Manufacturing businesses operate in a world of pressure. The pressure to do more with less, the pressure to continually mine data for fresh insights, and the pressure to avoid costly disruptions are all day-to-day realities for manufacturers of every ilk. This leads to manufacturers being risk averse by nature, choosing to operate with the adage of “if it ain’t broke, don’t fix it” as a guiding principle. While this can lead to steady, predictable results, in the modern, ever-evolving business world, this mindset is no longer enough for prosperity.
Many manufacturers report that their machinery and other operational systems are aging and, in some cases, are decades old. While this equipment is still functional, it is becoming more and more difficult for even the most change averse businesses to deny the ever-increasing benefits of the digital revolution. While those benefits are clear, many still have concerns about making the leap to a modern, digital solution.
Let’s look at five of the most common concerns and how to overcome them:
Concern 1: We Don’t Have the Budget for Timely Upgrades
Risk-averse manufacturers often have drawn out approval processes for any major, or sometimes even minor, changes. This is understandable, to a degree, as a hastily made decision that backfires could easily cause a large and costly disruption. However, protracted approval times often play against businesses who are looking to make the leap to digital optimization. By the time they decide on the platform or program they want to transition to, run the numbers, and put together a plan for approval, a newer, slightly different version of the platform, or sometimes a new platform entirely are available, causing the whole process to restart.
Others report that because of years of being primarily concerned with solving technical or engineering problems, they do not understand how to properly quantify the return on investment they would receive from a particular digital solution. This lack of clarity can bog down or even cancel plans, as leadership will have no frame of reference for how their business stands to benefit in concrete terms.
Some businesses report that funding for improvements is spread too thinly around multiple departments or projects to make the kind of transformative, sweeping changes required to join the digital era. Businesses report feeling stuck between having to make huge investments that create rippling waves of disruption across the entirety of their operation or smaller, more focused investments that create lots of activity, and add no real value. This leaves them in an uncomfortable “Goldilocks Scenario” where none of the options feel exactly right.
These factors, when taken together, can lead to businesses feeling like they cannot make the leap. This is not the case, however, as none of these challenges are insurmountable, even if they were all taken together.
Tips from the experts:
Create a formal case: Creating a formal case for the project, including data, analytics, projections (both financial and real-world impact) and timelines can help leadership see the value of a potential project, even if it is outside of their comfort zone. Treating a potential digital upgrade like any other business deal could help gun-shy executives sign off on projects quicker by giving them the information they need in an easily digestible form they already understand.
Define Success: New projects need to have clear goals but also clear benchmarks for success. This eliminates potential confusion for decision makers. Tied to these clear terms of success should be provisions for additional budget, paving the way for more projects or larger scale implementations. Partnering with an expert provider like Enavate can help businesses clearly set and achieve these goals, leveraging decades of experience to create a roadmap for sustained success.
Consider SaaS: Cloud hosting or Software as a Service (SaaS) is an increasingly attractive option for businesses stuck in the Goldilocks Scenario. SaaS offers businesses the ability to expand into cloud computing and other cutting-edge software on an as-needed basis, picking and choosing specific areas that need the assistance while avoiding large scale, business disrupting implementations, as well as costly broad licensing agreements. SaaS allows businesses to use their budget smartly, improving vital systems and laying the groundwork for future upgrades.
Concern 2: Is It All Secure?
Many manufacturing business leaders express concern about the safety and security of digital systems. In 2024, manufacturers were the number one industry targeted by cyber threats for the third year running. Many businesses look at the cloud and assume it would be more vulnerable to intrusion than their legacy, on-premises solutions. This is, however, often not the case.
Legacy systems can be hard to keep secure because as products age, they become sunsetted. System developers and providers stop offering updates and support for systems, meaning that businesses still operating on those systems are no longer protected from the latest threats, which are constantly evolving as hackers become more sophisticated. The simple fact is that modern, cloud-based systems are designed with cyber-protection as a part of the package in a way that legacy systems weren’t, meaning that they are almost always the more secure option, even without the physical servers being on-site.
Protection from cyber-threat is not the sole form of safety a cloud-based provider such as Enavate offers, however. Unlike physical servers, cloud servers are not prone to being struck by power outages, natural disasters, or other unforeseen circumstances that would cause costly downtime.
