How small and mid-sized manufacturers can use data to compete
As small and mid-sized manufacturers (SMMs) in the American Midwest rise to the challenge of being globally competitive, they face several key issues. While larger enterprises embrace digital technologies, SMMs struggle due to the lack of economies of scale, hindering their digital adoption. In this article, we will explore how SMMs could transform their business to make it ‘smart’ while keeping three problem areas they often face in their journey: (i) limited capital, (ii) time to value, and (iii) solutions unfit for purpose (reference: MxD Strategic Investment Plan 2023).
Let’s begin by examining the key issues SMMs face in their business operations:
- Legacy equipment on the shop floor, ill-equipped to provide information on their maintenance, productivity, utilization and overall equipment effectiveness
- Heavily manual processes for managing demand, production schedules, defects and scrap
- Attracting and retaining a talented shop floor workforce
- Ensuring cybersecurity to protect their IT and Operations Technology (OT) networks.
How can data help SMMs resolve such business operations issues while keeping their transformation challenges in perspective? How can data assist in scaling and managing operations? What sorts of solutions are available to SMMs to help them improve their bottom-line, address worker shortage, and invest in the expansion of their businesses? What steps should SMMs take to secure their IT and OT networks?
Here, we propose a few strategies SMMs may want to consider to map their journey to a digitally transformed Industry 4.0 enterprise:
- Use data to improve productivity in manufacturing operations
- Use data to improve efficiency in manufacturing operations
- Use technology and management solutions to address worker shortage
- Assess and operationalize cybersecurity to address risks to the business
At first glance, such a transformation may seem daunting due to the time, costs and talent required to accomplish it. It is imperative that SMMs recognize that the more they delay transformation efforts, the more difficult it will be for them to catch up, scale and compete in a global marketplace where manufacturers deploying AI and automation effectively will leave everyone else in the dust.
SMMs should seek appropriate assistance from technology strategists and systems integrators to create a multi-year transformation roadmap of prioritized opportunities, take baby steps by piloting key initiatives, reap the benefits, and then act boldly to reinvest the savings and get to the finish line.
Clean, trustworthy and timely data is at the heart of Industry 4.0. Get your data to work for your business. Be ready for an AI-driven future!
