Modernizing your company’s IT environment has never been more critical for future survival. No industry is off the hook regarding the need to transform digitally. Modernization is necessary to keep pace with your competitors. Legacy systems could suddenly break down or no longer be serviceable. There are several urgent reasons for you to modernize your IT infrastructure.
Modernization delivers fantastic benefits to a company, including:
· Better User Experience
· Improved Efficiencies
· Enhanced Operational Visibility
· Great Accountability
Modernizing your IT infrastructure also increases your company’s resiliency and scalability and provides a solid foundation for digital transformation.
Customers today expect a fast, seamless digital experience from banking to retail, transportation to hospitality. A seamless cross-channel experience is expected by today’s customers, regardless of their demographic. One example: Over 50% of U.S. Adults, 18+ now do banking on their mobile devices, according to a recent Prosper Insights & Analytics survey. That includes a surprisingly high 42% of the Boomer segment.
For financial institutions, it’s become table stakes. But other industries have some catching up to do. Finding the sweet spot for integrating new technology can be a challenge. Implementing new technology can be an adjustment for employees to learn and use productively. IronOrbit has the tools and strategy to help get your company on the golden path to modernization.
IT is no longer a Back-End Role.
Modernization is about technology, and it’s also about cultivating a new mindset regarding how the business operates and how it can deliver unique value propositions to its customers. An example of an outdated attitude is to think of the CIO as being restricted to all things IT. A modern approach would include the CIO to drive recovery and future growth.
Most business leaders believe IT plays a significant role in supporting business outcomes. Seventy percent of C-level executives still view IT as confined to saving money, keeping the lights on, and ensuring an internet connection.
Modernizing means unifying business and technology to future-proof organizations, including scalability and agility, and developing growth strategies.
A recent IDG survey of 200 IT leaders revealed positive modernization results, even before the completion of the process. The report found that although one in four organizations completed less than one-quarter of their initial IT modernization goals, all achieved improved quality of service, better customer satisfaction, cost savings, increases in uptime, and the creation of new streams of revenue.
The Digital Mindset
A mindset is a way of thinking and orienting to the world that shapes how we perceive, feel, and act. Having a digital mindset means conditioning ourselves to see how connectivity, data, algorithms, and AI create new possibilities for delivering value. Business leaders who cultivate a digital attitude can position their organization for optimal success and resiliency.
Finding the Sweet Spot
Developing new ways of thinking and new ways of working takes time.
Here are three good places to start:
1. Assess the readiness of your IT for future business and growth priorities. 2. Review the business strategy based on tech-driven outcomes. 3. Align a technology strategy to achieve business impact and enablement.
The last thing you want to do is skip steps. Take the time needed to assess where your IT infrastructure is now and how it impacts your business to where you want it to be a few years from now.
IronOrbit can help you decide which workloads should migrate to a cloud environment. Additionally, we offer
· Minimize disruption as your organization transitions to new technology
· Availability 24/7 365 Days a Year
· Automated Operations and Self-Service options
· Full Back up and Disaster Recovery Availability
· Over 30 years of Business Technology Experience
IT modernization is challenging because it involves change management. Modernizing is also an ongoing process because technology constantly evolves at an ever-accelerating rate. The engineers and IT innovators at IronOrbit pride themselves on staying ahead of the curve and continuously developing improvements and better ways to contribute to the success of our clients.
Please call us today for a free no-obligation consultation.
Reasons Why Remote Work Benefits Employees & Companies
Remote work benefits employees and companies is the resiliency of having the technology in place to mobilize workforces overnight. The remote work environment is here to stay. It is true; we were all sent home to work remotely under duress. Employees and companies discovered unexpected benefits from a work-from-home (WFH) environment. Remote work has its pros and cons, but mostly, people like being able to work remotely.
16% of Companies Worldwide are 100% Remote in 2022
41% of US Workers are Fully Remote.
2022 is almost over, and companies are still trying to decide whether to continue having a remote workforce, head back to the office, or devise a solution combining the two. Employees and many job seekers want the flexibility to work from home.
85% of IT Leaders Who Have Deployed Remote Desktops in Their Firms Would Recommend It
(Source: The State of Remote Work in 2021)
80% of US Workers Would Reject a Job Offer That Didn’t Include a Flexible Work Environment
(PR Newswire Study 2021)
As the CEO of the research firm Ladders says,
“This change in a working arrangement is impossible to overhype. As big as it is, it’s even bigger than people think.”
Gartner reports that remote work is a cornerstone of the post-pandemic future of work. A Gallup poll from the beginning of the year showed that half of the remote-capable employees prefer a hybrid work environment. The popularity of the flexible work phenomenon is as beneficial for the company as it is for employees. There’s a more extensive selection of qualified candidates for the growing digital economy opportunities. Having the technological capacity for a productive virtual environment could help define who gets to work in a digital economy and which companies will thrive.
Benefits to Companies Offering Flexible Work Environments
Employee mobility is part of the digital economy. In the digital era, a modern IT infrastructure means having to untether workforces from having to work in a specific location. Desktop-as-a-Service (DaaS) is a cloud-based technology that enables work to happen from anywhere on any device. Working from anywhere on any device eliminates the costs of leasing office space, buying furniture, paying for utilities, and other overhead expenses. The elimination of overhead costs is significant. By allowing remote work, IBM eliminated 58 million square feet of office space and saved $50 million in real estate expenses. The cost savings are significant for small businesses as well. The JCA insurance agency no longer pays for a 4,000-square-foot office and the overhead that goes with that. Watch Video. Being a remote employer helps JCA’s bottom line.
Increases in Focus and Engagement Produces Higher Productivity
The experiment on mass WFH orders showed that people got more work done. They no longer had to commute and didn’t have the distractions of working in an office environment. Many studies show that remote work leads to increased productivity and better performance. Hiring new employees is an expensive process for companies. The average expense is around $4,000 and usually takes weeks, sometimes months, to fill. A recent Stanford University study showed a 13% increase in productivity; workers took fewer breaks, were more satisfied with their jobs, and reduced attrition rates by half.
The disadvantages of not setting up the capabilities to work remotely cut deeper than being less attractive to job seekers or losing existing employees who want more flexibility. Establishing a remote-ready IT infrastructure means leadership is being proactive; they’re at once forward-leaning and remembering the lessons of the pandemic.
