A Tech Lyceum episode

Maximizing Business Value for Manufacturing Companies through Cloud Technology

Guest Speaker:
Vikas Kumar
SVP, Manufacturing
Tuhin Bose
Digital Transformation Business Leader
Transcripts

This is tech Lyceum, My name is Neerja and the topic that we are going to be addressing today is maximizing business value for manufacturing companies through cloud technology. Now the speakers we have today are experts in the field. We've got Vikas Kumar, Senior Vice President, and we tell you a bit about because he is an accomplished technology leader with over 25 years of experience. He specializes in crafting transformational solutions that go beyond conventional boundaries and has a proven track record of driving impactful change. Vikas has led numerous IT outsourcing deals, achieved rapid growth in key regions and target client segments, developed new service offerings and manage practice at the global level. Hi Vikas, it's wonderful to have you. Thank you for joining us.

 
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Maximizing Business Value for Manufacturing Companies through Cloud Technology
Speaker – Vikas - 01:03
Thank you, Neerja. It's a pleasure to be here.
Speaker – Neerja - 01:04
We also have Tuhin Bose. Tuhin is a seasoned digital business development leader with a focus on managing global key customers and orchestrating seamless connections across various teams and partners. Tuhin pecializes in delivering digital services and solutions to enterprise clients, through his expertise in executing long term strategies and fostering valuable relationships. Tuhin helps enterprise leaders navigate the complexities of technology adoption and drive tangible business outcomes.Tuhin, Thank you for joining us. And we're excited to speak with you as well.
Speaker – Tuhin - 01:42
Thank you Neerja pleasure.
Speaker – Neerja- 01:43
So my first question is to you, Vikas
Q: How has the adoption of cloud technology reshaped traditional manufacturing business models? And what are some unexpected benefits or challenges that companies have encountered along the way?
Speaker – Vikas -01:59
Indeed a great question Neerja. So if we look into cloud technology, it is fundamentally reshaping the way the manufacturing industry is working in several areas. Specifically, if you look into its adding to the agility and the scalability of that industry, for example, take an example of Boeing, they have been doing entire aircraft designing over the cloud using a collaboration and best of the engineers across the globe. Something similar has been adapted by other companies like Siemens, which is into the high tech manufacturing. Along with that the major use that we are seeing in that traditional manufacturers, especially through the data driven decision making leveraging the cloud. Now manufacturing, are leveraging cloud analytics to get insights from vast amount of production data. This allows them to optimize their processes, predict equipment failures, and make informed decisions, where to allocate their costliest resources. I can give example like Harley Davidson, they have been using Cloud Analytics for their entire assembly line monitoring their identification of bottlenecks and improving the production efficiencies. Alongside there are manufacturers who have been using cloud technologies to get more insights into their customer behaviors, their customer preferences, and they take it as a feedback to improve on to their products. Adidas is one of such example. However, if you look into the journey of this manufacturer through the cloud, it's not without its set of challenges. One of the unexpected challenges that we see more often in the field is around the security concerns and the data privacy, specially into the European regions. Manufacturers are very cautious about migrating their sensitive data to the cloud. And to address this cloud providers have started now coming up with a robust security measures and the compliance certifications, which is helping and giving an reassurance that this is the right platform to get on to. Another key challenge which all the manufacturers are having while getting onto the cloud is a big cultural shift. If you look into any of the traditional cloud environments, out of the four people, one is the only technology guys dress three are the field people that the manufacturers have to drive this cultural change are the companies are adapting in a big scale the organization change management process to train and upskill their resources to use those technologies and leverage the insights that they're getting from those technologies. This is helping them to optimize their business process and take a big leaps step ahead in terms of leveraging these technologies to increase their revenue shares and adapt to the rapid changing demands across the marketplace. So while there are challenges to overcome, the potential benefit for manufacturers are undeniable. And I would say that cloud transforming manufacturing from the siloed physical processes to a dynamic and data driven ecosystem,
Speaker – Neerja - 04:52
Right, Vikas, thank you for those insights. Tuhin, my next question is to you,
Q: In what ways can cloud based analytics and machine learning algorithms enhance decision making processes within manufacturing organizations, and how can companies effectively leverage these tools to drive tangible business outcomes?
