Nearly 100 manufacturers have completed the Digital Transformation for Manufacturers (DTM) online assessment, a free benchmark comparison tool that enables manufacturers to measure the digital maturity of their organizations and helps them to identify opportunities for digital transformation and profits. The data points to four critical opportunities for manufacturers:

#1. Business Strategy

Only 31% of manufacturers completing the Assessment have digital strategies even partially implemented. Deploying a well-designed strategy is a critical first step on the digital transformation journey.

#2. Network Infrastructure

Manufacturers are recognizing that legacy networks and IT equipment and systems may not be up to Industry 4.0 standards:

  • Only 35% have network infrastructures fully capable or requiring only minimal upgrades to support digitization.
  • Only 23% report that IT and OT hardware are fully capable or requiring only minimal upgrades to support digitization.

Shoring up these supporting technologies is a must — and can lead to other benefits, too (e.g., improved cybersecurity).

#3. Digitized Production

Most manufacturers have limited application of incorporated smart devices and embedded intelligence in their production equipment.

  • 80% report that a quarter or less of production equipment and processes incorporate smart devices/embedded intelligence — and 22% report that NO production equipment and processes have smart devices/embedded intelligence.
  • 86% report that a quarter or less of warehouse equipment and processes incorporate smart devices/embedded intelligence — and 51% report that NO warehouse equipment and processes have smart devices/embedded intelligence.

Smart devices monitor operations, identify in-process quality problems, alert maintenance when equipment breaks down, and help to ensure inventory accuracy. Without smart devices, manufacturers rely on manual work, stealing employee attention from more important tasks. With smart devices, production capacity, profits, and safety improve across the enterprise.

#4. Digitally Connected Suppliers

 Some 55% of manufacturers have NO plans to apply smart devices/embedded intelligence to their supply-chain processes. But those that do can achieve significant improvements as they and their suppliers leverage technologies to enhance collaboration (e.g., scheduling, inventories, new product plans).

The Digital Transformation for Manufacturers Program helps manufacturers move forward with Industry 4.0.  You can complete a DTM Assessment on your own at the Digital Transformation for Manufacturers (DTM) website, or Manufacturing Extension Partnerships across the country can assist, from facilitating your DTM assessment to working with your team as they digitize operations.

What will be your No. 1 opportunity for digital transformation?

The Digital Transformation for Manufacturers Program — the result of a NIST MEP cooperative agreement award to Ohio MEP — is a collaboration of Ohio MEP, Ohio Department of Development, Ohio Manufacturing Institute, and The MPI Group.