The Virtual Workspace
A recent Gartner study predicts that 70% of Infrastructure and Operations (I&O) leaders deploying DaaS will exceed their budgets due to a lack of proactive cost management. The configuration of each virtual machine impacts the amount of money spent on DaaS. IronOrbit prevents clients from spending on services they don’t need by having multiple options for its INFINITY Workspaces. There is an INFINITY Workspaces solution to fit each use case. For example, power workers need more run more GPU-enabled applications like Autodesk’s Revit. Process workers need basic applications such as Microsoft Office.
Aside from the obvious benefits to an organization workforce mobility can bring, having the IT infrastructure to shift from office to home at a moment’s notice fortifies a company from future volatility and unexpected disruptions. Having a cloud-based IT environment makes a company more resilient. Cloud computing has become a proactive measure that safeguards business continuity. Companies can scale up or down quickly, and the process is effortless. Sharing information becomes more efficient when you combine cloud technology and managed services. Things like product development and decision-making happen faster. Connectivity boost productivity because your workforce, including your IT department, can focus on more value-to-the-customer tasks.
Technology There When You Need It
When the pandemic lockdown occurred, businesses on the cloud could adapt to the new remote working norms quicker and more efficiently than those that weren’t.
Be Prepared for the Unexpected
Leveraging IronOrbit’s technology allows companies to provision desktops quickly. A workspace can become accessible to users from anywhere while maintaining the required security protections to meet the highest compliance standards.
It was the day the lockdown began in Washington.
One of our clients, Mark Gallant of the Truss Company View Case Study, sat in an emergency meeting. Everybody was under a great deal of stress, except for him. Company leaders asked, “How are our employees going to work? How can we continue to serve our customers?” Mark smiled because he knew they already had a ready-made solution to the problem. Months prior, they had moved to IronOrbit’s cloud environment. Now, they had to have everyone grab their computers, go home, and log on.
Your company might be one of those organizations still making decisions on the question of your work environment. Whether it’s back to the office, completely remote, or a combination of the two, one thing is clear. Business continuity in the digital economy demands a flexible and elastic IT environment. One that moves when you move. The longer you wait to migrate to the cloud, the more you risk losing your competitive advantage.
IronOrbit can ensure your company has the resiliency it needs to future-proof against almost any scenario.
Please contact for a free no-obligation consultation.
The terms digitization and digitalization are often mistaken for one another. They mean different things, and it’s important not to confuse them.
Digitization is not digital transformation.
Why is it Important to Know the Difference?
Understanding what the two words mean is not just about semantics. To confuse the two sets up unreasonable expectations and shortchanges the importance of digital transformation. Bewilderment could put your company in jeopardy. You think you’re accomplishing one thing when you’re doing something else. These two things have to go in sequence. To skip steps or jump ahead for expediency creates problems down the road.
Digital Technologies Are Raising the Bar Every Day
Let’s begin with the fundamental building block known as digitization. Digitizing is a primary building block. You must digitize operations if you’re going to remain competitive. But keep in mind that digitizing is only half the story.
What is Digitization?
Digitization, or digitizing, is the conversion of analog to digital technology. Digitization improves what we’ve always done in companies. Digitization minimizes using paper because you’re no longer using paper and pen. You’re inputting data into a desktop or mobile device using keyboard strokes. Sometimes, you’re simply scanning a bar code or QR Code (QR codes store far more information and responsiveness is ten times faster than bar codes).
Digitizing existing processes has the following benefits:
Better Customer Experience
Lower Operational Costs
Improved Decision Making
Secure & Accessible-Anywhere Information
Once you replace analog with digital processes, you’ll notice significant reductions in print volume and costs. Digital files transfer quickly, update instantly, and are much easier to track. A standard KPI of digitizing would be a cost-cutting metric. Using digital technologies and digitizing data improves productivity and can create new revenue streams.
Enhanced Productivity & Outcomes
A digitized company has the distinct advantage of having faster, more agile, and more scalable workflows. Adopting new tools happens more quickly and efficiently than with legacy systems. The entire information infrastructure becomes connected to quarterly goals and business outcome targets. Digitizing offers significant operational improvements such as boosting efficiencies and enhancements with customer experience. Plus, digitizing opens the door to innovations impossible in an analog environment.
What is Digitalization?
Digitalization indicates a company is in the process of moving to the second half of the story. You know you’re a digital company when you begin delivering new customer value propositions that are digitally delivered. That is becoming digital.
Gartner defines digitalization as going beyond digitization. Its use of digital tech changes a business model and provides new revenue and other value-producing opportunities.
Brand New Value Propositions
What problem can you solve for your customers that you never considered part of your mandate? Move beyond traditional products and services to solve your customer’s problems.
Digitalization involves a paradigm shift in the culture and changes the business model. That is why digitalization could lead to a complete digital transformation of your business. The journey involves creating strategies that leverage digital capabilities to innovate new value propositions.
Digitization vs. Digitalization
Digitization involves a one-time implementation. On the other hand, digitalization demands developing new processes and strategies over time. The best-case scenarios would be accumulative, with a tiny success building upon another.
Digitization is about operational excellence. As an improvement of existing processes, you do the same things you’ve always done, only better.
Digitalization is about rapid business innovation to deliver new customer value propositions.
The Importance of Using the Right Technology
Because not everyone in your company is tech-friendly, investing in technology that is easy to use and accessible is crucial. Everyone from C-level executives to managers and frontline employees must work together to drive digital innovation and business outcomes. Companies that make digital tools accessible throughout their organization achieve higher proficiency levels. With these gains in place, it’s easier to reimagine every aspect of business operations.
More About People Than About Technology
While digitalization is still mainly about using digital technology, the processes and strategies that arise require new skills and the adoption of new ways of doing business. Realizing the full benefits of digitalization means investing in new skills training and developing process agility. Transformational benefits arise from creating a company culture that inspires widespread frequent experimentation.
Most business leaders still rely on outdated organizational structures to implement strategies. They are unaware of how structure inhibits agility. Business strategy must, at all times, be fluid. People, processes, data, and technology synchronize continuously to identify and deliver innovative customer solutions. Another handicap of traditionally structured corporations is that it is too slow.
