Turning it up to Eleven: Scaling Digitalisation

There’s a paradox that often arises in business decision-making. On one hand, executives want to maximise the range of choices available to navigate an uncertain future. On the other, as more paths forward appear, more risk emerges, and their organisation becomes paralysed with indecision.

In manufacturing, this problem is particularly acute. As the sector enters a period of massive change, in which the future appears as a blank canvas for new technologies and capabilities, there are few limits on what can be achieved. Despite the potential efficiency benefits of modernising their technologies and processes, executives typically struggle to find the conviction on which of the many paths is going to take the business to its desired goals.

This can often create an undesirable state where the organisation begins multiple innovation projects yet continually finds reasons to delay full implementation, even switching focus to new initiatives before any real progress has been made. This is the so-called “pilot purgatory”. By assessing the hurdles and identifying the triggers necessary to step beyond the pilot stage, executives can begin to explore the benefits digital transformation can bring to their business.

Taking the leap

In developing a smart manufacturing environment, being an early adopter brings with it a substantial competitive advantage. However, there are risks that come with this approach.

Firstly, there’s the risk of “indecision purgatory”. With so many potential solutions on the market, it can be a challenge to match options with the organisation’s needs, both to serve immediate demands and to future-proof against longer term sectoral change. Each potential investment is subject to opportunity cost and too easily abandoned at the starting gate in search of alternatives. Additionally, internal stakeholders may not take to the technology, or encounter difficulties in using it, and fall back to their default tools and applications.

Once a decision has been reached on the solutions to be tested, and the process moves towards the proof-of-concept, the potential stumbling blocks multiply. The technology might not match the required use case, meaning key features become under-utilised in practice. Even if valid applications of the technology are found, the solution may not produce the benefits expected right away, delaying the desired return on investment.

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These issues can weigh down decision-makers and leave too much doubt to commit to further investment. Without a clear view on what criteria each solution is being graded against, and what triggers exist to progress to full adoption, the reasons not to do something tend to dominate decision making.

Getting out of first gear

To avoid the risk of wasting time and resources on a cycle of try-and-fail experiments, executives need to take steps to overcome the challenges that can hinder full implementation. The goal of a technology pilot programme isn’t to solve all the organisation’s issues and challenges at once. There’s a process involved, and the pilot is just one step.

The purpose is to prove the validity of the solutions, but it must be supported by several additional steps before the value can be realised. These include:

1. Having a clear goal of what you want from your digital transformation programme Is the purpose to reduce costs? Open new revenue streams? Improve visibility and reduce risks around compliance and data security? Establishing the overarching objectives in advance helps to narrow down which solutions can support these outcomes.

2. Defining the metrics that will prove a solution’s effectiveness
What would you need to see to know it’s fit for purpose? Why might it not be the right solution? What, specifically, would show that the pilot is a failure or needs further testing? Using an empirical approach to test against initial assumptions and hypotheses can help remove the risk that ‘hype’ or ‘fear of missing out’ (FOMO) takes over decision-making processes.

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3. Scaling quickly, once the pilot has shown the technology works
Here change management becomes a major focus. If the groundwork has been done on making the conditions right for adoption, the technology should be able to scale without facing friction or resistance. The conditions include important steps, such as gaining broad department consensus on the need for transformation and developing the skills and expertise needed to adopt new solutions.

Taking the lead

Having strong conviction on the appropriate path forward is difficult and underlines the importance of leadership in decision making and driving organisation-wide change. For many manufacturers, this may involve extending their risk appetite and evolving a company culture that’s open to experimentation and free from blame.

Equally, if something’s not working, they must be fluid in their approach: see the flaws, correct them quickly or cut losses. Don’t allow the organisation to fall into a state of never-ending pilots as doubling-down on a flawed approach takes time and resources away from initiatives that could be yielding success at scale.

We’ve seen this with one of our customers in the metals industry, where leadership has supported fast change. The CEO was a figurehead in the organisation and understood the need for digital transformation. He took the whole company through a process of education, using a centre of excellence-based approach.

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By clearly explaining to his employees why they are doing it, how it will impact their job and why it is better for them, it helped alleviated many of the worries the workers had. Through taking ownership of the project and showcasing the clear reasons and benefits behind the changes to come, the company was able to change people’s mindsets, creating an environment that was supportive of change.

Getting there with the right partners

The early stages of new initiatives are often the hardest and take time to build the force of conviction required to see them through to completion. Despite these challenges, the benefits of getting beyond pilot purgatory and scaling digital transformation are worth persevering towards.

While manufacturers may have a relatively clear idea of what they want to achieve, being able to filter out the noise and find what works for their organisation presents the biggest hurdle. In this regard, it’s important to have the partner network in place to support holistic transformation – from identifying the right technology, putting the guard-rails in place to limit initial risks, and supporting change management to help workers get up to speed with the changes.

It’s not easy to find this broad range of expertise in one place. That’s why PTC and Rockwell Automation work together to combine the intimate knowledge of developing a smart manufacturing environment with the cutting-edge capabilities that can transform production, helping our customers to get beyond pilots and towards value.

You can find out more about making a successful digital transformation at the Management Perspectives hub. Here, you’ll find a wealth of resources to help you to unify your people, processes and technology and achieve better business outcomes.