DXC Eclipse | White Paper

Why manufacturers need to embrace digital transformation or risk being left behind

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DXC Eclipse | White Paper

Why manufacturers need to embrace digital transformation or risk being left behind While most manufacturers know they need to transform their business to remain competitive, the reality is that most of these organizations are cautious by nature and are not racing to adopt new and emerging technologies that can deliver a competitive advantage. Instead, they are looking for ways to tweak their business models with minimal risk.

However, the manufacturing sector remains vulnerable to international market conditions, continuing competition from cheaper overseas manufacturers and geopolitical factors.

It is critical for manufacturing companies to take steps to protect their businesses against these external forces. The entire supply chain ecosystem must transform to deliver competitive advantage, which means manufacturers need to retool and reskill.

Manufacturers need to evolve as they face changing customer expectations and a changing competitive landscape. Customers expect everything to be faster: innovation, product to market, production and order fulfillment. Manufacturers have to stand out from the competition through faster response times, better quality products and excellent customer service. They need to have flexibility to innovate.

Manufacturers are also facing a growing number of new competitors that are taking advantage of technology to lower their cost of entry and increase their speed to market.

This white paper outlines the key trends affecting the manufacturing industry, and how companies can use technology to take advantage of opportunities and manage the challenges in a rapidly changing landscape.

Key trends affecting the manufacturing industry

Industry 4.0: The future of manufacturing

It is now generally accepted that the manufacturing industry has reached the fourth industrial revolution, known as Industry 4.0, which refers to the current trend of improved automation, machine-to-machine and human-to-machine communication, artificial intelligence, continued technological improvements and digitalization in manufacturing.

Manufacturers need to implement modern enterprise software to ensure that they can adapt to this new reality.

Table of contents

Key trends affecting the manufacturing industry 2

B2B to B2B2C, or a customer-first approach? 4

How DXC Eclipse can help manufacturers respond to these changes 5

Why DXC Eclipse? 6

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DXC Eclipse | White Paper

Internet of Things

The Internet of Things (IoT) is having a major impact on manufacturers, as they now have access to more visibility into their operations and supply chains. At the same time, this brings several risks (e.g., security) and challenges (e.g., how do we use the data?).

Manufacturers will benefit from the IoT in that sensors and other devices will enable further automation and efficiency gains. Being able to automatically monitor operations delivers cost savings. For example, a sensor that alerts other systems when the temperature in the factory reaches a certain level can help ensure that the air conditioning is always optimized — not too hot and not too cold. That can result in energy savings while ensuring that equipment does not overheat.

Similarly, automatic remote monitoring can alleviate safety issues and concerns by providing instant alerts if equipment is operating outside safe parameters. The equipment can be shut down and recalibrated or repaired before it causes damage or injury. This can reduce the severity and duration of any unplanned downtime and let the business manage maintenance proactively.

Beyond the factory itself, IoT technology can be included in the products themselves. This lets businesses diversify their offerings, such as building remote servicing capabilities into products. This type of added value can help manufacturers compete more effectively.

Agile manufacturing

Agile manufacturing is becoming increasingly popular as a way to gain a competitive advantage. The concept focuses on three key trends in customer behavior: customers want things faster, they want choice and personalization, and they can change their minds quickly. To address these challenges, manufacturers are looking to implement an agile approach, which gives them a competitive advantage.

With adaptive production processes, equipment, tools, labor, and materials, agile manufacturing is designed to adapt and create new and custom products quickly, while controlling costs and quality.

Business intelligence for greater visibility

Thanks to better data collection and cloud-enabled analytics platforms, manufacturers can get much greater visibility into their businesses and operations. The data sources available to manufacturers have become more diverse and can range from RFID sensors and internet-enabled things to product data and customer/end user data. The possibility of accessing such a large volume of data can be daunting. Businesses need the right tools and systems to be able to extract, store, analyze, manage and protect their data.

Simply collecting or even aggregating data is not enough. Businesses must identify the right big data strategy, from collection, aggregation, and storage to analysis, insight and action, to help meet its unique requirements.

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DXC Eclipse | White Paper

Key considerations regarding data:

• Classify the data: This lets the business sort, filter and find data. Classification will help with becoming more agile so that the manufacturer can be more adaptive to changing demands.

• Understand the value of data: In a manufacturing environment, much of the data is connected to the internet or another piece of data. This is key for protecting and keeping the data secure.

• Know where data is kept: Some data may be cloud-based; other data may be kept on-premises. Knowing where the data is kept is important with regard to security and privacy to ensure adherence to regulatory legislation.

B2B to B2B2C, or a customer-first approach?

Excellent customer experience used to be something B2B companies didn’t really need to worry about. However, customer-centricity has become just as critical in B2B. Customers’ expectations have changed, and manufacturers have to shift their approach to ensure that they deliver an excellent customer experience. This is known as B2B to B2B2C.

Most businesses today have taken control of their value chain to protect their brand and ensure that they can meet consumer expectations.

While manufacturing used to be insulated from the consumer market to some extent, the faster pace of business and increasing consumer expectations are affecting manufacturers directly. Companies need to reduce the time it takes to get products to market, without increasing costs. Consumers expect a fast turnaround, but they are not willing to pay a premium.

