The manufacturing industry has significant work to do in advancing the digital transformation agenda. Part of this involves harnessing a strong digital literacy culture and competency, as well as developing the necessary digital capabilities that your business uniquely requires. However, despite its importance, digital literacy remains an ambiguous term in business and continues to be an area that many leaders struggle with. But developing a stronger digital literacy and digital skills capability is key to unlocking the potential of smart manufacturing. Leaders must prioritise assessing and measuring the current level of digital skills, while identifying gaps to develop, in order to foster future growth and innovation.
Professor Rab Scott, the director for industrial digitalisation at the University of Sheffield Advanced Manufacturing Research Centre, asserts that manufacturers must ensure they are digitally literate before they begin their digital transformation journey.
“Many companies are still confused about whether they need a data scientist or a business analyst – it’s about digital literacy as the first step,” he said. “Digital literacy is more about understanding what digital skills you need to go and get rather than having those skills yourself.”
Defining digital literacy and its role in driving innovation
Defining digital literacy and assessing digital capabilities are critical first steps for manufacturing leaders when driving company-wide innovation.
For some manufacturers, there is confusion around what digital literacy is and this too is getting more complex as the suite of available digital technologies continues to grow. According to Forbes, digital literacy is “the understanding and proper utilisation of digital technology,” and it has become a critical business imperative.
Through digital literacy, manufacturers can utilise their skills to drive transformation and the adoption of new solutions, such as advanced software, analysing IIoT data, operating automated machinery, ensuring cybersecurity, and leveraging smart technologies like digital twins. These new solutions can offer significant benefits, boosting productivity through streamlining workflows and optimising current processes.
Further, a recent research paper Digital literacy and business transformation: social-cognitive learning perspectives in small business enterprises states: “Digital literacy is the first step for micro, small and medium enterprises to advance growth via innovation and eco efficiency” – but this is also true if any manufacturer, big or small. Digital skills not only unlock the ability to innovate but also foster creative problem-solving and collaboration.
Why fostering a strong digital literacy culture is crucial
Digital literacy empowers manufacturing leaders and business owners to navigate many of the challenges they face, such as supply chain disruptions, financial instability, high material costs, workforce shortages, and skill gaps, by leveraging technology for efficiency, cost savings, and market expansion. Once your team is digitally literate, they will benefit from the positive impact it has on the following three core areas.
Digital literacy unlocks these 3 core pillars to manufacturing success
1. Productivity
Manufacturing leaders can boost productivity through smart digital tools, but they must first have a strong understanding of what success looks like. Then, they can leverage digital tools to close productivity gaps through optimised operations and the synergy of workforce and technology.
2. Digitalisation
Digital transformation can revive struggling businesses, enabling them to operate more efficiently through cutting-edge technology. Digitalisation also ensures that your organisation is future-proof.
3. Growth
Manufacturing leaders must assess their foundation and use growth levers, such as innovation, to make sure they activate sustainable growth. This will empower them to scale and grow.
Steps to assess and improve digital literacy
Assessing digital literacy is the first step toward digital transformation. It can unlock more benefits than you can imagine, but first, you have to know where to start. Industry leaders must ensure that they don’t assume digital proficiency without a proper assessment, as this can lead to skill gaps and inefficiencies.
It’s proven that the right assessment can evaluate strengths and weaknesses, identifying areas for growth. With this knowledge, manufacturers can understand their team’s digital capabilities, which will inform investment into critical training and development. Manufacturing leaders should also ensure they leverage innovative and comprehensive frameworks, such as the Consumer Sustainability Industry Readiness Index (COSIRI), Smart Industry Readiness Index (SIRI), and Operational Excellence Readiness Index (OPERI), that offer a dynamic set of tools tailored to support manufacturers in assessing specific core areas of their businesses, empowering them with the knowledge of their level of digital literacy.
Here’s an example of the SIRI step-by-step process:
Request assessment
We know you’re busy, so we’ve made sure our assessments are user-friendly and seamless. The SIRI assessment process takes just two days, starting with Phase 1 (Planning, Preparation and Pulse Check).
Expert evaluation by certified assessors
Our Certified Assessors undergo extensive training to ensure best-in-class expertise when conducting an assessment for your company. Your evaluation will begin SIRI’s Phase 2 (Assessment Workshop).
On-site evaluation approach
The assessment is conducted onsite. Document verification and a direct data reviewing process is collaborated upon with the company.
Guided roadmap for improvement
Your comprehensive 24-month roadmap outlines actionable steps for improvements tailored to your company’s needs. Arguably, the more exciting part of the journey, you’ve reached Phase 3 (Analysis and Review).
Comprehensive report
Receive a detailed report with your scores for all dimensions with score comparisons, prioritisation matrices, and improvement recommendations. Users can leverage the SIRI Client Portal to effortlessly view the results.
Sustainability rating in a star emblem
Get your smart readiness maturity rating in a star emblem rated from one to five for transparent benchmarking for industry comparison. The official SIRI Star emblem will be given upon completion of SIRI assessment (valid for two years).
The digitally literate team and business
During this period of rapid change, it is crucial to foster a culture of continuous learning and upskilling while also championing your team and their professional development. Comprehensive frameworks, such as COSIRI, SIRI, and OPERI, offer tailored tools to support manufacturers in assessing specific core areas of their business and teams, effectively uncovering their level of readiness and identifying areas that need improvement.
While manufacturing businesses must address various barriers to success, digital literacy can help them navigate these challenges more easily, allowing them to focus on what matters and ensuring their business is successful, which in turn leads to improved productivity and expanded growth.
The evolving global manufacturing landscape requires a clear path toward transformation success, which these prioritisation indexes provide. To learn more about the INCIT approach, contact us today.
