According to a recent Forrester study, around 60% of manufacturing companies in the DACH region have not yet fully migrated their IT systems to the cloud (The Top 10 Trends In Cloud, 2024 | Forrester). And where companies are implementing cloud transformation, the majority are only hoping for IT improvements, according to a recent McKinsey study (Cloud-driven business transformation—from IT to everywhere | Digital | McKinsey & Company). Few are using the cloud to optimize business processes such as intralogistics and production planning. “However, studies and experience show that around two-thirds of the potential value of the cloud comes from improving business processes," says Holger Robioneck, Senior Vice President Production Division at INFORM. This insight takes on a whole new dimension when you consider that AI-based software for complex areas such as internal factory logistics and production planning requires an adequate IT infrastructure. “Cloud services are essential here. Companies that wait too long risk falling behind technologically and losing their competitiveness,” says Robioneck.

INFORM outlines five reasons why manufacturing companies should move to the cloud now.

• New possibilities for interoperability
  The cloud enables seamless interoperability between AI-based software and other cloud services or APIs. AI-based optimization software can access ERP systems, telematics solutions and warehouse management to optimize the entire supply chain and production line in real time - something that remains inefficient with locally hosted systems.
• Predictive Maintenance for Machinery and Vehicles
  GPS tracking, sensor data and other digitization solutions converge in the cloud and enable a predictive maintenance strategy. AI-based systems analyze sensor data from devices, vehicles or machines, for example, and detect failures or malfunctions in real time. They can proactively initiate maintenance work or reschedule processes that have already been planned, thus minimizing downtime or idle time.
• Collaborate effectively
  Cloud-based AI applications improve collaboration by providing real-time access to AI-generated data. Regardless of where they work, employees can view relevant information at any time and make informed decisions based on AI suggestions. For example, sales representatives will be able to analyze customer feedback in emails or social media messages using automated text analysis. Transport dispatchers will always know the location, route and condition of each vehicle. Engineers can use AI-based image recognition to classify product images and identify potential production errors.
• Flexible adaptation to internal processes
  Implementing new software does not have to be a major IT project that many companies shy away from. Thanks to cloud services, AI software can be flexibly adapted to internal processes, from small system components for data analysis to extensive functionalities for automating complex decisions. This reduces the barriers to adopting AI solutions.
• Increased cost efficiency
  AI-based software systems are becoming an indispensable technology for businesses. Cloud services offer a cost-effective alternative to local data centres. Businesses can dynamically scale the resources they need, avoiding unnecessary hardware investments. The pay-as-you-go structure significantly reduces upfront and maintenance costs.

“AI has the potential to fundamentally change the software landscape and therefore the economy," says Robioneck. To take advantage of this potential, companies need to put the right IT infrastructure in place today. “In addition to performance and IT security, cloud services provide the scalability and flexibility that will enable future-proof AI applications. Cloud transformation is the first step before the AI revolution!”