The latest Manufacturing 2021 Predictions from IDC indicated that there will be significant investment in manufacturing sector.
Prediction #1: By 2026, 50 percent of A2000 companies will have used AI to develop guidance and insights for risk-based operational decision making, compared with less than 5 percent of A2000 companies today.
Prediction #2: By 2023, to support autonomous operations, organizations will have increased their investments in data governance, digital engineering organizations, and digital operations technologies by 50 percent.
Prediction #3: By 2026, 50 percent of A2000 organizations will have developed industry ecosystem digital operation centers to monitor capacity, expertise, market, and environmental conditions, for 60 percent faster time to market.
According to IDC’s COVID-19 Survey waves 2020, the primary choice in terms of technology enablers is a cloud-based platform which aids in centralized decision-making routines; thus, IDC expects total spending towards hosted applications to continue.
Robotic process automation (RPA), is another critical area of focus, allowing organizations to automate various functionalities (e.g., order management, procurement, compliance management, payment approvals, and contract renewals) and bridging the divide between legacy systems and modern capabilities.
Several initiatives, such as direct-to-customer and manufacturing postponement, are also considered to reduce the go-to-market (GTM) time and increase product reach and operational scale.
Supply chain challenges were highlighted dramatically for many manufacturers as the pandemic took hold in 2020.
IDC is expecting spending on smart warehousing and supplier network management to reach US$21.5 billion by 2024, indicating a growing focus on both process and technology investments targeted at embedding intelligence across the overall supply chain.
“The pandemic has put supply chain risk on the agenda. Risk mitigation through ecosystem partnerships and platform unifications are some of the initiatives that organizations will need to further invest on to increase their ability to flex and adapt to changing market conditions,” Sampath Kumar Venkataswamy, research manager at IDC Manufacturing Insights Asia/Pacific, said.