Maintaining security while going digital can provide challenges for manufacturers, especially if they are upgrading in piecemeal fashion. Ensuring security remains tight between the legacy equipment still in use and the new system requires special care and planning, with particular attention needing to be paid to any points where the old and new connect and interact. Keeping legacy machines hyper-segmented and away from as much of the modern system as possible helps create a safe zone. This is not always enough, however, leading experts to suggest taking further precautions.
Tips from the Experts
Abundant Audits: Experts recommend regular, in-depth security audits to help ensure that all systems comply with security standards, protecting vital operational data. Audits are recommended for the purchasing process as well as either monthly or quarterly for existing equipment.
Know Your Regulations: Having a deep knowledge of the latest reporting and security compliance regulations can also go a long way toward ensuring security for a business. The world of cyberthreats changes rapidly, and the regulations surrounding them change at the same pace. Experts suggest having dedicated users or teams whose job includes keeping up to date on the latest regulatory and reporting standards.
Pick the right Partner: Not all cloud platforms are created equal. Partnering with Enavate means businesses are protected by the Enavate Cloud, powered by Microsoft Azure. Azure features the top-of-the-line cyber-suite, constantly updated and reinforced against any evolving threats. Microsoft spends billions of dollars each year in cyber-security improvements and research, meaning the Enavate Cloud will remain the best choice for years, if not decades, to come.
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Concern 3: The Talent Pool is too Limited
An inescapable reality of the modern workplace is that there is often a shortage of job applicants who possess the skills needed. Upgrading from legacy systems to modern systems can shine a light on this, as there is a distinct possibility that businesses will need an entirely new set of skills.
There is good news, however. With the evolution of generative AI and other technologies, businesses no longer have to be entirely reliant on their employees, and can fill at least part of the skills and experience gaps. AI agents are rapidly developing, and can now serve as virtual assistants, augmenting existing staff and allowing businesses to do more with the same amount of people.
Automation tools such as virtual programable logic controllers (vPLCs) are another potential game-changer for manufacturers. These automation tools remove the burden of manually deploying hardware, maintaining assets, and setting parameters. This means that a technician at a central location can operate a workstation in another location, virtually, filling in gaps in staffing or expertise.
Tips from the experts:
Planning matters: Before integrating digital updates at the machine level, businesses should consider the staffing and other resource needs these decisions would create. Knowing what type of staffing, either manual or digital, will be required is vital. This is doubly important for businesses with multiple locations. The experts at Enavate will develop a clear, actionable implementation roadmap for businesses, so they can get in front of any potential staffing issues or knowledge gaps before they occur.
Knowledge is power: Staying up to date on the latest trends in AI and other automation tools can make a massive difference for manufacturers. Knowing what modern technology is capable of is the first and most important step to harnessing its power.
Think outside the box: Employ modern solutions, such as using tools like virtual controllers to remotely operate machinery at other locations. Solving age-old problems in new ways is one of the most powerful tools at a modern manufacturer’s disposal.
Concern 4: Will the Systems Work Together?
One major concern for manufacturers is finding a way to make their disparate systems and machinery all function together. Manufacturers use a wide range of machinery and other systems to power their business, often of varying age, function, and proprietary status. This is often because these businesses lack a centralized plan, instead relying on managers at each location to choose which machinery to employ, how to upgrade it, and to problem-solve when issues arise. Other locations in the same business could be operating entirely differently, causing issues when trying to collate and compare data.
Even companies with a centralized, standardized plan run into issues, as many use machinery not designed to be used in tandem with other systems they employ, while others run on proprietary software that does not play well with others.
This can lead to a high level of concern when considering a digital upgrade, as adding another layer of technology to the mix can seem daunting- if their systems are already struggling to work together, how can they be expected to add another digital component? An increasingly common solution is the use of what is called an edge device, essentially a small computer hooked up the machinery, that speaks its language, used to gather and translate data before it is uploaded to its final destination server, either physical or cloud.
It is not exclusively physical machinery or other devices like servers that factor into the interoperability question, however. Business processes are equally important and need to be given their due attention in conversations about going digital.
Optimizing, digitizing, and often simplifying these day-to-day processes is a key cog in any plan to bring a manufacturer into the modern era. However, it can be a challenging process.
