This is what you need for a winning digital transformation in manufacturing (Not just technology)
The fourth industrial revolution, also known as Industry 4.0 is here to stay. Digital Transformation is no longer a buzzword in manufacturing, but a necessity for those who want to survive. It’s understandable since the technologies allowing for this kind of innovation are more accessible than ever and the results after implementation speak for themselves (They only take a few months to be visible, not years).
But this has a side effect too. Even though 91% of manufacturing companies increased their investment in digital transformation in 2021, they still can’t seem to figure it out. According to McKinsey, 70% of transformation programs (not just in manufacturing) don’t reach their goals. There are multiple reasons for this – lack of employee engagement, inadequate management support, and no accountability. But these only boil down to one thing – a focus on technology rather than business goals and strategy which should eventually dictate technology adoption.
The need for digital transformation is widely acknowledged, and most companies “know” that they need to make the step, but don’t know the “WHY” behind it. Supply chain issues and other effects of the pandemic are leading companies into “firefighting mode”, focusing on one issue at a time and missing the big picture. “It’s a paradox,” says Adrian Dima, founder of KFactory, “There are tons of IT solutions, everybody says they successfully managed the digital transformations but, in reality, there are even more problems.”
Others implemented their digital transformation and are now seeing results. And they did it because their technology adoption was guided by a long-term strategy and they found the right partner to support them in developing and implementing each solution.
1. Digital transformation is only a means to an end
Technology itself is not the goal. Technology supports a long-term strategy focused on business objectives which is aligned throughout the whole company. It is a means to an end and a long-term commitment. Only if you approach it like this, you will see the best results.
Start by understanding the value technology can bring to your business before committing to anything. Employees need to see it too and only after they understand it, do they need to accept it and learn about it. It is not only about the specifics, but it’s a cultural change, a literal transformation that will meet resistance. This is what needs to be addressed.
Only after everything is aligned, you must map out the technology and find the right partner to help you navigate your digital transformation.
2. The right partner will help you avoid the pitfalls
Being a long-term commitment, your digital transformation will have its challenges which will eventually result in learnings and improvements. But this requires experimentation and a lot of time. By choosing the right partner you will speed up the adoption and, ultimately, the results – an increase in production, productivity, and a drop in costs and time. If it would’ve taken you years before, now you will see results in months.
The right partner has expertise in developing and implementing the software and, most importantly, in your vertical. This is what allows them to understand not only your technological needs but also your business objectives and expectations. Ideally, they have developed similar solutions and can use the learnings and experience to help you achieve better results.
If you’re looking to take the steps to digital transformation and you mapped out your technological needs or even if you are not sure what steps to take next, let’s see how we can help you. We will understand the challenges and barriers that are stopping you from producing more and we will provide a platform for validating, testing, and implementing your solution.