The digital transition, in manufacturing but also in other sectors of industry, can now be considered a buzzword: it is no longer a concept relegated to techies or pioneering realities. No doubt the contingent situation has at least fostered interest, even in the realities most resistant to change. But the commitment of European and Italian institutions, with the National Transition 4.0 Plan, has also had the merit of emphasizing the importance, for manufacturing companies, of approaching the digital transition.
Defining the digital transition in manufacturing
Before analyzing the best strategies to deal with it, it is good to define the digital transition. A rather common mistake, in fact, is to overlap this concept with Industry 4.0. Which is undoubtedly a driving factor, but does not, by itself, constitute the entirety of a digital transformation strategy.
In fact, to be able to talk about it for all intents and purposes, digital needs to be integrated all areas of business, not exclusively in manufacturing or organizational areas. While Industry 4.0, as we know, deals mainly with issues related to interconnection, communications and interoperability within the supply chain.
That is why it is also necessary to introduce topics such as the smart factory, or smart manufacturing, and also some related to the more strategic aspects, such as smart analytics and data-driven strategies.
The main purpose of the digital transition, in fact, is to make the whole enterprise better through the introduction of technologies and strategies related, first and foremost, to the intelligent collection and use of data.
The challenges of the digital transition
A destructive process such as this must necessarily be approached with an overall vision, including and especially about the future of one’s company. Which often requires a real paradigm shift.
Even before digital transformation became a well-known issue, in fact, companies that initiated digitization processes encountered difficulties. It must be said that these difficulties are very rarely related to technology. But they are much more often related to corporate culture, to communication problems between the IT and operational departments.
That is why, very often, alongside issues related to digitization are those related to change management: because, in any change process, the real architect of success or failure is the human factor.
So before we delve into more strategic aspects, it is worth reiterating that the first point of any transformation strategy, especially a digital one, is to work on corporate culture. Fortunately, in this we are also helped by some strategies that allow us to better manage change, including and especially by showing the consistency of results.
Managing the digital transition in the manufacturing industry
Each project, particularly those involving an entire supply chain, has its own specificities and requires specific study and solutions. But some basics of strategy can provide a good foundation to guide them.
Digital strategy must be part of business strategy
This is perhaps the factor in which corporate culture has the greatest impact. For effective digital transformation, in fact, it is imperative that digital stop being seen as merely instrumental and become strategic. In other words, it is necessary for the company in general and management in particular not to see this change simply as an extension of IT services. If in the old view IT was somehow considered a business support discipline, in the new view it is necessary for digital to become a business driver in the same way that, for example, sales or manufacturing are. This is because, as we have often seen, the effectiveness of a good digital strategy extends throughout the business supply chain.
We foster collaboration and the circulation of information
One of the main problems of companies is the lack of permeability regarding information. Often this is also due to technical limitations, for example, departments using different documentation, their own databases, and so on. We know that a company digitized in the right way can avoid the creation of these silos from a technical point of view, but it is also necessary to work on the customs and teams in the company.
We build a solid foundation
Often, when discussing innovative projects, the term future-proof is used to refer to the ability of a solution or infrastructure to ensure its viability in the face of subsequent innovations. Digital transformation will necessarily require the restructuring of some business chains, procedures and policies. We can also use this opportunity to revise them from the ground up and build, through digital, a system that is more resilient to change.
Let’s identify a few simple and straightforward goals
Successes have great motivational value. That is why, in defining our strategy, we should identify a few goals that can be consolidated in less time than the entire project. First, because this can allow us to fragment operations and test implementation, and second, because a field demonstration of the effectiveness of digital transformation will have a positive effect on any resistance from staff and management.
A necessary transformation
We mentioned in the opening how the digital transition in manufacturing is an even more disruptive event than Industry 4.0, which is already by itself referred to as the fourth industrial revolution. For this reason it is inevitable that we approach it at least with circumspection, since it also often involves considerable direct and indirect investments. But approaching it in the right way makes it possible to achieve considerable results, even in not excessively diluted timeframes.
At Regesta we can help you design your customized digital transformation journey, thanks to our teams of dedicated consultants.
