Global disruptions are forcing large manufacturers to modernize outmoded, inflexible IT infrastructure. But to do so successfully, IT leaders must show that this effort is not merely a technology “refresh” but a strategic action to unlock business value and sustain long-term growth.
IT leaders can use “business value” as the key criterion for guiding infrastructure modernization. Partnering with an experienced systems integrator can speed up this entire process.
Manufacturing business leaders have specific priorities:
- Increasing revenue/value
- Improving cost-efficiency
- Minimizing business risks and their impact
For each priority, IT leaders must demonstrate how IT modernization projects yield tangible and intangible business benefits for the organization. These benefits manifest in various forms:
- Operational performance: Streamline production processes, minimize downtime, and enhance resource utilization. Results: cost savings, improved productivity.
- Innovation and agility: Facilitate rapid prototyping, data-driven decision-making, and integration with emerging technologies like IoT and AI. Results: foster innovation, adapt quickly to market changes.
- Customer experience: Optimize interactions through personalized services, seamless multi-channel experiences, and efficient supply chain management. Results: boost customer satisfaction and loyalty.
- Risk management: Strengthen cybersecurity measures, ensure regulatory compliance, and enact robust disaster recovery capabilities. Results: reduce risks, safeguard the company’s reputation.
By aligning their modernization initiatives with overarching business objectives, IT leaders can drive demonstrable business value. The key steps to achieve this alignment include:
- Collaborative strategy development: Engage with business leaders to understand their priorities, challenges, and growth aspirations. Co-create an IT modernization roadmap that relates IT projects to business goals; use this to focus and rally the IT/business teams.
- Prioritization based on impact: Evaluate IT modernization projects based on their potential to deliver measurable business impact. Establish explicit, concrete metrics, assign executive accountability for prioritization, and set up formal tracking mechanisms.
- Continuous evaluation and adaptation: Regularly assess the effectiveness of modernization efforts using key performance indicators (KPIs) such as ROI, time-to-market, and customer satisfaction. Adapt efforts as needed.
IT leaders should also leverage technology trends for business value. Business value becomes a practical criterion for evaluating and adopting cutting-edge technologies. Here are several trends to consider:
- Cloud adoption: Leverage cloud services for scalability, flexibility, and cost-efficiency. Benefits include faster application deployment, immediate access to all relevant data, and improved collaboration.
- Data analytics and AI: Harness the power of advanced data analytics, machine learning, and AI-driven insights to optimize operations, predict market trends, and personalize customer experiences.
- IoT integration: Integrate IoT devices and sensors into manufacturing processes to gather real-time data, monitor equipment performance, and improve operational efficiency.
A systems integrator can play a pivotal role in helping manufacturing IT leaders achieve business value through IT modernization. Tata Consultancy Services (TCS) brings deep expertise in integrating disparate systems, optimizing workflows, and ensuring seamless data exchange across the manufacturing organization. The company partners with Microsoft to establish a scalable cloud infrastructure with Microsoft Azure and a range of cloud-based data services. These capabilities accelerate manufacturing modernization, reduce implementation risks, and maximize the ROI of IT investments.
The bottom line
Modernizing IT infrastructure is about strategically leveraging new technologies to maximize business value. By making this linkage, manufacturing IT leaders can drive innovation, improve efficiency, and ensure long-term competitive advantage.
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