Epicor VP outlines the three tech trends driving real change in manufacturing

Vibhu Kapoor, Regional Vice President – Middle East, Africa & India, Epicor has penned an exclusive op-ed for tahawultech.com – in which he outlines the three technology trends that he sees as pivotal to the advancement of the manufacturing sector across the Middle East region.

Manufacturing in the UAE was 10% of GDP in 2021, its largest share since 2005. While seeing a series of ups and downs, mostly in the shape of global crises, the industry has grown overall since 2011.

Operation 300bn, the UAE’s industrial strategy, is a clear signal of the importance the nation’s leadership places on manufacturing in diversifying and future proofing the economy.

And government decision makers have doubtlessly watched, with justifiable pride, as the manufacturing sector prevailed through some of the worst economic conditions in living memory. It faced systemic disruption to the supply-chain, widespread talent shortages, and soaring inflation. And it responded with admirable agility.

That agility will, it seems, continue to be tested as economic uncertainty shows no signs of abating. Manufacturers must keep one eye on the drawing board, ready to change when the need arises. Meanwhile, they must investigate every part of their operations and sniff out opportunities for streamlining processes.

The UAE Ministry of Industry and Advanced Technology, the department behind Operation 300bn, recently launched the Industrial Technology Transformation Index (ITTI). A key pillar of the Technology Transformation Program, the index is aimed at formally assessing the Industry-4.0 readiness of UAE manufacturers and advising them on the best ways to digitize their operations.

What will emerge from this program is likely a further acceleration of technology implementation as firms keep their sights set on the promise of Operation 300bn. As time rolls on, the sector’s success stories will, I believe, be defined by three main adoption trends.

1. The cloud

The cloud has many advantages and most of the old arguments against its adoption are fading away. When necessity forced UAE businesses into some form of cloud model during pandemic lockdowns, the fear of the unknown — a major reason for migration aversion — was all but eliminated.

Now that hybrid work is considered an irreversible reality, the manufacturing industry’s relationship with the cloud is no longer in doubt.

The cloud’s capacity to optimize is what makes it so attractive to manufacturing decision-makers whose principal concerns are efficient production and minimal waste.

In a tight market, high yields and customer satisfaction also play leading roles. Cloud-native ERP solutions connect the business in a way premises-based platforms cannot. All stakeholders have critical information at their fingertips, on their device of choice, at the time of their convenience.

Information silos are swept away and replaced with centralized repositories of corporate wisdom that detail the entirety of the production lifecycle, from design and resource procurement to production and sales.

This connected environment is, of course, a boon to real-time operations, but it also offers opportunities for the analysis and fine-tuning of processes to enhance those operations continuously. It is this ability that offers the agility necessary to make rapid changes in response to externalities. For that reason alone, the cloud makes its business case for UAE manufacturers.

2. Data

Today, data is priceless. Manufacturing has always used it to optimize individual processes, deliveries, warehousing, and sales, but it has now become central to the overarching strategy of the business.

It can be used for market-watching, allowing the organization to identify changes in customer behaviour early. It can be leveraged to flag supply-chain issues before they damage efficiency and reputation. It can allow the monitoring of internal trends like production or of external ones such as those in the labor market.

But these analyses are only as good as the data that fuels them. When it comes to data, we should think in terms of quality over quantity. Clean, accurate data will give actionable insights. Suboptimal data may hurt more than it helps.

Part of the challenge of ensuring an organization has access to sufficient data lies in the existence of silos — fiefdoms of ownership characterized by a territorial claim to data. It’s financial data, so it belongs to finance; it’s employee data, so it belongs to HR.

These barriers must be demolished, and data united in a store owned by everybody. A common data model will ensure each team has a comprehensive view, not only of what matters to them most, but of how their work fits into the enterprise as a whole.

One of the other main challenges manufacturers must overcome in capturing value from their data is the region’s infamous skills gap. There are many ways to address this issue, including embarking on expensive recruitment drives. However, the newly hired data scientist may lack the contextual business knowledge to identify use cases and add value.

Another approach may be to concentrate on acquiring digital-native talent that understands analytics but is not necessarily a data professional yet. These cost-effective new starts can be developed, through training, into data experts.

And the same can be done with existing employees who demonstrate analytical acumen. What manufacturers should be aiming for is a collaborative ecosystem in which anonymized datasets can be shared externally, thus providing a picture of how they rate against competitors.

3. Automation and integration

UAE manufacturers should look out for opportunities to integrate new tools that have the potential to supercharge their entire technology environment. Given the leading role the UAE has played in the rollout of 5G networks, we can expect many local and regional technology companies to offer IoT solutions that will bolt into the existing cloud environment and into ERP systems.

This represents a sea change in the capabilities of the modern manufacturer, in terms of optimization, predictive maintenance, and a range of others.

Keep calm and carry on

While the global economy continues to feel tremors, the UAE manufacturing industry should continue its digital innovation, which has so far protected it and allowed it to flourish. So, keep an eye on the trends described here, and thrive.