New Relic, a leading intelligent observability platform, has released its ‘State of Observability for Industrials, Materials, and Manufacturing’ report, shedding light on the growing influence of AI and IoT in the manufacturing sector. The report, based on insights from 285 technology professionals and aligned with the ‘2023 Observability Forecast’, illustrates how observability is becoming a cornerstone for manufacturers aiming to enhance operational efficiency, productivity, and strategic decision-making.
According to the report, 65% of respondents from the industrials, materials, and manufacturing sectors have experienced a reduction in mean time to resolution (MTTR) since adopting full-stack observability. This decrease in MTTR has been instrumental in reducing downtime and operational costs, thereby delivering a solid return on investment (ROI) for observability initiatives.
The report identifies several key drivers for the adoption of observability in manufacturing, with security concerns leading at 50%, followed by AI technologies at 44%, and IoT technologies at 43%. These technologies are critical in helping manufacturers navigate the complexities of modern production processes and maintain competitive advantage in an increasingly tech-driven market.
AI, IoT Driving Manufacturing Innovation
As the manufacturing sector transitions into the Fifth Industrial Revolution, the integration of AI with observability is becoming increasingly vital. The report highlights that nearly 44% of manufacturing organizations view AI technologies as a key enabler for their observability needs. By integrating AI, manufacturers can gain deeper insights into telemetry data, streamline operations, and improve MTTR, ultimately enhancing overall productivity.
Observability is also playing a crucial role in reducing the frequency and impact of high-impact outages. The report notes that only 30% of manufacturing organizations experience outages at least once a week, compared to an overall average of 32% across all sectors. Moreover, just 12% of respondents indicated that outages cost their organizations more than $1 million per hour, significantly lower than the 21% average across other industries.
Boosting Cross-Team Collaboration
The benefits of observability extend beyond just operational efficiency. Over half (51%) of manufacturing organizations reported that observability has improved cross-team collaboration and informed better strategic decision-making. Additionally, 47% of practitioners noted increased productivity, as observability enables quicker identification and resolution of issues.
Manav Khurana, Chief Product Officer at New Relic, commented, “We are witnessing a significant shift in how manufacturers adapt and thrive in a world driven by technology. Observability is crucial for pushing innovation forward while maintaining reliable systems for their customers—all while cutting downtime and costs.”
