Role of Digital Transformation in Manufacturing Industry- Its Impact and Challenges

Abstract

‘Digital transformation is the process of replacing old traditional technique with the modern digital technique for doing businesses.’ This ideal shift is developing every dimension of manufacturing, providing a competitive advantage, and restructuring operational processes. In manufacturing sector, the digital transformation depicts a notable opportunity to improve operational efficiency, magnify the customer experience and minimise the overall cost. It has revolutionised the whole process by which a company conducts its operations. It also elevates employee’s satisfaction and provide the organisation with ample opportunities to offer a finer customer experience. In fact, there should be an all-round transformation i.e. technologies should be incorporated into all aspects of the business. Digital transformation in manufacturing involves incorporation of digital technologies to transform several elements of the manufacturing process, right from the beginning of product design to the actual production and development to the distribution of finished goods. The key technologies for efficient digital transformation in manufacturing sector are: Artificial Intelligence (AI), The Internet of Things (IOT), and Advanced Analytics. Although these technological innovations vow major benefits, their application and implementation still encounter many challenges and difficulties in its way. This study will assess the problems, barriers in the path of digital transformation and observe the key aspects to overcome it. The research paper uses qualitative measures based on secondary data to highlight the positive impacts on the manufacturing sector.