none

MANUFACTURERS TO BENEFIT FROM CLOUD TECHNOLOGY OVER NEXT TWO YEARS

15-03-2016
by 
in 

Despite a slow start to embracing new technology, manufacturers and, especially, distributors are looking to proactively increase their IT spending.

At the same time, they are moving to allocate fewer funds to simply “keeping the lights on” and more to innovation, according to a recent New Zealand study.

SMEs need to capitalise on their relative flexibility in business operations, and may be able to gain a competitive advantage over top-tier competitors if they direct their IT budgets appropriately, according to IT specialists Fronde Group.

Don McLean managing director, Fronde Australia, said: “The manufacturing and distribution industries have been hamstrung until now, due to a difficult economic climate, so they haven’t been able to pursue aggressive strategic improvement opportunities. This is now turning around, and we are seeing more companies look to improve in key areas such as customer retention, offering new channels, increased worker productivity, reduced overheads, and increased visibility into business metrics, enabling better decision-making.

“Studies have shown that small- to mid-tier businesses are the most ready to change, possibly because being a smaller organisation makes it easier to implement new technology faster, and manage a simpler change process. This can often be because larger organisations perceive a greater risk in implementing new systems.”

The manufacturing and wholesale industries can capitalise on these opportunities by focusing on:

·       Customer experience

·       This will drive revenues from existing sources, and result in the provision of an omni-channel experience.

·       Cloud technology

·       This will offer the potential for minimising overheads and providing system support for employees, suppliers, and customers.

·       Big data and business intelligence

·       This will provide the advantages of real-time information on operational efficiencies.

“Cloud technology is letting manufacturers and wholesalers catch up to other industries that are already experiencing the benefits of simplified IT systems, opex investment cycles, open delivery of systems to employees, customers, and suppliers,” said Mr McLean. “They can access the sophisticated business management software packages they need, without the upfront cost and time associated with a major implementation.

“Increased cloud adoption and the associated benefits are likely to see the face of IT in the manufacturing and distribution industries change dramatically between now and 2018.” 

Related news & editorials

  1. 24.05.2019
    24.05.2019
    by      In
    Monash University’s Institute of Railway Technology (IRT) has signed a memorandum of understanding with the International Union of Railways (UIC), the worldwide professional association representing the railway sector and promoting rail transport.
    The memorandum was signed in Manila during the 2019... Read More
  2. 24.05.2019
    24.05.2019
    by      In
    New challenges are emerging as the global aerospace industry grows, and it often seems that production delays, manufacturing and materials shortages and counterfeit parts are keeping pace with advancements. Boker’s knows that aerospace original equipment manufacturers and their supply chains demand... Read More
  3. 24.05.2019
    24.05.2019
    by      In
    IPD has become the exclusive Australian distributor for AuCom Electronics, a Christchurch-based manufacturer of soft start technology and fixed speed motor control solutions. AuCom provides low to medium voltage starter solutions to suit almost any requirement in a variety of industry applications... Read More
  4. 23.05.2019
    23.05.2019
    by      In
    As a teenager, Gary Rush dreamed of driving in New Zealand’s Formula Atlantic open-wheel racing cars. Now, a generation later, he has realised his dream, driving in and winning the top single-seater award of the Matos Formula Libre Series.
    Rush won the Ultimate Echo Cup for finishing top of a field... Read More