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  • Houman Asefi

How SaaS Is Changing Manufacturing in 2021

One of the best manufacturers I have visited over the years shares a common attribute with me: he is obsessed with ensuring that his company operates from the point of view of the supply chain, distribution, and service. The company has recently completed a major overhaul of its manufacturing operations, and several have introduced cloud-based applications for their businesses. Many evaluate cloud-based manufacturing applications, including enterprise resource planning (ERP), but some take them on their own. [Sources: 6]




The most common model today is Software-as-a-Service (SaaS), which provides individual software applications and services in the cloud. But as technology companies expand their presence, other types of cloud-based applications, such as cloud services, are gaining traction. According to MintJutras, a research firm in New York City, SaaS base applications are the second-largest source of production and distribution software installed today, and will grow to 45% in ten years, according to Mint JUTras. [Sources: 5, 6]

However, the term has begun to define services - based models of service - as - a - product (service) to manufacturing (think Uber and Lyft) and other types of services. [Sources: 5]

Whatever you call it, one thing is clear: customer needs are evolving and business strategies need to adapt accordingly to keep up. SaaS solutions enable you to have a vertical and horizontal business process that helps you find the right solution to your business problems. The fact is that traditional software solutions are increasingly lagging behind. Business growth is now driven by a combination of customer demand, innovation and new business models such as cloud and mobile. [Sources: 0, 5]

Most cloud-based software today can offer exactly the same experience as an on-site installation. If you do not need software or hardware installation, you can start manually setting up and updating your business immediately. [Sources: 0, 2]

The vast majority of providers still hold the data in the hands of the end-user, so read your service contract to understand exactly how the data is used. [Sources: 2]

When looking for a new technology, the cloud is the new standard, but few industries have adopted cloud solutions to date. For example, many vendors still opt for traditional ERP deployments, and when the majority of companies adopt cloud-based SaaS, increasing the speed of IT service delivery is an important goal for them. In fact, 63% of all companies choose SAAS because they want more flexibility in changing marketing terms, while 58% of companies love it because it ensures continuity of business. [Sources: 2, 4]

The introduction of cloud-based SaaS is a great opportunity to improve customer service and support and replace proprietary technologies. [Sources: 4]

Software-as-a-service models are moving into the mainstream, and even enterprise IT companies are using cloud services. They are growing by getting organizations to join the phenomenon, and even getting software companies to offer subscription-based products instead of selling licenses. [Sources: 3, 4]

Even software companies that once sold standard software are embracing this cross-industry phenomenon. Lucien Wynn, managing director at Oneserve, explained that companies such as Microsoft and Adobe offer their products on the basis of selling software licenses instead of the standard licensing model. [Sources: 3]

More and more manufacturers are seeing that the benefits of SaaS are being ignored. One of the driving forces that drive even the biggest players to take over SaaS is the changing mentality of their customers. What is driving the shift from the traditional licensing model to a more open, cross-sectoral model is a shift in mentality, and this is a driving force that allows even larger players to adopt this model. [Sources: 3, 8]

The fact that giants like Amazon and Google are adopting SaaS strongly suggests that security is no longer the worry it once was. We all agree that the cloud is a more secure option for business data management, and often provides better security than a business's private infrastructure. In the past, blanket statements that cloud-based software such as Amazon Web Services (AWS) poses an additional security risk have had difficulty finding support. [Sources: 8]

SaaS is only one type of cloud computing, but it is rapidly becoming the most popular solution in the manufacturing industry and has become the fastest. Why is the manufacturing industry shifting to cloud-based manufacturing applications and what can be achieved with them? SaaS Cloud HostingAs a recent Forbes article found, all the leading vendors had something in common in 2013: they were looking for improved efficiency and ease of use. [Sources: 1]

This applies in particular to changing business models and business processes, as well as the need for faster, more efficient, and more cost-effective processes. [Sources: 7]

If the answer is yes, then work with your quality management software provider and see the migration path that is most likely for you. If your company has already deployed quality management software, you can see if they are moving to the cloud. Training quality professionals about their own skills to use cloud computing, and then using a roadmap to create a plan for the deployment, maintenance and testing of quality management software over time, will be of great benefit to them. [Sources: 7]






Sources:

[0]: https://www.apogaeis.com/blog/how-saas-integration-can-change-your-small-business/

[1]: https://smallbusiness.yahoo.com/advisor/resource-center/why-manufacturing-industry-shifting-saas-cloud-hosting-155047903/

[2]: https://www.softwareadvice.com/resources/saas-10-faqs-software-service/

[3]: https://www.jeffbullas.com/the-rise-of-saas/

[4]: https://99firms.com/blog/saas-statistics/

[5]: https://squarmilner.com/xaas/

[6]: https://www.forbes.com/sites/louiscolumbus/2013/05/06/ten-ways-cloud-computing-is-revolutionizing-manufacturing/

[7]: https://www.cebos.com/blog/quality-in-the-cloud/

[8]: https://www.machinemetrics.com/blog/how-cloud-and-saas-software-make-smart-manufacturing-cheaper-and-more-secure



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©2020 by Houman Asefi. 

Sydney, Australia