As part of our ongoing series on digital transformation challenges in manufacturing, I wrote an article titled “Legacy systems in manufacturing and digital transformation”, we explored the challenges that manufacturers face when transitioning from legacy systems to new technology, as well as the best approaches to handling this transition.

Now, in this article, we will delve deeper into the people side of digital transformation in manufacturing.

Managing people transition during digital transformation

The integration of digital technologies into manufacturing processes not only improves operations but also significantly impacts people. When we use the word digital transformation it seems like this is a technical exercise, less it true, digital transformation is about people. Managing the human aspects of digital transformation is crucial for the success of transformative projects. This article outlines the challenges and strategies involved in people’s transition during digital transformation, providing a comprehensive guide for manufacturers.

The impact of digital transformation on people in manufacturing

Digital technologies have not only improved and transformed service offers and manufacturing processes, but they have also enhanced the overall performance of operations. However, it is essential to acknowledge that digital transformation goes beyond being only a technical exercise; it also profoundly affects people. The operator, manager, supervisor, customer and many more when we think about manufacturing. Therefore, effectively managing the human aspects of digital transformation is crucial for the success of transformative projects.

Challenges and strategies for people’s transition

This article aims to outline the challenges and strategies involved in helping individuals and teams transition during digital transformation. By addressing these challenges head-on, manufacturers can ensure a smoother and more successful transformation process.

A comprehensive guide for manufacturers

Manufacturers looking to navigate the complexities of digital transformation can benefit from this comprehensive guide. It provides valuable insights into managing the human aspects of the transformation, ultimately leading to improved outcomes.

Introduction

When new procedures are introduced, it creates uncertainty. Similarly, the introduction of new work conditions can be unsettling, and the implementation of new technology is often questioned. In this article, we will provide an overview of the people challenges in digital transformation and discuss the concept of digital transformation in manufacturing and its impact on people. We will also emphasize the importance of considering human factors alongside technological upgrades.

People challenge in digital transformation

Digital transformation brings about significant changes in organizations, and these changes can pose challenges for people. Uncertainty arises when new procedures are implemented, as employees may be unsure of how to adapt to the changes. Similarly, the introduction of new work conditions can unsettle employees who are accustomed to a certain way of working. Additionally, the implementation of new technology may be met with skepticism and resistance from employees.

Understanding human dynamics

• Assessing the current teams: understanding human dynamics is when it comes to assessing the current personnel. It is important to analyze the existing skills, attitudes, and readiness of the people towards digital transformation or more general change. By identifying skills gaps and resistance points early in the transformation process, organizations can effectively navigate the challenges that may arise. This step is essential in ensuring a smooth and successful transition to a digitally transformed workplace.
• Cultural shifts in manufacturing: In today’s world digital transformation has become a driving force behind a significant cultural shift in the manufacturing industry. Companies are increasingly recognizing the need to move away from traditional manufacturing practices and embrace more agile, data-driven approaches. This shift is not without its challenges, as it requires altering long-standing operational norms and behaviors that have been ingrained in the industry for years. However, the benefits of embracing this change are undeniable. By leveraging digital technologies and harnessing the power of data, manufacturers can streamline their processes, improve efficiency, and gain a competitive edge in the market.

To summarise; the transition to an agile and data-driven approach involves more than just implementing new technologies. It requires a fundamental shift in company culture namely by changing the people and teams. This means fostering a mindset that values innovation, transformation, accountability, collaboration, and continuous improvement. It means empowering employees to embrace change and adapt to new ways of working.

However, changing a company’s culture is no easy task. It requires strong leadership, effective communication, a purpose and a clear vision for the future. It also requires providing employees with the necessary training and resources to develop the skills needed to thrive in a digital-first environment.

Identify your change agents and work together with them to start the change.

Technical and Tactical Challenges

• Training and upskilling: In order to successfully navigate the digital landscape, it is crucial for organizations to implement effective training programs that equip their employees with the necessary digital skills and digital mindset. These training strategies should be carefully worked out, taking into consideration the specific needs and requirements for tomorrow. It is important to strike a balance between upskilling current employees and hiring new talent with the requisite personal trades and digital expertise. By investing in training and upskilling initiatives, organizations can ensure that their workforce remains competitive and adaptable in the face of technological advancements.
• Adapting to new roles: digitalisation has created changes in job roles and responsibilities within the manufacturing industry. It is essential to examine how these roles transform in a digitally enabled manufacturing environment. This transformation can be seen in the emergence of new roles that are specifically tailored to meet the demands of the digital era. For example, positions such as data analysts, cybersecurity specialists, and automation engineers have become increasingly important. Additionally, existing roles may also evolve or become redundant as technology continues to advance. It is crucial for organizations to stay abreast of these changes and adapt accordingly to remain competitive in the digital age.

