How do manufacturing entrepreneurs think about digitization and automation within the organization?

Did you know that digitization offers you as an entrepreneur opportunities to increase productivity? That you can do business in an efficient and innovative way? Of course it is difficult to translate new technologies into concrete adjustments within your organization. Quite simply, there is often a lack of time, knowledge and expertise to delve into this.
In this article, we share interesting results from a study by the Business Innovation Knowledge Center of Hogeschool Rotterdam within the SMITZH program, which ran since 2017 and concluded successfully last year. Results that also make you as an entrepreneur in the field of digitalization, automation, ERP and preventive maintenance think.

The SMITZH Program

In 2017, the SMITZH program was launched in South Holland. SMITZH stands for Smart Manufacturing Industrial Application in South Holland. The goal of this project is to be the one-stop shop for all questions around smart manufacturing for the SME manufacturing companies in Zuid-Holland. And to support these companies in preparing and implementing smart manufacturing. In other words, to offer support in defining and implementing a strategy, finding the right partners and developing and testing missing technology. To effectively identify opportunities and obstacles in the field of digitization and automation, we have developed our own measuring tool: the Digiscan.

What is the Digiscan?

In developing the Digiscan, it was assumed that each company is unique in the products it provides, its history, management, customers, business processes and, of course, employees. This combination makes each company different and thus not easily comparable to other companies. In the Digiscan, we address three main themes:

• Offer: what problem am I solving for my client?
• Operations: how do I make sure my customer gets what they were promised?
• Commerce: how do I make the offer known to customers?

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For each main theme, we ask a number of questions. It is a tool for an inventory of individual opportunities and obstacles around digitization and automation within the company. Questions related to product innovation and process innovation. The question “Where can we improve?” is very important here.

Survey results

In the SMITZH program, the Knowledge Center Business Innovation of Hogeschool Rotterdam surveyed thirty entrepreneurs using the Digiscan about the opportunities of digitization for their business. The goal? To identify the opportunities for digitization and automation at these manufacturing companies. And to link interested companies within the SMITZH network so that these opportunities can be developed into concrete applications.

The survey discussed a number of main and sub themes. With interesting results that we are happy to share with you.

Digitization is still a technical issue

Digitization is still a technical issue. But above all, it is a change issue. Change is often synonymous with risk. Entrepreneurs are very cautious about changing their primary processes. There is a fear of automating the primary processes that have developed over the years and to which everyone is therefore accustomed. The impact of the changes is not well understood, although entrepreneurs feel that things could be more efficient and better. The “hole in the ERP” leads to digital data being converted into analog data and back again in the production process.

“We are about drastically improving internal processes with the help of automation. An ERP solution can help make the whole process more efficient. But we think it’s a risk when things go wrong.�

Aware of opportunities for improvement using digitization

Entrepreneurs are aware of the opportunities for improvement with digitalization. In parts, much is happening in practice as a result of efficiency improvements. Machines generally meet the goal in terms of the degree of digitization. It is noticeable, however, that business processes are often not yet integrally digitized and the production part often still contains analog transmission. The impression is created that entrepreneurs do not yet dare to digitize the primary process.

“We see opportunities to further digitize the process, but how is currently an unknown challenge.

Companies that also provide services, such as maintenance and repair, are often unaware of the information they can extract from customer history data. For example, think about maintenance forecasting and preventive maintenance and developing new services. For that matter, customers are not always ready for this either.

No longer-term vision

The majority of companies have a vision that does not go much beyond two years. Small companies in particular do not have a longer-term vision. They are guided by the current events of the day; they set the agenda. But work pressure also hinders entrepreneurs from stepping back, taking a holistic view and thinking about strategy for the future.

“The urgency is not very high with us, because the results are very good.â

Smart manufacturing only makes sense if business processes are in order

One important lesson from the study is that smart manufacturing only makes sense if business processes are in order. Both in terms of process design and the degree of digitalization. Only when the foundation is integrally right does it make sense to take steps in manufacturing innovation. Then ad hoc solutions are avoided and optimal benefits can be derived.

In this article, we share interesting results from a study by the Business Innovation Knowledge Center of Hogeschool Rotterdam within the SMITZH program, which ran since 2017 and concluded successfully last year. Results that also make you as an entrepreneur in the field of digitalization, automation, ERP and preventive maintenance think.

The SMITZH Program

In 2017, the SMITZH program was launched in South Holland. SMITZH stands for Smart Manufacturing Industrial Application in South Holland. The goal of this project is to be the one-stop shop for all questions around smart manufacturing for the SME manufacturing companies in Zuid-Holland. And to support these companies in preparing and implementing smart manufacturing. In other words, to offer support in defining and implementing a strategy, finding the right partners and developing and testing missing technology. To effectively identify opportunities and obstacles in the field of digitization and automation, we have developed our own measuring tool: the Digiscan.

What is the Digiscan?

In developing the Digiscan, it was assumed that each company is unique in the products it provides, its history, management, customers, business processes and, of course, employees. This combination makes each company different and thus not easily comparable to other companies. In the Digiscan, we address three main themes:

• Offer: what problem am I solving for my client?
• Operations: how do I make sure my customer gets what they were promised?
• Commerce: how do I make the offer known to customers?