5 Digital Trends in the Electronics Industry for 2023
1. Data Orchestration
The goal of data orchestration is to ensure that data is collected, stored, and used in a way that is consistent, reliable, and aligned with the organization’s needs. Data orchestration is becoming increasingly necessary as more businesses in the Electronics Industry move towards a digital-first approach to their operations. This involves collecting and synthesizing data from multiple sources to provide insights that can help inform decisions and strategies. It is becoming increasingly difficult to manage complex processes in the industry using spreadsheets or limited databases. Leaders in the industry are deploying a combination of technical and organizational measures, such as establishing data standards, defining processes for data governance and management, and implementing the necessary infrastructure and technologies to support data orchestration.
Automation is becoming an integral part of many business processes in the Electronics Industry, as the need to accelerate increases to labor productivity becomes critical to achieving profitable growth and gaining a competitive advantage. Automating several business processes can increase efficiency and reduce costs while making tracking and monitoring performance easier. Examples of automation gaining momentum in the industry include the use of technology to automate the process of purchasing electronic components. This can include automating tasks such as requesting quotes, evaluating suppliers, creating purchase orders, and tracking deliveries. Procurement automation aims to make the purchasing process more efficient and cost-effective. By automating these tasks, businesses can save time and reduce the likelihood of errors. Additionally, procurement automation can help companies to manage their spending better and improve their relationships with suppliers.
3. Cloud Computing
Using computing services such as servers, storage, and databases over the internet is not new, but the Electronics Industry is still transitioning from on-premise-based solutions to the ‘cloud’. Cloud computing allows users to access and use these resources on demand without the need to maintain physical infrastructure or install and update the software. This enables businesses to scale and adapt their computing needs quickly and cost-effectively.
There are several examples of how cloud computing is used in the electronics industry. One everyday use is in product design and development. Industry leaders use cloud-based tools and services to collaborate on designs, run simulations, and test prototypes. This allows teams to work together efficiently.
Cloud computing is also increasingly used in the distribution and sales of electronic components and assemblies. For example, distributors and electronic device manufacturers often use cloud-based systems to manage their inventory, process orders, track shipments and integrate with key partners and suppliers. This allows them to respond quickly to customer demand and deliver products to customers more quickly and efficiently.
Application Programming Interfaces: APIs refer to a software intermediary that allows two applications to communicate. In this context, we refer to APIs that adhere to well-publicized standards. HTTP and REST are used in many modern applications, while legacy systems might use SOAP, EDI, or others. Modern, well-designed applications use developer-friendly, easily accessible, broadly understood standards for their communications. APIs lend themselves to several beneficial qualities. It is possible to support much higher standards for security, privacy, and governance via APIs.
With the accelerating pace of technological change, APIs are gaining traction, and players in all corners of the Electronics Industry are engaging in meaningful conversations. Suppliers and distribution partners have introduced APIs at various points throughout their supply chain. Besides the benefits mentioned already related to codifying individuals’ work into automated processes, there are clear business benefits to implementing them. APIs (and any other automated integration point) drive costs out of the sales and purchasing process, enabling profit margins to increase. They are now universally accepted as the path toward a more efficient, resilient supply chain. There is a growing expectation among trading partners that APIs will be available for common business functions. Email and phone communication are part of doing business, but APIs usage is increasing over time and, in some places, replacing traditional emailing of documents altogether. Organizations that have already accepted API management as a reality of their business platform are positioned to adopt “next-generation technologies” as soon as they are available.
5. Digital Customer Engagement
Investments in Digital Customer Engagement, or the use of digital technologies to connect with customers and provide them with a personalized and engaging experience, is increasingly becoming a priority of many companies in the Electronics Industry.
One common way companies in the Electronics Industry engage with their customers digitally is through online marketplaces and e-commerce platforms. These platforms allow customers to browse and purchase electronic components and assemblies online, often with the option to customize their order or use customer-specific requirements or commercial agreements.
New business models are being developed and tested as more players in the industry adopt Digital Engagement practices and expand the capabilities required to support them.