Digital Manufacturing: Definition and Examples

Key takeaways

Digital manufacturing is an integrated approach to manufacturing that uses computer technologies to improve manufacturing operations. 

• Digital transformation in manufacturing includes the product life cycle, smart factory, and supply chain management.

• Digital factory applications you may use are cloud computing and big data analytics tools.

• You can explore many careers in digital manufacturing, including AI engineer, supply chain analyst, and IT technician.

Learn about digital manufacturing, including what it is, its benefits, examples, and careers in digital manufacturing. Afterward, consider enrolling in the Digital Manufacturing and Design Technology Professional Certificate. In as little as four months, you’ll have the opportunity to gain a foundation in how digital advances are changing the landscape and capabilities of factories. Upon completion, you can add this shareable credential to your resume or LinkedIn profile.

What is digital manufacturing?

Digital manufacturing is an integrated approach to manufacturing that uses computer technologies to improve manufacturing operations. Manufacturing facilities are increasing the number of automated tools on the ground, so companies need digitized systems on the business end to monitor, analyze, and model all of the machines to optimize the process. The goals of digital manufacturing include efficiency (“lean-ness”), flexibility, design, and integration.

Increased sales and higher productivity drive increased profitability, as supported by data in global manufacturing software as a service provider Tacton’s report, The State of Digital Manufacturing 2025. In fact, 59 percent of manufacturers reported improved productivity, and 32 percent reported a boost in sales. Thirty-eight percent of firms reported a hike in profits [1]. Also of note, Amazon AWS identifies several digital manufacturing trends, including generative artificial intelligence (GenAI), that increase operational efficiencies, reduce machine downtime, and aid in faster development [2].

Watch this video to learn more about digital manufacturing and design technology:

What is digital transformation in manufacturing?

Often referred to as manufacturing’s fourth revolution, or Industry 4.0, the digital transformation of the manufacturing industry enables companies to streamline production processes and increase competition in the global marketplace. Three main areas of digital manufacturing exist. Each corresponds to a different part of the manufacturing process, from product design to production to resource management to customer satisfaction.

• Product life cycle: The product life cycle begins with engineering design before moving on to sourcing, production, and customer service management. At each step of the way, data analytics can account for revisions and monitoring that can impact the entire life cycle.

• Smart factory: With the use of smart machines and sensors, workers receive real-time data about the functions they are performing. This feedback forms the connection between operations teams that monitor the machines and the information technology (IT) teams that deal with the back-end systems like SAP. Both use business intelligence (BI) tools to analyze, track, and improve performance.

• Value chain management: The point of value chain management is to minimize resources and continuously assess value at every stage of the chain to integrate processes so that inventories can stay lean and customer demands can be satisfied.

What are the benefits of digital manufacturing?

Digital manufacturing has many benefits for the manufacturing industry as it streamlines and evolves processes to suit the 21st century:

• Increased efficiency: An integrated, digitized manufacturing process eliminates errors that may arise due to incorrect data, which is common with manual or paper-based systems. 

• Faster innovation: Advanced technologies, including updated machinery and IT systems that can connect to each other to provide data analytics and visibility, speed up innovation.

• Customer satisfaction: Digital manufacturing increases brand awareness and loyalty because businesses can remain in tune with customer needs and wants.

• Cost reduction: With more detailed control and insight over the supply chain, the optimization of inventory levels and delivery statuses can reduce costs at all levels of the manufacturing value chain.

Digital factory applications

Many examples of digital manufacturing already exist in application. Learn how businesses apply two tools, big data analytics and cloud computing, in the real world. 

Big data and analytics tools

Data analytics tools like artificial intelligence (AI) and machine learning can help break down the manufacturing value chain into actionable insights for demand forecasting. For example, a car manufacturer uses these supply-network management tools to visualize the flow of raw materials and manufactured parts through the network so it can ensure operational efficiency and reduce energy consumption. Engineers can then mine the data to understand why certain equipment modes fail and use predictive analytics to continuously make adjustments to maintenance schedules.

Cloud computing

The aerospace industry is using cloud computing to integrate its complex supply network. Manufacturing a jet turbine engine requires hundreds of individual parts, some produced in-house, and others outsourced from different vendors. Cloud computing tools enable suppliers to collaborate with efficiency: Engine makers can share 3-D models of their design and solicit pricing, delivery, and quality information from each supplier. 

What does a digital manufacturing engineer do?

Digital manufacturing engineers implement the sensors, technologies, and cloud workflows necessary to implement the transformations needed to usher in and maintain digital manufacturing. 

Jobs within digital manufacturing

If you’re interested in digital manufacturing, you can pursue career paths that cover the spectrum of business operations, supply chain, engineering, and cybersecurity roles. Some jobs that play an important role in digital manufacturing include:

• Digital manufacturing manager (or specialist): An individual skilled in the creation and implementation of an entire multi-year manufacturing strategy and plan.

• AI or machine learning engineer: Engineers create predictive analytics and program robotics to assist in the manufacturing process.

• Supply chain analyst: Analysts use data to conduct demand forecasting and planning, eliminating errors, boosting efficiency, and decreasing time and costs.

• Cybersecurity analyst: Cybersecurity professionals (can also be managers or leads) are in charge of protecting computer networks from cyber attacks and unauthorized access.

• Business intelligence analyst: Business intelligence (BI) analysts help make sense of the data and provide companies with actionable insights. Management consultants are similar in that they take on projects to create streamlined, more digitized processes in manufacturing, production, or supply chain outcomes.

• Cloud architect: A cloud architect is responsible for an organization’s cloud computing system, developing the application design and systems for managing and monitoring the cloud system.

• IT technician: IT technicians typically install, troubleshoot, and fix the hardware and software in a computer system.

Read more: 10 Cybersecurity Jobs to Know: Entry-Level and Beyond

No-fluff help for when you’re stuck

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• Watch on YouTube: Data Analyst vs. Business Analyst: Which Career Path Is Right for You?

• Find a course: Which Machine Learning Course Should You Take? Find Out in 1 Minute

• Learn from experts: Future-Proofing Your Business Strategy with GenAI

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