The journey requires organizational changes that are customer-centric. The journey leverages technology and needs leadership support. Digitalization empowers and enables employees and customers by leveraging technology and opening all company levels to experimentation and exploration. That’s why the IT Director needs to be a part of the business planning discussions.
Digital Business Design
People refer to the business design as business architecture. Most people think of architecture as the purview of the IT department. If you have a business architecture function, it’s usually part of your IT division. By contrast, digital business design is the responsibility of senior executives and IT leaders.
Ultimately, all businesses must become digital to thrive in a digital economy. The ones that will be most successful at this will be those that design themselves for it. Digital design, not strategy, will separate the winners from the losers.
Just to Recap
Digitization converts information from a physical format to digital. Digitizing is a prerequisite building block of digitalization. Digitalization is the more advanced stage that can lead to digital transformation. Digital transformation is about futureproofing and resiliency.
Modernizing operations means digitizing as a fundamental first step. Digitizing can lead to digitalization. A company can implement a series of digitalization projects like automating processes, developing employee skills, and innovating new ways to leverage digital technology, but digital transformation is more than implementing various projects.
Digital transformation is a long slow journey that requires company-wide involvement and participation. Few companies are designed for digital. Becoming a digital company is a challenge. The path to successful transformation is not straight nor easy to navigate. Much effort goes into deliberately synchronizing people, processes, and technology.
Digitization can lead to digitalization which can lead to digital transformation. Only companies going through the process of digitalization can choose to become digital. While digitizing and digitalization are about leveraging technology, digital transformation is a revolution that changes the design of the business. While none of these are sufficient to guarantee the next level, any step forward is an investment in your company’s future well-being.
The transformational aspect empowers entire organizations and delivers new service levels to your clients.
IronOrbit enables organizations to modernize their information infrastructure, link workflows, and scale productivity. More than a technology service provider, IronOrbit can help you understand where your infrastructure is today and where you want it to be tomorrow.
Focus on targeted objectives and tap into the power of cloud-based transformations.
Wherever you are on your digital transformation journey, IronOrbit can help. The most important thing you can do for your company is to take the initiative to advance the infrastructure of your business. What change could you make today to help streamline operations and become more resilient?
Sometimes it helps to have a knowledgeable sounding board on your side. Whether your business still has an on-premises server or has already moved to the cloud, we can help you identify valuable opportunities for future innovation and growth.
Please contact for a free no-obligation consultation.
Digitization and climate change are both hot topics. The two subjects are also getting used together in the same sentence more frequently. For example, did you know digitization is good for reducing carbon emissions? According to the World Economic Forum, Digital technologies have the potential to reduce global emissions by 15%.
Since the pandemic lockdown, people have been working from home. The workforce has been slow in returning to the corporate office setting. An IFS survey conducted last year reports that almost three-quarters of respondents plan to increase spending on digital transformation. The climate control benefits include a reduction of CO2 emissions due to less commuting and travel to in-person meetings. Technologies like Microsoft Teams have made multi-site team meetings easy and readily available.
Cloud migration is the price of admission to competing in the digital world.
Moving your IT environment to the cloud reduces the need for additional hardware, but more importantly, to your bottom line and the environment, cloud migration modernizes your operations. While being on the cloud, and using robust cloud-enabled services like IronOrbit’s INFINITY Workspaces, won’t make your business carbon neutral, it is a significant first step on that journey.
How You Can Reduce the Environmental Impact on Doing Business
Hardware casings, cords, adaptors, and other electrical products are called E-waste. E-waste is a growing problem. Significant environmental damage happens because nature cannot absorb these products. E-Waste is a significant contributor to the haphazard disposal of old electronics: they’re inert. All E-Waste products contain hazardous materials of one kind or another. The toxic materials are predominantly lead and mercury.
By switching to IronOrbit’s cloud, you can reduce the amount of hardware because you no longer need to invest in so many on-site computer stations. There’s no need to pay for its maintenance or replace machinery when it becomes obsolete. Instead, you only pay for the exact services you need. Over time, this saves you money. Cloud computing can help your company become sustainable while making it more profitable and productive.
Reducing Needless Travel Reduces Carbon Emissions
INFINITY Workspaces is our brand of DaaS, robust technology that enables employees to work remotely with ease. There are different INFINITY packages to fit specific use cases. Even designers and engineers can access the most demanding modern applications on their mobile devices. INFINITY Workspaces empowers Geographically dispersed teams to do their best work. The technology inspires productivity while eliminating the need for lengthy commutes. It also eliminates the carbon emissions associated with daily commutes.
Adopting a work-from-home environment or even a hybrid workplace is an excellent way to reduce your business’s carbon footprint. You could also save some money in the process.
Shared Data Centers Reduce Greenhouse Gases (GHGs)
On-premises servers and data centers use substantial amounts of energy both for running and cooling. The manufacturing, packaging, and shipping of the hardware and peripheral products also add to GHG emissions. Companies can reduce emissions considerably by moving to a cloud computing environment. Once a company moves to the cloud, they use shared data centers. Like the ones operated by IronOrbit, shared data centers run far more efficiently than individual facilities or on-premises servers. There is no longer a need for personal equipment.
A recent forecast by the International Data Corporation (IDC) reports that cloud computing will prevent the emission of more than one billion metric tons of CO2 between 2021 and 2024. Moving away from legacy software and hardware and towards cloud adoption is a logical next step for companies. Insofar as business continuity and investment in the future, cloud migration is a necessity.
Cloud computing and all the digital benefits of having your IT infrastructure on the cloud are valuable for IT departments. IT departments can work more closely with business leaders to develop new sustainability goals. It is favorable for companies, and of course, it contributes to a healthier environment.
Contact us for a no-obligation proof of concept. We’re here to help.
At a recent design and manufacturing conference, a question came up. “Is the industry ready to make use of new technologies?” The answer came back, a resounding no. Most companies have skipped the step of digitizing their existing processes, so they’re not ready for new digital inputs. Perhaps an excellent intermediary step would be to reimagine business as usual by partnering with a managed service provider (MSP).
