How SAP Accelerates Innovation in the High-Tech Manufacturing Industry?
The high-tech industry faces many challenges. A customized SAP Business One solution for high-tech industry can assist the sector to overcome these challenges.
We are living in a fast-paced, technology-driven world. Be it an entrepreneur or a tech-savvy customer, everyone demands advanced features that need cutting-edge technology. Talking about the high-tech industry, it is essential to enhance IoT capabilities and Business Intelligence (BI) functionality to create an intelligent manufacturing environment. Robust high-tech manufacturing solutions like SAP Business One can assist companies to reduce downtime and improve product quality.
The main characteristic of the high-tech manufacturing process is it uses ultra-modern technology that keeps on evolving with time. From an advanced RPA (Robotic Process Automation) system and R&D labs to computerized vision in warehouses, the high-tech manufacturing industry leverages the benefits of Industry 4.0 by implementing automation and digitization in almost every process. Big-ticket products including connected cars, semiconductors, and medical devices are some of the top products of this sector.
There is no exaggeration in mentioning that high-tech companies drive the change. Here, business owners have to make quick decisions to transform prospects and possibilities into reality. As the sector is growing at tremendous speed, merely gaining the visibility of the processes is not sufficient. It is of utmost importance to monitor and control every step ranging from inventory to supply chain and procuring to manufacturing properly.
There, the high-tech manufacturing sector has to face some challenges. Let’s go through these challenges before discussing the high-tech industry solution.
Key Challenges of High-Tech Manufacturing Companies
High-tech companies have to deal with a unique set of challenges. They are-
Complexity of BOMs
One of the biggest challenges for high-tech companies is to manage the global supply chain while continuing the effort to bring innovative solutions. High-tech manufacturers aim to bring radical change in the current version of products and make them better for the end customers. They need to take care of complex BOMs and other necessary aspects to meet this objective effectively. Also, it is necessary for them to keep the details of all engineering processes.
This is another big obstacle in the way of high-tech manufacturers. Evolving technology makes products obsolete soon. What’s more, the smaller the components are, the more complex its manufacturing process is. For example, semiconductors and chips need nanotechnology, which is quite expensive. As a result, this sector needs huge capital investment for establishing state-of-the-art infrastructure and bringing costly raw material.
Fear of Obsolescence
This is the only sector where products become obsolete very soon. This sector is evolving at a fast pace and increasing competition, as well as technological advancements, make the life of high-tech manufacturers quite difficult. They strive to meet the demand for new and innovative products every time to stay in the market. There are many examples we can mention that are out of the market simply because those companies could not adopt changes.
Higher exposure to foreign currency-related risks, volatile markets, and the absence of proper connecting tools loom large on the high-tech manufacturing industry. When the company brings transformation in the processes, all these issues need to be addressed carefully.
Agile manufacturers have to select a full-fledged ERP solution like SAP Business One for the high-tech industry to meet these challenges efficiently. It helps them grow by consolidating every file and report on a single database. It is possible to keep every department on the same page with the help of a customized SAP Business One solution.
Importance of SAP ERP Solution in High-tech Manufacturing Industry
ERP software for high-tech manufacturing can also assist manufacturers to grab new opportunities in the sector. For example, the demand for semiconductors, robotics, and medical devices will keep on increasing in the coming years. Digitization can give these companies an opportunity to get actionable insights based on the captured data. As a result, manufacturers or entrepreneurs can make decisions in real-time. Also, an ERP solution for the high-tech sector is useful to manage the supply chain and deliver the end products on time.
It is fair to mention that the high-tech sector demands precision and agility. A powerful Enterprise Resource Planning (ERP) software can help the sector and most SMEs to achieve these objectives in line with their business models. As a strong and reliable suite of all necessary business tools, ERP focuses on the fast-paced operations in the manufacturing plant. It is capable of creating an agile and productive platform that handles a plethora of tasks across various departments.
Though every business has a different model and size, the ERP solution for the high-tech manufacturing sector handles various processes in production, finance, inventory, and supply chain effectively. All you need to choose the right ERP solution for your company. ERP enables manufacturers to automate data and knowledge transfer across various departments like HR, sales, accounting, project management, and the like. Companies can plan, manage, track, execute, and deliver projects on time with the help of an ERP solution.
Cloud-based modern ERP platform replaces legacy architecture successfully while paving the way for growth and innovation. SMEs can make the most of cloud technology with the help of cloud-driven, customized ERP software. Cloud-based SAP Business One solutions can make the company more competitive, productive, and agile. High-tech manufacturing industries can easily overcome their bottlenecks and minimize the impact of roadblocks by leveraging advancements of cloud, IoT, big data, and digitized supply chains.
The high-tech manufacturing industry takes us to the future. They can bring solutions to add comfort and convenience to our lives. Therefore, it is necessary for high-tech manufacturers to integrate high-tech ERP solutions in the workplace. A tailored ERP solution with desired features and seamless performance can drive the high-tech industry to success by improving the quality of products and enhancing customer satisfaction.
An experienced business leader, heads the UK operations of Silver Touch Technologies Ltd. With 15 years of experience in the industry, he has set the track record of delivering transformation and revenue growth with SAP Solutions.