64 percent of manufacturers reveal a lack of budget is the main barrier to further IT adoption
Research from InfinityQS highlights costs as the main reason businesses are hesitating to invest in digitalisation
New research by InfinityQS, has revealed that 64 per cent of global manufacturers claim a lack of available budget is the main barrier preventing them from further IT adoption. This was closely followed by 59 per cent citing a lack of available resources and 47 per cent claiming other business priorities as the main factors holding them back from additional investment in digital transformation.
The survey obtained responses from 118 global manufacturers to understand their level of digital maturity, gain a deeper insight into their existing digital infrastructure and determine their IT expectations over the next 18 months. Despite almost half (47 per cent) of manufacturers expecting to invest in data collection technologies over the next 18 months, the lack of budget, resources and time is restricting them from further investment in digital transformation.
Jason Chester, Director of Channel Programs for InfinityQS explains the challenges facing the UK manufacturing industry: “With the UK slipping down to ninth in the global league table and economic instability around Brexit, manufacturers are under increasing pressure to optimise their production lines and improve operational efficiencies. Having the right technology in place to capture data is becoming critical but our survey results suggest this demand is not translating into action.
“Restrictions in IT budgets means firms are forced to continue relying on legacy approaches – such as pen and paper – to record information. On the surface, firms might think they’re actually saving money by not innovating but in fact what they are doing is opening themselves up to misinformation by not making use of accurate data streams.
Chester continues: “The research reveals that confusion still reigns about surrounding how technology can be effectively used amongst manufacturers. Fortunately, the increasing availability of advanced cloud-based solutions, such as manufacturing quality intelligence and automated data collection methods has made procurement more affordable and easier for in-house IT teams to financially digest.
“The costs associated with digital transformation can be recouped through production line and process improvements, delivering higher ROI’s for businesses. By taking advantage of the latest cloud solutions, manufacturers will gain enhanced visibility, while the versatility of the cloud will also allow them to harness these benefits amongst increasingly tightening budgets.
“The subscription-based models of cloud solutions can provide manufacturers with cost-effective options that require minimal infrastructure investment. Cloud-based solutions can also mitigate the lack of resource availability by providing intuitive ‘point and click’ interfaces that enable rapid set up, configuration and deployment of IT infrastructure without the need for heavy investment. This will prove vital for future-proofing the business in the era of digitalisation and will lead to significant cost reduction and improved bottom lines, which can then be reinvested within the operational and supply chain side of the business,” concludes Chester.