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Industrial digital transformation, why take the leap?

Baby textile companies that make up the industrial sector are mostly exposed to the changes that digalisation is producing

As consumers, we live in a digitalised world and constantly expect technology to work for us. This is reflected on our expectations when it comes to buying products and living experiences. For this reason, organisations in mostly all sectors need to continuously invest in advances that satisfy employees and potential customers. Companies that make up the industrial sector are mostly exposed to the changes that digalisation is producing. These changes have arisen from the progress that has taken place in today’s industrial environment; new IoT platforms (Internet of Things), Cloud Computing, Big Data and Artificial Intelligence platforms among others.

The digitalisation have a real beneficial impact

Industrial digital transformation refers to a set of innovation and transition solutions towards new business models and revenue streams consisting of three fundamental pillars; automation, improved manufacturing processes and production optimisation. But this type of transformation is not limited to the technologies that are used; it represents a culture of change integrated into all work areas and a transformation in the way different teams are managed. Only in this way can digitalisation have a real beneficial impact on the production of any company.

In another post we mentioned the importance of tackling the industrial digital transformation, but now we will also go deeper into what advantages it brings to a company.

Some Benefits of digital transformation

Reduces costs

Technology is a great ally in the process of minimising an industrial company’s expenses in face of the future. The integration of digital technologies lead to a transformation of procedures and a digitalisation of documents that result in an overall process optimisation. In consequence, unnecessary expenditure is cut, resulting in a reduction of labour costs.

Furthermore, digitalisation allows companies to calculate and estimate expenses infinitely more accurately, ensuring that budgets are under control. In addition, it eliminates and/or replaces unnecessary tasks within processes, making them much more efficient. This efficiency is transformed into a time saving that results in a much more cost-effective production.


Decentralises production

Industrial digital transformation provides companies with fully remote monitoring systems, so production can continue to function on its own. This means that, in exceptional circumstances such as Covid-19, digitalised companies have not had to stop or even slow down their production chain. These systems can work without stop-offs and function many more hours a week than any worker.

In addition, digitalisation increases methodologies’ flexibility and their responsiveness. For example, if there is a problem in a production plant, a warning will be sent automatically and the problem will be handled regardless of the day, time, or whether someone is physically present at the time.

Enhances efficiency and productivity

Smart product connectivity gives devices the ability to interconnect and communicate machine-to-machine (M2M). This allows them to make decentralised decisions. For many of the tasks, companies no longer need an employee to be physically present at all time. This new manufacturing and production model eliminates monotonous and sometimes even dangerous tasks, as well as making them more accurate, efficient and responsive.

Beyond optimising processes and tasks, digital transformation enables faster, more effective decisions based on accurate, real-time data. In addition, training, modifications and repair processes are no longer a problem since they occur less frequently and are largely automated.

Generates new business opportunities

New digital systems enable the production of new products and/or services that were previously unviable to the company, therefore generating new sources of revenue. In addition, the speed with which new services (innovation or reorientation) are launched is much faster. Through a good use of big data and artificial intelligence, companies have the possibility to experiment, get ahead of trends and predict which new developments will succeed among customers. These technologies can even make it easier for companies to become environmentally friendly, generating products that are greener and less harmful to our eco-system.


Accelerates reaction to demand trends

The responsiveness of advanced production systems facilitates rapid response to volatile changes in demand. Tasks can be rescheduled in a matter of hours and products can be produced using customised patterns adapted to each consumer, without it involving a waste of time. In this way, companies can obtain greater customer satisfaction without having to manually manipulate each of them.


Fosters competitive advantage

New technologies improve the quality of manufactured products by incorporating new functionalities into production systems that improve the final outcome. This leverages the differentiation of the product in question and provides added value to the brand. On the other hand, comprehensive quality reviews are generated that ensure compliance with standards and different regulations. In addition, it allows workers to develop their potential and professional skills rather than being engaged in tasks that do not contribute intellectual value to the company.

Stimulates innovation against disruption

Digital transformation drives the culture of innovation, leading the company to discover new value propositions and upcoming trends. Nurturing data, companies have the possibility to innovate with previously unexplored information to prepare themselves for future trends and therefore save money in face of future disruptions.


Boosts internal cohesion

The flow of information born from digitalisation facilitates communication between departments, allowing the involvement and collaboration of employees from different areas of the company in projects and decision making. In addition, it gives businesses an overall view of the different entities of the organisation. This enables more profitable global management. On the other hand, the fact that information is immediately accessible from anywhere and at any time, facilitates the work between different teams.

This study has been carried out by Digital transformation of