Digital transformation in a manufacturing plant. Where to start and what mistakes to avoid?
Digital transformation in a manufacturing plant is now a prerequisite for maintaining a company’s competitiveness. Process automation in manufacturing covers both operations related to tasks on the shop floor and activities involving people and work organization. Where to start? Which areas should be addressed first? How can digitization be implemented in production to avoid costly mistakes? And which production management system should be chosen to achieve the desired goals?
What is digital transformation in manufacturing?
Digital transformation in manufacturing is the process of implementing technologies that streamline information flow, automate tasks, eliminate errors, and improve the quality of work at every level of the organization. The digital transformation of manufacturing companies covers both operational areas (e.g., production and logistics processes or quality control) and soft processes (e.g., onboarding, training, competency management, communication, or document circulation).
Digitization in a manufacturing plant also means a change in mindset. Digitization in industry is not just about installing new tools. It is a transition:
- from scattered knowledge to organized knowledge,
- from paper documents to digital data available in real time,
- from reactive action to monitoring and planning based on real information.
As indicated in the report The Rise of Digital Challengers. How digitization can become the next growth engine for Central and Eastern Europe. Perspective on Poland prepared by McKinsey, Poland is included in the group of Digital Challengers, i.e., countries with high potential to accelerate development through digitization. This means that the foundations for transformation are already in place, but their use depends on decisions and actions at the level of individual plants.
The foundations are therefore sound, but putting them to use is a real challenge. This is especially true given that, according to data from the Ministry of Development and Technology, over 95% of Polish companies, of which around 10% are manufacturing companies, are SMEs that often lack the resources and budgets comparable to those of large enterprises. In many companies, documentation is still paper-based, knowledge is scattered, and the implementation of digital tools is based more on intuition than on strategy. On the other hand, industry reports show that the manufacturing sector is one of the most technologically advanced globally. Trends indicate that manufacturing companies that want to remain competitive will sooner or later be forced to implement digital solutions anyway.
Why shouldn’t you put off digital transformation?
The manufacturing sector is currently at a unique juncture. According to KPMG’s Global Tech Report 2024 – Industrial Manufacturing Insights, manufacturing organizations are at the highest level of strategic maturity. As many as 76% of companies in the manufacturing sector declare that their employees are ready to implement modern technologies – the highest result among all industries surveyed.
The report also indicates that the manufacturing sector as a whole performs above the market average in terms of data maturity and digital infrastructure quality. However, it should be remembered that not all plants are in the same place. The aforementioned MRiT report mentions that Polish SMEs still allocate only up to 5% of their budget to digitization, even though they declare their willingness to implement digital tools in order to remain competitive.
Digitization in manufacturing means better data availability, less downtime, reduced risk of human error, faster and more accurate decisions, and the ability to predict production needs. Postponing decisions about digital transformation means that the gap between companies that treat digitization strategically and those that ignore it is growing year by year. We are at a point of intense technological acceleration—digital solutions are becoming increasingly advanced, increasingly accessible, and increasingly influential in how manufacturing plants operate. Organizations that enter this process late will be forced to catch up under greater market pressure, often incurring higher costs than companies that started earlier and gradually built their digital competencies. In practice, it is this approach to digitization that will determine the leaders – the advantage will be gained by those companies for which digitization is an integral part of their strategy, rather than a deferred “add-on” for which a budget will eventually be found.
Which area should you start digitizing?
In many manufacturing plants, administrative processes are the safest place to start digitization. Digitization streamlines communication, reduces the number of errors resulting from paper-based information flow, and ensures quick access to up-to-date knowledge and documents – exactly when they are needed.
Another noteworthy pillar is the digitization of development and competency processes. Digital competency matrices, structured training, and remote onboarding reduce employee onboarding time and facilitate staffing planning. On this foundation, increasingly advanced solutions can be scaled.
Implementing digitization in production – what mistakes should be avoided?
Although digitization of production brings measurable benefits, many companies still encounter difficulties at the initial implementation stage. Usually, the problem is not the technology itself, but the approach to the transformation process and a lack of organization. What are the most common mistakes made when implementing digitization?
Lack of strategy and trying to do everything at once
The lack of a digital transformation strategy is a mistake that can prove disastrous. In many companies, some information is already collected—e.g., efficiency data or basic KPIs—but other information remains scattered across different systems, while yet other information exists only in paper form or in the minds of employees.
