As MAKOMESH celebrates its fifth year as Australia's newest and most innovative mesh manufacturer, one question I have regularly been asked by business leaders is: "how do you do it?" More precisely, how do you undertake the wide-ranging implementation of digital technologies in a manufacturing business?
The company behind MAKOMESH has 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. MAKOMESH was also recognised as one of Australia's most innovative manufacturers at the 2023 Endeavour Awards.
Reflecting on our transformation journey and the many challenges 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
- Most importantly, empower your people to operate in collaborative cross-functional teams motivated to work towards a common goal
1. Start with a bold 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 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 that our customers expect us to 'run 9.5 seconds' or better — and everyone in our team is constantly working towards that goal.
2. Adopt a modern, cloud-based digital platform
The second success factor may seem more challenging, as many traditional manufacturers have large investments in legacy on-premise ERP systems. The truth is these systems are not compatible with successful and wide-ranging digital transformation outcomes. The adoption of a modern cloud-based, data-first digital platform is essential.
Whilst this may appear daunting, this decision sets the foundation for successful digitisation at scale across the organisation — something that is simply not possible with legacy ERP systems. My advice is to start thinking about everything you do as data. Whether it's customer, product, order or machine data, think about the sources and uses of that data to help you structure use cases based on your customers' requirements and business needs.
3. Put your people at the heart of the journey
Finally, the role of your team in your transformation journey needs to be at the heart of your culture and strategic intent. The traditional silos and departments that exist in most manufacturing businesses need to 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 the many complex problems that arise — which is not possible within the constraints of traditional silo structures.
In this journey, you will be doomed to fail without the empowerment of your people. My experience is that this third success factor is not only critical to a successful transformation, but is also a great opportunity to transform the engagement and effectiveness of your entire workforce.
Our team engage in consistent patterns of collaborative and agile ways of working, driven by our purpose to build a better manufacturing system. We set quarterly goals linked to daily programs and actions that facilitate collaboration and inherently question why we do things, how we do them and when.
A great time to be a competitive manufacturer
I believe it is a great time in history to be a competitive manufacturer. The opportunity to invest in advanced systems and technologies drives significant impact — our business is performing better, our people have better jobs and our impact on the environment is better.
With a disciplined long-term view and a clear commitment to the three key success factors, manufacturers of any size can overcome the many challenges that exist on a digital transformation journey. The challenges to transform are significant — but the alternative is getting left behind by those who will be running 9.5 seconds in Paris.