How Manufacturing Can Embrace Change Through Digital Transformation

After several disruptive years, manufacturing companies are shifting operations toward new centers of production even as global conflict and extreme weather events are impacting the flow of raw materials. Managing risk and staying resilient is critical in this environment. A digital transformation with enterprise software solutions—when properly implemented—can help manufacturers protect their business and gain a competitive advantage. 

Sikich recently partnered with Manufacturing Dive to conduct a survey among 150 manufacturing executives exploring how industrial manufacturers are using enterprise technology to bolster their operations. The survey reveals optimism and insights into an industry ready to move forward with enterprise-level digital transformation and AI projects. 

“Taking the Pulse of Digital Transformation in Manufacturing” provides insights into the priorities for enterprise technology implementation, how organizations make decisions about enterprise technology implementation, top challenges they expect will impact their business during the next few years, and whether they’re currently exploring and/or investing in enterprise software. 

“Understanding what is important to our manufacturing clients is critical to our ability to bring them value,” stated Debbie Altham, Senior Director of Enterprise Technology at Sikich. 

The 2024 Manufacturing Survey Report also reveals: 

• Whether organizations consider themselves early adopters or laggards in technology 
• The three top technologies respondents are considering investing over the next 12 – 18 months 
• Participants’ main reason for considering an ERP investment 
• The top benefit organizations hope to achieve when considering a new or expanded ERP investments  
• The main area of AI interest in manufacturing 

Security Threats, Inefficiencies, and Demand Fluctuation Top Threat List 

While security is of high concern among respondents in certain areas of their business, it is not perceived as the singular greatest risk or challenge to their organizations overall. The response breakdown for the top three concerns is: security threats and vulnerabilities (35%), inefficiency/productivity issues (35%), environmental, sustainability, and governance (33%). A quarter of the respondents cited market demand fluctuations as a top concern, and the same number identify competitive pressures. 

When it comes to what they consider the greatest challenges to meeting their customer commitments, respondents are also divided. Lack of visibility across the supply chain through to the shop floor (33%) as well as shipping and delivery delays or management of engineering and design changes (25%) emerged as top challenges. To address these challenges, respondents noted they prefer investing in operational technology (ERP, CRM, AI) that is best-of-breed for each requirement versus 25% that prefer fewer apps and 10% with no preference. 

Support Desired for Implementation 

The top criteria for selecting technology vendors among respondents are total cost of ownership and ease of implementation. Respondents are tied in ranking their top criteria for selecting technology vendors, with 51% identifying total cost of implementation and ease of implementation. 

Sikich has developed the HEADSTART approach to help companies that are deploying a modern, cloud ERP or CRM solution reap the transformational benefits of the technology as soon as possible. Sikich uses HEADSTART in nearly every project and continue refining the methodology as technology evolves along with our clients and the industry. Whether you’re a manufacturing leader looking to modernize your technology or a professional advisor helping clients find the best partner, HEADSTART can give you a critical edge. 

To learn more about what this looks like in practice, download this research report or connect with one of our experts today.