Imagine a company that collects some of its data in a basic system, saves some in Excel, keeps some in binders, and is only planning to start documenting some. When such a company decides to implement everything at once, the effect may be the opposite of what was intended. The system pulls in data of varying structure and quality, creating a picture of the production plant’s operations that has little to do with reality. Erroneous statistics appear and indicators diverge in all directions. In extreme situations, this can lead to downtime, quality problems, and delays in order fulfillment.
In such a situation, the plant must not only reimplement the tool, but also repair the consequences of the errors – and this usually costs more time and money than a phased, well-planned approach. That is why it is worth starting digitization by reliably organizing data, defining goals, identifying priorities, and planning the next steps.
Ignoring the human factor
In companies with a wide age range and varying levels of digital competence, it is easy to encounter resistance from employees, and digitization—although necessary—is sometimes perceived as yet another reorganization in an already dynamic environment. One of the biggest obstacles to transformation is a lack of readiness and agility, as well as simple fatigue from successive changes.
When planning digitization, it is important to take into account the time needed for training, ways to support employees, and realistic expectations of the results to be achieved at each stage of implementation. The more we take the team’s perspective into account, the greater the chance that the transformation will go smoothly, without unnecessary tension and with employee commitment to change.
Choosing tools that are too complex and unsuitable
Choosing a tool that is too complicated, unintuitive, or unsuitable can destabilize the work of the entire plant. If the system is difficult to use, requires digging through dozens of unsorted pieces of information, or does not have a clear access structure, instead of streamlining work, it begins to slow it down. This leads to distraction, mistakes, discouragement, and growing frustration—both on the part of operators and management.
It is important to remember that production plants have a wide age range and varying levels of digital competence. Many employees are just learning how to use mobile applications or digital systems, so the tool must be as simple, clear, and predictable to use as possible. A well-chosen solution should provide the employee with only the most important information, i.e., specific instructions, current documents, and clear messages.
Lack of process standardization prior to automation
As mentioned earlier, the manufacturing sector globally is characterized by a high level of data maturity, but in many companies, data is often scattered. If a plant begins digitization without organizing its data, the systems will have nothing to work with. Standardization of documents and processes is an absolute must.
Underestimating data security
The digitization of processes requires ensuring an adequate level of data security. After all, it is not just about technical information or machine parameters—digital systems contain sensitive employee data, performance statistics, detailed analyses, audit results, operational indicators, and information about areas requiring improvement. This is highly confidential knowledge, the unauthorized disclosure of which could harm both employees and the entire company. A production management system must ensure precise control of roles and permissions and restrict access to information to authorized persons only. Only then can digital transformation proceed safely and without the risk of disclosing information that should remain within the company.
Choosing the right tool – what to look for?
A good system for digital transformation in a manufacturing plant should be functional, practical, and easy to implement — and that’s exactly what the noSilo application is. What makes our tool a perfect fit for an organization’s digital development strategy?
Digital transformation in a manufacturing plant should be an integral part of an organization’s strategy, not something to be put off until later. The process can be started on a small scale and then developed at a pace that suits the company’s capabilities. Well-planned and phased digitization avoids costly and time-consuming mistakes that often result from rushing or lack of preparation. Companies that start now will realize their potential faster and avoid costly mistakes resulting from rushing or lack of strategy.
Bibliography:
https://assets.kpmg.com/content/dam/kpmgsites/xx/pdf/2024/12/kpmg-global-tech-report-industrial-manufacturing-insights.pdf;
https://www.mckinsey.com/pl/~/media/McKinsey/Locations/Europe%20and%20Middle%20East/Polska/Raporty/Polska%20jako%20cyfrowy%20challenger/Poland%20as%20a%20Digital%20Challenger%20-%20report%20in%20English.pdf;
https://www.gov.pl/web/rozwoj-technologia/transformacja-cyfrowa.
For years, he has been working on how technology can genuinely support people at work—especially in production environments. He develops technologies and content that help companies shorten the onboarding time for new employees, better manage team competencies, and more effectively transfer knowledge.
In his writing, he combines the language of practice with an accessible style, showing that digitalization in factories is not just a trend but brings tangible benefits: lower turnover, higher quality, and greater efficiency. He draws inspiration from everyday conversations with clients and observations from production plants, ensuring that each article is grounded in the real needs and challenges of the industry.
