Section 3
REAL DIGITAL TRANSFORMATION
Digital transformation is not just about changing technology – it’s about driving process changes. Real digital transformation for manufacturing businesses is not just about changing technology, it’s about evolving business processes to optimise performance and achieve business objectives.
re-engineer their processes to maximise ROI. Technology can enable more efficient processes, but only if businesses re-think and redesign their processes to leverage technology’s capabilities. For example, implementing an ERP system may help manage inventory levels, but businesses are advised to streamline their inventory processes to take full advantage of the system’s capabilities. Technology is evolving at an ever-increasing pace, and businesses need to be adaptable to stay ahead of the curve. By redesigning processes to be more flexible and adaptable, manufacturers can embrace new technologies and adapt to changing market conditions more quickly. One way to add greater agility and resilience into a business is through greater collaboration across departments and locations. Digital technologies enable this but only if processes are designed to encourage collaboration. By re-engineering processes to promote cross-functional communication and collaboration, businesses can enhance innovation, reduce errors, and improve customer satisfaction. Overall, real digital transformation for manufacturing businesses is about more than just changing technology. It requires re-thinking and re-engineering business processes to maximise ROI, enhance efficiency and productivity, foster adaptability, promote collaboration, and create a competitive advantage. No technology project is a success in isolation. Only by utilising technology to drive
While technology is an essential component of digital transformation, it is only one part of the equation. Many reports on digital transformation and “Industry 4.0” focus on technologies such as digital twins, AI and machine learning. They discuss the need for a ‘big bang’ business shift towards cloud manufacturing, mass customisation, or lights out digital factories. All are valid, but these are longer term strategies that can be costly and disruptive in the short term. Manufacturers can be just as successful utilising existing technology stacks to deliver continual process improvement, improving productivity, enhancing productivity and boosting overall business performance. This is particularly true of businesses involved in discrete manufacturing. Mid-sized £30+ million firms, and indeed much larger companies, must get the most from their incumbent IT and operational technology, in order to progress up the “technology stack”, and Technology Readiness Levels (TRL)s, to a point where the above interventions will help secure more value. Start with measurable results Long-term, widespread digital transformation can be expensive, and to justify the investment, businesses need to see measurable results. Simply replacing outdated technology with newer systems may not deliver the desired outcomes. Instead, businesses need to identify the specific pain points in their operations and
15 | A manufacturing productivity guide
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