Shifting to a managed services environment is a critical step for many businesses. If you’re feeling overwhelmed with wondering about your next best business decision, then you’re not alone.
Many companies haven’t figured out how to change themselves enough to grapple with legacy challenges, let alone how to solve new, more complex puzzles like digitizing operations. By having an MSP like IronOrbit, companies can take their time becoming more comfortable with the idea of digitizing. When companies are ready to digitize, they won’t need to do major surgery on their IT infrastructure or data architecture before they begin. Instead, they’ll have a reliable partner who can focus on providing the right technology at the right time.
The Growing Skills Gap
In January 2021, a McKinsey study found that 87% of companies worldwideare aware of a skills gap. Gaps in IT departments will become increasingly conspicuous as emerging technologies continue to get a foothold. In the digital age, companies need to move fast. Ongoing IT education is prohibitive for many organizations. Even if the financial resources are available, the process is too slow. There is a genuine need for businesses to move faster than before. Whatever they can do to enable their operations to be more transformative and innovative with their use of technology, the better off they’ll be for whatever happens next.
As soon as an IT, enterprise resource planning (ERP), or e-commerce business solution is down; an organization instantly loses profits. Efficiency and expertise are necessary for getting these solutions back up and running. Bracing for the storm of increasing demand and decreasing labor power, business leaders may feel stuck when making their next move. If this is the case, managed services could be a solution. Here are the factors to consider.
Bridge the Skills Gap
A recent Prudential survey reports that businesses that focus on continuously expanding employee skills have a tremendous advantage over those companies that don’t. When critical business technology goes down, companies can’t wait for internal IT teams to figure it out. Having a managed services partner like IronOrbit can efficiently solve the issue; moreover, a predictive analysis might prevent such disruptions in the first place.
Your Perfect IT Partner: Five Things
When considering a managed services partner to fit your business, there are five key characteristics to consider:
Cost Savings – With IronOrbit’s managed services expertise and ability to efficiently solve IT challenges, you’ll notice significant cost savings by filling the skills gap and preventing extended downtime, lag issues, and recurring IT problems.
An Increase in Productivity & Efficiency– Supporting your business and employees is IronOrbit’s reason for being. IronOrbit’s Managed Services free your internal IT, so they can focus on other priorities and increase your business’s efficiency.
Quick Response Times – IronOrbit’s support staff is available when you need them so you can increase efficiency. IOCentral’s self-help automation tools make it fast and easy to open support tickets and check status around the clock, three hundred and twenty-five days a year. IronOrbit guarantees a consistent and reliable communication line to address urgent issues efficiently. Access to IronOrbit Resources and Specialized Expertise. IronOrbit service providers are certified professionals who have the expertise your business needs.
An Extension of Your IT Department – With IronOrbit’s Managed Services, you’re not just getting a solid and secure IT infrastructure; you’re getting a partner who can liaise between your IT department and your ERP and e-commerce providers for the most effective solutions. Your team will have more time to spend on furthering business-critical activities than solving IT problems.
Finding What Works for Your Business – IronOrbit has the expertise and innovative technology to best support you and your team regardless of the business needs. IronOrbit’s Smart Managed Services enables you and your teams to step away from any IT needs to focus on critical strategies for sustainable business growth. You’ll have more bandwidth to experiment and figure things out. Plus, you’ll have a technology partner ready to provide options for any challenge that may appear on the horizon. Companies face innumerable disruptive threats and risks. IronOrbit’s Smart Managed Services ensure smooth sailing for your IT environment now and in the future. We’ll be there whenever you’re ready to do more of anything, including digitize operations.
Please call us now at 888-753-5060 for a free no-obligation consultation.
Digital Manufacturing Can Be a Game Changer for the Industry
Manufacturing is the lifeblood of American industry and was once the envy of the world. No other industry can mobilize the nation like manufacturing. America’s response to World War II was the most extraordinary mobilization of an idle economy in the history of civilization. During the war, 17 million civilian jobs were created, there was a nationwide productivity increase of nearly one hundred percent. Corporate earnings more than doubled.
Today, the manufacturing industry is a pale remnant of what it was before inflation and companies moving manufacturing offshore to places like China. But American manufacturing is at a crossroads. US Manufacturing could continue its downward spiral or turn things around in a big way. For American manufacturing to reclaim its international glory of years past, it must embrace the willingness to learn, innovate, and adopt new technologies. Collectively, these technologies are a part of digital manufacturing.
Defining Digital Manufacturing
Digital manufacturing is the application of cloud computing systems to manufacturing services, supply chains, products, data collection, warehousing, and processes. Digital manufacturing technologies link systems and processes across the production environment to create an integrated approach to manufacturing. This strategy encompasses everything from design and development to production and servicing the final products. Traditional factories were analog environments where everything was built by hand, have become Smart Factories.
Think of how the basic 1970’s cellphones evolved into the 90’s smartphones—taking a phone that only made phone calls to a mobile computer that can browse the Internet and run software applications. Then in 2007, the hyper-connected iPhone burst onto the scene. From the beginning, the iPhone was like a Swiss Army knife. It included everything you could want to do with a computer-driven gadget. The iPhone is now a professional quality camera and many other things.
Similarly, a Smart Factory is hyper-connected, predictive, and does many things old analog factories can’t do. These next-generation facilities are the core of digital manufacturing. A fully functioning next-generation manufacturing facility is built on cloud computing to optimize operations, store, and process tremendous amounts of data. The rest of the intelligent factory digital platform utilizes AI, big data analytics, automation, and an array of sensors.
In 2017, an article in The Economist stated that “The world’s most valuable resource is no longer oil, but data.” Today, data’s expanding amount and role are the driving force in Klaus Schwab of the World Economic Forum first identified as “the Fourth Industrial Revolution” or Industry 4.0. Manufacturers can break down siloed workflows and blend employees’ digital and physical worlds by utilizing technologies ranging from IoT (Internet of Things) to M2M (Machine to Machine) communications. Digital technology can dramatically improve productivity in planning and streamline production processes. It could also help solve another growing problem.