Strategic implementation

• Phased approach to integration: It’s recommended to adopt a phased approach to digital transformation, with a clear vision and purpose, focusing on incremental changes that support people’s adaptation. However, this doesn’t imply that starting with a pilot project is the solution neither.

Often, pilot projects have a high success rate because they are conducted on a manageable scale, with certain shortcuts taken, and without being deployed in a fully productized manner. Now the difficult step, going from pilot to a fully developed productised solution.

This can lead to a loss of momentum when attempting to scale across multiple production lines or plants. It’s crucial to ask the difficult questions upfront and establish a robust digital transformation strategy before initiating the pilot.

Success will require the dedication and willingness of everyone involved, as it is a marathon, not a sprint.

• Change management strategies: An analysis of effective change management strategies is vital for facilitating a seamless transition for employees. Highlighting the importance of communication, support systems, and leadership plays a pivotal role in the change management process.

Overcoming resistance to change

• Addressing fears and resistance: Change is not easy for people and create many thoughts where people will spend thinking about. It is exactly the thinking part will use a lot of energy and this is where change management plays its part. Have communication strategy in place to mitigate the fears and resistance to change. What people don’t like is the unknown, it is this uncertainty we have to manage. Include people in the digital transformation process, invite change champions, coach new members of the team of the purpose and goals you want to achieve. Celebrate small wins.     Change is challenging for individuals, often leading to many thoughts that consumes significant energy. This is where the role of change management becomes crucial. Implementing a communication strategy can alleviate fears and resistance to change. People generally do not like uncertainty, and managing this uncertainty is essential. Involving people in the digital transformation process, recruiting change champions, and coaching new team members about the purpose and goals are key steps. It’s also important to recognize and celebrate small victories.

A case I observed was on the manufacturing floor, where cameras were introduced to inspect the quality of the final products. This transition was challenging as it entailed the displacement of an employee’s role and the introduction of new processes. Before initiating the project, we established a communication strategy, involved key personnel, and appointed one as the project leader. After installing the cameras, it was crucial to ensure that the technology surpassed the existing processes and exceeded the quality expectations. The result was a significant improvement in quality detection and with the data enabling us to identify patterns of defects, which helped us to rectify the problems at the source. Ultimately, the team welcomed the change, job satisfaction rose, and the affected employee transitioned to a different role within the plant.

Case studies and real-world examples

• The successful management of peoples transitions during digital transformation in manufacturing hinges on strategic planning, robust change management, and a focus on the human element.

Coca-Cola’s digital transformation success story underscores the importance of reskilling and upskilling, creating new roles, and securing leadership buy-in, leading to increased productivity and enhanced employee engagement.

Similarly, Petrofac’s implementation of connected worker solutions showcases the potential of digital tools to improve safety and efficiency, emphasizing the value of continuous improvement and training.

Conversely, Haribo and Revlon’s experiences serve as cautionary tales, illustrating the detrimental effects of inadequate change management, planning, and employee training on operational efficiency and customer satisfaction.

These case studies collectively highlight key strategies for successful digital transformation, including investing in employee training, leveraging technology for operational improvements, prioritizing rigorous testing and quality control, and ensuring effective project management and communication. Learning from both successes and failures, manufacturers can navigate the complexities of digital transformation, ensuring a smoother transition and greater success in integrating new digital technologies.

Conclusion

This comprehensive guide aims to equip manufacturers with the knowledge and tools necessary to effectively manage the human aspects of digital transformation, ensuring a smoother transition and greater success in integrating new digital technologies.

The journey of digital transformation in the manufacturing sector is both an opportunity and a challenge, particularly when it comes to managing personal transitions. The integration of new digital technologies such as AI, IoT, and automation into manufacturing processes not only enhances operational efficiency but also necessitates a shift in in processes and change management for people.

As we have explored, the successful management of these transitions’ hinges on several key strategies, each playing a pivotal role in ensuring a smooth and effective transformation.