Seven tips to getting started on the path to digitisation

Beckhoff Automation Pty Ltd

By Harry Mulder, Principal Automation Engineer, Beckhoff Automation
Wednesday, 16 November, 2022

So you’re convinced your operations need to be improved in order to remain competitive and relevant in your marketplace. You’ve noticed the competition in your marketspace getting ever fiercer and this shows no sign of abating. You know you need to become more efficient but aren’t sure how to do it.

Recent developments have highlighted how dependent companies are on a stable workforce. First there was the COVID-19 pandemic, where many workers were forced to isolate at home and unable to come to work. And more recently, we’ve seen how the acute lack of available skilled workers has made things all the more difficult for corporations.

These two factors have borne out how businesses can be crippled by inadequate staffing. They have driven home the importance of automation and not being overly reliant on a manual workforce.

The digital transformation

Most businesses are well aware of these issues and are currently undergoing a ‘digital transformation’. Larger manufacturing and process industries are especially embracing digitisation and are accelerating their investment in it.

Most smaller companies have heard about digitisation and believe it could benefit their operations. However, many are very confused by it all, and are unsure of where to start.

If this is you, then be assured that you’re not alone! Below is an explanation of what digitisation means and some tips to help you get started on your path towards digitisation. The suggestions offered are deliberately kept very general as everyone’s journey will be very different.

Tip 1: Understanding what digitisation means

As with any major undertaking, it’s vital all implications of a project are known before committing to it. In the case of digitisation, its effects will be far reaching, making it all the more important that it is properly understood beforehand.

Digitisation is the transformation of processes away from manual, labour‑intensive procedures, towards computer‑based operations. This is done because the computerisation of tasks leads to improvements in efficiency: computer‑based systems are able to produce very consistent output and can work longer hours, without the need for breaks, rest or downtime.

There is of course nothing new about adopting computers into the workplace for purposes of automation — it’s been happening for decades. However, much of the automation carried out in the past was quite narrow in its focus, and often only computerised a small component of the overall process.

Digitisation, on the other hand, is much broader in its scope. It takes automation to a whole new level by seeking to modernise the entire process. It applies innovation and is not afraid of trying new techniques to solve old problems.

Technology is used extensively by digitisation to achieve its aims. Many of the technologies used are relatively new or emerging and include 3D printing (to make physical objects), robotics (to perform manual tasks) and artificial intelligence (AI), where computers can seemingly learn for themselves by applying machine learning (ML).

Generating data

Many of the benefits that emanate from digitisation stem from its ability to firstly generate masses of data (often referred to as ‘big data’, which is stored in the cloud) and then use computerised techniques to analyse it very closely. This in‑depth analysis can detect inconsistencies and other anomalies during production, which can alert producers to potential problems. The extraction of useful data from the large mass of data is often referred to as ‘data mining’.

Modern technologies are constantly improving. They give us far greater sensing capabilities, so that we can get a much clearer picture of production. We also now have far greater data storage capacity, such as data warehousing in cyberspace, and have significantly better analytical capabilities, many of which are cloud‑based.

That we’re able to do this now so much more efficiently than in the past is what’s ushered in the whole concept of digitisation, which comes under the general umbrella of Industry 4.0.

Tip 2: Be prepared for some disruption

Implementing change within any business will create some unavoidable upheaval. Digitisation, given its complexity and comprehensive nature, can be especially disruptive to the norm. Allowances must be made for this, as production levels might be affected. Care should therefore be taken to not make unnecessary changes during times of high demand.

Digitalisation normally requires the installation of some additional sensing and other equipment, as well as the upgrading of internal networks and internet connections. Also, once systems are active, some experimentation in processes will be required. This will generate some inevitable disturbances, although this dynamism is only temporary.

Tip 3: Treat digitisation as a process, not a one‑off

Digitisation is essentially an exercise in continuous improvement. Attempting to improve processes will require some trial and error as adjustments are made to production. Some changes will work, some will not, and most will require further experimentation to achieve better outcomes. This process will be ongoing and usually lasts for the life of the equipment involved.

While there will be some costs associated with this experimentation, it must always be remembered that the continuous refinement of processes is what’s needed to become more competitive.

Tip 4: Get buy‑in from staff

One vital aspect of any work carried out within a company is the buy‑in from staff. This applies to everyone within the organisation, from senior management to those working on the floor. All should be well aware of what’s happening, when it’s happening and most importantly, understand why it needs to happen.

Support from upper management is very important as they have the greatest control over operations. Fortunately, recent surveys from manufacturing services company Jabil1 revealed that management increasingly favours the digitisation of facilities as they can see the benefits of improving efficiency. They also understand the need to maintain competitiveness within the marketplace.

Some cultural adjustment may be required by some employees, particularly those involved in operations who may be concerned about their future job prospects or being made redundant by technology. But they have, and will continue to have, a vital role to play in digitisation, as their knowledge of the production processes is invaluable to the company. They may, however, need to learn some new skills as their job roles modernise.

Tip 5: Have a clear objective in mind

Digitisation is generally not a silver bullet that can resolve a wide range of ills instantaneously! To be most effective, digitisation should be applied to one or two selected areas only, so as to limit the number of changes happening at once. Specific objectives, such as preset key performance indicators (KPIs), can be used to monitor for success.

Many of the projects involving digitisation that have failed in the past have done so because the scope of works has been too broad, and the attempts at change too wide ranging. This had the effect of undermining productivity by being too disruptive to the overall process.

A better way is to select a particular aspect and work exclusively on improving it. Only once there are material improvements in the results can other aspects in the overall process be considered for change.

As with any KPI, it’s important to have realistic timelines in which to see positive outcomes. Results can be elusive at times, as changes to processes can produce some unpredictable consequences.

Tip 6: Don’t be afraid to call in experts in the field

The reality is that digitisation requires a whole new range of skill sets. It needs sensor specialists to detect and measure operations, IT networking experts to collate and transport the data gathered to where it needs to be, security professionals to keep data safe, cyber know‑how to store and retrieve the data to and from the cloud, and programming engineers to make it all happen. Even the initial scope of work will require expert knowledge, as will management of the project.

It’s highly unlikely that any one company will have the skills at the required level in‑house to fulfil all these roles. Therefore it’s strongly recommended that external expertise, such as consultants, be utilised for at least some of the job functions. In this way, companies can leverage off the experience of others, and thereby hasten their journey towards digitisation.

Tip 7: Be wary of buzzwords and jargon

The field of digitisation has created a whole new vocabulary of terms and phrases. The internet in particular is awash with buzzwords and jargon, seen in the marketing on some websites. Many of these terms are used loosely or misleadingly.

Some explanations of the more useful terms have been provided here, but it’s definitely best to rely on the experts in the field.

Conclusion

The process of digitisation is still seen as the best and most effective method of continuous improvement — something that’s needed to ensure producers remain at the top of their game, both now and in the future. Ongoing improvement will become all the more important as competition increases due to international trade barriers coming down.

While many see the need for digitisation, some are still reluctant to become involved, primarily due to a lack of understanding. It’s hoped that some of the ideas presented here will go some way to clarifying the overall process.

Each point has been kept deliberately general, as everybody’s journey will be very different. All the best wishes for your digitisation journey.