How manufacturers can keep their competitive edge when all technology is equal
Manufacturing, like virtually every other industry, has always existed on one simple rule: the organizations with the best resources were more successful than their competitors. In the manufacturing realm, the best resources typically translated to the best technology.
Companies that could afford the best IT infrastructure and manufacturing software solutions were able to stand out ahead of their competitors. But that was back when infrastructure was complex and software systems had both limited capabilities and availability. Both of those factors are changing.
The advancement of technology in recent years has significantly altered the competition scale. Companies cannot simply assume they are in a better position than the rest of the market because they have great manufacturing technology. This is mainly because in the era of mobility, streamlined data processing solutions and simplified infrastructures, everyone has great technology.
Cloud computing and the advancement of mobile technology have served as the key factors fueling this trend. Suppose in the past that a high-end manufacturer had quality desktop computers and a robust infrastructure. A smaller organization probably wouldn't have been able to match that. However, mobility and the cloud have changed all of that.
Today, a small company can obtain a cost effective cloud computing solution to handle data storage and information management. Data can be accessed and processed on mobile devices, which are often the exact same gadgets as the ones employees use in their personal lives. The trend of bring-your-own-device (BYOD) has taken off because it allows workers to equip themselves with the tools needed to do their jobs without the company having to spend excess dollars on overhead costs.
And therein lies the issue with many manufacturers. If technology has reached a point where everyone has the same advantages, how does one company establish itself against its competition? How can an organization gain a competitive edge?
This topic was addressed in a recent Harvard Business Review article. Aaron Levie, the article's author, suggested that organizations can't gain an edge by having the best information technology anymore, so they have to instead find better ways to process information that exists in that technology.
"In this transition from a world of IT scarcity to abundance, competitive advantage has little to do with unique access to technology, and everything to do with unique access to — and use of — information," Levie wrote. "When technology is near-ubiquitous, it's the connection between people and information that drives business forward. Organizations that capitalize on this trend will ensure that as information eats the enterprise, they'll be the ones satiated."
This is where partnering with the right manufacturing business software provider can come into play. Not only can these organizations help manufacturers obtain the solutions they need to simply stay competitive in the industry, they can also provide insights as to how to best use the technology, which in turn will increase best practices, build efficiency and drastically improve productivity. These partnerships can allow professionals in the manufacturing industry to gain the skills and knowledge they need to better use their tools.
If everyone is on the same level playing field, this may be what it takes for manufacturers to gain the edge they need to establish themselves as industry leaders.