Lots of promises… and difficulties
Clear increases in performance and revenue, total traceability of information, better energy efficiency, increasingly affordable technology… The digital transformation is a dream for industrial companies and its added value is now widely acknowledged in the market.
This can be seen in the industry’s current trend of digitalizing work processes, namely the introduction of digital tools (tablets, smartphones, etc.) that help to manage activities, assist the operator in their actions and make well-informed decisions. All of this occurs across multiple platforms and in real time. Of course this may not appear impressive at a time when we expect everything to be instantaneous, but it is a very real and contemporary evolution in our industry which shows that the revolution 4.0 is underway. Other digital solutions are thriving elsewhere in the industry, such as predictive maintenance, augmented reality training and reassessment of aftermarket strategies via additive manufacturing.
These technologies are being used more and more by large companies, especially those based around a “digital manufacturing” entity.
The industry’s activities are evolving as a result beyond technology. Thanks to digital tech, a whole economic model is emerging based on knowledge and expertise. A collaboration is gradually being built between robots and humans, providing solutions to eliminate repetitive tasks and ensure better accuracy. Movement within the factory becomes simplified and autonomous. Connected glasses, virtual and augmented reality and other technologies help to digitalise expertise and to make it more accessible, simpler and faster. This means that in the near future (and we are already seeing this more and more) mankind will be able to focus on tasks with higher added value and technicians or operators will find themselves “augmented” with immediate expertise. These evolutions therefore present both a considerable asset in terms of transfer of knowledge and training and a source of savings through enhanced performance of operational processes.
However, despite all of these advantages and advancements, a 2018 PWC survey indicates that two thirds of companies worldwide have not yet launched their digital transformation! This delay is particularly apparent in Europe, where just 5% of manufacturers are digitally advanced, compared to 19% in Asia and 11% in America – and the gap has been widening over the years. The same observation is made in the Coleman Parks study: this survey shows that only one third of the companies surveyed would use new technologies to eliminate information silos and liberate data.
There is strong resistance to change, especially in France. However, business leaders seem to agree on the benefits of the digital transformation and 95% of them say they are confident about their company’s ability to adapt to new technologies.
So why are these new technologies not being used more? What challenges must the industry overcome in order to fully launch the digital revolution?
Lack of knowledge, hesitation to invest, cybersecurity
I see three main obstacles to faster implementation of digital tech:
Firstly, digitalization uses new technologies which are therefore essentially unknown. This lack of knowledge and expertise in them can understandably lead to some hesitation.
Secondly, the digital transformation of a factory or company requires significant financial and human investment and a lot of support for the staff. The fact that management is unable to easily calculate return on investment can cause apathy, just as the weight of the existing infrastructure can hinder change management.
Finally, connectivity and security present a significant challenge when it comes to cyber risks. How do you both implement the communication systems required for the digital technology and ensure the security of the communication networks? This challenge makes cybersecurity the main concern for business leaders who know they are already vulnerable to cyber attacks and fear that the digital transformation of their activity will further increase this risk.
Although these are legitimate concerns, it is essential for companies to rise up to the challenge and follow the path to digitalization; it is a question of survival. The international competition will not leave any space for a company that does not know how to make use of the technological advantages of the digital revolution. So what can be done?
How can we transform the attempt?
Let’s start on an optimistic note. Digitalization is feasible, as it is already in use by a large number of manufacturers! This may seem like a simplistic observation but a positive approach to the issue is essential for a successful digital transformation.
In order to successfully digitalise their company, manufacturers must use a combination of technological, strategic and human leverage.
Certain techniques, by identifying technological approaches at very operational levels, will allow “quick wins” to be implemented. The challenge here is to make it simple, fast and effective. It is not necessary to transform your whole company to improve the quality of an assembly station using augmented reality or to implement real-time activity traceability for a specific activity, nor is it necessary to create planning support tools based on the data from your previous projects or to optimise a mechanical unit by 3D printing.
Often, a few days of immersion and discussion can bring scenarios to light and lead to this extremely crucial first step!
The strategic approach is the action which can bring about multiple benefits, because once one or more “quick wins” are identified and developed, the way in which they are upscaled will really determine the benefit that can be drawn from this transformation. Several issues become central at this point, and support from industry and digital experts becomes key.
This strategic approach starts by understanding the general challenges of the inseparable trio of strategic data, connectivity and cybersecurity. Each industry, according to its own characteristics and restrictions, must implement a specific solution from those available on the market which can be adapted during the integration phase. Data recovery scenarios will be all the more powerful as they are globalised and integrated natively into the company’s products and services, enabling it to bring added value to its market.
The theme of the digital twin, a starting point for extended reality scenarios (augmented, virtual or mixed), from training, to support in operations based on developmental studies, can also be an important step.
Finally, the potential redefinition of the design and production strategy through additive manufacturing can lead to thorough reconsideration of the company’s global strategy. Production on demand, product personalisation, creation of decentralised production units and redefinition of aftermarket strategy are all key areas impacted by this technology.
Finally, the human factor is essential! Obviously it is not possible to deploy a digital strategy without the necessary skills or support.
The unavailability of technical skills is one of the main obstacles to a company’s digitalization. The deployment of digital technologies requires a cohort of new professions, which academic training courses barely cover: digital project managers, data scientists, UX designers for extended realities, additive manufacturing designers, ethical hackers… In order to not fall behind in the race which is starting, it is essential to share these skills and implement diverse training solutions. Internal training, school partnerships, MOOC and multi-company partnerships are all ways that can be used to create skills. On the other side of the spectrum, these new professions are just as much tools for HR and career management allowing a company’s employees to progress and learn new skills, while giving the company a modern image.
However, the human factor is not limited to the people working directly in these new professions. Ultimately, all of a company’s activities will end up being impacted by the evolution of technologies. Change management is therefore at the heart of the digital reactor! Support expertise is thus naturally part of all transformation projects.
A step by step approach
The digital transformation is therefore no small matter for a company. It very often turns out to be global and fundamental, and must therefore be approached in stages.
To wrap up let’s go back to the feasibility of this transformation. The key is in defining a clear and gradual roadmap. Working with a specialised partner allows us to take each step with care, as much from a technical perspective as an economical one.
These small steps, applied in this manner, will allow the companies who take them to avoid mistakes in this shift in progress which, if poorly negotiated, could damage the prospects for growth and in the worst cases degrade the probability of continuing operations.
The digital transformation is not just a technical and human issue; it is a question of survival! It is therefore essential to find the right partner to manage this change. Shall we take the first step together?
FOR A BETTER EXPERIENCE