US manufacturers forge ahead with digital transformation as EU falls behind – PEX Research & Reports News
Gartner identifies sustainability as a top business growth opportunity, surpassing productivity and efficiency
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PEX Network’s weekly news bulletin rounds up the latest research, reports and publications in the areas of operational excellence (OPEX), digital transformation, artificial intelligence (AI) and automation, business process management (BPM), process mining/intelligence and more.
This week includes:
- The EU is falling behind on its digital transformation goals
- Process automation market predicted to see huge growth by 2031
- US manufacturers make solid progress with digital transformation
- Gartner identifies sustainability as a top business growth opportunity
The EU is falling behind on its digital transformation goals
The European Union (EU) is falling behind on its digital transformation goals for 2030, according to this year’s State of the Digital Decade report by the European Commission. The Commission’s analysis shows that, in the current scenario, the collective efforts of Member States will fall short of the EU’s level of ambition. The identified gaps include the need for additional investments, both at EU and national levels, particularly in the areas of digital skills, high-quality connectivity, uptake of artificial intelligence (AI) and data analytics by enterprises, semiconductor production and startup ecosystems.
In 2023, the uptake of AI, cloud and/or big data by European companies was well below the target of 75 percent, according to the data. Under current trends, only 64 percent of businesses will use cloud, 50 percent big data and 17 percent AI by 2030. “To achieve the digitalization of the business sector, it is paramount to incentivize the take-up of innovative digital tools by SMEs, in particular cloud and AI, as well as mobilize further private investments in high-growth startups,” the Commission stated.
READ: 10 digital transformation pitfalls and how to avoid them
Process automation market predicted to see huge growth by 2031
The global process automation market is anticipated to rise at a considerable rate between 2024 and 2031, according to the Process Automation Market Size 2024 report from DataM Intelligence. The report provides a detailed overview of the current market size by value and volume, opportunities and development status, exploring comprehensive and insightful information about various key factors like regional growth, segmentation and business revenue status of key players.
Process automation involves using technology to streamline and manage repetitive tasks and workflows within an organization, reducing human intervention and improving efficiency.
READ: 10 trends impacting intelligent automation right now
US manufacturers make solid progress with digital transformation
US manufacturers continue to invest in digital resiliency and modernization as they focus on expansions and upgrades of existing factories and machinery. That’s according to the Digitalization Gains: Manufacturers Forge Ahead with Digital Transformation report from the Manufacturers Alliance Foundation and Siemens. The research studied where manufacturers have made progress and where they have stalled in their digitalization journey, surveying leaders at 199 US-based mid-cap to large-cap manufacturing companies.
The report found that manufacturers have made solid advancements in deploying digitization to prevent disruptions like rapid fluctuations in demand, glitches in supply chains and shortages of talent. Digitalization is either already operational or being implemented by 80 percent of survey participants for supply chain optimization, product planning and development, and production efficiency, and data analytics/business intelligence. Many organizations (46 percent) have completed projects to integrate robotic automation and AI into manufacturing processes, with another 34 percent in the process of doing so. More than three-quarters (79 percent) are already using or rolling out digital twin technology for product planning and development, including real-time quality monitoring.
However, the research also noted that digital transformation roadmaps typically lack specificity and are disconnected from tangible business cases, while digitalization efforts are often fragmented/isolated in pilots and identification of the business value of new digital strategies is a sticking point for most manufacturers.
READ: UK manufacturing sector recovers but are AI & energy priorities misaligned?
Gartner identifies sustainability as a top business growth opportunity
Analyst giant Gartner identified sustainability is a top ten priority for business leaders this year, surpassing productivity and efficiency. Its latest report identified that CEOs are increasingly committed to their environmental programs, with 69 percent of business leaders having identified new growth opportunities as a result. Companies are exploring this through sustainable products and services (33 percent), sustainable business practices (18 percent), stakeholder engagement (18 percent) and decarbonization (18 percent).
“As CEOs reset their long-term strategies, environmental sustainability remains one of the leading factors that will frame competition,” said Kristin Moyer, distinguished VP analyst at Gartner. “Despite much corporate greenwash, recent economic conditions could have triggered a reversion to environmental, social and governance (ESG) cynicism and a refocus on profit at all costs. However, the overall commitment of CEOs appears unwavering.”
The data proves that sustainability can be profitable and highlights the important role that digital technology plays when it comes to driving better financial and environmental outcomes, commented Rodolphe Malaguti, product strategy and transformation at Conga. “Transitioning to a low-carbon economy will rely heavily on digital innovations. Leaders need to rethink how they operate and establish sustainability goals which technology can assist with and even consider how their choice of partner could affect their own sustainability and growth objectives.”
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