For manufacturers, digital transformation may cause a visceral reaction since it usually involved upgrading and updating the systems that run their business. However, many understand and would like to get to the goal of Digital Transformation promises: connectivity, automation, collaboration and better information.
Big Benefits for Going Digital
According to a recent report by Capgemini, manufacturing companies have seen larger productivity gains from digital transformation—to the tune of 20% more productive. The same goes for increases in quality: manufacturing companies report 20% better quality products coming from their lines. That means more production while improving quality.
The impact is big. When asked about operating profit projections in the next five years, even manufacturing companies that were beginners in digital transformation estimated an increase in $14.7 million. Companies with expertise in the digital transformation estimated that they could see nearly $42.7 million increase in profits over the next five years—almost doubling their current margins.
More Digital Maturity Means More Prepared
The key to all of these increases in profits to become more digitally mature, which contrary to its name, includes more than just a length of time.
Based on the Capgemini report, digital maturity is measured on two metrics:
- How far essential processes have been digitized and how much use of digital technologies like robotics, internet of things, and big data.
- How well the transformation is being managed to drive benefits including the manufacturer’s Industry 4.0 vision, governance, and the digital skills of its workforce.
A bunch of machines creating a mountain of data doesn’t make your facility digitally mature. There has to be an equal amount of use for that information toward driving bottom-line benefits. The more digitally mature your company is, the more you can leverage the tools and technologies that enable you to gain insight into your data.
How Digital is Your Manufacturing Business?
Another report from Mint Jutras shows that manufacturers understand the importance of embracing digital technologies. Fifty-two percent said that embracing digital technologies is necessary for survival, proving that more companies are trusting technology like the cloud and the Industrial IoT to deliver security, reliability, and ROI.
Being able to monitor and understand every aspect of your machines and production lines gives you a new set of tools as you look to optimize everyday processes. Digital transformation is no longer a “nice to have,” but “must have” in order to compete with other companies who are more mature in the process. How digitally mature is your company? Download this eBook to find out how to Make the IIoT and Digital Transformation a Reality.
Jumpstarting Digital Transformation in Manufacturing
Watch this webinar to discover the benefits and performance improvements manufacturing companies are seeing from jumpstarting their digital transformation.Learn More