DX Hardy Bytes: Finding the Blockers in Digital Transformation

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Cryptic Digital Clues

Leading manufacturers are well into their accelerating digital transformation (DX) journeys, but even the most innovative digital transformers face their share of obstacles.

The following are just some of the common challenges manufacturing organizations face in reaching their digital transformation goals.

Technology and Tradition Clash

Employees at all levels of a company may resist change and adopting emerging technologies.

In its report, Unlocking Success in Digital Transformation, McKinsey & Company said: “Often the biggest challenge is cultural.”

Digital transforming requires “cultural and behavioural changes such as calculated risk-taking, increased collaboration, and customer-centricity, as our previous research has shown.”

Legacy Systems Labyrinth

Transformation initiatives must take into account complex tech stacks that may have been in place for decades.

According to Deloitte Insights, “One of the biggest hurdles in digital transformation is legacy technology. Many manufacturers struggle with integrating new digital tools into old systems.”

Cyber Security Conundrum

The more digitally connected manufacturers get, the more potential cyberattacks they must prepare for, according to Gartner.

Digital Talent Turmoil

Manufacturing enterprises struggle with talent acquisition for digital manufacturing roles, aggravated by the fact that 10,000 baby boomers, who are disproportionately represented in industry, reach retirement age every day.

Data Management Dangers

Many manufacturers have all the important product data that workers enterprise-wide need to maximize productivity and efficiency but they lack robust data management strategies and systems.

Vanishing Budgets

Financial constraints are significant, especially for smaller manufacturers, according to the KPMG report, “Beyond the Hype: Separating Ambition for Reality in Digital Manufacturing.”

Supply Chain Peril

“Digital transformation complicates supply chain management,” according to Bain & Company. “Manufacturers need to balance efficiency with the complexity of a more connected digital supply chain.”

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