**Global**: A new MindMetre report reveals key barriers to digital transformation in the manufacturing sector, highlighting challenges such as management understanding, data management, employee engagement, and the need for collaboration among industry players, with only 25-30% of firms achieving substantial progress.
New research conducted by analysts at MindMetre has unveiled significant barriers hindering the pace of digital transformation within the manufacturing sector. The study, which surveyed over 1,000 manufacturing companies globally, identifies four primary challenges that are currently obstructing progress in this area.
Firstly, the report highlights the necessity for improved management understanding regarding the benefits, risks, return on investment, and optimal pathways for digital transformation. Companies are grappling with assessing how new technologies can impact their businesses positively and understanding the implications of such investments.
Secondly, the research draws attention to a significant data challenge that influences manufacturers’ ability to capture, manage, and leverage digital data effectively for competitive advantage. This difficulty in data management not only limits operational improvements but also affects strategic decision-making.
Another critical challenge identified is the engagement of shop floor employees in implementing and managing new systems and processes. Workers’ involvement is essential for the successful integration of digital technologies into everyday operations, yet many organisations struggle to encourage this participation.
Lastly, the report points out the need for better guidance and collaboration between buy-side and supply-side entities to share foundational knowledge, practices, and examples of successful digital transformations. The sharing of experiences can serve as a catalyst for effective change, helping companies to navigate the complexities of digital advancements.
According to the MindMetre report, only 25-30% of manufacturers across various sizes have achieved substantial digital transformation as of 2023-2024. This statistic underscores the vast potential for further development within the sector, suggesting that many opportunities remain to enhance operational efficiencies and adapt to the evolving industrial landscape.
Paul Lindsell, Managing Director of MindMetre, emphasised the importance of collaborative efforts among industry bodies and technology providers. Speaking to Process & Control Magazine, he stated, “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.” However, he also pointed out that these initiatives have not reached a scale sufficient to address the ongoing obstacles identified in the research, notably in management skills, data capabilities, and employee engagement.
The concept of Industry 5.0, which focuses on the critical interplay between machines and humans from the outset of transformation efforts, showcases some progress in addressing these challenges. Yet, Lindsell argues that more needs to be accomplished to accelerate change on a broader scale. He noted a need for a collaborative ecosystem, suggesting that both buyers and suppliers must embrace a ‘leap of faith’ to foster effective investments in new technologies, which would ultimately enhance manufacturing efficiency, agility, and capacity.
In summary, the MindMetre report provides a detailed overview of the barriers faced by the manufacturing sector in its digital transformation journey, underscoring the need for management understanding, data capabilities, employee engagement, and collaborative strategies between industry stakeholders to unlock the potential for significant advancements in the field.
Source: Noah Wire Services
Subscribe to Industry Updates