Industry leaders have coined the term “Lift and Shift” to describe the most effective way of making these changes. Companies begin by moving existing business processes to the cloud, upgrading their current way of doing things before implementing new ways of doing things. This means bringing the existing applications and processes directly to the cloud “as is”, rather than attempting to upgrade or optimize them beforehand. This allows for faster, smoother implementation and helps create a feeling of comfortability even in a time of potentially drastic change.
Enavate specializes in these sorts of transitions, working with the affected departments specifically, while still planning for the long-term, company-wide benefits in the future.
One final interoperability concern is that of collaboration. Modern, digital systems inherently offer increased opportunity for collaboration, and businesses should make fostering this a priority during any upgrades. While manufacturers by nature have users with highly specified and specialized roles, this does not mean knowledge, processes, and other data should be siloed. Upgrading to a digital system can help expand users’ knowledge-bases, increase the speed and accuracy of decision making, and foster a culture of innovation.
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Tips from the Experts:
Dashboards can help: Experts recommend investing in a system that allows for the creation of dashboards that show vitals, like machine health, energy use, and productivity metrics. A modern, agile ERP platform from Enavate will have customizable dashboards, easily configured for each manufacturer’s distinct needs.
Eliminate barriers: Focus energy and resources on eliminating barriers between equipment. Upgrading to a cloud-based solution and employing edge technologies can all serve to knock down barriers.
Collaboration is key: Foster an environment where collaboration is the word of the day, allowing for better communication and understanding between teams, users, and segments. Focusing on the why, what, and how will build a compelling story, driving the business forward.
Concern 5: Our Needs are Too Complex
Many manufacturers feel overwhelmed by the sheer complexity involved in a digital transformation for their business. When implemented correctly, these changes can entirely reinvent how businesses operate, from staffing to production to sales and beyond. Knowing where and how to start can be daunting. Many businesses find themselves stuck in a cycle of endless pilot programs, hunting for specific problems that will kick-start their journey into the next era, rather than having a focused plan to get them there.
The advent of AI, discussed earlier, can amplify this problem. Rather than having a targeted goal for the use of AI, businesses get caught in a loop of looking for new ways to use it, trying out different things that make a relatively low impact on business, and wasting more time and money looking for the next one. While a single line or location may stumble upon a brilliant solution, it is difficult, if not impossible, to replicate across the entire business, because machinery and other technology often varies from location to location, as discussed above. Finding ways to implement these finds across other locations can be vital.
Finding or creating an ecosystem of partners and collaborators can help mitigate these complexity issues. Whether it’s visiting an association testbed to gain valuable insights from academics, innovators, and other businesses, or finding new technology providers, bringing in outside insight and experience can often make the difference between feeling like the digital transformation is an impossible mountain to climb, rather than an adventure worth taking.
Tips from the Experts
Expand the innovation: Finding ways to implement new ideas that are discovered in pilots across the entire business can help control overwhelm by solving issues at multiple sites at once. Businesses no longer have to find fixes for every line or factory individually, instead doing so at an organizational level.
Add value: Adding intelligence at the control level can add value to legacy assets, extending their lifespan and decreasing the amount of assets that need immediately replaced.
Use the ecosystem: Expand your knowledge base and insights by using an ecosystem of collaborators. These insights can help lower the complexity of problems and allow businesses to tackle them at scale.
The Transformation Has to Happen, Make the Most of It
No matter how well-maintained, eventually the machinery, systems, and processes that manufacturers rely on will break down and need replaced. If manufacturers wait until this breakdown happens, they risk costly downtime, rushed decision making, a sloppy implementation all in the name of speed. Instead, manufacturers should make the choice to upgrade to digital, before it’s made for them. Electing to make the move allows businesses to do so on their terms, create a game plan for success, and most importantly, choose the right partner for their needs.
That partner is Enavate. With decades of experience helping all types of manufacturers, the experts at Enavate can custom tailor a roadmap for success, helping change-averse manufacturers move past their concerns and into the modern era. Whether it's interoperability, cyber security, data availability, or concerns about staffing and knowledge gaps, the experts at Enavate will work with manufacturers to overcome any obstacles, real or perceived, that stand in the way of their future.
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