Maximizing business impact of cloud adoption for industrial manufacturers

The Hackett Group conducted a global Industry Cloud Study of 600 organizations, with a primary focus on the manufacturing industry. The goal of the study was to assess how migrating to the cloud improved operations and business results.

Four key areas of business value realization were identified including:

1. Optimizing manufacturing operations: Unexpected IT downtime was reduced by 39% and unexpected manufacturing downtime was reduced by 36% after migration.
2. Improving supplier management: Recent cloud adopters saw a 44% improvement of sourcing savings in the first three years of migration.
3. Delivering sales efficiency and customer satisfaction: Cloud services and applications improved digital collaboration with customer by 33% (e.g., two-way automated data sharing on orders), giving organizations more relevant data to meet customer needs. As a result, post-cloud migration customer satisfaction scores (CSAT) improved by 34%.
4. Increasing business agility and innovation: Organizations that migrated most (10 or more) of their applications to the cloud saw the greatest improvement in time-t0-market, with a 36% improvement versus all respondents.

The study also shares different cloud adoption approaches, analyzes their effectiveness, and makes recommendations on how industrial manufacturers can maximize the benefits of cloud migration.

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