An ERP (SYSPRO) can help remove potential barriers preventing companies from adopting smart manufacturing practices. Smart manufacturing practices are part of manufacturers’ overall digital transformation journey and encompass technologies such as artificial intelligence (AI), machine learning (ML), IIoT, cloud and mobile applications.

Digital transformation is more than adopting new technologies, however. It’s part of an overall cultural shift within an organization. It’s rethinking workflows and processes and adopting technology to improve efficiency, innovation, automation, and customer experience. 

Numerous barriers prevent manufacturers from fully embracing digital transformation and smart manufacturing processes. An ERP such as SYSPRO can help overcome many of these barriers and enable manufacturers to embark fully on their digital transformation plans. 

Barriers Preventing Digital Transformation

There are several common barriers preventing manufacturers from adopting smart technologies as part of their digital transformation: 

1. Changing job demands and talent shortage
2. Costs of adoption
3. Business culture challenges

Changing Job Demands and Talent Shortage

It’s a myth that there aren’t enough manufacturing jobs available today. Automation hasn’t caused the manufacturing job market to shrink; instead, new jobs, demanding highly skilled workers, remain unfilled. In fact, according to consulting firm Korn Ferry, there may be as many as 85 million jobs available - for highly skilled workers. 

What does “highly skilled worker” mean? It means workers capable of running robotics in the plant or working with AI, data, and analytics. These aren’t the traditional jobs one thinks of when they think of the manufacturing industry. It can be challenging for manufacturers to recruit such skilled workers. Manufacturing isn’t what comes to mind first when they are looking for jobs. 

One way in which companies can overcome the talent skills gap is to have a recruiting strategy firmly in place that proactively seeks talented people year-round. Offering training onsite or a robust professional development pathway for current workers is another way to fill talent gaps and ensure that people already familiar with the company and its manufacturing practices are upskilling and ready to work with new smart technologies as part of digital transformation. 

Cost of Adoption

Manufacturing remains an industry with slim margins. Pricing pressures, increasing raw materials costs, tariffs, and financial factors weigh heavily on manufacturers’ minds. To adopt smart technologies as part of a digital transformation initiative, manufacturers must invest in new platforms or technologies. Sometimes, a full rip and replace of an existing ERP isn’t feasible, so they must find ways to extend legacy systems. That’s easier said than done when some systems are difficult to integrate and extend. 

One way to rethink the adoption costs of smart technologies is to measure not just the cost but the cost-benefit ratio, too. New technologies come with a price tag, to be sure, but what will you get from the investment? Faster production times, fewer errors, better tracking, improved customer experience, and less manual data entry are all important factors to consider. Such improvements may add to the bottom line and outweigh potential investments in smart technologies. 

We’ve done a cost-benefit analysis of adopting platforms such as Sage 300 and ERP (SYSPRO) that you might want to review. Our article includes a list of cost considerations and ideas for evaluating the benefits. 

Business Culture Challenges

Lastly, workplace culture is often an overlooked but major barrier to digital transformation and the adoption of smart manufacturing processes. Manufacturing tends to be a traditional business with processes and procedures mapped out to ensure factories run smoothly. Digital transformation and the adoption of smart technologies force companies to think differently about every aspect of their business, from the shop floor to sales and supply chains. If leadership isn’t behind it all the way, many positive changes will fall by the wayside as executives revert to entrenched ways of doing things. 

To overcome this challenge, leadership must be fully invested in change. They must support growth and learning. Sometimes this means making, and accepting, mistakes. It may mean testing uncharted waters, such as using AI to automate sales processes or moving from spreadsheets to an ERP. Having a clear vision and a plan helps, but leadership must be confident that the moves they are making towards digital transformation and smart technology adoption are warranted and justified. If they are sure of themselves, they’ll stick to the plan and help the company move forward to a competitive, technology-driven future. 

Digital Transformation Is Essential for Manufacturers

As businesses increasingly adopt cloud computing, apps, ERPs, CRMs, AI, and smart technologies, manufacturers who fail to keep up will struggle to remain profitable. Digital transformation is a viable path forward, and one that can lead to improved profits, enhanced efficiency, and the modern factory of tomorrow. 

PositiveVision: ERP SYSPRO Resellers 

PositiveVision is a trusted SYSPRO reseller with nearly two decades of experience helping businesses implement and optimize their ERP solutions. PositiveVision provides comprehensive support to ensure seamless integration and customization tailored to each client's unique needs. Our expertise in ERP systems helps businesses streamline processes, improve efficiency, and achieve operational goals. Contact us today for more information about our SYSPRO consulting services.