How long has your digital transformation been underway? For many manufacturers, it is taking longer than expected. While they realize digital transformation is an iterative process, a recent PwC study found that only one third have progressed beyond the planning stages. Perhaps the question isn’t “how long has it been underway?" as much as it is “why isn’t digital
transformation delivering on the promised benefits at a faster pace?”
There are many variables impacting the progress of digital transformation, from the integration of legacy systems to automating processes and replacing paper-based systems to improve efficiencies and productivity. Yet there are often two issues that are either overlooked or are not given enough attention in the planning phase:
1. Insufficient connections between the shop floor with the back office.
2. Inadvertently creating more busywork through the adoption and use of digital tools that
create app sprawl, shadow IT, redundancies and inconsistent data.
That busy work is also known as “gray work,” and it is one of the biggest detriments to a
successful digital transformation. It’s never deliberate, but it’s quite common. Gray work
happens when teams and individual contributors replace outdated processes with digitized apps, tools and platforms. This is often the result of adopting single tools to solve single problems (for one team or one project), adding another layer of complexity under the guise of boosting productivity on a short-term basis.
From a big picture view, all those individual solutions need to be integrated, or they will
continue to operate in silos. Those silos lead to inconsistent information and unnecessary costs as app features overlap while making the integration process longer and more expensive than necessary.
For example, if the data that an automotive manufacturer needs to manage production and front-line workers doesn’t sync with maintenance schedules and customer invoices, it can delay product delivery. There is an obvious ripple effect on the supply chain, leading to issues with suppliers and customers while impacting the bottom line of every link in that chain.
The losses caused by gray work
To fully understand what is happening throughout the company, from the shop floor to the back office, data and information from all those individual solutions needs to be easily accessible. Otherwise, getting a big picture view of what is happening requires employees to spend extra time pulling out data points from all those digital tools.
What’s the effect of spending all that time combing through those tools? A spring 2024
productivity survey from Quickbase interviewed 1,000 workers in the US and UK and found that 94% feel overwhelmed by the number of software solutions they need to get their work done. And 45% of the survey participants spend 11 hours or more each week just trying to track down the information they need to do their jobs.
IT teams in manufacturing companies are no exception. In a separate Quickbase survey of
manufacturers, 64% report spending between five and 20 hours per week managing and
maintaining software applications. And that is putting pressure on IT professionals—nine in 10 reported that they feel pressure from the C-suite and their own IT department to consolidate.
Addressing the challenges of gray work
Since easy access to current data across the company is the goal, the focus should be on
centralizing information more than trying to connect every digital tool. Major industrial
organizations such as NSK, Unipres and Daifuku Intralogistics America note three
recommendations for solving these issues.
1. Identify bottlenecks: Take a close look at the processes and technologies currently in
place to help identify communication gaps, delays, the presence of gray work and how
much redundancy there is in your IT stack. Once you know what’s holding you back, you
can prioritize those areas for improvement.
2. Connect data and information across the company: This includes production metrics,
inventory levels, equipment performance and everything from your shop floor to plants
across the world up through the corporate office. Connecting data and information saves
time and money, provides real-time visibility into performance and operations, and leads
to better decisions.
3. Continue to break down silos: Technology silos are not the only hurdles. A collaborative
effort across the organization is necessary and looks like teams working together, sharing
information and best practices with an understanding of how every employee moves the
company forward. From an IT perspective, removing silos ensures data security,
integration and governance while supporting a more productive workforce.
When teams and technology are working in concert, you’ll be able to spot potential issues and
performance trends earlier. It’s also important to encourage feedback, especially from the shop floor since those employees are the ones working closest to the production line. This
combination, plus a commitment to continuous improvement, is where the iterative process of digital transformation is most powerful. It also establishes a foundation that enables a
manufacturer to acclimate more easily to change, especially as AI becomes more prominent.
Anthony Offredi is director of customer advocacy, manufacturing, Quickbase.
