{"id":9639,"date":"2021-09-13T07:19:25","date_gmt":"2021-09-13T12:19:25","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=9639"},"modified":"2021-11-24T10:50:51","modified_gmt":"2021-11-24T15:50:51","slug":"digital-transformation-challenges-to-digital-manufacturing","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/digital-transformation-challenges-to-digital-manufacturing\/","title":{"rendered":"Digital Transformation: Challenges to Digital Manufacturing"},"content":{"rendered":"

\"\"Digital Transformation<\/a> in Manufacturing<\/a> or \u201cDigital Manufacturing\u201d for short is not an optional decision for companies anymore.\u00a0 Manufacturing concerns that want to survive have to jump on the Digital Transformation bandwagon hastily. \u00a0Digital Manufacturing has become a prerequisite for a profitable existence even for mere survival of a manufacturing concern.<\/p>\n

Business Transformation<\/a> of any kind is difficult\u2014more so when it is a Digital Transformation in Manufacturing.\u00a0 In fact, Change Management<\/a> of Digital Transformation in Manufacturing is typically more difficult than any change or Transformation program that an organization may undertake.<\/p>\n

Not many manufacturing concerns had cognizance of the digital technologies until very recently.\u00a0 Still, manufacturing concerns find it very hard to manage a successful Digital Transformation.<\/p>\n

Digital technologies can disrupt businesses. \u00a0A Digital Transformation is not the Digitalization of an existing business.\u00a0 Digital Manufacturing does not entail simply changing technologies, automating processes, taking aid of Artificial Intelligence<\/a> in the process; in fact it means redefining the nature of work and productivity.<\/p>\n

Starting a Digital Manufacturing project can be an arduous process.\u00a0 Executives customarily approach this task with a lot of prudence and get caught in questions that are actually misnomers and myths, weakening the Digital Transformation<\/a> process.\u00a0 The 4 biggest myths about Digital Manufacturing are:\u00a0<\/strong><\/p>\n

Myth 1.\u00a0<\/strong>Is outsourcing or partnering, to build digital capabilities, not speedier and less investment intensive?\u00a0<\/strong><\/p>\n

Myth 2.<\/strong> Why can the existing IT team and CIO not be used for this project instead of hiring new talent and creating a CDO position, both unaware of our business?\u00a0<\/strong><\/p>\n

Myth 3.<\/strong> Should each of our businesses not have individual digital capabilities tailored to their needs rather than a central digital unit that serves all businesses?\u00a0<\/strong><\/p>\n

Myth 4.<\/strong> Should not our approach to developing digital capabilities be phased rather than big bang?<\/p>\n

More on these myths can be found in the PowerPoint presentation titled Challenges to Digital Manufacturing<\/strong> on Flevy<\/a>.<\/p>\n

Digital Manufacturing opens doors for many opportunities.\u00a0 It allows the manufacturers to find ways of refining the performance and reliability of machines and increasing customer productivity through customer usage data gathered by sensors in their machines.<\/p>\n

This approach allows manufacturers to sell outcomes rather than products.\u00a0 Outcome delivery via Data Analysis and Performance Enhancement is a business opportunity worth trillions of dollars, according to a World Economic Forum study.\u00a0<\/strong><\/p>\n

Despite realizing the opportunities of Digital Manufacturing, companies find the process extremely difficult.\u00a0 Digital Manufacturing has both structural as well as behavioral barriers stopping it from being successfully executed.<\/p>\n

Manufacturers have to surpass the following 3 chief obstacles in order for them to be true Digital Manufacturers:<\/p>\n

    \n
  1. Incumbency<\/strong><\/li>\n
  2. Talent<\/strong><\/li>\n
  3. Culture<\/strong><\/li>\n<\/ol>\n

    \"\"<\/a><\/p>\n

    Let us dive a little deeper into the obstacles.\u00a0<\/strong><\/p>\n

    Incumbency<\/strong><\/h2>\n

    Rigidity is a major barrier in bringing about change.\u00a0 Companies create capabilities and Business Models to succeed.\u00a0 Overtime, when these capabilities and Business Models become critical for success and hard to imitate for the rivals, they transform into rigidities.\u00a0 Success of such capabilities and models make the companies wary of bringing change in them.<\/p>\n

    Leaders refrain from touching projects with longer time periods as it may not show benefits during their tenures.\u00a0 The reward structure in companies also encourages short-term gains to longer-term, capital intensive endeavors.\u00a0\u00a0<\/strong><\/p>\n

    Talent<\/strong><\/h2>\n

    Not many manufacturing organizations consider developing Digital Talent<\/a> internally.\u00a0 This leads to a dearth of key talent integral to build Digital Manufacturing capabilities.<\/p>\n

    The primary reason for this is the view that digital technology is an auxiliary function.
    \nIn-house capabilities are not developed because Digital Manufacturing requires an amalgam of personnel from the virtual sciences and the conventional engineering sciences. Both have a very different way of thinking and doing things, making it a great challenge to build them into a team.<\/p>\n

    Culture<\/strong><\/h2>\n

    Organizational culture<\/a> at manufacturing firms is a significant hurdle in adopting digital technology.\u00a0 Manufacturers have traditionally had long product-development lifecycles, long sales cycles, and a culture of constantly improving efficiency.\u00a0 In order to be more digital, manufacturing concerns have to accept concepts used in the digital world e.g., agility, simplicity, and responsiveness.<\/p>\n

    Interested in learning more about the Challenges to Digital Manufacturing?”\u00a0 “You\u00a0can download\u00a0an editable PowerPoint on Challenges to Digital Manufacturing here<\/strong><\/a>\u00a0<\/u>on the\u00a0Flevy documents marketplace<\/a>.<\/p>\n

    Do You Find Value in This Framework?<\/h2>\n

    You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0FlevyPro Library<\/a>.\u00a0\u00a0FlevyPro<\/a>\u00a0is trusted and utilized by 1000s of management consultants and corporate executives. Here\u2019s what some have to say:<\/p>\n

    \u201cMy FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market.\u00a0 They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions.\u00a0 I strongly recommend FlevyPro to any consultant serious about success.\u201d<\/p>\n

    \u2013 Bill Branson, Founder at Strategic Business Architects<\/p><\/blockquote>\n

    \u201cAs a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power.\u00a0 For us, it is an invaluable resource to increase our impact and value.\u201d<\/p>\n

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    \u201cFlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients.\u00a0 In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over!\u00a0 The quality of the decks available allows me to punch way above my weight \u2013 it\u2019s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.\u201d<\/p>\n

    \u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

    Digital Transformation in Manufacturing or \u201cDigital Manufacturing\u201d for short is not an optional decision for companies anymore.\u00a0 Manufacturing concerns that want to survive have to jump on the Digital Transformation bandwagon hastily. \u00a0Digital Manufacturing has become a prerequisite for a profitable existence even for mere survival of a manufacturing concern. Business Transformation of any kind… Digital Transformation: Challenges to Digital Manufacturing<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":9645,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[82],"tags":[2656,1535,2654,228,995,2653,917,2655,793,2249],"class_list":["post-9639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-operations","tag-3-forces-of-inertia","tag-business-transformation","tag-challenges-to-digital-manufacturing","tag-change-management","tag-culture","tag-digital-manufacturing","tag-digital-transformation","tag-incumbency","tag-organizational-culture","tag-talent"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/9639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=9639"}],"version-history":[{"count":9,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/9639\/revisions"}],"predecessor-version":[{"id":9651,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/9639\/revisions\/9651"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/9645"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=9639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=9639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=9639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}