Impacts And Challenges of Digitalization in the Manufacturing Sectors - A Self Conceptual Perspective

Abstract

Digitalization has brought about a significant transformation in the manufacturing sectors due to global technological advancements. Artificial Intelligence (AI), the Internet of Things (IoT), Big Data, Cloud Computing, and Automation are greatly enhancing the speed, accuracy, and quality of manufacturing processes. Through digitalization, companies are able to increase their production capacity, reduce costs, control quality, and respond quickly to customer needs. This results in improved competitiveness and overall manufacturing efficiency. At the same time, challenges such as initial investment costs, lack of technical expertise, and cyber security risks also arise. However, proper planning, employee skill development, and strengthening security infrastructure can overcome these challenges. Overall, digitalization is a key driving force for the growth of manufacturing sectors and is advancing the sector towards “Smart Manufacturing.”