European industry is in crisis. Persistent supply bottlenecks, the war in Ukraine, the after-effects of the coronavirus pandemic, a shortage of skilled workers and the challenging energy crisis are making everyday life in industrial companies particularly difficult, with extreme price rises threatening entire livelihoods in some cases.
According to the Upper Austrian Chamber of Commerce, companies in the industrial and plant construction, catering, food production, metal processing and transportation sectors are particularly affected.
How can companies in this country prepare for these crises? And does digitalization really play such a big role?
Studies confirm that the digital maturity level of companies determines their crisis resilience.
According to the Federation of Austrian Industries and Accenture, companies with a higher degree of digitalization are significantly more resilient to crises in terms of sales development and productivity. Furthermore, companies that rely on data models, analyses and algorithms have significantly higher capacity utilization.
The adaptation and benefits that can be gained from the Industrial Internet of Things, such as more agile production processes and data-based decisions, have not yet been realized in many places.
We have identified 3 fields of action in companies where digitalization promotes resilience:
The digital transformation in the world of work:
In order to become more resilient during the crisis, companies need to make their daily working environment more flexible and digital. The coronavirus pandemic and the resulting changes to the framework conditions through short-time working, teleworking and the option of working from home have already given the world of work a digitalization boost; there are numerous tools that teams can use to stay connected digitally.
Added value through digitalization in both a strategic and operational context can only be achieved if data is provided consistently, information is obtained from it and clear decisions are made based on it. A clearly defined and consistent data strategy supports companies in making optimal use of this data.
Infomotion has identified 6 subject areas in order to establish an optimal framework for a modern data strategy:
Digitalization in the world of work therefore does not just mean introducing individual tools to digitalize work processes and capture data digitally. It means avoiding silo solutions, minimizing the need for overarching regulations and supporting automation in order to work together more efficiently, flexibly and effectively.
The digitalization of supply chains:
The digitalization of supply chains means that companies are introducing digital technologies to improve processes and the way they work internally as well as with customers and suppliers. Supply chain disruptions, difficulties in forecasting demand and the unavailability of stock pose major challenges for companies. Resilient and more flexible processes are required in order to be able to react to external influences in a timely manner.
The need to establish more resilient and flexible processes is reflected, among other things, in a report by the APQP (American Productivity & Quality Center) from 2022.
Instead of spreadsheets for analyzing historical data, technologies for intelligent data analysis in real time are needed in order to establish more accurate forecasts and, subsequently, early warning systems.
Digitalization and automation in production:
We have identified digitalization and automation in production as the third and final field of action. This does not mean that machines will completely take over the work of people, but rather that manual activities will be accelerated with the help of digital technologies and data exchange will be automated as far as possible.
The prerequisite for this is the networking of all data sources, such as machines and systems, buildings, objects and even people who interact with each other in production halls. With the help of digital tools as well as sensor and communication technology, relevant information such as quality features or inspections can be recorded and transmitted in real time.
Building digital resilience: Four approaches on how to master the challenge.
Structured data collection along the entire value chain
Processes start where suppliers manufacture components or similar items, namely at the very beginning of the value chain. A networked supply chain is the key to identifying supply chain problems at an early stage in order to initiate any measures to minimize damage. With the help of standardized data collection and consolidation at the relevant points, maximum transparency and traceability can be guaranteed across multiple companies and locations. Real-time data and evaluation options such as process mining can uncover problems at an early stage so that action can be taken at an early stage.
Furthermore, thanks to seamless process documentation via digital technologies, the traceability of the origin and auditability of quality checks carried out can be called up at the click of a mouse. Long searches and working through checklists are now a thing of the past.
Automate for more efficient processes
Short throughput times, high quality standards and increasingly complex processes are the status quo for manufacturing companies. The optimization of business processes is an important lever for achieving shorter throughput times, reducing costs and increasing quality at the same time. In short, time-consuming and often manual extra work should be automated, leaving more time for value-adding activities.
Companies have a wide range of technology at their disposal, from configurable tools for workflow automation to robot-supported software solutions for process automation. It is important not just to implement a tool, but to take a close look at the processes in advance.
Actively involve employees and increase employee satisfaction
In times of a shortage of skilled workers, employees have a high priority in companies. It has long been the case that employees can no longer just be won over with a fruit basket and free coffee. It is much more the modern working environment and attractive working models that attract today’s skilled workers. Paper lists, deciphering signatures and tedious searches for documentation are a thing of the past. The ServiceNow study proves that digital tools contribute to a more pleasant working atmosphere and time for creativity, and therefore greater employee satisfaction.
Personalization also plays a major role here. Individual language settings can be made via digital companions such as wearables and mobile apps. This can significantly improve collaboration, especially for specialists from different countries of origin.
No-code technologies also play a major role. This enables employees to digitalize processes even without programming knowledge and empowers them to actively shape digitalization.
Flexible software solutions for agile process optimization
If necessary, it must be possible to react quickly. Rigid software solutions that can only be expanded with costly programming effort present major hurdles in terms of digital resilience. There is a need for digital technologies that can be expanded without programming knowledge and great effort, which relieve the burden on in-house IT resources and can react quickly to external circumstances.
No-code platforms allow business processes to be adapted very quickly and easily thanks to configurable settings, which are particularly useful in times of crisis.
Conclusion
If you want to make a crisis-proof start into the future, there is no way around process digitization. More efficient processes, more time for more important things and improving the quality of products and services are just some of the many benefits that digitalization brings us and makes us crisis-proof. In the spirit of “agile & stable”.
