**London**: A new study by MindMetre reveals that understanding management, data challenges, shop floor employee engagement, and collaboration among buyers and suppliers are key obstacles to digital transformation in the manufacturing sector, with only a quarter adopting significant strategies by 2023-2024.
Research conducted by MindMetre, a prominent analytics firm, has revealed significant factors hindering digital transformation in the manufacturing sector. The comprehensive study involved feedback from over 1,000 manufacturing companies worldwide and is detailed in the report titled ‘Driving Digital Dynamics.’
The report identifies four primary obstacles that manufacturers face:
-
Management Understanding: There’s a critical need for management to assess the benefits, risks, return-on-investment, and best practices related to digital transformation.
-
Data Challenges: Companies must effectively capture, manage, and leverage digital data to gain a competitive advantage in the market.
-
Employee Engagement on the Shop Floor: Encouraging employees to implement and manage new systems and processes is essential for the successful adoption of digital tools.
-
Collaboration and Guidance: Enhanced cooperation between buyers and suppliers is necessary to share fundamental knowledge, practices, and examples of successful digital transformations.
Supporting this, a previous MindMetre study indicated that only about 25-30% of manufacturers had adopted significant digital transformation strategies by 2023-2024, highlighting substantial potential for advancement within the industry.
The latest findings stress the importance of increasing connectivity, collaboration, and the sharing of successful case studies on an international scale. A shift in mindset among manufacturing companies and technology suppliers is viewed as a critical factor to catalyse the necessary changes. While the report acknowledges the progress made by various national manufacturing trade associations, it also underscores that current initiatives are insufficient to sustain or accelerate the momentum of change.
Paul Lindsell, Managing Director of MindMetre, remarked on the situation, stating, “Much great work is being done by industry bodies. Equally, there are some standout technology providers who are creating experience-sharing workshops and forums for their client base. And all of this excellent work is to be encouraged.” He noted, however, that it has not yet reached a scale capable of addressing the persistent obstacles to transformation identified in the research, which include management skills, data capabilities, and employee engagement.
The concept of Industry 5.0 is introduced as an indication of progress, focusing on the machine-human interface from the outset of transformation planning. Lindsell emphasised the necessity for a leap of faith from companies on both the supply and buy sides to foster an open, collaborative ecosystem that promotes effective investments in new technology. This would lead to significant improvements in manufacturing efficiency, agility, and capacity.
“Confident supply-side firms are already making these moves. But the majority needs to get on board,” Lindsell concluded.
For those interested in a more detailed examination of the findings, the full report can be accessed online.
Source: Noah Wire Services
Subscribe to Industry Updates
