For the past several years, the manufacturing industry has focused on digital transformation, defined as integrating digital technology into all business areas. ERP trends have been an integral part of this journey. Digital transformation fundamentally changes how manufacturers operate and deliver value to customers. It involves a cultural shift that requires organizations to continually challenge the status quo, experiment, and get comfortable taking risks.

Smart manufacturing utilizes advanced technologies such as the Industrial Internet of Things (IIoT), artificial intelligence (AI), machine learning, and cloud computing to enhance manufacturing processes. ERP trends, including integrated ERP and CRM systems, provide manufacturers with 360-degree visibility into all aspects of their sales, service, and operations. These and other technological changes aim to improve efficiency, reduce costs, and provide better process control through real-time data collection and visibility. 

Adopting smart manufacturing best practices and embracing digital transformation requires significant time and money. However, the benefits far outweigh the costs in enhanced productivity, improved customer experience (CX), and overall profitability. Other barriers to adoption may be stopping you from embracing digital transformation and smart manufacturing. Let’s examine each and discuss overcoming each to focus on productivity and modernization. 

Barriers to the Adoption of Smart Technology

We’ve already mentioned the two most pressing barriers: time and money. 

Time must be invested in the overall digital transformation plan, with special attention given to the strategy behind it. Adopting smart technology is but one step in digital transformation. Before purchasing new technology, manufacturers must examine all aspects of their business, including production, shipping, personnel, and operations metrics. These metrics can guide leaders in making the best use of smart technology to improve productivity and profitability. The metrics also indicate where spending time and money on digital transformation can yield the most significant impact. 

Skills Gap

The manufacturing sector faces a significant skills gap, especially in areas like data analytics and AI. While automation creates new job opportunities, companies struggle to find skilled workers to fill these roles. Additionally, manufacturing is often not perceived as an attractive career path for new talent. 

Training and Retention

Training and retention often pose barriers to adopting smart technology. Companies must invest in training their current workforce to develop the necessary skills for smart manufacturing. Effective training boosts employee morale, improves retention rates, and attracts new talent. 

Integration

Technical integration often hinders the adoption of smart technology. Integrating new technologies with existing systems can be challenging, and ensuring consistent data collection and real-time visibility is essential for successful implementation. 

Overall Investment (Beyond Technical Costs)

Other investments must be considered besides investing in the technology that drives innovation. Upgrading one area may require upgrading technology throughout the company. Additionally, investment in staff training in the new technologies and processes must be considered.

Overcoming Barriers to Adoption

Manufacturers can overcome barriers to adopting smart technology by addressing talent gaps, enhancing training and retention, facilitating technological integration, and managing costs and investments. Companies should invest in training their current workforce in areas like data analytics and AI, which not only fills the skills gap but also boosts employee morale and retention. 

Promoting manufacturing as a high-tech and innovative career path can attract new talent, and collaborating with educational institutions to create specialized programs can be beneficial. Implementing continuous learning programs ensures employees stay updated with the latest technologies and practices, improving job satisfaction, and reducing turnover. Establishing mentorship programs helps transfer knowledge from experienced workers to newer employees, fostering a culture of learning and growth. 

Starting with small-scale pilot programs can identify potential issues and refine processes before full-scale implementation, while using collaborative platforms ensures seamless integration of new technologies with existing systems, enhancing data collection and real-time visibility. 

Conducting thorough cost-benefit analyses helps companies understand the long-term benefits of smart technologies compared to the initial investment, and seeking financial incentives, such as grants or tax breaks, can offset some initial costs associated with adopting new technologies. By addressing these areas, manufacturers can effectively navigate the challenges of adopting smart technology and position themselves for future success. 

Lastly, ERP trends, including the adoption of cloud-based ERPs, enhance integration and visibility. They make full digital transformation possible by enhancing real-time data flows and information. Updating an ERP from an older, siloed version to a modern, flexible, cloud-based ERP can help speed the way for digital transformation in manufacturing.

Embrace Digital Transformation

Ready to embrace digital transformation? PositiveVision offers business management software and consulting services that can help you transform your manufacturing technology - and change how you manage your business. From productivity enhancements to better customer experience, we can help you select and use the platforms and software that improve manufacturing businesses. Contact PositiveVision today.

Robert Baran

Robert Baran is the founder and President of PositiveVision. He has worked in a variety of positions including system analyst, computer consultant and programmer, project manager, and division manager.