How to Navigate Disruption in the Manufacturing Sector



Disruption in The Manufacturing Sector

Disruptive forces constantly lead to creating new markets and displacing even the most well-established enterprises in the manufacturing sector. In the coming five years, the industrial sectors will notice even more disruption compared to the last 20 years. Therefore, essential steps should be taken to prepare for disruptive events happening in the market. 

Enterprises can take disruption as having two sides that are threat and opportunity. Moreover, over the past few years, the agility and resilience of every business have been tested particularly in the manufacturing sector. According to Supply and Demand Chain executives, 94% of companies are facing disruptions from which 75% of companies have experienced a negative impact on their businesses. 

There are three technologies that stand out today in the age of disruption. They are: Augmented Reality (AR), Software as a Service (SaaS), and Industrial Internet of Things (IIoT). Now the question arises, why these three technologies only? Well, the answer is these technologies help improve your organization’s resilience and adaptability to disruption and facilitate more opportunities to be a disruptor. 

Let’s dig deeper.


Empowering employees with Augmented Reality (AR).

One of the most common and growing disruption types is skills gaps. Triggered by the retiring workforce and lack of availability of domain knowledge that needs to be transferred to new hires. This skill gap results in creating a job shortage approximately for 2.5 million manufacturing positions over the next ten years. Resulting in a major ongoing disruption for industrial enterprises. 

Employees are the greatest assets in the manufacturing sector. Discovering ways to empower employees via better training programs or efficient work processes can help you stay ahead of the curve. With Augmented Reality, manufacturers can implicit domain knowledge effectively in real-time without interrupting normal working operations.

You can also promote knowledge sharing by remote assistance with the help of AR. Having instant access to industry experts reduces the associated costs and time of bringing them on-site for training. 

With the help of AR, employees can easily digitize and distribute knowledge in a scalable and flexible manner. 

Leverage Smart Connected Products (SCP) with the help of the Industrial Internet of Things (IIoT).

Smart transforming products (SCP) are transforming the manufacturing industry and its day-to-day processes. By impacting competitivity and facilitating opportunities for product differentiation. 

When there are customer demands that increase product complexity push enterprises to think about how product value is created and delivered. When companies know how exactly customers use their products, they get the ability to segment customers, customize products, and set prices accordingly. SCP helps you in creating opportunities to broaden the value propositions of your products.

When SCP is delivered first to customers, manufacturers have the opportunity to capture data so that it integrates closely with customers. This enables enterprises to better protect their products rivals and new entrants in the market. SCP can help companies to offer top-notch performance. As customized products that hold more value to the customer compared to traditional substitute products. 


Facilitate Stronger Collaboration with Software as a Service (SaaS)

As the pandemic hit the world, businesses that relied on on-premise software or in-person training proved to be a big challenge for globally distributed teams. With remote work becoming more common, SaaS solutions will become a mere solution, especially for distributed teams. 

SaaS is commonplace for industries in cloud computing, technology, entertainment, and more as a software application. However, SaaS is also becoming available for product development software. SaaS for product development enables teams to collaborate on projects in real-time providing awareness on the latest version of software, designs, or documents. This seamless collaboration facilitates a better way for teams to share knowledge and innovate across organizations.


Organizations need to examine and evaluate all potential factors to overcome disruption and stay ahead of their competitors. As discussed, there are three technologies that stand out for navigating disruptive forces: empowering employees with AR, SCP grow opportunities for product differentiation with the help of IIoT, and collaboration across teams and organizations with SaaS ecosystems. 

Industrial enterprises can win disruption with the help of new technologies that defend and enable disruption. Read more about how industrial enterprises are utilizing a PLM to thrive well into the future. 


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