3 Elements to Guide Your Journey Toward Digital Transformation

leadership support for digital transformation

Digital transformation may be a buzzword right now, but it’s actually not a new idea. Manufacturers have been focused on continuous improvement for years, and digital transformation is just the latest iteration of our shift toward better, faster, and more cost-effective processes.

The industry has moved from mass production to mass customization to personalization. Instead of making two types of products, for example, manufacturers are now making 10, 20, 30, or 40 different versions – each with their own subtle differences. Digital transformation makes this possible while ensuring that quality remains intact and waste and downtime fade away.

Things move much quicker today than they did decades ago. Need proof? Consider four game-changing innovations the industrial world has experienced over the last two centuries:

  • The implementation of mechanization and water power in the early 1800s
  • The introduction of electricity and mass production in the mid to late 1800s
  • The launch of computers, connectivity, and simple automation in the 1990s
  • What we’re calling “Industry 4.0”: the recent introduction of technology like IoT, artificial intelligence, virtual reality, and human-machine collaboration

The manufacturers that adapted to these disruptions over time succeeded. (Can you imagine a manufacturer choosing not to use electricity or computers?) While adopting digital transformation may seem like a big (and possibly unnecessary) leap forward from where you are now, history reveals that manufacturers will likely be left behind if they don’t keep moving forward.

During a recent discussion about what digital transformation is doing for manufacturing, Andrew Ellis, director of global technical consultants and information software solutions at Rockwell Automation, revealed three essential elements that should be considered as part of digital transformation. They can guide your journey by helping you understand where you are, where you want to go, and how to create a plan to get there.

1. Pinpoint Important KPIs and Analytics

The desire to solve problems drives the movement toward digital transformation. What problems are you most eager to address? Which KPIs do you need to measure and improve most: yield, asset and labor utilization, downtime, quality, cost effectiveness … or something else? How quickly (and how often) do you need this information?

Think about the KPIs and analytics that matter to you today, as well as those that will matter tomorrow. What types of data will matter to your customers and employees – from HR to maintenance?

2. Evaluate Current Systems and Infrastructure

Before you can move forward, it’s important to understand the types of systems and networks you already have in place. Are you deploying things at the edge or in the cloud – or in between using hybrid solutions? Are systems siloed or working together? How much “technical debt” have you taken on? (In other words: How much work needs to be readdressed because it wasn’t done correctly the first time?) Are your systems scalable beyond your existing site?

Having this data is especially valuable if your organization is involved in mergers and acquisitions. Many times, the systems from one company don’t “play well” with the systems used by other organization.

3. Don’t Forget About People

In the end, it’s the knowledge and expertise of your people that bring your technology to life and help automate environments for efficiency and safety. Understanding the skill sets of automation engineers, data scientists, and subject-matter experts helps you successfully apply new technology.

Like many other industries, the manufacturing trade is experiencing a retirement wave: Many long-time workers are leaving, and their positions are being filled by younger professionals who don’t have as much experience. Make sure you understand what knowledge these seasoned employees must transfer so new staff can become “experts” faster.

 
TRANSFORM Webinar Series

This blog is based on insights shared during the sixth webinar in Van Meter’s 11-week TRANSFORM series!. Running from Sept. 3 through Nov. 12, 2020, the series is focused on smart manufacturing and digital transformation. Every week, these webinars connect you with industry peers who share their digital-transformation experiences and the approaches they took to get there.

Want to hear more about these three elements of digital transformation? Watch “Considerations on Your Digital Transformation Journey” on demand here. Then sign up for future webinars in our series here!

jeff spadaro van meter ARTICLE BY:

JEFF SPADARO
EMPLOYEE-OWNER, VICE PRESIDENT OF AUTOMATION

Spadaro joined Van Meter in 2017 and has spent more than 24 years in the automation industry.