Manufacturing is one of the key industries to be disrupted in the Fourth Industrial Revolution or Industry 4.0. In fact, according to the “Making Indonesia 4.0” initiative, it is targeted to contribute between 21 to 26 percent to the nation’s GDP by 2030. As such, for any Indonesian manufacturing company, it is important to know the key trends driving its growth from now until 2022.
During the Industrial-Transformation Asia Pacific event held in Singapore last October 2018, Satya Narahan Sahu, SAP Asia Pacific Japan Leonardo Senior Solution Director, shared the trends that would change the landscape of manufacturing:
- Pay-per-use. Manufacturing companies will use the pay-per-use model for software and digital services as well as for machines and equipment.
- Smart products with IoT capabilities and edge intelligence. Over the next five years, expect industrial machinery and components (IM&C) companies to use products with IoT capabilities and machine learning technologies.
- Introducing new services to increase revenue. There will be a concerted effort to do more than manufacturing; companies will leverage IoT technologies and infrastructures to provide new services for lines of businesses.
- Enhanced aftermarket service to drive revenue. Companies will extend their service offerings portfolio—which includes IoT-powered service offerings—and even provide aftermarket service for competitors’ products.
- Cross-industry networks to increase efficiency. IM&C companies will go beyond the traditional value chain and create cross-industry networks to enhance operational efficiency across the entire asset lifecycle.
- More software in products. More software and firmware will be embedded in products to upgrade functionalities and extend their digital capabilities.
- Digital twins to manage build and usage. There will be an extensive adoption of the network of digital twins. Click here to learn more about it.
- Plug and Produce to increase manufacturing flexibility. To increase agility, manufacturing companies will be using the plug-and-produce approach. As the name suggests, a plug-and-produce product can simply be connected and turned on—and it will work efficiently.
- Virtual Reality and Augmented Reality in daily operation. VR and AR will soon be commonplace in manufacturing’s daily operations. Service technicians will use these advanced technologies for guided repair in remote environments.
- Machine Learning and big data in manufacturing planning and scheduling. Manufacturers know the tremendous advantage of using machine learning algorithms in their operations, particularly in planning and scheduling processes.
- True omni-channel digitalised sales. IM&C customers demand simplified sales processes and consumer-grade buying experience. This trend has compelled manufacturers to adopt omnichannel customer engagement.
Indonesia is expected to gear up their digital transformation initiatives and leverage these technologies to fulfil the vision of Making Indonesia 4.0.
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