning, app-based microlearning, and on-demand training modules. 
  • Deploy digitally-enabled safety measures specific to employees (wearables for health monitoring) and manufacturing facilities (sensors to track temperature) to reduce injuries. 
3. Evaluate organizational restructuring and strategic alliances: 
  • Evaluate divestment or launching new entities to reduce operational costs and increase revenue through monetizing evolving opportunities. 
  • Partner with IT and business process service providers to integrate digital capabilities and expedite transformation across the entire value chain. 
“Pandemic has given much needed push to the manufacturers for expediting their transformation to ‘Smart manufacturing’ for an agile and resilient business,” said Avasant’s Research Leader Pooja Chopra.  With the rising need for digital adoption across the value chain such as 3D simulation in product designing, predictive analytics for demand planning and monitoring equipment health, and chatbots for engaging customers; the manufacturers must partner with progressive service providers for charting out and implemeting their digital investment plan.”  The full report also features detailed RadarView profiles of the 21 service providers, along with their solutions, offerings, and experience in assisting manufacturing companies in digital transformation.   This Research Byte is a brief overview of the Manufacturing Digital Services 2020-2021 RadarView™  report (click for pricing).