Speaker – Tuhin - 05:14
Sure, sure, Neerja, I think because already talked about how the agility and scalability has brought into the, the paradigm of manufacturers, right? If you look at last over a decade, there has been a lot of cloud based tools and platforms coming into the play, right. And these are the tools and platforms which are built in with the latest technologies like machine learning AI, they are powered with Gen AI and all these technologies. Now, what these tools are capable of doing, they are able to provide these manufacturers and options to kind of integrate them use them in their in their digital ecosystem. Now, these are very agile and small SAS based or cloud based solutions, right? So doing a project or a POC is not a huge capital expenditure, you know, it's a very quick win for them. Now, if you look at what kind of tools which are creating disruption, especially in the data and and the AI and machine learning area, if you look at manufacturers there are two key areas right one is their processes because they are process heavy, there is always scope for optimizing processes. So that's that's an area to look at right the other area, which is key to any industry of course is also key for manufacturing is data, which is core and the backbone right. Now, if you look at some of the niche vendors who are coming in and Birlasoft is partnering with with some of these vendors and helping customers in implementing some of these solutions. So process mining and optimization is one area for manufacturing value chain right platforms like Celonis can be a game changer right it can support manufacturers optimize their value chain, removing process inefficiencies with a cloud based platform and bring AI ml capabilities. And it can surprise the manufacturers by presenting facts of their own processes and data which they have been sitting on and they don't realize right these are the inefficiencies they have been building on on top of the other area is of course driving Process Automation right? There are ready to use solutions like Esker providing AI assistant customer inquiry management or a ChatGPT to handle and manage inquiries from customer as well as taking care of statutory compliances before their procure to pay or order to cash processes and you know automation solutions. And these are very easy to implement on the on the data side, which is core in terms of building your data infrastructure. Cloud based solutions like Syndigo helps manufacturers have accurate and complete product information for example, right, making sure it meets the required standards with solutions like Syndigo customers can gain valuable insights into customer and supplier data as well as you know they can keep on enriching and validate data because you know if efficiency and data invalidity or problems with the data correctness is something which becomes a pain point for any enterprise. So, this is really going into the next level and these tools are really enabling and accelerating the adoption of technology in the manufacturing industry
Speaker – Neerja 08:53
Interesting, Thanks Tuhin and I do have another one for you, given the growing importance of sustainability in manufacturing, right?
Q: How can cloud technology enable companies to achieve their environmental goals while also driving economic value and maybe you can also give us some examples of innovative sustainability initiatives enabled by the cloud
Speaker – Tuhin - 09:15
Sure, Neerja, I think this is a very important topic of today right every organization every manufacturing organization is having their sustainability goals. If you look at sustainability goals, then it is defined in three scopes I think the way they try to define it One is direct emission the carbon footprint which is resulted due to the direct emission is part of scope one, there is a scope two which is indirect for example, energy consumption, so the amount of energy you are consuming. And then there is a scope three which is like the goods or services you're using and that goods or services resulting into some sort of car carbon footprint. So every organization, every manufacturer is trying to take goals and see how they can reduce their current carbon footprint in these, all these three scopes. Now, in terms of cloud, right cloud, of course can help building those smart solutions, whether it is smart grid, or how to track your carbon footprint or or you know, your energy management, there are all those different solutions can be coming into play. But one thing which we add Birlasoft also keep on telling our customers that, at a grassroot level, cloud really enables you to do those take those small steps to reach your target of sustainability. And I can take some examples, like for one of our strategic customer, has taken a very aggressive sustainability target, you know, they really want to reduce the carbon footprint, and they, they are a publicly listed company. So for them, they have taken a decision to migrate all their future acquired companies and their data centers into Cloud, while they continue to migrate their existing, you know, state and data centers. So this is this is a simple solution, right? That the moment they acquire a company, they migrate all their data centers of those acquired companies into cloud. And that itself is a big step in terms of how you reduce your, your carbon footprint, right. I also remember that we had one of our customers in taking one of their legacy applications, which was running in their data center, they were little worried about how it can be held, you know, and it was a very, very important and business critical solution. So we helped them migrate that and help them containerize it on cloud. And that resulted in saving some seven kilowatts per hour of power, you know, I'm just talking about power, because there were some servers which used to consume some kilo watts of power hours per hour for the cooling system as well as the server operations, right. So that was something which resulted in saving, you know, these many kilowatts of power. On the other hand, customers can also easily use the agility of cloud computing, like Vikas was explaining already, right? That they can, they can increase, and they can decrease based on their need. And that's This is a sustainable option. Because it right, you don't have to procure hardware, you don't have to dispose hardware. And this is this is much easier and faster for for any customer. So that's also a perspective which every customer is now looking into.
