Report reveals manufacturers’ strategies for digital transformation success

Posted on 17 Jul 2024 by The Manufacturer
Partner Content

Chris Iveson, CEO, FourJaw Manufacturing Analytics discusses how technology adoption to support smart factories has entered mainstream manufacturing, with even the most cautious manufacturers embracing new tools and working methods.

Why? Manufacturers are responding to challenges beyond their control – inflation, energy prices, and skill shortages – by embracing technology to control what they can: productivity within their walls.

Research revealed in FourJaw’s Digital Excellence in Manufacturing report by business ISP Beaming, which has tracked technology use by UK companies for almost a decade, shows that just 9% of UK manufacturers have yet to make any effort or plan to transform themselves with technology, a lower proportion than any other sector of the economy.

More than half (55%) of manufacturers surveyed for Beaming by research specialist Censuswide have now embedded multiple technologies such as AI, automation, data analytics, and cloud computing into their operations in some form, and a third (35%) are currently introducing new tools to enhance insight and operational performance.

Only the financial services sector has a higher proportion of organisations (59%) that have adopted multiple transformative technologies

So, what makes the difference between good and bad technology adoption? What do smart manufacturers do to enhance the likelihood of smart factory success?

In addition to Beaming’s research, FourJaw’s report shares practical insights and advice from in-depth interviews with leaders at several UK manufacturers that have undergone digital transformations, as well as technology experts working with hundreds of organisations in the industry.


Report reveals manufacturers’ strategies for digital transformation success


These interviews revealed five principles for manufacturers embarking on digital transformation initiatives to consider:

  1. Focus on problems, not technology.

Smart manufacturers don’t start with the technology. They start with a problem that is hurting their business and identify the right technology to help solve it. Technology is becoming easier to adopt, but manufacturers can easily implement something that doesn’t deliver success if they are not crystal clear on what they are trying to achieve with it.

  1. Start small, then expand gradually.

Moving too fast too soon creates more risk, wastes resources and causes projects to stall as people struggle to see the wood for the trees. Smart manufacturers focus on quick wins first, such as boosting productivity or reducing energy use in a small number of manufacturing cells, and replicate those learnings and successes more broadly.

  1. Be prepared to adapt.

Plan for the long term, but don’t look too far ahead. Smart manufacturers plan properly and have a vision for what they want to achieve in the long run, but constantly review and adapt their approaches during the implementation phase to realise that vision. Adaptability is key to successful smart factory implementations.

  1. Empower employees with technology, don’t replace them.

Smart manufacturers cultivate cultures that embrace technology by empowering all employees to be part of the transformation process. They introduce technology gradually, take time to explain the benefits to both the organisation and the people using it, and encourage feedback. They establish dedicated teams to champion the deployment of digital solutions and make technology part of the furniture by ensuring people can use it properly and celebrating the gains people achieve with it.

  1. Measure productivity objectively and consistently.

Manufacturing is inherently a complex beast and adding more technology into the mix can add to that complexity. Many things are going on, and it isn’t easy for manufacturers to understand if they’ve had a good day. Smart manufacturers measure their operations objectively to know if they are doing well, and if not, why not, and what needs to improve.


Report reveals manufacturers’ strategies for digital transformation success


The future of manufacturing lies in the strategic adoption of technology to drive productivity, efficiency and growth. But while the potential for new technology is vast and the rewards are within reach, the key to successful adoption comes down to tried and trusted best practices: proper planning, a keen focus on the problems to be solved, agile and thoughtful implementation, and a culture of continuous improvement.

Get a free copy of the full Digital Excellence in Manufacturing report at https://gb.fourjaw.com/excellence

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