48% of Manufacturers in MEA Realize Cost Efficiencies From Their DX Initiatives
Manufacturers in the Middle East, Turkey, and Africa region are experiencing significant gains from their digital transformation (DX) projects. Still, they could achieve far more if they improved the way they define, plan, and execute their DX projects, according to a new IDC info brief sponsored by Infor.
In the info brief, ‘Future of Manufacturing: Driving Transformation in the Age of Industry 4.0’, IDC revealed that 48% of manufacturers in the Middle East, Turkey, and Africa (META) realized cost efficiencies from their digital transformation initiatives, while 47% achieved productivity improvements, and 39% saw increased revenues.
To learn more about the info brief: https://pages.infor.com/erp-executive-brief-future-of-manufacturing.html
The info brief also stressed that manufacturers stand to increase the effectiveness of their DX initiatives if they follow the correct steps at the planning and implementation stage.
IDC recommends that manufacturers start their DX projects with a detailed assessment covering operations, systems, data, skills, organization, and infrastructure, and create a DX roadmap with short-term and long-term goals and KPIs to measure progress. It also recommends that organizations build a cross-functional team from various departments to drive the plan, and make periodic reassessments and updates.
The info brief also revealed common pitfalls to avoid, including initiatives that are not well integrated with the rest of the business’ strategy; undermining the perception of DX as being everyone’s responsibility; a lack of understanding of existing data assets; and siloed technology environments.
“It’s vital for organizations to achieve successful digital transformation due to changing customer profiles, business models, the proliferation of apps, smartphones, and other digital devices,” said Jebin George, program manager, IDC. “With the right approach, DX can help manufacturers automate, add immense value to their business, and position them to prosper in the age of 4th Industrial Revolution.”
The 4th Industrial Revolution is gaining significant momentum, giving even greater impetus for organizations to get their DX initiatives right. Indeed, 60% of global gross domestic product (GDP) will be digitized by 2022, IDC predicts. Furthermore,76% of manufacturers in the META region are engaged in, or soon to start, a formal DX program.
Khaled Al Shami, Infor director of solution consulting for the Middle East and Africa, said: “Countries across the region are keen to develop cutting-edge manufacturing sectors as they seek to diversify and grow their economies. Manufacturers must plan and execute their digital transformation in the right way to benefit from emerging trends and technologies such as AI, Machine Learning, and 3D printing. With our ability to offer vertical-specific DX solutions, we’re excited to help manufacturers on their digital transformation journey.”