Digital transformation

What is digital transformation? The most basic explanation involves integration of digital technologies such as artificial intelligence (AI), the Internet of Things (IoT), and analytics into the manufacturing process.

Why consider digital transformation? Because the goals of digital transformation are to improve efficiency and productivity while reducing costs.

Are manufacturers working toward embracing digital transformation in their operations? Some, but not enough, according to Parsec Automation’s 2023 State of Manufacturing Survey: North America.

While 73% of respondents note they’ve begun the digital transformation process and 40% report significant progress or completion, 35% report relying on paper-based data collection, which the authors conclude suggests a significant gap among manufacturers’ willingness and preparedness for the technology.

With more than 500 participants in this year’s survey, key takeaways include:

Manufacturers are pleased with digital transformation but may need to go further – Of the survey respondents whose organizations have completed their digital transformations, nearly one-third (31%) still collect most or all data non-digitally.

Manufacturers continue to experience supply chain challenges – 36% of respondents described their organization’s supply chain challenges as very or extremely challenging, and 53% say they were hardly or somewhat prepared.

Manufacturers anticipate using AI/ML, but are admittedly not prepared – 52% of survey respondents agreed enterprise manufacturing solutions should include capabilities for AI and machine learning (ML) but just 34% of manufacturing organizations report being prepared to take advantage of AI/ML.

Manufacturers express mixed feelings about MES platforms – Manufacturing execution system (MES) platforms deliver visibility and contextualized insights into operations – yet 27% say they had never heard of MES. Among those familiar with MES but hadn’t implemented it, 75% say they didn’t have enough information about how it would benefit their business.

Manufacturers struggle to identify, retain skilled labor – Workforce challenges continue to affect manufacturers with 50% saying finding skilled talent remains their most challenging workforce issue. Manufacturers must double down on efforts toward staff retention, especially when it comes to using advanced technology.

“Although manufacturers are steadily advancing toward digital transformation, there remains a significant scope for progress,” notes Eddy Azad, founder and CEO of Parsec. “It’s heartening to note that more than half (53%) of the survey participants are using enabling technologies such as MES. This insight underscores the need for technology providers to not only effectively showcase the benefits of their solutions, but also to furnish the requisite tools and education for the seamless and sustainable adoption of these transformative technologies.”

So where are you on this digital path forward?