To survive in today’s dynamic landscape, manufacturing companies need a robust strategy for implementing digital technologies across all their operations. Fierce competition, evolving customer expectations, and ever-changing behaviors demand a more responsive and data-driven approach than the manufacturing companies of the past.
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Successful digital transformations empower manufacturers to disrupt the status quo and exceed performance expectations.
However, the road to success is not guaranteed. According to a 2019 study by McKinsey, “The average digital transformation stands a 45% chance of delivering less profit than expected.” McKinsey is not alone in its findings. A year later, Boston Consulting Group (BCG) found that 70% of digital transformations fail to meet their objectives. Given the necessity of digital transformation, your journey must be part of the success statistic. The good news is that with the right approach, you can achieve it.
Let’s look at why manufacturing companies are at risk for failing to meet their digital transformation objectives and what you can do about it.
The Problem of Legacy IT Infrastructure and Data Silos
Many manufacturing companies set out on a digital transformation journey to drive business growth and enhance customer experience. However, achieving this goal in today’s dynamic market requires seamless alignment between operations, sales, support, marketing, and customer service. Unfortunately, manufacturing companies often struggle with this alignment due to legacy IT infrastructure that has created a multitude of data silos.
Inventory data residing in a spreadsheet on a lone computer, production schedules scribbled on whiteboards, and design specifications scattered across individual workstations — these are data silos — isolated pockets of information hindering a truly connected and efficient operation.
Legacy IT infrastructure often makes it challenging to integrate these disparate systems, hindering communication and collaboration across departments.
Imagine a salesperson without access to accurate inventory data, unable to answer customer inquiries effectively. Or a customer service representative unaware of a product’s release date, causing frustration for a waiting customer.
System integration offers a solution, eliminating silos and enabling manufacturers to operate more effectively.
How System Integration Helps Companies With Digital Transformation
The typical system integration project involves integrating Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) systems. To further understand why CRM-ERP integration is critical to digital transformation success, let’s look at some of the problems data silos create and how system integration can help manufacturing companies overcome common challenges associated with them.
Limited Data Visibility and Insights
Each silo holds information. But, it is only a piece of the puzzle, and without a unified view, it is impossible to understand your business operations entirely. This limited data makes it difficult to identify trends, opportunities, and areas for improvement.
System integration connects data sources across the company so everyone can see the whole picture and make informed decisions.
Inconsistent and Inaccurate Data
Data stored in separate systems can be formatted differently, leading to inconsistencies and inaccuracies when combining information. This makes the data unreliable for making informed decisions and creates extra work to clean and standardize data.
System integration improves data quality bystandardizing data formats and implementing data governance practices to ensure accuracy and consistency.
Inefficient Operations and Collaboration
Manual data transfer and integration between siloed systems is time-consuming and error-prone. This slows operations and hinders the automation and optimization that digital transformation aims to achieve.
Also, when data is locked away in silos, it becomes difficult for different departments to collaborate effectively. This leads to duplication of efforts and missed opportunities for innovation.
System integration enables automation and workflow improvements, creating seamless collaboration across departments. Aligning sales, marketing, and customer service functions with operational processes unlocks efficiencies, enhances customer experiences, and fosters long-term relationships with other vendors.
Finding a Good System Integrator
Choosing the right system integrator is a critical decision that can significantly impact the success of your digital transformation. It’s not a choice to be made lightly, but with careful consideration and these six critical criteria, you can make the best choice for your company.
Define Your Needs
- Outline your digital transformation goals. What specific challenges do you want to address? Are you aiming to improve efficiency, optimize production, or enhance customer service? Clearly defined goals will help you identify the specific systems that need integration.
- Inventory your existing IT landscape. This gives the integrator a clear understanding of the systems they must work with and how they interact.
- Decide the relationship you want with your system integrator. Do you want a system integrator who works with you to determine the metrics you need to meet, or do you want someone who immerses themselves in the process and works alongside you?
Look for Experience
Look for system integrators with a proven track record in manufacturing. They should have experience working with companies in your specific industry and understand the unique challenges you face.
Evaluate Capabilities Beyond Integration
While integration expertise is crucial, an exemplary system integrator goes beyond just connecting systems. They should also possess strong data management skills to ensure data accuracy and consistency across all integrated systems.
Look for system integrators with a strong understanding of system architecture design. They should be able to design a scalable and future-proof solution that can adapt to your company’s evolving needs.
Check References
Don’t hesitate to request references from the system integrators you’re considering. Contact these companies and ask about their experience working with the integrator.
Focus on references with similar manufacturing operations and digital transformation goals. Their experiences will provide valuable insights into the integrator’s ability to deliver on their promises.
Evaluate Project Management Methodology
A successful integration project requires a well-defined plan and clear communication. Evaluate the integrator’s project management methodology. Do they have a proven track record of delivering projects on time and within budget?
It is important to find an integrator whose communication style aligns with yours. Do they provide regular updates and progress reports? Are they readily available to answer your questions and address your concerns?
Verify Commitment to Security
Cybersecurity is paramount. Evaluate their commitment to data security and their ability to comply with industry regulations.
What Can System Integration from rSTAR Do?
rSTAR is a full-service specialized system integrator that helps transform leaders in asset-intensive industries, such as energy and utilities, manufacturing, high-tech, and automotive, into business value all-stars by focusing on digital transformation initiatives. With over 20 years of experience in Oracle, Microsoft, and Salesforce, the company provides consulting, implementation, and services for AI, CX integration, and automation solutions. Its system integration solution:
- Modernizes your business and IT operations.
- Streamlines and automates repetitive processes.
- Reduces opportunities for human errors or confusion.
For more information, please visit rSTAR Technologies.