The entire supply chain ecosystem must therefore transform to meet these demands. To remain economically viable, retailers need to sell more products faster, and at competitive prices. This puts pressure on distributors to shorten delivery times and, in turn, on manufacturers to accelerate production cycles.

Consumers expect to be able to access information such as in-store inventory information, but also information about the products they are purchasing. Manufacturers need to have visibility into their supply chain and operations and be able to share this with their customers, who can then share it with their own customers/consumers.

Using the right technologies, manufacturers can drive higher customer engagement and growth opportunities. Early adopters have been able to increase efficiencies and reduce costs through embracing the new customer-first culture.

Customers’ expectations have changed and manufacturers have to shift their approach to ensure they deliver an excellent customer experience. This is known as B2B to B2B2C.

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DXC Eclipse | White Paper

How DXC Eclipse can help manufacturers respond to these changes

DXC Eclipse is a leading Microsoft partner with extensive global manufacturing experience.

DXC Eclipse works with customers to assess their current business systems, processes and readiness to transition to the Microsoft cloud. The team focuses on managing the business risks, optimizing the IT infrastructure, and managing the integration, security, and new technical and operational opportunities available in the Microsoft cloud.

DXC Eclipse uses a Microsoft Dynamics 365 Readiness Review questionnaire to help businesses understand their current and desired state, then plan a roadmap to the cloud.

Microsoft Dynamics 365 for Finance and Operations is an ideal solution for the manufacturing industry. Dynamics 365 has been created with flexibility and change in mind, built with operational excellence at its core, and focused on letting the business drive innovation and stay ahead of the competition. Because it is cloud-based and modular, Dynamics 365 can grow with the business at the pace that is right for each organization.

With the tools available in Microsoft Dynamics 365 for Finance and Operations, manufacturers can develop new products and take them to market faster, run their factories more flexibly and fulfill orders more intelligently — all while saving on costs.

Dynamics 365 for Finance and Operations will let manufacturers get ahead by focusing on three key areas:

1. New product development

A key competitive differentiator for manufacturers is how quickly they can conceive and build new products. Dynamics 365 can shorten that cycle by offering simulation models and 3D-printed prototypes, so manufacturers can validate new product ideas and reduce the associated risk. It then helps fulfill demand through smart connected products, intelligent automation and digital manufacturing.

2. Agile operations

Managing the production floor more effectively can help overcome skills shortages and deliver increased productivity. Dynamics 365 includes the capability of creating workspaces, task guides and work instructions tailored for operators and supervisors, which can adapt to any device’s display, getting even inexperienced workers up and running fast. It also delivers operational insights that let decision makers take appropriate action to improve efficiency and remove bottlenecks.

3. Smarter order fulfillment

Failing to meet promised delivery times to customers can erode trust and obliterate a manufacturer’s ability to compete. Making realistic promises to customers, and then delivering accordingly, is therefore key to a manufacturer’s ongoing success. Dynamics 365 delivers visibility about inventory, manufacturing and logistics, and is available anywhere, on any device, so customer service representatives can proactively solve customer challenges and accurately predict order delivery timelines.

Forward-thinking manufacturers are beginning to embrace this new reality and have started on their path to transforming their businesses. With the right technology and the right partner, they can lay the groundwork for long-term growth. DXC Eclipse offers agile solutions and industry expertise, providing strategic guidance and helping manufacturers take on their technology challenges and maintain a competitive edge.

With the tools available in Microsoft Dynamics 365, manufacturers can develop new products and take them to market faster, run their factories more flexibly, and fulfill orders more intelligently, all while saving costs.

DXC Eclipse | White Paper

Moving to Microsoft Dynamics 365 requires careful planning to get maximum benefits with minimal risk. Businesses need to ensure that the move is seamless, successful and non-disruptive.

In a challenging economic and competitive environment, manufacturers need the right infrastructure and technology in place to help them work smarter and pivot easily to meet customer demand. It is vital to future proof manufacturing businesses through digital transformation. Implementing the best technology with the right partner puts manufacturing businesses in the ideal position to outperform and outmaneuver the competition.

Why DXC Eclipse?

DXC Eclipse, a practice within DXC Technology, helps enterprise and mid-market companies accelerate digital transformation, solve business challenges and deliver intelligent solutions that make a difference for clients, employees and partners. We believe in delivering expertise, project transparency and excellent customer service in every engagement.

With team members in North America, EMEA, Asia and Australia-New Zealand, we are uniquely positioned to deliver Microsoft Dynamics 365, ERP, CRM, business process, analytics and collaboration solutions to clients across the globe. The largest independent Microsoft Dynamics partner in the world, DXC Eclipse serves more than 4,000 clients across multiple industries. Our practice delivers services and solutions that positively impact our world today and into the future.

T 877.744.1360www.dxc.technology/dxceclipse

About DXC Technology

DXC Technology (DXC: NYSE) is the world’s leading independent, end-to-end IT services company, serving nearly 6,000 private and public-sector clients from a diverse array of industries across 70 countries. The company’s technology independence, global talent and extensive partner network deliver transformative digital offerings and solutions that help clients harness the power of innovation to thrive on change. DXC Technology is recognized among the best corporate citizens globally. For more information, visit www.dxc.technology.

© 2018 DXC Technology Company. All rights reserved. ECL-035. July 2018