Can the Mid-Market Achieve Industry 4.0?

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Cost Concerns

Cost is often the biggest barrier for mid-market manufacturers when it comes to digitalization. The perception is that implementing digital solutions can be a costly endeavor. Smaller budgets compared to larger enterprises can make them hesitant to invest in what they see as a substantial upfront expense.

Mid-market manufacturers can mitigate these cost concerns by embracing cost-effective solutions and clearly defining the scope of their digitalization plan. Enterprise digitalization platforms often claim to be all-encompassing and everything to everyone, but mid-market manufacturers should approach digitalization in a stepwise and well-defined manner to ensure a cost-effective journey.

Resource Constraints

Mid-market manufacturers typically have smaller teams, including limited IT departments. The digital transformation process requires dedicated resources for deployment, maintenance, and support. Smaller manufacturers may feel they lack the personnel and expertise to handle these projects effectively.

How can we empower these smaller teams at mid-market manufacturers to tackle these projects?  While some may have the capital to onboard dedicated individuals or teams, others may need to start their digitalization journey with their current resources. Seeking solutions that integrate no-code or low-code features and offer intuitive user interfaces can help a constrained team take their first steps into the digitalization realm.  

Risk Aversion

Fear of the unknown can be a major deterrent for mid-market manufacturers. They worry that integrating new technologies could disrupt their existing operations, cause downtime , and impact production schedules. This risk aversion prevents them from embracing digital change. 

In the face of rising competition, mid-market manufacturers must find a balance between risk and reward. By clearly defining the scope of a digitalization project, mid-market manufacturers can insulate their operations from risk while taking steps towards holistic digitalization of their operations.

Legacy Systems

Some mid-market manufacturers have established legacy systems and processes in place. Adapting these systems to incorporate digital technology might be seen as a cumbersome process with uncertain outcomes.

Mid-market manufacturers are particularly resistant to upending legacy systems for reasons similar to those mentioned above. Whether the team or system integrator who put it in place are no longer with the company, or they are worried about the inherent risks associated with rip & replace, the mid-market’s legacy systems are typically very firmly in place. It is crucial to ensure  that any new digital platforms easily integrate with and work well  with legacy systems. By doing so, the digital journey becomes an evolution rather than a complete overhaul. 

Resistance to Change

Employee resistance, particularly long-term employees, can be a significant roadblock to digitalization. Convincing the entire workforce to embrace new technologies can be challenging.

For the mid-market manufacturers, their workforce is the lifeblood of their operations. Ensuring adoption of new digital technologies is one of the easiest ways to demonstrate successes in digitalization – however it is also one of the hardest things to get right. Starting with platforms  and  tools that prioritize  user experience  is a great place to start. The smoother the transition to digital processes, the more likely it is that your frontline operators will adopt and use the new technology.

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Key Takeaways

• Overcoming the challenges of digitalization are possible with the right strategies and mindset.
• Start small: assess ROI, engage employees, partner with experts, and leverage cloud-based solutions.
• Mid-market manufacturers cannot afford to to wait; the industry is evolving and the only way to continue growing is by intentionally tackling these changes head-on.
• Consider embracing a new wave of technology called Connected Worker Platforms