From support to innovation: Refocusing manufacturing's IT resources

In today's manufacturing landscape, data is one of the most valuable assets.

Every manufacturer knows that overall asset effectiveness and operational efficiency is critical. This has an element of national importance in Singapore; with a Ministry of Trade and Industry survey finding that manufacturing contributed 18.6% of gross domestic product in 2023. 

With the pressures weighing on manufacturers to transition to Industry 4.0, it is critical that their digital transformation initiatives facilitate faster responsiveness, improved resiliency, improved integration and collaboration, better market intelligence, and better customer experiences. 

This, however, must start with an organisation’s evaluation of its Information Technology (IT) in the context of modern manufacturing. The key is to tap into software support services that avoid disruption to mission-critical systems.

IT's role in modern manufacturing
IT departments have traditionally been viewed as a cost centre for manufacturers. However, with the growing impact of digital disruption and growing dependency on digital agility to enable efficiencies and improvements in bottom- and top-line growth, this reputation is being shaken off gradually, and IT is becoming a strategic function. This is due to:

The value of data: In today's manufacturing landscape, data is one of the most valuable assets. By harnessing this data, organisations can predict, prioritise and pivot their business and help them drive end to end visibility, artificial intelligence (AI)/machine learning-driven operational improvements, reduce overhead costs, and be better prepared for future demand.

The collaboration imperative: Modern manufacturing relies on visibility and collaboration between departments and external partners. IT can facilitate this by implementing integrated systems that allow for real-time communication and data sharing. Tools like cloud computing and collaborative software can bridge gaps between engineering, production, and logistics, fostering a more unified approach to problem-solving.

Growing automation: Automation is at the heart of Industry 4.0. with technology teams playing a crucial role in selecting, implementing, and maintaining automation technologies. By focusing on automation, IT departments can help reduce manual errors, improve efficiency, and free up human resources for more strategic tasks.

Shifting mindsets: From support to strategic partner
Thriving in the era of Industry 4.0 hinges on helping IT transition from a support function to a strategic partner in optimising and driving transformation without disruption across operation. For Singapore, as the world's fifth-largest global exporter of high-tech goods, driving an IT vision that aligns with business goals, such as sustainability, resiliency and AI-operations is paramount. With the world of digital disruption moving at lightning speeds, having the flexibility to choose the right tools and technologies and pivot if strategies change, will work to the manufacturer’s competitive advantage. 

IT leaders should consider the following actions that have proven successful for many: 

Adopt a composable ERP strategy that puts business first: Whilst monolithic software vendors consistently push upgrades, reimplementation and new products, this could also lock customers out of new innovations if they are not available by the vendors themselves or compatible with their offerings. Think modularly, adding what you need to your existing systems versus taking on a potentially high-risk road of uncertainty. That way, you get exactly what you need, now. 

Explore third-party software support for big savings and resiliency: One of the heftiest hits to IT budgets is the maintenance of mission-critical enterprise resource planning (ERP) systems. Thousands of organisations have already turned to third-party support providers for good reason: immediate savings and system resiliency. As manufacturers know so well, a constant upgrade cycle is disruptive to the business and takes away limited resources from projects of higher value. It also adds risk of down time and can result in poor overall asset effectiveness. Choosing the right third-party support provider with deep expertise in manufacturing can deliver better support with industry-leading service level agreement, tax, legal, and regulatory updates to over 160 countries to keep you compliant, and much more. 

Invest in upskilling your team: With a limited number of experienced candidates in the IT talent pool and perhaps less interest to join a manufacturing company’s IT team versus, let’s say, a tech firm, companies could invest in upskilling their existing IT team members. Continuous education and training programmes can be designed to help equip technical teams with the necessary skills to leverage digital agility effectively. This investment not only enhances their capabilities but can also foster a culture of innovation.

Alignment with business goals: Technology functions cannot be siloed. It is essential for IT leaders to align and collaborate closely with other departments to understand their needs and challenges. By opening up the doors and inviting stakeholders to be a part of the IT decisions and strategies early on, you will have better alignment with executives and end users, all whilst showing the deeper value of the IT team beyond systems and tools. 

Encourage creativity: Foster an environment that encourages experimentation and innovation. Tech teams can lead initiatives such as innovation labs where cross-functional teams come together to brainstorm and prototype new solutions. This collaborative approach can spark creative ideas that drive meaningful change.
Leveraging external experts

Refocusing IT resources is not just a linear act, saving a dollar to drop into another sinkhole. It’s about choosing and prioritising a roadmap of flexibility, stability and innovation, creating a snowball effect of more growth, more profitability, more opportunity. 

By choosing a vendor agnostic IT partner, you can meet this vision faster, whilst serving the needs of an organisation far beyond the walls of the internal IT department. Improved speed, service, security and resolution for issues, protection of business uptime, more time and focus on forward-looking strategies and initiatives– these are just a handful of goals manufacturers can achieve, paving a smart path towards the future.