According to a study by Deloitte last year, as many as 2.1 million manufacturing jobs will be vacant through 2030. The report warns that the worker shortage will hurt revenue and production. Positions left unfulfilled could ultimately cost the US economy one trillion dollars by the end of the decade. Skilled labor hasn’t been the only hurdle. Supply chain disruptions and difficulties sourcing raw materials hobble the industry. Digital manufacturing can help fill industry jobs by attracting talent who want to use new technology. These people want real-world experience on digital tech designed to increase efficiencies because they know how valuable that experience will be long-term.
On August 12, 2021, Forbes article, Willem Sundblad writes that even if manufacturers can find what they need, prices are so high that they threaten margins. High inflation is sure to exacerbate the supply chain problem.
The battle cry from leaders in manufacturing is to seek out
suppliers geographically closer to production centers
more resilient supply chains
technology that can help modernize processes
skilled talent to operate effectively in a next-generation factory setting
Sundblad reminds us that the US is good at innovating but not so good at scaling those innovations compared to other countries. While the manufacturing industry might averse to risk, the American spirit is all about taking a calculated risk, especially when our backs are up against the wall. The window of opportunity is open, but it won’t remain open indefinitely. Remember, things move fast, and the stakes couldn’t be higher for manufacturing to get innovation right. Writing about transforming businesses through technology and innovation, Ethan Karp is the President and CEO of a non-profit manufacturing consulting group called Magnet. In his Forbes article, 4 Reasons 2022 Can Be A Game Changer for American Manufacturing, Karp recognizes the opportunity for American manufacturing.
If American manufacturers can invest in talent, technology, and innovation, they’ll be in a good position to take advantage of available opportunities. Karp identifies five of them. They are:
Take Back the Supply Chain
Use a combination of technology and innovation. Think about the incredible pivots thousands of manufacturers made during the pandemic to meet the demand for Personal Protective Equipment (PPE).
Take Calculated Risk
Karp urges manufacturers to override being conservative and take calculated risks. He suggests ways to mitigate the risk of innovation by asking four questions:
Are you solving a real problem?
2. Does your product solve the problem?
3. Can you deliver this solution?
4. Can you sell it?
Invest in the Smart Factory of the Future
Take whatever capital is available and invest in the technologies used in a Smart Factory. These technologies are the most direct way for manufacturers to excel in a competitive and dynamic marketplace. Over time, Smart Factories lower costs by speeding up processes, reducing downtime, and minimizing waste. These digital innovations will improve supply chain efficiencies.
Automate to Offset Talent Shortages
Karp emphasizes the importance of automation by sharing the story of Gojo, the company that invented the hand sanitizer Purell. The family ran operation successfully tripled its production almost overnight to meet pandemic demand. The company was ready because of its investments in Industry 4.0 technology over the years. Gojo has automation to do repetitive tasks and frees employees to do more value-added technology work, like programming and running the machines. The company hired 500 new people in 2020.
Capture the Infrastructure Boost
Manufacturers like steel and transportation suppliers will be kept busy with the government-sponsored trillion-dollar investments in transportation and public safety. Karp offers two recommendations:
Evaluate margins to provide a buffer against the unknown
Have the technology and talent already in place to manage production surges.
As accurate as the threat of digital disruption is, future success is more about making informed decisions with a view of the long-term consequences. Leadership is about establishing a direction and vision for the future, aligning people around that vision, and motivating and inspiring them to take action. Making better choices is a necessary ingredient.
In the February 2022 Harvard Business Review article, How Incumbents Survive and Thrive, Julian Birkinshaw looks at how Fortune 500 companies remain stable despite disrupters. “When companies face a disrupter, their natural response is to fight fire with fire: to set up a competing digital unit, build an incubator or accelerator, or pursue a transformation.” He cites a McKinsey study that found “companies that adopt bold, offensive strategies in the face of industry digitization improve their odds of coming out winners.”
Companies must embrace digital technology to improve operational effectiveness. The global utility Enel has a division that experiments with new business models (demand management and electric vehicle charging). The unit is called Enel X and has enormous growth potential. However, it currently represents less than two percent of the parent company’s revenues. Everyone else at Enel focuses on optimizing the existing business and providing its nearly seventy-two million customers with high-quality service. But the new technology in its factories and distribution networks, including reengineering its infrastructure and processes, that went into Enel X has bolstered operations throughout the organization. For technology to help manufacturers succeed, leadership should take the time and energy to develop an adaptation strategy that best fits their organization’s unique needs and capabilities.
Considering how Digital Manufacturing and the Smart Factory of Industry 4.0 can help you streamline workflow, be better positioned to seize opportunities, and maintain margins. Don’t start out by going for the big objective. Start with low-hanging fruit. Even still, before beginning any digital manufacturing initiative, understand the technology. Learn what technologies perform what types of tasks and the strengths and weaknesses of each. If you have a chief technical officer or IT director, get them involved in discussions as soon as possible. Suppose people in the IT department have a good understanding of the different Smart Factory technologies. In that case, they’ll save the company wasted time and money pursuing the wrong technology. They’ll also help prevent making technology choices that don’t fit the company objectives. Again, the real tipping point is the willingness to learn.
If you don’t have information technology or data science capabilities on staff, build a team of external service providers. Having the right pool of resources is essential.
The Key Areas of Digital Manufacturing
Utilizing cutting-edge technologies to optimize processes can result in financial efficiencies within a manufacturing operation.
Enhanced Customer Experience
Customer-facing technologies help give the customer transparency into the manufacture of their product and ease of communication and collaboration with the manufacturer.
Provisioning of Resources for Employees
A modern workplace nurtures better employee satisfaction and retention rates. The next generation of employees has grown up with high-impact technologies. They expect the deployment of quality effective technologies within their working environments.
Traditional manufacturing and production methods are undergoing digital transformation. Going beyond production automation, the Information and Communications Technology (ICT) found in Industry 4.0 blurs the boundaries between the physical world and the virtual in cyber-physical production systems (CPPSs). A report from Deloitte describes CPPSs as online networks of social machines organized like social networks. They link IT with mechanical and electronic components that communicate through a network. Smart machines continually share current stock levels, problems, and changes in orders or demand levels.
Improved Operational Efficiency
Although last on our list, operational efficiency is the biggest “selling feature” of the move toward Digital Manufacturing strategies. By digitizing operations, data can be collected, categorized, and analyzed at every stage – from raw materials to finished and delivered products. The utilization of this data then allows your manufacturing firm to use agile cycles to grow and scale.
