EDITOR’S CHOICE
THE MANUFACTURING DIVIDE
SOLUTIONS PT
What the future will look like for those who
don’t embrace digital transformation
The business world is littered with
companies that failed to keep pace
with the changes required by digital
innovation and have ceased to exist. In
manufacturing, digitalisation is already
threatening to create its own class
system, with those who embrace digital
transformation securing their long-term
health, and those who ignore it, their
demise. David Baskett, Technical Strategy
Manager at SolutionsPT, looks at the
manufacturing divide being created by
digitalisation and imagines what the future
will look like for those who don’t make the
change.
The UK’s manufacturing industry has
long needed a shot in the arm. Between
low productivity, a scarcity of skilled
employees and the long shadow cast by
Brexit, positive news stories regarding
UK manufacturing have been few and
far between. Luckily, digitalisation is now
offering British manufacturers a lifeline by
promising transformational improvements
from the factory floor to the supply chain.
Unfortunately, many manufacturers don’t
seem to be in a rush to embrace it.
At a recent conference, ARC Advisory
Group (ARC) cited research of 157
process manufacturers that found that
there were still barriers in organisational
accountability, culture and employee
change management that impeded
transformation. The research found that
although more than 80% of industrial
process manufacturers are piloting
advanced technology, only 5% to 8% of
them are ready for digital transformation
today. In other words, manufacturers are
not harnessing the Internet of Things (IoT),
big data or artificial intelligence to meet
the changing needs of their customers
quickly enough. The question is: why not?
In many cases, the issue is a lack of
digital-savvy leadership, low awareness
of how to build an effective business
case for the required investment and an
inability to implement the technologies.
Other issues include cybersecurity
fears, the challenges posed by legacy
equipment and concerns about the
disruption caused by change.
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PECM Issue 43
The UK’s
manufacturing industry
has long needed a
shot in the arm.
While these concerns are all
understandable, refusing to take action is
not an option. Unwillingness to innovate is
a recipe for disaster and failure to evolve
with the market can be fatal for companies.
Examples of businesses that ignored
the digital revolution to their cost are
everywhere – from Sony, who pioneered
the Walkman only to lose the digital music
war to Apple, to struggling retailer HMV’s
failure to acknowledge and embrace
e-commerce.
These technological advancements came in
response to changing consumer demands.
Manufacturers used to be a step removed
from the consumer, but changes to the
buyer journey have filtered down every
part of the supply chain. Mass producing
one product for millions of customers is
increasingly rare; consumers want options,
personalisation and customisation, and to
do that in an industrial environment requires
the technology to dynamically adjust
production, dialling up and dialling down,
while looking for efficiencies and monitoring
maintenance requirements.
Digital transformation is key to achieving
objectives like improving efficiency and
quality, reducing costs and waste, and
creating innovative products and services.