[ad_1]
According to IFS, a global cloud enterprise software company, manufacturers who optimize digital transformation (DX) are 40% more profitable than organizations with less digital maturity.
According to the results of an IDC InfoBrief sponsored by IFS, only 26 percent of manufacturers surveyed are seeking new revenue streams; and only 28 percent are participating in new ecosystems.
The study, which surveyed 160 senior decision makers at manufacturing companies in Europe, the Americas and Asia, revealed that the greatest ROI gains come from developing new business models (51%) that go beyond business as usual.
main obstacle
The main barriers manufacturers face include increased labor costs (61%), increased raw material costs (42%) and supply chain issues (42%). Yet addressing these looming challenges distracts manufacturers from achieving differentiated operations. With no immediate signs of disruption, manufacturers must adapt their business models and focus outside their typical core areas, the study said.
DX remains firmly on the manufacturer’s strategic roadmap, as research shows encouraging signs that more than half (53%) of manufacturers are continuing to invest in digital initiatives to support their core business operations.
Businesses that have successfully moved beyond the pilot phase of their digital transformation journeys and aggressively pursued digital maturity have seen increased profits. According to the survey, manufacturers reporting a level of DX optimization increased their profits (40%); while those with lower levels of DX maturity experienced a larger decline in profits over the past fiscal year.
strike a balance
It is critical that manufacturers continue to recognize the importance of advancing digital initiatives. However, to ensure success, they must balance DX investments with key business priorities.
Worryingly, respondents (62%) lack clarity on the ROI of their DX initiatives. If this situation persists, manufacturers risk losing their competitive advantage and jeopardizing the scale and deployment of future plans.
Consistent with this, recent IFS results show that CIOs are increasingly inclined to prioritize technology investments that help build business resilience and create value through digital technologies.
However, without clear evidence of ROI, manufacturers will find it difficult to convince senior IT management to allocate budget to digital initiatives.
new ecosystem
To truly thrive, organizations must follow in the footsteps of manufacturers, actively participating in new ecosystems (28%), creating new revenue streams (26%) and exploring new markets (25%) to gain an edge over competitors. Positive indicators in the survey indicate that manufacturers are seeing the greatest ROI gains by expanding their programs beyond pilots and deploying proven DX strategies to address process and people issues. Research also shows that ROI benefits are being realized or exceeded through mature digital initiatives aimed at developing new business models (51%) and engaging new ecosystems (37%).
Maggie Slowik, Global Manufacturing Sector Director, IFS, said: “Manufacturers are under increasing pressure to differentiate in a highly volatile environment while remaining agile, which is critical to building operational resilience. We know that Digital maturity impacts profits. But without transparency and measurable ROI, it will become increasingly difficult for manufacturers to scale and reap tangible benefits from their investments.”
Continues Slowik: “The more ROI that digital initiatives deliver, the easier it is for organizations to make further digital investments—investments that must be made possible through scalable, cloud-based IT solutions for long-term revenue and Profitable growth. We’re seeing manufacturers who have moved beyond the pilot phase of their DX journey and continue to drive digital maturity already reap the benefits of ROI as a means to generate long-term value and remain competitive.
“In the future, successful organizations will implement advanced DX methods, consider the “impact-scale-trust” dimension of digital initiatives, and continuously use digital technology to not only optimize operations, but also realize advantages and create value through digital technology.”—— trade arab news agency
[ad_2]
Source link