How Digital Transformation helps manufacturers to face industry challenges

A lot of businesses across a diversity of industries worldwide have embraced Digital Transformation as the new stage in their evolutionary path. A fully digital business affords a number of advantages in terms of innovation, future-proofing the business, and the opening of new revenue streams, all based on the effective gathering & analysis of data. Manufacturing is an industry on the rise, at the forefront of technological innovation, and creating a lot of opportunities for the development of new ways to make stuff. Despite all this, manufacturers still face a number of challenges, both financial, technological, and in terms of market reach. These challenges hinder progress. This blogpost explains how Digital Transformation can help manufacturers address and overcome some of the industry challenges.


Challenges of Manufacturing in the 21st Century


Manufacturing is a diverse, complex, and omnipresent industry. Every item that we see, from the living room in our house, to the vehicles on the street, have been put together inside a factory somewhere. It’s this very ubiquitousness that creates a lot of the challenges currently facing the industry. A large quantity of products we use daily are manufactured in areas where economic and geopolitical stability may be an issue, which may prompt fluctuations in output and cost. These problems require enhanced internal efficiency in all processes involved. Also, customer sentiment is changing. Customers of today require a more sophisticated and optimized approach to manufacturing. The streamlining of both processes and data handling create a richer, more profitable environment, better suited to cater for the modern customer. And finally, a third major challenge faced by the manufacturing industry is competition by those industries that have already adopted the digital way of doing business.


How Digital Transformation can Help Address These Challenges


The manufacturing ecosystem has steadily evolved over the decades, reaching a point in its natural evolution where traditional manufacturing ways only have a place in highly localized, niche markets. The digital way of business is now spreading worldwide at an exponential rate. Manufacturing operations globally are implementing a digitalization programme to aid them in their natural evolution. More specifically, Microsoft Dynamics 365 for Operations can become your operation’s base platform to launch the full Digital Transformation of your business. The software’s integrated nature combines ERP & CRM capabilities, tailored into an Operations-specific package that addresses a lot of the challenges faced by manufacturers, such as:


Better customer relations, established through the package’s CRM capabilities. Changing customer needs and demands require a more streamlined and direct approach to customer service. Opening new revenue streams to address the possible geo-political instability and quash fluctuations in yield, costs, and sourcing. This is a key consideration across many markets that may be prone to internal strife. Smoother integration with the supply chain via ERP, combining faster gathering of data & better handling of the information obtained. Data handling is a key consideration for any business, but more so for manufacturing, where so many things depend on numbers and statistics. A solid software solution like Dynamics 365 for Operations will enable a more competitive edge to your manufacturing operation, allowing you to become par with competitors, and surpass them in the majority of occasions.




Manufacturing today poses a number of challenges, no doubt about that, but these challenges can be effectively address by embracing Digital Transformation, and by extension, the implementation of the Dynamics 365 for Operations platform. Once those challenges have been addressed and overcome, your manufacturing environment will become more efficient and profitable.