Digitalization has now become an everyday phenomenon. Every industry in every country banks upon digitalization in order to progress in today’s economy. But what is it?

Digitalization basically is the incorporation of digital technologies like the internet of things (IoT), robots and big data into the traditional industrial processes. As a result, most operations are now data-driven. Not to forget, quite convenient too.

That said, when it comes to the industrial tools and manufacturing industry, digitalization has helped streamline the complex process of logistics and fleet management, alongside enabling remote operations. At times, the processes might not be entirely digital, but they definitely do rely on digital techniques and methods to govern the procedures and obtain results that are comparatively more efficient.

What are the benefits of digitalization?

Digitalization brings about an increase in efficiency, while being cost effective in the long run. It paves way for process automation which diminishes the time taken to do a task. Digitalization also optimises scalability while reducing risks.

Moreover, streamlining the manufacturing process via digitalization increases productivity and optimizes output. Newer technologies introduced in regular tools and machineries help appeal to the consumers for it makes their tasks an easier feat. An improvement in customer satisfaction is usually detected when methods of digitalization are implemented in generic mechanisms.

One key benefit of digitalization is that it can help source the necessary inputs from across industries required to implement newer techniques. This is a necessity in today’s ever-changing market. In certain ways, like minimisation of waste for example, digitalization also helps in environmental stewardship, thus contributing to the conservation and protection of natural environment.

Plus, with a streamlined process in place, the overall productivity of any industry becomes higher, which, in turn, generates more profit for the company and more options to choose from for the consumers.

How does digitalization impact Industrial Tools?

Digitalization, in general, assists in the implementation of advanced production planning.

It positively impacts industrial tools by enhancing their efficiency and productivity, as well as paving the way for innovation. 

By using digital algorithms, industries prioritise optimum resource allocation as well as easy inventory management. Digitalization also makes way for supply chain optimization by improving supplier coordination through real-time data exchange. Advanced analytics also help streamline the entire process, from manufacturing to delivery, thus helping industrial tool suppliers in UAE to scale their business.

We usually associate the concept of manual work with industrial tools. With digitalization though, the quality and reliability of tools increase, thus helping change the ‘manual work’ perception. The erstwhile ‘hardware only’ manufacturers, post digitalization, become ‘hardware and software manufacturers’, thereby escalating their cyber-physical capabilities.

This results in a growth of existing sales. Many times, industrial softwares may extract information from shared data to advise operators the ways to efficiently manufacture and operate tools and machineries. Also, with digitalization, price-competitive copies of tools and machineries enter the market. Therefore, with the internet of things and advanced analytics in the picture, the industry experiences a positive shift, with an increase in the overall growth and visibility in the market.

Particularly in the case of industrial tools, the modern day 3D printing techniques make a significant impact in the industry. Materials like metals and plastic are used in this process. Tools produced via 3D printing are more lightweight and ergonomic, making them easier to use.

Added advantages of manufacturing tools via this technique is that it is quite cost effective and can facilitate bulk manufacturing. Manufacturers are also free to produce flexible and complex designs, which would normally take a huge time and money investment otherwise.

Challenges usually faced in the process of Digitalization

The initial upfront cost of purchasing and investing in digital technologies and infrastructure can be quite a bit, given that apart from the purchase of tools and technologies, manufacturers also need to invest in training sessions for their workforce. Hence, a limited budget can be a hindrance to the overall digitalization process.

The workforce is essentially the backbone of any industry. However, the existing workforce often needs to be upskilled and open to adapting to newer technologies. There might be issues in bridging the gap of digital skills and the workforce’s readiness to learn. Alongside, the organisation, as a whole, might experience a cultural shift when digitalization is initially introduced, particularly highlighting the aspect of lack of awareness and the fear of loss of jobs when automated systems come into play.

Industries like that of industrial tool suppliers in UAE bank upon the seamless collaborations between suppliers and partners. The digital transformation of this communication may take time to implement, especially when data sharing is in question.

Also, the lack of a concrete digitalization strategy can hamper the process by creating confusions, given that transitioning from an existing legacy system can be quite a task. However, the benefits of digitalization have the potential to outweigh the challenges in the long run.

Conclusion

Digitalization is gradually becoming a necessity and for all the right reasons, given that it helps brands and manufacturers scale up and become globally visible. Although tough at first, adapting to digitalization is key to ensuring a brand’s long-term success.