Digital Manufacturing Isn’t Just for Global Giants
Most manufacturers across the country have engaged in a digitization effort. That digitization allows their CIOs to develop digital transformation strategies to help their manufacturing operations inch closer and closer to Industry 4.0 ideals.
Digital Manufacturing is a genuine game-changer for the industry. To say there are many benefits to digital manufacturing is an understatement. The hyperconnected Smart Factory merges complex manufacturing processes across different departments. Smart Factories eliminate the paper-based process and automate data exchange in fractions of a second. Communication and collaboration going in all directions simultaneously far extend the reach of any manufacturer. What is more, digital manufacturing inspires people to learn and innovate on a much higher level.
Every manufacturer is at a different stage of their Digital Manufacturing journey. The decision to convert traditional factories to smart facilities requires deep engagement with the entire company. Set priorities and create a portfolio of projects. But keep this in mind; the benefits are well within the grasp of even small to mid-size operations. Remember the story of Gojo and how they routinely invested in modernizing their operations. Not all at once but over time. When the time came, regular investments in technology made all the difference. Using smart and autonomous technologies, CIOs are blending the physical and digital worlds while making the most of human resources along the way.
How can organizations unlock the full potential of IT to accelerate?
Can you scale while keeping all the plates spinning? Your current employee base may be doing an excellent job of keeping all their plates from crashing to the floor with the current technology in use, but adding many more employees and ramping up operations with that same technology stack results in pieces and shards of plates smashed all over the floor.
Business scalability is all about efficiency and growth. To be genuinely scalable in the modern sense of the word, an organization must:
accommodate increased demand
stay on top of trends
be agile enough to handle disruption
The punch line is that all this has to be accomplished quickly. The need for speed requires companies to be highly efficient. That’s where the advantages of cloud environments come into play.
Scaling within the cloud helps you avoid the crash-resume-crash-resume cycle that companies are faced with when trying to scale with an on-site IT infrastructure. Modernizing operations is the “end game” of the digitization phase, which is foundational to the digital transformation journey—establishing an operational backbone is the objective many forward-leaning companies have pursued diligently in the past few years.
Operational excellence is now the minimum requirement for being competitive in the digital age. Let’s explore.
The Old Models of Scaling Won’t Work Anymore
For many, digitization has been the goal for years. The pandemic lockdowns were a coercive force pushing companies to send their employees home to work; thus, digitizing many aspects of their operations. Correctly digitizing operations move the organization further to become a digital company. That is being able to offer digital-value propositions to its customers.
Scalability used to be strictly about increasing profitability and improving efficiency when workload increases. It is also about adding new value propositions (digitization) at speeds that can keep up.
Older ways of doing things will work for a short while, but it won’t take long for businesses to fall too far behind.
Companies have used a siloed way of doing business since day one. Managers would create systems, data, and processes within business silos. Leaders often fail to consider how their systems and processes might eventually need to coordinate with other parts of the business. Once they recognized integration requirements, they’d tweak the systems and processes to achieve their objective, again within their given silo. Managers would address the need for linking systems and processes. The operational environment was complex, hierarchical, and too slow to be effective in today’s digital business world.
The New Dynamic in Scaling Operations – Digital Transformation
According to a December 11, 2020 article by McKinsey & Company, companies worldwide are hard at work evolving their operating models at unprecedented speed.
The hurdles go far beyond shifting back and forth between remote, in-office, and hybrid work models or simply adding or subtracting work-from-home talent as needed.
Digitization enhances operational excellence.
We’re talking about creating a coherent set of enterprise systems, data, and processes supporting core operations. Becoming digital enhances the customer value proposition.
Don’t confuse digitization (doing things we’ve always done only better) with digital transformation (doing things differently than we’ve done before). Being digital enhances the customer value proposition.
Business leaders who think they’re leveraging digital transformation strategy when, in fact, they’re just digitizing some aspect of their operations may achieve operational excellence on an outdated value proposition. For example, you are a taxi company that’s just perfected its operations (digitization). Suddenly Uber and Lyft arrive (digital companies). How’s that going to impact your business? Or consider the impact Amazon has on traditional retailers.
The Next Generation Model of Scaling
This operational backbone, or next-generation operating model, is a new way of running an organization. Next-generation operating models replace messy legacy systems, processes, and data generated by siloed business units. The new design is more open and non-linear. Systems, data, and processes become like the building blocks of a lego kit. that can reallocate resources and develop new digital capabilities in a matter of weeks. Now that’s a challenge.
No wonder, despite Herculean efforts and substantial investment, few companies can move to a modern, digitally-enabled way of working across the entirety of their operations.
Einstein is Never Wrong and Why Scaling in the Cloud is the Right Call Now
In their book “Scaling Up: How a Few Companies Make it and Why the Rest Don’t,” Verne Harnish and the team at Gazelles explain scaling all aspects of an organization (including the technology) by quoting Albert Einstein: “Everything should be made as simple as possible, but not simpler.” Harnish goes on to say, “Scaling a business is a complex endeavor and requires robust – yet simple enough – tools and techniques to get the job done.”
That’s why companies worldwide are attracted to cloud-based applications and workflow as they try to scale. It’s robust enough to handle their “complex endeavor” but with tools simple enough to be implemented and utilized by a fast-growing internal team of employees.
Verne Harnish also helps us envision the stages of scaling infrastructure when he writes, “When you go from two employees to 10, you need better phone systems and more structured space. When your company reaches 50 employees, you still need space and phones. You suddenly also require an accounting system that shows precisely which projects, customers, or products make money. Between 50 and 360 employees, your information-technology systems need to be upgraded and integrated. And above that, you must revamp them again….”
The Two Pizza Rule – Everyone Needs Access, but Not Everyone Needs Their Own Pizza
Amazon has the “two pizza rule.” By it, they mean that no team should be any bigger than can be fed with two pizzas. While that works for physical teams, it doesn’t work for your IT. If you’re going to scale your personnel, you have to scale up your IT – applications, cloud assets, infrastructure, etc. You can’t scale with a “two pizza” rule for your IT infrastructure. Sure, everybody needs access to the “pizza,” but not all your employees are going to need the same key or even access to the same kind of “pizza” as other employees. Scaling technology isn’t simple and requires a partner who understands how the organization’s goals, people, and roles all funnel into the need for tech access as the company scales.
