Tips for Bridging the Digital Gap

Manufacturers face heavy competition for consumer dollars every single day. In the global economy, companies must find ways to become more efficient to remain viable. Bridging the digital gap by using advanced digital technologies presents many challenges for manufacturers beyond just installing new software. Sometimes implementing new technology requires company-wide changes.

Krishnan Ramanujam, global head of enterprise solutions at Tata Consultancy Services, writes that digital technologies create new and exciting opportunities for businesses to expand. The process of transformation to newer ways of doing things may not be easy for some companies. A study polled 100 decision makers involved in transformation projects, and executives in the manufacturing and materials industry found it hardest to implement changes at their companies. Common responses to massive changes included "employee resistance" and "no mandate for change."

Another difference noted by executives involved a generation gap between older workers, who earned their place in the company with older ways of doing things, rather than younger workers familiar with computerized solutions. These same manufacturing executives felt a lack of leadership in various departments led to resistance.

The good news is that manufacturing sees greater rewards after transformative changes. The return on investment of these projects is much greater in manufacturing, which means the reward outweighs the risk. Returns on investment may take years to be fully realized, but they do happen eventually. Companies must use new digital technologies, despite resistance, in order to survive.

Ramanujam cites several tips to help firms make company-wide transformations as painless as possible. Companies must be willing to invest in their workers by offering incentives to workers who improve their skills. Create funds for workers who go back to school and get degrees and certifications. Better define roles and responsibilities, and reward workers who voluntarily take on new projects that fit their job knowledge. Budgets, staff, resources and metrics all should be in-line with the new manufacturing innovations that are coming online. Employees, managers and trainers must have the resources they need to implement new digital technologies.

Executives can rely on trusted third-party partners to help with the transition. Consulting firms are one way to go. Consider bringing in trainers from the company that installed the new machinery, computers or software to train your own employees. Partner with a community college to offer classes on digital technologies in manufacturing. Manufacturing innovations such as 3D printing often require more formal education or certification than just on-the-job training.

Create a small group, across many departments, responsible for overseeing the complete transformation project. That way, executives receive perspectives from all aspects of the manufacturing process within the company. The issues presented by shipping and receiving differ from those in the supply chain for raw materials. Billing and sales departments also have concerns that vary from the production line. This core leadership group can help oversee significant changes by remaining flexible through the process.

The study showed companies willing to make changes as new digital technologies progressed had the largest returns on investment. This means everyone must be flexible enough to change for the better. Long-term job stability while maintaining industry leadership leads to great rewards for manufacturing innovators.

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