7/28/2019 Cloud Computing is Revolutionizing Manufacturing - Forbes
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7/28/2019 Cloud Computing is Revolutionizing Manufacturing - Forbes
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7/2/13 10 Ways Cloud Computing Is Revolutionizing Manufactur ing - Forbes
www.forbes.com/sites/louiscolumbus/2013/05/06/ten-ways-cloud-computing-is-revolutionizing-manufacturing/
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Why Manufacturers Are Looking To Cloud Computing
Manufacturers are under constant pressure to increase accuracy, make
process speed a competitive force, and capitalize on their internal intelligence
and knowledge to make every supplier, distributor and service interaction
count. The manufacturers spoken and visited with to gain the following
insights are in the high tech, industrial and aerospace and defense industries,
where rapid product lifecycles and short time-to-market schedules are
commonplace.
Cloud-based strategies give these companies the chance to bring their own
innate intelligence and knowledge into every sales situation. While on-
premise systems could also do this, cloud-based systems were quicker to roll
out, easier to customize and showed potential to increase adoption rates
across resellers.
One manufacturing manager explained how during a new product launch the
speed and volume of collaboration was so rapid on between suppliers and
distributors that an allocation situation was averted. That he said, made
senior management believers. These epiphanies are happening daily in
manufacturing.
Based on my visits with manufacturers, here are the
ten ways they are using cloud computing to
revolutionize manufacturing:
Capturing and applying company-wide
intelligence and knowledge through the use of
analytics, business intelligence (BI), and rules
engines. For the many manufacturers who rely on
build-to-order, configure-to-order and engineer- to-order
strategies as a core part of their business models, using
cloud-based platforms to capture knowledge and manage
rules is accelerating. A key part of this area is mobility
support for analytics, BI and rules engine reporting and
analysis.
Louis Columbus
Contributor
Follow (148)
I'm serving as Senior Manager, Enterprise
Marketing at Cincom, an enter prise software
company, where my responsibilities include
new product introductions, messaging,
marketing strategy, business development, and
competitive strategy. Previous positions include
senior analyst at A MR Researc h (now Gartner),marketing and business development at Cincom
S stems In ram Micro a SaaS s tart -u and at
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Making CloudComputing Pay
Louis ColumbusContributor
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7/2/13 10 Ways Cloud Computing Is Revolutionizing Manufactur ing - Forbes
www.forbes.com/sites/louiscolumbus/2013/05/06/ten-ways-cloud-computing-is-revolutionizing-manufacturing/
Piloting and then moving quickly to full launch
of supplier portals and collaboration platforms,
complete with quality management dashboards
and workflows. Among the manufacturers visited,
those in high tech are the most advanced in this area,
often implementing Vendor Managed Inventory (VMI)
and demand management applications that deliver real-
time order status and forecasts.
Designing in services is now becoming
commonplace, making cloud integration
expertise critical for manufacturers. Fromsimplistic services integration on iPhones to the full
implementation of voice-activated controls including
emergency assistance in the latest luxury cars, adding in
serv ices integrated to the cloud is redefining the
competitive landscape of industries today. Revising a
product or launching an new product generation with
embedded services can mitigate price wars, which is why
many manufacturers are pursing this strategy today.
Accelerating new product development and introduction (NPDI)
strategies to attain time-to-market objectives. Using cloud-based
platforms in high tech manufacturing is growing today as time-to-market
constraints are requiring greater collaboration earlier in design cycles.
Managing indirect and direct channel sales from a single cloud
platform tracking sales results against quota at the individual, group
and divisional level is now commonplace across all manufacturers
visited. Dashboards report back the status by each rep and for sales managers,
the profitability of each deal.
Using cloud-based marketing automation applications to plan,
execute and most important, track results of every campaign.
Marketing is under a microscope in many manufacturers today, as marketing
automation applications have promised to deliver exceptional results and many
manufacturers are still struggling to align their internal content, strategies and
ability to execute with the potential these systems promise.
Automating customer service, support and common order status
inquiries online, integrating these systems to distributed ordermanagement, pricing, and content management platforms.
Manufacturing industries are at varying levels of adoption when it comes to
automating self-service. The cost and time advantages in high tech are the
highest levels of adoption Ive seen in visiting manufacturers however.
Increasing reliance on two-tier ERP strategies to gain greater
efficiencies in material planning, supplier management and reduce
logistics costs. Manufacturers are also using this strategy to gain greater
independence from a single ERP vendor dominating their entire operations.
Several manufacturers remarked that their large, monolithic ERP systems could
not, without intensive programming and customization, scale down to the smaller
operational needs in distributed geographic regions. Cloud-based ERP sy stems
are getting the attention of manufacturers pursuing two-tier ERP strategies.
Acumatica, Cincom, Microsoft MSFT -1.22% , NetSuite and Plex Systems are leadersin this area of ERP systems.
Reliance on cloud-based Human Resource Management (HRM)
systems to unify all manufacturing locations globally. This often
includes combining multisite talent management, recruiting, payroll and time
tracking. Contract manufacturer Flextronics usesWorkdayto optimize workforce
allocations across their global manufacturing centers for example.
