Lack of Digital Maturity Seen Blocking Productivity
May 18, 2022
survey of more than 400 manufacturing executives in the U.S
and U.K. found that manufacturers are lagging in digital
transformation efforts in spite of earlier pandemic-driven
investments in new technologies.
Respondents confirmed that although Industry 4.0
advancements were critical to sustaining operations during
shutdowns, most manufacturers today in the U.S. and U.K.
still grapple with a lack of system and process maturity
that prevents them from leveraging operational data for
business intelligence and smarter decision-making.
Case in point, nearly three-quarters (72%) of respondents
invested in new technologies during the pandemic, and 98%
saw increased productivity. However, fewer than half of
respondents (44%) said that this modernization was providing
them with additional actionable data, and 19% are not
harnessing any data insights at all.
"As the volume of manufacturing data continues to explode,
it's critical that manufacturers modernize their systems and
technologies to make use of critical data for business
intelligence and more informed decision making," said Naveen
Poonian, CEO of iBASEt. "The ability to not just embrace
Industry 4.0 at stage one, but to then convert critical data
into actionable improvements is pivotal to a true digital
The survey found that although a majority of manufacturers
embrace cloud transformation enthusiastically, few have made
the full transition. A full 88% of respondents indicated
they are increasing their investment in cloud technologies
over the next 12 months, but only 21% are currently
completely transitioned to the cloud.
Two-thirds (66%) of respondents believe this accelerated
move to the cloud will unlock benefits that help drive
operational efficiency. Only 8% have "no plans" to use cloud
infrastructure as part of manufacturing operations.
Other Key findings:
to the survey, 95% of total respondents still use
paper-based processes, and more than a quarter (27%) use
paper for more than half of all activities.
Nearly all survey respondents (98%) indicate that they
continue to use manual spreadsheets such as Microsoft Excel,
even while taking steps toward digital transformation. In
fact, half (50%) of respondents say they use these tools for
"the majority" of processes.
Almost half (47%) in the U.S. strongly agreed that many US
discrete manufacturers could cease to exist in the next 10
years unless action is taken.