Ahmad Beltagui explains how universities can help SMEs get on the path to digital transformation
The digital revolution and all its associated hype can be overwhelming for manufacturers, especially SMEs. In turbulent and challenging times, making sense of the futuristic possibilities and technologies seems like an unrealistic luxury. Working with the right universities, particularly through the Knowledge Transfer Partnership (KTP) programme can help you make sense of, and get value from, digital technology.
By now, everyone has heard about the fourth (or is it fifth?) industrial revolution. A wonderful world of fully automated, end-to-end order fulfilment with gleaming factories running like clockwork, where robots and artificial intelligence (AI) do all the work you hate. While this vision excites academics (and technology vendors), it often seems out of touch with the reality of running a manufacturing business. Cutting through hype, digital data supports manufacturing processes through three transformations:
- Physical to virtual – digitizing physical activities and resources enables visibility, access and ease of sharing data, e.g. sensors or Radio Frequency ID tags convert movement of goods or performance of machines into data that can be shared and analyzed.
- Virtual to physical – digital connectivity allows machines and processes to be controlled remotely, e.g. CNC machining, Robotics or 3D printing turn digital data into physical processes.
- Data to insight – Unlike paper-based records, digital data can be combined and analyzed to identify patterns and support better decisions. Software tools can improve production scheduling or optimize designs for manufacturing. The possibilities are almost endless – just think about the difference between digital photos and old-fashioned snapshots!
So, what stops SMEs from taking advantage of the possibilities digital technology offers? Most would cite lack of resources and skilled staff, limited infrastructure or time. Collaborating with the right academicsi, through a part-funded KTP project can help. Firstly, the funding support helps to carve out time, provide dedicated resources, benefit from a university’s infrastructure and knowledge as well as recruiting a talented graduate. Academics will also help with the less obvious but arguably trickier challenges relate to data, processes and people:
Data
Excitable discussion in industry and academia understandably revolves around cutting-edge technologies. Producing physical objects out of thin air (Additive Manufacturing/3D printing), instantly showing the location and status of equipment anywhere on the planet (digital twins) or bringing all of humanity’s knowledge to tackle problems like wording an email (Generative AI). All these technologies are accessible today but without data, investing in them is guaranteed to fail. For many companies the first step towards digital transformation is digitization, i.e. turning manual processes and paper records into digital data. For example, if you offer hundreds of products but details on them are not stored in a certain format you may be unable to access digital platforms or take steps towards digital transformation.
Metal Assemblies, a West Midlands-based manufacturer which produces press metal parts, machined components and welded assemblies for the automotive supply chain, worked with Aston University to digitize manufacturing operations. Their pressing machines on the shop floor record data, which can be viewed and analyzed in the management office upstairs. Having bridged the initial digital divide, possibilities have emerged such as an online training game to help employees improve their performance. The latest project will focus on energy and sustainability data to guide more holistic decisions from managers and customers as well as driving further growth.
Processes
Technology won’t magically make everything better, even when data is captured in the correct format. You also need clearly defined operational processes, a business case for digitalizing these processes and a business model to create and capture value from digital technology. Without these, technologies like virtual reality (VR) and AI, that have existed for decades have remained restricted to movies like Lawnmower Man or Ex Machina until real applications were found. For example, the Ventilator Challenge in 2020 applied VR headsets to remotely train workers (in lockdown) when setting up a new production line and AI helped teams make thousands of rapid technical decisionsii. Before pouring scarce resources into the latest gadgets, organizing operational and administrative processes as well as creating innovative business models are crucial.
The Birmingham Assay Office, a unique and very old but innovative organization, collaborated with Aston University academics to redefine their service levels and the guaranteed lead times they offer customers. To enable this, the KTP project team worked on streamlining operations to ensure the guarantees could be met alongside digitizing documents to improve visibility. In another KTP project, the University is supporting Legrand Care to create value by developing an Advanced Services business model of predictive care for independent living. In both projects, making processes digitally is crucial but supported by operations and business models that can create value for customers and growth for the business.
People
Technology is always exciting but what makes or breaks success is usually people. Where employees (and customers) are ignored, things tend to go badly, particularly when we expect technology to ‘replace’ people. Every new technology and industrial revolution have brought a mistaken assumption that work will become automated, followed by adjustments when people are belatedly remembered. Universities have a wealth of knowledge from all disciplines that can help shape how you approach digital transformation and avoid the mistakes of the past. That includes recent business case studies but also examples from the distant past, revealing mistakes that need to be avoided.
A recent collaboration between academics in the History Department and Aston Business School has identified Insights from historyiii highlighting the recurring challenges, opportunities and mistakes to bear in mind when selecting and implementing digital technologies. This expertise can help guide a business’ decisions and strategy to get the most out of its digital transformation efforts.
If the digital revolution has seemed out of reach, drawing on the expertise and enthusiasm of academics, as well as the funding available through the KTP programme, can help you bridge the digital divide and take you further on the digital transformation journey.
Ahmad Beltagui
Ahmad Beltagui is Associate Professor of Service Operations and Innovation Management at Aston Business School in Birmingham, UK. As a member of the Advanced Services Group his research involves businesses, large and small, in support of their transformation from product focus to a sustainable, digital and customer-centric strategy.