Bottom Line: Using cloud-based systems to streamline key areas of their
business, manufacturers are freeing up more time to invest in new products
and selling more.
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2013 CRM MarketShare Update:
40% Of CRMSystems Sold AreSaaS-Based
Louis ColumbusContributor
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Cloud Computing is Revolutionizing Manufacturing - Forbes
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7/2/13 10 Ways Cloud Computing Is Revolutionizing Manufactur ing - Forbes
www.forbes.com/sites/louiscolumbus/2013/05/06/ten-ways-cloud-computing-is-revolutionizing-manufacturing/
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and 10 years, and the MSAs' momentum.
10 comments, 9 called-out Comment Now Follow Comments
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Cloud Computing is Revolutionizing Manufacturing - Forbes
5/8
7/2/13 10 Ways Cloud Computing Is Revolutionizing Manufactur ing - Forbes
www.forbes.com/sites/louiscolumbus/2013/05/06/ten-ways-cloud-computing-is-revolutionizing-manufacturing/
Author
Great article Louis!
I think mom & pop job shops could greatly benefit from leveraging cloud-based solutions
that can grow with them. If you havent already, would love to see an article discussing
similar software geared toward smaller shops with smaller budgets.
Reply
Eshmahan,
Honored by your kind words sir, thank you. Always here to serve the reader,
first and always.
You bring up an area that is thriving right now in the area of cloud-based
solutions. I will add the idea to my list of article ideas and will do one. Thanks
for the suggestion!
Have a great week and thanks for reading this blog.
Best Regards,
Louis
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CommentsCALLED-OUT Expand All Comments Follow CommentsEsmahan Abdulla 1 month ago
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Louis Columbus, C ontributor 1 month ago
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7/2/13 10 Ways Cloud Computing Is Revolutionizing Manufactur ing - Forbes
www.forbes.com/sites/louiscolumbus/2013/05/06/ten-ways-cloud-computing-is-revolutionizing-manufacturing/
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Reply
The article says 10 Ways, but you only cite 9!
Either ways its good info. :)
Reply
Hi Henry,
Thanks very much for the kind words and your note.
I debated making the point about how greater collaboration achieved with
cloud-based apps can avert product allocations as the tenth bullet or leaving it
in the text. To me, it made sense to leave it in the text. Here is the point I am
talking about:
One manufacturing manager explained how during a new product launch the
speed and volume of collaboration was so rapid on between suppliers and
distributors that an allocation situation was averted. That he said, made senior
management believers. These epiphanies are happening daily in manufacturing.
What do you think? Should I make it a bullet item or leave it in the text?
This is a high tech manufacturer who relies on a massive supply chain across
Asia by the way.
Thank you,
Louis
Reply
Louis,
Artic les such as these are fantastic for helping to drive the adoption of cloud solutions
across these industries. It is an exciting time to be a part of the industry and your closing
paragraph is a fantastic selling point when when speaking to various organizations.Bottom Line: Using cloud-based systems to streamline key areas of their business,
manufacturers are freeing up more time to invest in new products and selling more.
Keep them coming!
-Matt
Reply
Matt,
Thank y ou sir for your kind words and encouragement! Much appreciated.
Like you, Ive been fortunate enough to see entire companies become more
streamlined and capable of serving customers more effectively with cloud-
based applications. And when that happens,everyo ne wins the employees,
their families, the customers ev eryone.
I will definitely keep writing about this area because I see so much good coming
from it for manufacturers and the people they serve.
Best Regards,
Louis
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Henry Merino 1 month ago
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Louis Columbus, C ontributor 1 month ago
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Louis Columbus, C ontributor 1 month ago
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7/2/13 10 Ways Cloud Computing Is Revolutionizing Manufactur ing - Forbes
www.forbes.com/sites/louiscolumbus/2013/05/06/ten-ways-cloud-computing-is-revolutionizing-manufacturing/
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Follow Comments
Hi LouisAs you noted in your reply to Eshmahan, discussing cloud-based technology
that is available for smaller companies is a good story idea. I actually spoke with a
company that is using a collaborative tool for collaboration for the companys new
product introduction team. I dont want to sound like Im shilling for a vendor or
customer, so whats the best way to contact you directly ? T his company could be a big
help for you if you decide to pursue this or a similar story angle.
Reply
Rob,
Excellent! Thanks for the great contribution sir, I appreciate it.
I am always open to learning about new vendors and their solutions. If you are
on Twitter, lets connect there and I can DM yo u my e-mail address. If y ou
arent on Twitter send me a LinkedIn invitation and we can talk there was well.
Thanks again and have a great weekend.
Best Regards,
Louis
Reply
Hi Don,
Thanks for taking the time to visit this blog and share your comments and
insights, I appreciate it. I am researching small business adoption of cloud
computing right now and will be sure to check out the URL you provided.
Thank you,
Louis
Reply
Rob Goodman 1 month ago
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Louis Columbus, C ontributor 1 month ago
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