How digital assets can improve manufacturing efficiency
In today’s digital markets, the critical success factors for manufacturers are innovation and speed. However, adapting to market requirements is not enough; constant development is significant. The market is dynamic; consumer expectations constantly change, so simply adaptation is not enough. According to statistics, 60% of manufacturers struggle to ensure digital continuity throughout the lifecycle of their products.
It is necessary to have long-term digital asset management manufacturing and introduce innovative technologies to become a successful player in the digital market. So, 92% of successful manufacturing organizations have created a digital vision of the future and have roadmaps that allow them to track progress.
Digital technologies, the transition to the industrial Internet of Things (IIoT), and changing consumer habits are forcing companies to change product approaches. This is a key factor in remaining competitive in the digital market.
Where does manufacturing digital assets management fit in?
Digital asset management is at the center of all operations. The manufacturing ecosystem is like a web: it intertwines the interests of many parties (the company’s partners, suppliers, marketers, etc). Each party needs to access digital assets and distribute them – that is, manage manufacturing digital assets.
Time is of the utmost importance when you launch an advertising campaign for any product. Brands need to avoid weak points in the process of promoting their product. A well-functioning digital ecosystem depends on well-established digital asset management solutions. It represents a certain “digital workshop” for each party interested in it. Therefore, it is important to provide all parties with quick access to digital assets, convenient work, and dissemination of information.
As of 2020, 60% of G2000 manufacturers relied on digital platforms. Solutions like cloud digital assets manufacturing allowed them to significantly increase the efficiency of their ecosystem investments and gain a better experience. In addition, digital media provide up to 30% of revenue for many companies.
How do tokens and other modern digital assets change manufacturing?
Previously, only multimedia files were considered digital assets, but today, digital assets are mostly understood as assets issued on the blockchain (cryptocurrencies and tokens). Even five years ago, the prospects for cryptocurrencies and blockchain caused certain doubts in the world, but after 2017, they disappeared. Blockchain is one of the most promising technologies in the modern world that provides unlimited business opportunities. Many companies already use solutions based on it and improve them, adapting them to their needs and requirements.
Many people first think of Bitcoin when talking about crypto assets. However, digital technologies and blockchain have gone much further in the modern world. But, at the same time, bitcoin is good only in the meaning of payment or an investment asset (in its best times), but this is not enough for production. There are other aspects. Some technologies can significantly improve the efficiency of your business, as well as advertising campaigns — for example, security and utility tokens, NFTs. Let’s take a closer look at how these digital assets can help a business.
What is tokenization?
Asset tokenization is the process of transferring assets to the blockchain. Thus, a unique digital record is created about each asset. This entry cannot be tampered with, altered, or deleted. All information stored in the blockchain is securely protected. Due to this, it is possible to save any object in digital form without the risk of forgery or changes in data about it.
As a result of tokenization, the company issues utility or security tokens. Let’s talk about the last kind. A security token is a special kind of digital asset that secures ownership. Thus, a tokenized asset can be sold, bought, donated, or exchanged. At the same time, a person is the official owner of a particular object, with a protected right of ownership.
Properly conducted tokenization allows companies significantly increase production efficiency. It provides businesses with several substantial benefits.
1. Fundraising from private investors
Any business needs investments, but attracting them from large investors can be difficult, especially when it comes to innovative products with a high degree of risk. Banks or institutional investors are not always ready to cooperate with such projects, even if a qualified business plan has been developed.
Tokenization allows attracting funding from private investors. This opens up new opportunities for the business – it does not need to seek funding from one or two large investors. Instead, the company can raise the necessary amount from dozens or even hundreds of investors with small budgets, who are more willing to take big risks without fear of losing a relatively small investment. Moreover, the funds received can be used for production needs – the development of new technologies, opening new workshops, and so on.
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2. Security token = securities?
An essential advantage of security tokens is that in many countries of the world, they are recognized as securities and regulated accordingly. Accordingly, each party gets what it needs. Manufacturing is raising funds to expand, modernize, and launch innovative products. The investor receives fundamental guarantees of receiving dividends. In case of violation of their rights, the investor can apply to the financial regulator.
3. Changes in the form of ownership are not needed
Another vital advantage of tokenization as a tool for increasing production efficiency is that a company does not need to change its form of ownership to raise funds. The organization has to be transformed into a joint-stock company to issue shares in a traditional way (through an IPO). There are no such requirements for security tokens. As a result, even limited liability companies can issue them.
Thus, the use of security tokens can be useful for businesses. This is a chance to attract funding to solve current and future tasks. In addition, digitalization also has a positive effect on the reputation of companies, as investors are much more willing to cooperate with organizations that offer innovative solutions.
What is NFT?
Any production needs to create and maintain brand awareness and effective advertising campaigns. One of the modern tools for this is NFT.
NFTs are non-fungible tokens. These are unique assets or a series of assets. There is a wide variety of information that can be encrypted in this token, but non-fungible tokens have found the most excellent use in the field of digital art.
Companies can use NFTs to build their unique brand and increase awareness. For example, a company may release a series of collectible NFT cards that can become a distinctive feature of its brand. NFTs have performed well in advertising campaigns, as investors are interested in non-fungible tokens and digital art. Selling NFTs can also help raise funding for production.
In the modern world, those who are not afraid of innovation are successful. Digital assets have become one of the main trends of the present time, and in the last five years, it has been developing rapidly. It has proven effective in terms of increasing the efficiency of production and business development in general. Thus, issuing security tokens allows you to attract funding from private investors. In addition, NFTs help build a unique brand and run effective advertising campaigns. Thus, using digital assets for manufacturing can significantly increase your business’s efficiency. If you want to learn more about digital assets, our experts will be happy to provide a free consultation.