Speaker – Neerja -12:43
Right Tuhin. Thank you now, Vikas my last ones for you, as we look towards the future, right, something that would be useful to know is what emerging trends and technologies and cloud computing, do you foresee having the greatest impact on manufacturing business value? And how can companies stay ahead of the curve to remain competitive in an increasingly digital marketplace?
Speaker – Vikas -13:07
Thanks for the question, Neerja. So if I look into the cloud options soaring like anything, and there are a few trends that we have been seeing, which has been poised to totally revolutionize the entire manufacturing, value stream and the industry altogether, I will talk probably two or three of them. So the one where we are seeing the biggest adoption, and high ROI is your edge computing and your industrial IoT part of it. So these days, most of our manufacturers are getting into deploying the sensors all across the machines, generating a constant stream of real time data through them, and leveraging cloud computing to analyze this data. But to do this faster, now, the computing power and the cloud is moving towards the edge at the factory at the shop floors. Where when we do this near the shop floor near the conveyor belts, the manufacturer can get the real time insights and they can make some actionable decisions based on to that maybe it could be related to the predictive maintenance, it could be related to optimizing your production lines, or it could be just ensuring a quality control. Second biggest trends that aren't being seen, especially with the advent of Gen AI getting into all of our lives, making things easier, as these are high adaptability and POCs that we are doing for quite a few of our customers around our three use cases which have been pretty common one is we haven't seen that the summarization of the machine and the corporate manuals, which is becoming a very basic use case which have been getting adopted like anything. And the advantage comes down to a floor plan when the somebody who's been trying to troubleshoot a robotic arm, see that he's running out of the oil that he may use for the machine and what could be alternatively, he don't need to go back to the manual and search and try to read through that one or go to the internet, he can very easily just through the chatGPT check it out and get the right answers around it in terms of the alternatives. And something similar what we have been seeing is our natural language base product search and alternatives around it by feeding all the inventories into this we can figure it out based on to the NLP based search that we are exactly the inventories are where the excess stock is how best I could able to utilize and take some decisions about that one, and another is a machine error resolutions like you have supplied the machines into the field. They are consumers who have been using it up, you are getting a constant feedback and logs of errors through them. Can you analyze and predict that what are the most common errors which have been coming up and do it faster and at scale, which is coming with the ease of Gen AI to us. So that's another case that we haven't seen and start adapting and customizing your products. So that those errors may not come in the future releases or something that you can driven through your software base package to resolve those errors, especially to the autonomous vehicles and all of those sensors based consumer products that we can do that. Another big trend where a lot of investment has gone in is a digital twins with a CAGR growth of nearly 60% Plus till 2028. This is going to be the key area where most of the manufacturing specially onto the high tech side, the one which are having a global supply chain. So I've been investing on to and like GE has invested in in terms of optimizing their wind turbines that are based on to the times speed, the seasons, that revise will behave differently in terms of the electricity generations, and how then how they could able to fine tune and adjust based on to at least 15 to 20 of such parameters to still get the optimal performance from their winter. Mine's something similar. I've been getting adapted by the other players within the manufacturing industry. But one biggest thing that if I, whenever we speak to our customers is around that most of the common theme which has been coming up how should we stay ahead of the curve, there's so much changes which have been happening in the environments around us, there's so much technology which has been coming up. There are numerous new ways of adapting those technologies, which multiple players have been suggesting what should be the right ROI