Research from analysts MindMetre conducted among over 1,000 manufacturing companies worldwide has highlighted four top factors holding back the pace of digital transformation in industry.
The research report ‘Driving Digital Dynamics’ says the four factors are: Management Understanding to assess the benefits, risks, return-on-investment and best-practice journeys for digital transformation; The data challenge to capture, manage and leverage digital data for business advantage; The shop floor — engaging employees to implement and manage new systems and processes; and Guidance and collaboration by the buy-side and the supply-side to share basic knowledge, practice and examples of successful digital transformation
The report follows on from a previous MindMetre study which found the adoption of ‘significant’ digital transformation among all sizes of manufacturer was around 25-30% in 2023-24. This was said to demonstrate the huge remaining potential for positive change in manufacturing around the world.
But greater connectivity, collaboration and sharing of detailed success examples internationally is needed, says the latest report. A change of mindset among manufacturing companies and their technology suppliers is said to be the most important lever to make this happen. The research study emphasises what it found to be the good progress made by many national manufacturing trade associations around the globe in this respect, but also points out that such efforts to date are not nearly enough to maintain and accelerate the pace of change.
Paul Lindsell, Managing Director of MindMetre, said:“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.
“Yet it would appear it is not yet at a scale which is sufficient to overcome abiding obstacles to transformation identified by our research respondents – management skills; data capabilities; employee engagement.
“The advent of the Industry 5.0 concept is evidence of progress too – where the criticality of the machine:human interface is considered right from the start of transformation planning. Yet more is needed to increase the momentum of change.”
A leap of faith from both supply-side and buy-side is needed, said Lindsell, to create a truly open, collaborative ecosphere which is in everyone’s interests to encourage effective investment in new technology, leading to major improvements in manufacturing efficiency, agility and capacity.
“Confident supply-side firms are already making these moves. But the majority needs to get on board,” he said.
The full report is available at https://thoughtsparkagency.com/report/driving-digital-dynamics/