Manufacturing Technology

Digital transformation (DX) is permeating every vertical market, and industries are looking to evolve to better align with their customers’ changing requirements. The result is the development and integration of cutting edge technologies and a change of methodology to improve processes, according to Y Soft.   Adam O’Neill, managing director, Y Soft, Australia and New Zealand, said, “DX is radically changing how organisations operate and is shaking up industries at speed. Organisations are increasingly launching initiatives to expand or build digital capabilities to deliver business efficiency or increase top-line revenue growth.” According to the 15 industries surveyed as part of the Gartner 2018 CIO Agenda Industry Insights report, 47 per cent of CEOs are being challenged to make progress in digital business, and 56 per cent of respondents reported that digital improvements have already improved their overall profits. The 2018 edition of The Hackett Group’s annual key issues study, The CIO Agenda: Driving Value from Transformation, found that the use of virtual assistants, chatbots and other cognitive technologies is anticipated to grow at least five-fold in overall adoption rates over the next few years. Unsurprisingly, 74 per cent of companies are expecting DX to disrupt their industry and 82 per cent expect it to fundamentally change the operating model of their business. Adam O’Neill said, “These findings show that every industry is either already participating in or ready to join in with digital transformation. This seismic impact prediction calls for immediate action, and many companies have already begun their DX journeys and are automating and streamlining business processes by investing in artificial intelligence (AI), specifically machine learning.” Digital transformation is already having a significant impact on four vertical industries: Legal. Traditionally, the pace of digital change within the legal industry has been slow, with the legal profession resisting many of […]

Countries once grew rich through manufacturing – but today there is more than one way to effect structural transformation. Think about countries growing out of poverty and you probably picture something like this: underemployed workers leaving inefficient farms for factories that make textiles and clothing for domestic and export markets. Over time, this shift raises productivity and wages across the economy, while countries’ production and export baskets diversify into more sophisticated goods and services. For the past several decades, this image would have been broadly on the mark. South Korea is a prime example: through the 1950s, a large share of its population still worked in the agricultural sector. Its manufactured exports a decade later were mostly textiles, clothing, footwear and wigs. Two generations on, in 2017, Korea was the world’s fifth-largest merchandise exporter and its ninth-largest importer. Even if your mobile phone and household electronics weren’t made by a Korean company, they almost certainly contain integrated circuits that were. In varied ways, and to differing extents, countries from Bangladesh to Colombia to China have trodden this path. Since the dawn of the Industrial Revolution in late 18th century England, ‘structural transformation’– a term economists use for the process of shifting people and resources out of subsistence work into more productive activities – has begun with labour-intensive manufacturing. And starting in the 1950s, trade has been a key accelerator of structural transformation in developing countries, enabling much faster growth and poverty reduction than would otherwise be possible. Good enough to compete Trade matters in this story because in most developing countries, internationally tradable sectors are typically much more productive than the rest of the economy. Pulling more people and capital out of non-tradable activities and into firms dealing in tradable goods and services therefore makes for better jobs and a […]