Addressing Operational and Workforce Challenges Through Digital Transformation

Digital transformation is a critical factor that can either elevate a company or leave it behind. This process of change not only streamlines operations but also addresses workforce challenges by modernizing the skill sets needed in today's market. Yet, the journey towards fully embracing digital transformation brings a range of complexities, operational challenges, and questions about workforce readiness.

A growing number of manufacturing companies are increasingly adopting Software as a Service (SaaS) solutions and other cutting-edge technologies to cope with these challenges. However, to truly capitalize on the opportunities that digital transformation offers, manufacturers need to navigate a range of complexities to ensure seamless and secure collaboration between traditionally siloed departments.

Addressing the Workforce Skill Shortage

The path to digital transformation in manufacturing contains multiple hurdles, among which the workforce skill shortage stands out. The rapid integration of new technologies necessitates a workforce that not only understands these technologies but also knows how to leverage them effectively. However, the lack of tech-savvy talent is a pressing issue that has proven to be a major roadblock in many manufacturing companies' digital transformation journeys.

As we approach a decade where numerous ‘baby boomers’ are set to retire, a looming uncertainty persists regarding their replacements. The question of who possesses the necessary skills and expertise to fill these soon-to-be vacant positions is a significant concern. The standard practice involves hiring and seeking talent, but the transition of newly onboarded talent to the same level of proficiency as the retiring worker is often a lengthy process.

Fortunately, emerging techniques and methodologies can expedite this process, ensuring new talent becomes skilled and expertly versed in their roles in a short period. The popular notion that proficiency in a role requires 10,000 hours of practice can be mitigated through strategic upskilling techniques. Such techniques not only address workforce shortages but also reduce the time required for workers to reach peak productivity.

It is evident, based on the 750,000 manufacturing jobs currently unfilled in the US alone, that organizations are experiencing a workforce shortage. Still, as new talent enters the workforce and adopts technologies designed to expedite their productivity, the total cost of ownership (TCO) and return on investment (ROI) become justifiable. The technology's business case is valid from day one, as it shortens the period from the time the worker joins until they are productive.

Furthermore, these technologies are versatile and can be applied in other areas, such as reducing inspection time and increasing operational effectiveness. This presents an additional benefit, further reinforcing the need for companies to adopt new technologies to navigate the challenges of the impending workforce shortage.

Embracing SaaS Solutions

As the adoption of SaaS solutions gains traction within the manufacturing sector to address operational challenges, organizations must consider certain factors to ensure the effective management of these solutions. While there isn't a one-size-fits-all blueprint for this, certain best practices learned through the adoption of cloud technology can prove valuable.

An important foundational step involves identifying the needs of the organization: understanding the mission-critical priorities that the SaaS solution must address. Identifying these pain points paves the way to search for suitable software, which begins by evaluating potential vendors. It's crucial to assess not just a cloud service provider but one with manufacturing experience. This ensures that they understand the unique challenges of the manufacturing environment and can provide tailored solutions.

Also, the chosen SaaS solution should possess robust integration capabilities to ensure seamless connectivity with existing systems and applications, as there are many SaaS solutions in the market, however not all possess the ability to integrate efficiently.

Securing Collaboration Between IT and OT Departments

The increasing integration of Information Technology (IT) and Operational Technology (OT) departments within the manufacturing industry brings the issue of data security to the forefront. Ensuring a secure and seamless collaboration between these traditionally separate departments is crucial.

One of the key elements in establishing this secure collaboration lies in the infrastructure used. The infrastructure forms the backbone of every organization. Trust in the chosen infrastructure is vital, as it needs to be resilient against hacking and capable of securely storing all data.

For instance, Rockwell Automation decided to rely on a proven infrastructure provider, Microsoft, to secure our customers’ cloud infrastructure. Our SaaS components run on Microsoft Azure, ensuring a strong and trustworthy infrastructure base. This allows us to work collaboratively with customers to focus on the value-adds we can bring to their businesses and the solutions we can develop together.

In the journey towards ensuring data security in a SaaS-adopting manufacturing environment, one needs to strike a balance in determining what critical information is pushed to the cloud and what is kept on-premises. While some manufacturing data might not be crucial for an organization, it could be leveraged by software companies to enhance operational effectiveness and sustainability. Ultimately, this forms part of a robust strategy to secure the collaboration between IT and OT departments in this digitally transforming landscape.