Why Cloud Computing is essential to modern manufacturing
You are reading this on a cloud-enabled device, aren’t you?
Cloud computing is no longer a futuristic pipedream - it’s an essential part of the modern world. From managing our personal lives to powering huge businesses, Cloud Apps change how we work and live.
But what about manufacturing? Can cloud technology help the industry keep up with the demands of the 21st century?
The answer is a resounding yes! In this white paper, we’ll look at how cloud computing is helping modern manufacturers stay competitive. We’ll also explore some of the benefits businesses can expect to see when adopting the cloud. So read on - and discover why cloud computing is essential to modern manufacturing!
Let’s be honest. If I had told you three years ago that Alexa manages my shopping list, wakes me up in the morning, and gives me information about weather and traffic, you’d be forgiven for assuming that I was talking about a helpful member of my household rather than a gadget. But that’s exactly what Alexa is - a cloud-powered voice assistant that has become an essential part of my daily life. And I’m not alone. In 2018, an estimated 100 million Alexa-enabled devices were in use worldwide, with that number set to rise to over 500 million by 2025. So what does this have to do with manufacturing?
Well, as it turns out, quite a lot! Manufacturers are increasingly turning to cloud computing to help them manage their operations. Cloud apps are being used across the manufacturing sector to drive efficiency and productivity, from product development and quality control to production management. Based on Business Wire, the three sectors that plan to spend the most on cloud computing services are manufacturing ($19.7 billion), professional services ($18.1 billion), and banking ($16.7 billion). (Source: Business Wire)
WHY ARE MORE AND MORE MANUFACTURERS ADOPTING THE CLOUD?
There’s no doubt about it - the cloud is big business. It’s no surprise, then, that more and more businesses are turning to the cloud to power their operations. In fact, a survey conducted by The Harris Poll and sponsored by Microsoft found that 86% of all respondents plan to increase investment in hybrid or multi-cloud environments. And 95% say those technologies have already been critical to their success. Based on Statista and CRM, between 2021 and 2025, this sector will have a Compound Annual Growth Rate (CAGR) of 19%. As a result, the market volume will reach $679 billion by 2025.
And finally, Multisoft found that the positive impact of cloud technology is almost instantaneous. 80% of companies report operation improvements within the first few months of adopting the tech.
With benefits like these, it’s no wonder that more and more manufacturers are turning to the cloud! So what are the benefits that businesses can expect to see when they adopt the cloud? Well, there are quite a few!
One of the most significant advantages of moving to the cloud is that it can help businesses save money. There’s no need to invest in expensive, on-premises hardware with cloud-based apps. Instead, businesses can take advantage of the economies of scale offered by cloud providers to reduce their costs.
FLEXIBILITY AND SCALABILITY
In the fast-paced world of manufacturing, being able to adapt quickly is essential. Cloud Apps give businesses the flexibility to respond quickly to changes in the market or customer demand. With on-premises apps, manufacturers are often stuck with inflexible, one-size-fits-all solutions that don’t meet their specific needs. On the other hand, businesses can easily customize Cloud Apps to fit their business’s exact requirements. If a business needs to scale up its operations, it can do so quickly and easily.
Cloud apps also make it easier for businesses to collaborate with employees, partners, and customers. With on-premises apps, businesses often have to invest in expensive infrastructure to enable collaboration. On the other hand, Cloud apps make it easy for businesses to connect with people anywhere in the world - all they need is an internet connection.
Cloud Apps can also help businesses increase their efficiency. Businesses often waste time and resources managing and maintaining their infrastructure with on-premises apps. The provider manages cloud apps, freeing businesses to focus on more important things.
Cloud-based solutions often offer several advantages over traditional on-premises apps when it comes to security. For one thing, cloud providers have a vested interest in ensuring that their customer’s
data is secure. After all, if they don’t, they will quickly lose business. What’s more, cloud providers have the resources and expertise needed to implement sophisticated security measures - something that many small businesses can’t afford to do themselves. Salesforce found that cloud technology is so reliable when it comes to safety that 94% of businesses report significant improvements in online security after moving their data to the cloud. Salesforce conducted the research predominantly within startups and SMBs, proving that cloud computing is not just for the big boys to dabble with. According to cloud statistics, tech adoption in smaller businesses grows yearly, and CEOs report the first positive results within months.
With on-premises apps, businesses are often at the mercy of their own IT infrastructure. If something goes wrong, it can take a long time to get things up and running again. On the other hand, Cloud apps are hosted by the provider - meaning that if something does go wrong, the provider will be able to fix it quickly and easily. So there you have it - just a few reasons why Cloud computing is essential to modern manufacturing. As you can see, Cloud apps offer many advantages over traditional on-premises solutions. So if you’re looking to improve your manufacturing operations, make sure you
give them a try!
Cloud Apps for the manufacturing industry
Now that we’ve seen some of the advantages of cloud computing, let’s look at how manufacturers can use them in the manufacturing industry.
One area where Cloud Apps have a significant impact is product development. Cloud-based solutions can help businesses streamline their product development process by achieving precise costing and pricing calculations and managing requests and specifications for new products or changes in existing products. Manufacturers can plan and track the progress of relevant development tasks, easily import components from spreadsheets and send their changes directly into their ERP software. Learn more about Product Design and Management
To date, there have been over 3700 product recalls in the United States alone. While some of these recalls are due to manufacturing defects, many are caused by problems with the supply chain - such as contaminated ingredients or packaging errors. Most small and midsized enterprises use spreadsheets for the whole or at least a part of the quality control process. This makes it hard to understand the current situation of the different inspection processes and to figure out why and where the desired quality standards are failing. Cloud-based solutions enable quality managers to plan, automate and delegate work, and assist inspectors in running tests and recording results—all in real-time and paperless. Learn more about Quality Inspection Management
SHOP FLOOR MANAGEMENT
The cloud offers an excellent opportunity for manufacturers to increase the efficiency and transparency of their production processes. Cloud-based solutions can help businesses manage and execute production orders by communicating to shop floor managers and operators in real-time. These increases work performance on the shop floor. Learn more about Shop floor Management
How to evaluate a Cloud App for your business
When choosing a Cloud App for your business, there are a few things you need to keep in mind.
- Core Features And Functionality:
First, you need to ensure that the app is designed for your specific business need. As we’ve seen, several different Cloud apps are available, each aiming for a different purpose. So before you make your decision, take some time to think about what you need the app to do and choose one that’s right for you.
Of course, you also need to make sure that the app is secure. As we mentioned earlier, Cloud apps are often more secure than on-premises solutions. But it’s still important to do your homework and ensure that the provider is reputable and that their security measures are up to scratch.
- Integration To Your ERP:
You’ll also need to think about integration. Cloud apps need to be able to integrate with your existing ERP system. Otherwise, you’ll end up with a lot of duplicate data. This can be a challenge, so it’s crucial to choose a provider who has experience integrating their apps with ERP systems.
Another vital consideration is scalability. Cloud apps need to be able to grow with your business. Managing growing or diminishing resources is essential to meeting business demands and offering customers a consistent experience. As such, the scalability of your cloud management tools should be a top priority.
- Ease of use:
Another important consideration is the ease of use. Remember, you’ll be entrusting your business data to the cloud. So it’s essential to choose an app that’s easy to use and won’t cause you any headaches.
- A Reliable Vendor:
Finally, it would be best if you thought about the provider. When it comes to Cloud apps, not all providers are created equal. So be sure to do your research and choose a provider you can trust. So there you have it - just a few things you need to keep in mind when choosing a Cloud app for your business. If you take your time and choose carefully, you’re sure to find the perfect app for your needs.