This year marks our 40th year in Australia, 10th year in Germany, and the 5th year of our Australian MAKOMESH business. One question I have regularly been asked by business leaders over the years is: “How do you do it?” More precisely, how do you undertake the wide-ranging implementation of digital technologies in a manufacturing business?
We have a proud Australian manufacturing heritage dating back to 1984. It’s been quite a journey full of lessons as we have successfully transformed from a traditional manufacturer to being recognised as a world leader in the development and use of advanced manufacturing technologies (Industry 4.0) by the World Economic Forum’s prestigious Global Lighthouse Network.
Reflecting on our transformation journey and the many challenges that we have had to navigate, three critical success factors emerge:
- Develop a strategic intent proactively led from the highest level of the organisation
- Adopt a modern cloud-based, data-first digital platform
- Empower your people to operate in collaborative cross-functional teams
Critical success factor 1: Strategic intent
Creating a strategic intent is a critical starting point for a successful transformation. Without a bold vision or goal, long-term success is at risk. The analogy that I frequently use is that of a 100-metre runner at the Paris Olympics. Ten years ago, that athlete set a goal to win gold in Paris, and to do that they knew they had to run 9.5 seconds.
What is it within your business that is your 9.5 seconds? Our strategic intent is to achieve and maintain cost leadership in a highly competitive commodity market. Everyone in our team is aware of this goal and constantly works towards it.
Many traditional manufacturers have large investments in legacy on-premise ERP systems. The truth is these systems are not compatible with wide-ranging digital transformation outcomes. To succeed, the adoption of a modern cloud-based, data-first digital platform is essential. While this may appear daunting, it sets the foundation for digitisation at scale that would not be possible with legacy systems.
My advice is to start thinking about everything you do as data—whether it’s customer, product, order, or machine data. Consider the sources and uses of this data to structure use cases based on your customers’ requirements and business needs.
Critical success factor 3: Empowerment of your people
The role of your team in your transformation journey needs to be at the heart of your culture and strategy. Traditional silos and departments must be transformed into cross-functional teams. Your team needs a clear understanding of your organisational purpose, their role in the journey, and a voice in solving complex problems. Transformation is not possible without the empowerment of your people.
This third factor not only drives transformation but also improves workforce engagement and effectiveness, creating a culture of innovation and collaboration.
Our approach to transformation
Our team engages in consistent patterns of collaborative and agile work, driven by our purpose to build a better manufacturing system. We ensure every team member has a voice, encouraging them to find a better way of doing everything. Quarterly goals link to daily actions, creating a culture of continuous improvement.
A great time to be a competitive manufacturer
I believe this is an excellent time to invest in advanced systems and technologies. The impact is clear: our business performs better, our people have better jobs, and our environmental footprint is reduced. With a disciplined, long-term approach and a commitment to these three success factors, manufacturers of any size can overcome transformation challenges.
While transformation is not easy, the alternative is being left behind by those who will be running 9.5 seconds in Paris.