Three Surprising Ways Manufacturers Can Use the Cloud to Drive Innovation

Written by Ryan Kelly, director of business operations at MakeTime, an AMT member company that focuses on streamlining the production of CNC machined parts.

It’s hard to remember life and work before the cloud. What was going to solve all our problems before big data? What acronym’s potential dizzied us before IoT? What did we do with our hands before we had smartphones?

Quantifying and qualifying the effects of the cloud is almost impossible, but it’s fair to say it’s made everything different — almost. While manufacturers as individual consumers have made the shift to a cloud-enabled reality in their day-to-day lives, few have managed to pull off the same shift in their day-to-day work.


From sourcing quotes to managing supply chains, manufacturing takes place in what could mostly pass as a pre-cloud world. Yes, we have robots, G-code, Solidworks and Autodesk and EDI. While the impact of these and other technological advancements can’t be overstated, their impact has been siloed and discrete. The cloud makes it possible for these and other emerging technologies to converge, communicate and cooperate, resulting in exponential increases in productivity. Underutilizing the cloud is squandering opportunity in a way manufacturers can ill afford.

So don’t do it! Here are three surprising ways U.S. manufacturers can use the cloud to drive innovation and stay ahead of the global wolf pack.

One key to effective innovation is collaboration. Traditionally for teams to work well together, they needed plenty of space, time and money. Everyone on the team had to be physically present to one another, too.

The cloud changed that. Because physical limits of time and space no longer apply, teams can now spread across time zones, while still working together in real time. Talented individuals don’t have to relocate to work for organizations outside their zip code. Finally, HR departments desperate for skilled workers aren’t hamstrung by location for recruitment.

But the cloud does more for collaboration than break down the barriers of physics. The idea of team itself has expanded inside the cloud. With thousands of companies offering new and useful services for manufacturers, many organizations are discovering that some of their most important teammates are people they’ve never met. Because these outsourcing partners have set up shop in the cloud, they’re accessible via any WiFi-enabled device.

The cloud also makes it possible to collaborate with increasingly robust technologies, including artificial intelligence.

Not all manufacturers have the resources to build, buy or house the processors required to make use of machine learning and AI, but the cloud pulls it all within reach. To put it simply: the cloud has redefined collaboration. For forward-thinking companies that desire to push their innovative capacities through a combination of talented people, outsourcing partners and mind-blowing software, the cloud becomes the where, the how and the way.

Oh, the data you’ll grow
The internet and digitization created what we call big data, but the cloud transformed it into something huger than huge. As sensors and the IoT come online in more products and in more places via more people, manufacturers are poised to know even more about their customers and products.

Data comes in many forms, but for the manufacturer, two types rank for their effects on innovation: product data and operational data. On the product data side, it’s now possible to keep doing research long after products make their way into customers’ hands. From discovering when products are most commonly used to what causes them to malfunction or under perform, manufacturers can improve future versions, deploy software updates to products already in the market and pave data-charged paths to innovation that customers want.

Basically, the smart products entering the marketplace are themselves capable of being partners in innovation. Rather than just relying on people to come up with new ideas, products will spur and generate ideas, too.

Operational data aids innovation in a less direct way. As data is generated, gathered and analyzed from the shop floor, meaningful efficiency and productivity insights will become the norm. Knowing a machine is getting low on coolant or a tool is failing before problems arise saves valuable time and money. Knowing which machinist works best on which machine with which types of materials will, too.

Because it can’t follow a preconceived formula, innovation can always have more time and money directed at it. Streamlining can help to free up those resources and is a win for companies that want to invest more in innovation and R&D.

Many manufacturers inwardly quail at the thought of disruptive technologies. From the hotel industry to the entertainment industry, tech newcomers have toppled giants in less time than it takes to get a patent, and since technological progress doesn’t seem to ever slow down, those manufacturers who want their companies to endure best take the bull by the horns. It’s likely not a matter of if disruption is coming, it’s a matter of when. Why not beat it to the punch?

Cloud computing makes for an ideal environment for disruptive technologies to take root and flourish. Nimble, inexpensive, pervasive, simple, the cloud allows creation and optimization of technologies that mirror its attributes. Disruptive tech, if you leverage it before it leverages you, can streamline, speed and simplify a lot of the operations and processes that continue to bog down the industry.

Take the burgeoning online CNC machining services scene. Free of RFQs and the time it takes to source quotes, the best of these services also make use of a supplier network that’s already vetted for capability and capacity.

Basically, what manufacturers in need of CNC machined parts get when they choose an online machining platform is access to bountiful amounts of reliable supply Additionally, the procurement timeline is reduced significantly thanks to data-driven pricing, and other benefits accrue: time-to-market shrinks, supply chain risks lessen and procurement pains ease, reducing pressures on time and other finite resources — a recipe ripe for the time and resources needed to invest in innovation.

The cloud isn’t just a way to keep your smart device’s data usage low. It’s a path to innovation that’s faster and more powerful than anything that’s ever existed before. It’s high time manufacturers made use of it.

Ryan Kelly is director of business operations at MakeTime, an AMT member company that focuses on streamlining the production of CNC machined parts.

Categories: Technology, Uncategorized

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