System operation management Essay Example | Topics and Well Written Essays - 2000 words

System operation management - Essay Example This is a picture that extends to other sectors of the economy, whether it is the tourism industry, where some tourists get guidance from a digital tour guide, or one that is physically present. In the production sector, the use of computers in the process gets more prominent by the day (Katz & Koutroumpiz 2012). This section of the paper examines the importance of digitization to the manufacturing sector. The manufacturing industry forms the largest source of revenue for many economies in the world, especially first world economies (Friedrich et al. 2011). As mentioned earlier, the production industry has been privy to rapid digitization over the past few decades. This means that there is the use of intelligent machinery in place of human labour. Economists all over the world have had debates on the consequences of this. This is because, even though digitization means a more sophisticated production process, there is the fact that the introduction of intelligent equipment to the pro duction chain implies that there are fewer jobs for human labourers (Karim et al 2013). Despite this negative consequence of digitization, the positive implications of a digitized manufacturing industry are vast. ... This for the manufacturing industry means higher rates of production at lower costs (Sabbagh et al. 2012). In addition, machines can work for longer periods than human labour can; hence, the increased levels of production. Secondly, digitization in the manufacturing industry has revolutionized the method by which companies communicate with customers and stakeholders, and how they create brands (Karim et al. 2013). In the second economy, companies have learnt to rely more and more on social media for service production. One way in which this is made possible in the manufacturing industry is by providing avenues for customers to voice their opinions on certain products on social media, for example, on twitter. This enhances communication with the necessary clients and works towards building a brand. Another way in which the digital economy proves useful for communication is by providing consumers with the option to order custom-made products from manufacturers and, therefore, enhance c ustomer satisfaction (Sabbagh et al. 2012). Another advantage of a digitized economy over a physical economy is the way in which digitization has revolutionized operations. It is said that in America, one in four workers engage in telecommunication while at work (Katz & Koutroumpis 2012). Across the world, members of different companies have a means through which they reach workers in other continents. The effect that this has is that it increases competition between various organizations. In addition, companies are able to outsource some of their functions to companies in far away locations. This enhances efficiency across the manufacturing industry. Digitization is important for each aspect the manufacturing industry. In production, the