Research from MindMetre highlights the senior skills gap.  

I love reading those ‘year in view’ summaries of the key challenges faced by the manufacturing industry, don’t you? I love reading them to find that many of them are statements of the blindingly obvious, many are bland, many are so obviously driven by a commercial proposition and many offer problems but no solutions (except, perhaps, with a call to hire some expensive consultants!). 

Not all are of poor quality though. One of the most practical and realistic is that from the National Association of Manufacturers in the USA. It talks of the ‘business imperative’ of digitizing the factory, along with ‘preparing the future workforce’ and ‘embracing the importance of data’. 

Driving Digital Dynamics – the findings 

These intensely practical and actionable points are precisely those highlighted in our latest long-range study on digital transformation in manufacturing – conducted across nine months with over 1000 respondents in the US, Europe and Asia. The study – entitled Driving Digital Dynamics – explored what respondents considered to be the abiding obstacles to momentum in digital transformation. 

Our study participants focused on three areas: turning data (from the digitalized production floor) into actionable intelligence; engaging better with the workforce to stimulate effective implementation; and digital transformation planning capabilities from senior management. 

These findings were far from bland, then. In fact, the study uncovered some uncomfortable truths – most especially some lack of confidence in the ability of manufacturing’s bosses to create viable digital transformation strategies.

Senior directors under the spotlight 

Most other studies have not picked up on this issue, perhaps because they have concentrated on interviewing the very same industry bosses who come in for criticism – and who are unlikely to brief against themselves or admit any skills gap at the top. 

If the leaders are not strategically capable and knowledgeable, they’re also likely to be hesitant about investing in digital transformation in the first place. Or they’ll invest in the wrong areas, with unrealistic expectations. In fact, I must admit to feeling somewhat sorry for such senior directors who are stuck on the horns of a dilemma – knowing they must act but not having a clear and knowledgeable idea how to do so. 

The senior strategic skills gap is also an obvious political hot potato. It’s difficult to break through the hubris of the leadership, who will tend to have a great deal of self-belief (probably why they’re in the top jobs). It’s equally difficult to find knowledgeable middle managers and technical experts who are brave enough to challenge the bosses. Yet if the strategic framework for digital transformation is flawed from the outset, then the whole exercise is likely to collapse. 

Mindset and value 

Hannes Hunchovsky of EIT Manufacturing summarizes the point, saying: “True transformation demands more than just technology – it requires cultural readiness, strategic vision, brave leadership and a commitment to overcoming obstacles. The challenge is not in adopting new tools, but in reshaping mindsets and workflows to embrace change. In an increasingly interconnected world, the manufacturing industry must work together along value and supply chains and across borders, while putting people in the center of all activities.” 

It is, in many ways, surprising that stock market analysts and pundits have not got deeper into this issue – after all, lack of strategic transformation planning skills at the top of an organization can fundamentally affect shareholders’ return on investment. The issue is urgent. As Peter Welp of Siemens Financial Services says: “Whether IoT, end-to-end connectivity or analytics supported by AI, missing the right time creates more and more economic disadvantages that are difficult to make up for.” 

What to do, then? I criticized analyst reports that identify problems but suggest no solutions, so, must not fall into the same trope. 

Share and share alike 

It was the clear and overwhelming opinion of our respondents that the answer lies somehow in a much deeper sharing of good experiences and best practice. Their message – trumpeted loud and clear – was for a quantum shift in the volume of shared success stories. Many noted the good work that their trade organizations have been doing in this respect. But they also almost universally said there’s simply not enough of it to make the difference. And to do more, then trade body members need to give their associations more funds and resources to do so. 

Everyone recognized the need for anonymization of this experience sharing. No-one should be expected to give away their confidential business information. But a deeper level of sharing than has hitherto happened was felt to be the route to a commercial world in which everyone – the whole ecosystem – benefits. Respondents particularly saw peer-to-peer forums as the way to overcome strategic transformation planning for skills gaps. They suggested that senior directors are much more likely to take criticism from their peers than anyone else. 

Takeaways 

The issues uncovered by Driving Digital Dynamics felt unusually pivotal this year. If there was a rapid mindset shift, and upskilling at the strategic level, then the momentum of digital transformation could be greatly boosted. And that would give the sector transformatory benefits in terms of efficiency, productivity, cost reduction and profitability.  

Paul Lindsell 

mindmetreresearch.com 

Paul Lindsell is Managing Director at MindMetre, a leading business analytics firm, recognized for its research-driven insights across a range of markets, with a geographical range spanning the Americas to the Far East. MindMetre focuses on themes in manufacturing, financial services, healthcare and medicine, and business technology. Readers can get their copy of Driving Digital Dynamics at https://thoughtsparkagency.com/report/driving-digital-dynamics/