Chief Strategy & Marketing Officer,
SolBuggy Connect Pvt Ltd
History has manifested that technology moves faster than management. Past few decades have been phenomenal not just in bringing new technologies but also the speed of adoption, assimilation and application of these technologies in multiple areas. The technological changes have brought in multiple opportunities for exponential growth for organizations but with risks associated with it. The life span of companies has significantly reduced and hence it has become important for companies to adapt these technological changes but be very cautious of the risk associated with it.
Global manufacturing sector is on the verge of mammoth industrial revolution. The changes are generally based on the adoption of new technologies aiding progressive automation of the production processes for prototyping and mass customization. As industry leaders compete to drive change in their organizations to take advantage of this technological revolution, it is advisable to be insightful and evaluate the risk associated with each strategic commitment.
Manufacturing industries are diverse by their inherent nature. While some are more labour intensive others are more knowledge- intensive. For some of the organizations, proximity to the customers is the key for success while others are dependent on efficient transportation. Organizations need to evaluate the technologies that are suitable for them. While 3D printing has been very successful for aerospace sector, advanced robotics is yet to prove its importance.
Globally manufacturing contributes to 16-18% of the world GDP & 14-15% of the employment. However, the contribution of manufacturing sector to the growth of any economy depends on the phase of development of its manufacturing sector. As countries industrialize, the output and employment grows exponentially but as they reach a particular threshold, they tend to dampen the growth. Growth fuels spending power of the consumer, wages increase and hence intention to spend on services rather than products in isolation thus blurring the boundaries between products and services associated with it (after-sales/ repair/ logistics etc). Chinese manufacturing sector has entered this phase with moderate growth and increase in unemployment due to rise in income levels.
At an advance stage of development, manufacturing sector contributes more to innovation, efficiency and research rather than growth and employment. Organizations operating in multinational environment must plan implementation of new technologies considering the stage at of development of the economy in the geographical area (nation) they operate.
The economic power of the world is shifting towards East. Manufacturing sector is entering a dynamic phase where developing economies of Asia fuel the growth emanating from increase in number of consumers. Rapid urbanization and growing middle class in these economies spark a plethora of opportunities but with substantial risk. Companies must base their decisions on scenario planning rather than forecasts to handle economic volatility in developing economies.
With changing technologies and quest to boost productivity and efficiency, the most critical assets are the human resource. Qualified, tech savvy workforce with relevant skills sets will be necessary for sustenance for organizations but the ability to accelerate learning curve and adapt new technologies faster than competitors will become a key differentiator for winning. Hence developing an ecosystem that equips skill sets and hone them is a key priority for nation and policy makers. The ecosystem must strengthen public education on one hand and build a seamless network of educational institutes and industry in parallel.
One vital area, often neglected, but of paramount importance is to bridge the skillsets gap in organizations where there is dearth of expertise (more particularly Micro, Small and Medium Enterprises- MSMEs in manufacturing sector). These MSMEs are backbone of any economy and crucial for growth and development. Innovators must come up with business models and technologies to address this gap in order to enhance their contribution to global manufacturing sector.
SolutionBuggy is an exclusive online platform that aims to truncate the skill deficit in MSMEs operating in manufacturing sector.
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MSME sector must take advantage of evolving technologies
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