Harness Cloud-based Data Power to Inform Your Scaling Strategy
Your data for your KPIs has to scale – and evolve – with you. Big data, IoT, and AI can help your business leverage more granular data than ever before. Today, under the direction of Reed Hastings, Netflix is a prime example of how scaling a company’s IT can result in game-changing data usage. As Netflix tracks every action of its 213 million-plus subscribers, it can accurately predict what shows, and movies from its production wing will be successful. With this visibility into customers comes the ability to be nimble and agile with their service delivery.
Where Did Outdated Scaling Models Originate? – The Industrial Revolution
Alfred Chandler, Jr is one of the most respected figures in business history. His work redefined industrialization’s business and economic history and gave us a fresh perspective on how the modern digital firm differs from the industrial-age model.
Managerial firms, according to Chandler, evolved to take advantage of productive techniques available after the establishment of rail networks. More profits came from higher productivity and lower costs. America’s “managerial class” arose from this operating model where managers coordinate increasingly complex and interdependent systems.
The New Kind of Firm & a New Way to Scale
Marco Iansiti and Karim R. Lakhani’s HBR article of Winter 2021, “Competing in the Age of AI,” describes how Chandler’s model focuses on the benefits for those companies that successfully achieve greater production scope, and/or variety. On-going efforts to improve added learning as a key characteristic of successful scaling.
“Scale, scope, and learning have come to be considered the essential drivers of a firm’s operating performance. And for a long time, they’ve been enabled by carefully defined business processes that rely on labor and management to deliver products and services to customers, and that are reinforced by traditional IT systems. After hundreds of years of incremental improvements to the industrial model, the digital firm is now radically changing the scale, scope, and learning paradigm.
AI-driven processes can be scaled up much more rapidly than traditional processes can, allow for much greater scope because they can easily be connected with other digitalized businesses, and create incredibly powerful opportunities for learning and improvement, like the ability to produce ever more accurate and sophisticated customer-behavior models and then tailor services accordingly.”
The Foundation of Operational Excellence
Becoming digital is an essential watershed for any modern company.. Leveraging SMACIT, digital expands and accelerates innovation. However, companies cannot afford to neglect the pursuit of operational excellence.
Executing a business strategy that is consistent, reliable, and cost-effective is foundational to sustained business health. Operational excellence is also the mindset that embraces constant and never-ending improvement. Continuous attention to pursuing operational excellence means every employee can see, deliver, and enhance the flow of value to customers.
The constant pressure for all companies is a perfect storm of demands that include the speed of delivery, technology, and communication acceleration. Every employee from the top down is busy making decisions and exploring ideas. They don’t have the time to waste on broken operational processes. Information technology that encompasses systems, processes, and data must make things easier for employees and customers alike.
Perfecting the business model via digital transformation has been key to the expansion and domination of household brands today.
Apple began its journey in 1976 and slowly climbed, but its rocket ship of success didn’t go into orbit until 2001 – 25 years later – when the iPod was released. Their launch into this new realm was only made possible with the scalable technologies needed to supply and service the massive demand for the iPod, and its succeeding generations of small devices for the mass market.
Starbucks also had its learning curve. The company took 20 years from 1971 to perfect its business model and underlying corporate technologies to scale from 100 locations in 1991 to 18,000 locations in 62 countries today.
But that was then, back before the availability of cloud resources. Now, the cloud, and cloud-based technologies, can propel companies, big and small, into a new stratosphere of capability within a short amount of time.
Investing in Scaling Tech Capability Pays Off
While you expect a company like JP Morgan Chase to be investing heavily in technology, what may not quickly come to mind is that they have been investing in tech all along the way as they scaled the business. They are investing in IT-based workflow advancements because that investment pays off. JP Morgan Chase has more than 50,000 technology professionals and invests eleven billion per year in its digital development.
But JP Morgan chase isn’t the only big-name company where we see investment in tech as a part of a scaling strategy. In 2018, Walmart chose to bring on an additional 1,700 IT staffers. To quote USA Today, they “beefed up” their “omnichannel presence to better compete with Amazon, Costco, and other peers.”
Walmart’s stock rose by 17% over the next two years.
While neither JP Morgan Chase nor Walmart took on massive “scaling” projects over the past two years (not many did), we can guess that the industry leaders see technology as the business expansion enabler that it is.
Scalability is a necessary ingredient to future-proofing your network. Businesses have survived without a scalable network, but that won’t be true as we move into this decade.
Business leaders must liberate their companies from legacy systems, safeguard their data, and continuously conserve costs by implementing technology that fits where they’re at and where they’re going strategically. Scaling a business with agility and resiliency can only be achieved by embracing new technology, and that begins by designing an IT environment built for the digital age.
Success in 2022 is going to be about flexibility and scalability. If you’re going to compete and win, the cloud environment will be critical to your success.
Choose options that allow enough elasticity for you to reimagine what optimal scalability means to you.
Lay the groundwork so that there’s a solid foundation. That way, your digital journey will move forward with incredible, even inspiring, momentum.
What Happens When You Need to Scale Your Business?
If you want to scale up your peanut butter factory, you get a bigger building, bigger hoppers, giant dehulling, and processing machines. It takes months, maybe years. But what if you’re not in the peanut butter business?
What if you run an architectural firm, a company in the travel industry, or even an up-and-coming animation or gaming business?Well, you don’t need the peanut processing machines, but you’re going to need serious computing capability. To get that computing capacity, you’ve got two choices.
Choice #1 – You can invest months and significant capital in on-site servers and workstations. Time will drag on while you get an IT professional to design the system, order the servers, install the servers, set up the applications, etc.
Even if you’re willing to put big bucks into on-site infrastructure, you won’t.
Because 2022 is all about flexibility.
Everything from 2019 to today has demonstrated that the companies that can scale up and down with the most speed and agility win the race.
The big deals aren’t going to wait for you to get your on-site IT systems up to speed, and you’ll miss out.
So, let’s talk about the better option.
