Applied AI & Digital Transformation
By Dave Chu
AI in Manufacturing. The Outlook.
98% of the enterprises today are marking digital transformation as the key strategic operational direction in the following years to come. While digital transformations are notoriously difficult to scale up across networks of factories, it is however, inevitable.
What Does Digital Transformation Mean Exactly, for Manufacturing
Simply put. Digital transformation is when you implement technological solutions into your business to profoundly change your businesses operation completely.
For manufacturing industry, digital transformations means revolutionizing all aspects of process, productivity and people. Bringing in new opportunities in all aspects of the organizations—scientific data supporting decision making; cross-functional collaborations; opportunities for attracting better talents and retaining them; and improving workplace safety and employee satisfaction.
Empowering Your Every Decision
Manufacturing companies usually see the impacts through reduced lead times, high accuracy in complexity management, and overall improvements in production output and value.
These results aren’t necessarily easy to come by. It is, however, common to learn there are impressive results through leading programs from one factory site only for companies to find themselves unable to replicate and scale these local wins across network.
Applied AI Score in Vectors Image source: McKinsey Technology Trends Outlook 2022 August 2022
Let’s Bring AI Into the Equations
Reason for transitioning into digital age in the first place was because the ever expanding scale of operations and our limitation to keep up. This is where we bring in technology to our aid. And boy did it work out.
With AI capabilities, such as machine learning (ML), computer vision, and natural-language processing, companies in all industries can use data and derive insights to automate activities, add or augment capabilities, and make better decisions
In the latest report from McKinsey & Co.—Applied AI is the biggest tech priority in all industries, including manufacturing.
Manufacturing companies invested $165 billion into the field in 2021. Making a more than 50% AI adoption rate across key regions in the world. The growth is most significant in Asia pacific markets, developing market such as China, and India with 65% of adoption.
AI Adoption by Organization by 2020-2021 in regions Image source: McKinsey Technology Trends Outlook 2022 August 2022
Machine learning, computer vision, and natural-language processing are being deployed to automate activities and make better decisions. Organizations adopting AI are seeing increase in revenue and cost decrease. 25% of manufacturing in businesses are reporting more than 5% increase in revenue with 37% are reporting more than 20% of cost saving by the help of AI.
AI has become so critical to business operations. Leaving a lasting impact from how we collect data, managing supply chain and budget control, to key decision making process.
Revenue increased & cost decreased from AI Adoption Image source: McKinsey Technology Trends Outlook 2022 August 2022
Learn How Global EMS Leader Uses PowerArena’s AI to Improve their production
Supercharge Your Operation
Data is power. Yet data without complete collection and AI analysis can be bias.
PowerArena is a computer vision AI that lives in your production line. A deep learning AI capturing human motions from each workstations using computer vision. Bringing clarity through unprecedented amounts of data from your workstation. Visualizing the hidden inefficiencies and provide the most accurate informations of your production line down to the minutes. Given the power of data back into your hand.
Supercharge your operations. Empower your decision.
Source: https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-top-trends-in-tech?stcr=613FE23AE98C418CBE93BE4DBC78149A&cid=other-eml-dre-mip-mck&hlkid=0f503192ae30422eb431c31c951ef1f6&hctky=13738248&hdpid=5e35bc7f-b307-4c92-ab71-80ba80d27f04 https://www.mckinsey.com/~/media/mckinsey/business functions/mckinsey digital/our insights/the top trends in tech 2022/McKinsey-Tech-Trends-Outlook-2022-Applied-AI.pdf
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