According to New Relic’s State of Observability in Industrial, Materials, and Manufacturing report, 44% of respondents said the adoption of AI technologies has increased the need for observability, and 65% said they were able to resolve incidents faster after adoption.
NEW DELHI, India—August 14, 2024—New Relic, the intelligent observability platform, announced the State of Observability for Industrial, Materials, and Industrial. Manufacturing Reportprovides insights and analysis on the adoption and business value of observability. The report is based on insights from 285 technology experts and was developed in conjunction with the Observability Forecast 2023. The report finds that manufacturers are investing in observability to optimize uptime and improve productivity, cross-team collaboration, and strategic decision-making.
The report highlights the importance of implementing full-stack observability, with respondents reporting increased return on investment (ROI) after adoption. Additionally, 65% of respondents in industrial, materials, and manufacturing said they have seen improvements in mean time to resolution (MTTR) since implementing observability. The report cited security (50%), AI technologies (44%), and IoT technologies (43%) as the main strategies and trends driving observability.
“As manufacturers across India accelerate their digital transformation, they are beginning to realize the importance of observability in optimizing operations and customer experiences. Forward-thinking manufacturers are gaining a competitive advantage by leveraging full-stack observability to increase operational efficiency, reduce risk, and deliver superior customer experiences,” said Peter Marreras, field CTO, APJ, New Relic.
Observability and AI drive industry advantage
As manufacturing enters the Fifth Industrial Revolution, there is a focus on adopting new technologies to create competitive advantage. Nearly half (44%) of manufacturing organizations say AI technologies are driving their need for observability. The powerful combination of observability and technologies such as AI provides better insights into telemetry data and is essential to address the complexity of growing data sets. Observability is critical to the success of AI because it helps teams understand telemetry data and how to improve MTTR, and enables developers to easily apply fixes to code-level errors in their integrated development environment (IDE). It also drives automation for faster alerting, as well as improved incident detection and resolution.
Observability is the key to reducing outages
Manufacturing organizations that have implemented full-stack observability have seen significant improvements in MTTR, with 34% reporting a 25% or greater improvement since implementing observability. These organizations also saw a decrease in the frequency of business-critical outages, with 30% reporting outages at least once a week, compared to an average of 32%. Additionally, only 12% of respondents estimated that outages cost their organization more than $1 million per hour, compared to 21% overall.
Investing in observability improves productivity
More than half (51%) of manufacturing organizations say observability improves collaboration between teams and strategic decision-making. When asked what has improved their work the most, nearly half (47%) of practitioners said observability makes them more productive and helps them find and resolve problems faster.
“New Relic is a crucial component in our DevSecOps cycle. It allows us to standardize the process of driving continuous improvement of our applications and services by observing user experience. This is critical for any project and goes beyond a set-it-and-forget-it situation,” said Dr. Mitsuhiro Mabuchi, Group Manager, Cloud CoE Group, DS System Development Department, Advanced Data Science Division, Advanced R&D & Engineering Company, Toyota Motor Corporation (also CCoE Virtual Team Leader, Digital Transformation Promotion Department).
For more information, see the “State of Observability in Industrial, Materials, and Manufacturing” report.
About New Relic
Since inventing application performance monitoring (APM), New Relic has been at the forefront of observability with a cutting-edge platform that eliminates digital disruptions.
Companies around the world, including adidas Runtastic, American Red Cross, Domino’s, GoTo Group, Ryanair, Topgolf, and William Hill, use New Relic to create better digital experiences, optimize revenue, and lead innovation. Learn more.