Choice #2 – DaaS or Desktop as a Service
What is Desktop as a Service (DaaS)?
DaaS is a cloud-based workflow solution that gives you access to a virtual desktop in the cloud with your applications, operating system, and personal settings all in place. You can access your virtual desktop securely from any internet-connected device, regardless of location. Because all the computing power is in the cloud, virtual desktops can be set up or “deployed” for new employees within minutes compared to days and weeks with traditional, on-site infrastructure. Scaling back is just as efficient and straightforward.
But wait, not all DaaS solutions are the right fit for your company. Some offer more control and flexibility than others. Some virtual desktops demonstrate much better responses when using demanding graphic applications.
These clients need reliable access to intensive graphics resources worldwide, and performance matters. Check out IronOrbit’s DaaS solution called INFINITY Workspaces.
So, let’s get back to the question.
How Does DaaS Help Your Company Scale Up Faster?
1. Employees Can Use Their Favorite Device – BYOD
Because DaaS provides all the computing power within the cloud (including all the applications, databases, etc., that your employee needs to get work done), an employee can use whatever computer they have and like. How does that help you? Well, you don’t have to source, buy, and provide high-end desktops and laptops. Sure, if you want to buy your employees’ laptops, that’s great, but if you’re going to get things up and running quickly, BYOD will work as a temporary stop-gap measure as you scale up and wait for your laptop order to arrive.
2. Expand Within the Cloud
The cloud is the clear winner compared to sourcing, buying, installing, and setting up in-house servers. Because cloud solutions like those offered through IronOrbit are nearly infinitely expandable, you never have to wonder whether your infrastructure has the capacity to handle the next pro-growth project you need to tackle.
3. Scale Without Huge Up-Front Investment
Perhaps the most attractive feature of DaaS solutions is that you only pay for what you need, and you don’t have to spend money to buy infrastructure up-front. Monthly subscription payments make paying for usage only easy. Scaling up is simplified when you don’t have to develop CapEx funds to get it rolling.
4. Scale Up Without Cybersecurity Worries
One of the challenges of scaling up with on-site infrastructure is the security component. It takes time and a team of cybersecurity professionals to deliver 24/7/365 protection. In stark contrast, the IronOrbit private cloud has world-class security. That high level of security is a protective umbrella that keeps your data safe while you ramp up operations quickly.
5. Even if You Have Existing On-Site IT Infrastructure – Hybrid Scaling
Companies that have invested in on-site infrastructure sometimes get tunnel vision for scaling, but it doesn’t have to be an either/or question. You don’t have to choose either the cloud or your on-site setup. If you have existing on-site IT infrastructure and need to scale up a specific business area or need extra capacity, DaaS is your best friend. Employees can use their virtual desktops across the company network and leverage cloud computing power, thus diminishing the load on your on-site infrastructure.
6. Get New and Remote Employees Up and Running Quickly
For the reasons mentioned above – cloud use and BYOD – DaaS is the perfect solution for efficiently computing resources for new employees.
Whether your employees are all in the office or scattered worldwide, you can provide them with access to their virtual desktop and all the company resources they need to do their job. DaaS deployment for new employees is lightning fast compared to traditional, on-site infrastructure and computers.
7. Streamlined, Remote Management, and Configuration
Updates, upgrades, configurations, and compliance adherence protocols can be pushed out to all your employees’ virtual desktops quickly and easily, helping you move the entire company along without the usual hassle and slowdowns associated with IT maintenance.
Wrapping it All Up
Let’s talk about your company for a minute. If scaling means hiring more people and giving them the IT resources necessary to handle more work and bigger deals, then DaaS is worth your serious consideration.
It’s the best way to scale up your IT resources without wasting time, money, and opportunity.
Call us for a free consultation at (888) 753-5060.
While not the magic bullet that solves all your operational problems, moving to the cloud forms the foundation of building a solid technology platform.
Businesses that took the opportunity to remake and future-proof their infrastructure and workforce during the pandemic will continue to pull ahead of the competition. As we move into 2022, it becomes imperative for companies to move to the cloud to accomplish two strategies:
Be agile and flexibly prepared for the unexpected
To Take advantage of emerging AI-enabled digital technologies
These two objectives mean large-scale changes to IT’s operating model. The more technology-savvy people in the company should take the lead in understanding what moving to the cloud would mean for the company. Target specific business areas and look at how having workflows on the cloud benefits operations through increased speed, flexibility, and scale, which are the standard hallmarks of having operations in a cloud environment.
Speed, Flexibility, & Scalability
If you want to deliver digital capabilities anywhere and everywhere, consider how the IronOrbit ecosystem uses the core capabilities of cloud computing to provide scalable and elastic IT-related capabilities. Our teams of engineers and business visionaries have taken the complexity out of migrating your environment to the cloud, so you benefit from faster time to value and reduced costs.
The improvements in productivity and efficiency can generate significant cost savings over time; however, the actual benefit delivery is optimizing IT functions. You’ll be doing things you’ve always done, but you’ll be doing them better, and your operations will be much more resistant to disruptions.
Our new automated self-service portal, IOCentral, delivers a fast and easy way to scale storage, networks, databases, and computer functionality. An intuitive interface allows you to scale business functions more quickly by connecting essential software and microservices. Using AI-enabled technology, IOCentral enables flexibility and comprehensive ecosystem management from one pane of glass.
Speed, flexibility, scalability, and reduced costs indeed represent long-term value, but those in and of themselves do not convey the urgency for moving to the cloud. For that, we need to look further ahead.
The Bigger Business Benefit of Moving to the Cloud
Taking full advantage of your move to the cloud means looking at the new possibilities available to your business because now your business is part of the global cloud ecosystem. The cloud now becomes a catalyst to build new capabilities and value propositions for your customers.
This larger prize focuses on building innovative practices, new sources of revenue, and learning from the unique knowledge flows that will inspire leadership, not IT, to create new digital value propositions for your customers.
Without the cloud, leadership will never be able to enter the competitive arena of 2022 and beyond, let alone have the possibility to innovate new products and services.
The Cloud Delivers All IT Services, Apps, and More.
Be ready to use new digital technologies and stay ahead of change. Call now for a proof-of-concept of how IronOrbit can prepare your business for sustained success.