based decisions that we shouldn't be taking. So our recommendation to them would be always being firstly, stay agile and adaptive at a very top level. Be aware of the market trends for that one, you could choose a right technology partner Birlasoft is a partner with most of those top 500 Fortune companies we have we are working closely suggesting them that what new technologies they can bring forth specially on to the analytics, machine learning what Tuhin has talked through, those are all the live examples from the field that we have been deploying and doing it for our customers. Another key aspect is a culture of innovations. As I said in my earlier answer, also that the biggest hurdle being is automation change management, that companies has to invest on to and innovation has a cycle time and to adapt that what you have been doing today may hold right till next one year and give you a competitive edge. And thereafter, you need to have something else which has to be have a bigger impact and much better than what you had since last one year. So you need to continuously evolve and innovate onto either on your business processes, either on your technology adoptions, or either on to your marketing so that you could able to reach to most of the customers and stay ahead of the curve. So but I will say last that it's an interesting time. And everybody's trying to gain the best out of all those technologies and the when the one who have been investing on it, they are really striving ahead than others.
Speaker – Neerja -18:58
Yes. Vikas, Can I invite you both to leave us with the biggest takeaway from this conversation for everyone listening in Tuhin, why don't you go first?
Speaker – Tuhin -19:07
Sure, Neerja. Thank you, it has been quite interesting. And the topic itself is quite an interesting topic, right? So Cloud is really changing for the industry. And if you want to really look at what what you can achieve, but there are of course, those transformational aspects. There are, of course, those innovations that you can drive with, with cloud, but cloud can also help organizations to do some of the fundamental things, which is you know, how do they optimize their business processes? How do they do a sustainable solution, reducing euro for example, paper by doing Process Automation is reducing, working on improving the efficiency of their, their organization. So Cloud is really bringing in value in terms of whether it is it is about the agility, it is about time to market, it is about how you can evolve as an organization and providing you an option to really work on with some of these niche solutions in the market that enables you, you don't have to invest in building a solution yourself. You don't have to know the technology you don't have to invest into really, you know, inventing something, rather you you know, you live in a world of co-innovation where where someone is already innovating and how you can take that innovation and fit into your value chain. Right. So that's what Cloud is bringing in. And that's something which we should, we should take ahead.
Speaker- Neerja - 20:43
Right. And Vikas your parting words.
Speaker – Vikas - 20:46
I said Tuhin, has put it rightly so for my end, I will say that, it's a couple of things that I have to put my fingers on. One thing is that cloud is breaking the silos of physical world, okay, it's bringing in that one collaboration, cohesive, larger unit, which could be spread across the globe, and working on our dynamic environment and taking dynamic diseases through the data. That is the one thing which is helping manufacturers to be more adaptable and agile. And it's unlocking truly a new set of efficiencies, innovations. What one thing we have been seeing is the one who have been adapting it up are really striving ahead in the digital marketplace. So I will end with that one.
Speaker – Neerja -21:32
Thank you. Thanks so much Vikas and Tuhin for coming on here and equipping us with all this information. You've been very helpful. And here's to more Conversations in the future.
Speaker – Tuhin – 21:44
Thank you. Thanks so much Vikas and Tuhin for coming on here and equipping us with all this information. You've been very helpful. And here's to more Conversations in the future.
Speaker – Tuhin – 21:44
Thank you.
Speaker – Vikas – 21:45
Thank you, Neerja, pleasure.
This is tech Lyceum, a podcast from Birlasoft.
Speaker – Neerja – 21:55
Well, thank you for listening to this episode. Here's hoping you gained something from it some food for thought we will be back with more from the world of tech. Until then, stay tuned and stay connected. Bye bye..
You are listening to tech Lyceum, a podcast from Birlasoft