General details
EDIHs involved
Challenges
Most small- and medium sized manufacturing enterprises (SMMEs) are investing a lot in trying to understand and capitalise on the opportunities offered by novel digital solutions. Hence, implementing digital solutions and reforming business models around novel digital solutions have become key development processes in the era of Industry 4.0. Often, the reformation of business models with the support on novel capabilities offered by digital solutions is referred to as digital transformation (DT).
The broad scope of DT includes several action-fields or dimension, e.g. strategy, culture, organisation, customers and people/employees, besides the obvious field of technology. It may also be important to point out that technology is just one of the action-fields considered and it is neither more nor less important than the others. Research claims that most large manufacturing companies already, forced by e.g. competitors and market demands, have been rather progressive in their DT-journeys, whereas most SMMEs are still in the early phases of their transformation process. There are several reasons to be found and all companies are unique in their prerequisites and current situation, but knowledge and experience are often indicated as hinders. Especially since the novel digital solutions at hand challenges existing knowhow in the SMMEs, exposing them outside their proficiency in existing manufacturing- and production methods and techniques. For example, integrating and securing horizontal data streams to foster a seamless real-time understanding of individual products and the conditions in single manufacturing steps are partly new and unexplored areas of competence, challenging not only the production organisation, but the whole company. In addition, these challenges are not only of a technological culture, but also includes novel procedures and need with respect to e.g. competences to recruit, upskilling of coworkers and cultures for innovation and experimentation.
Solutions
To address these opportunities and challenge the University of Skövde, as a member of the European digital hub Shiftlab, has developed a methodology and workshop series offered to SMMEs, aimed at catalysing their transformation process, by requiring new knowledge and sharing experiences between different SMMEs. This workshop series targets managers who have a strategic role in individual companies’ DT endeavors, including roles such as Production Manager, Technology Manager or IT Manager. Jointly and together with faculty members of the University of Skövde, the company representatives discuss new scientific theories and exchange experiences of opportunities and challenges in relation to digitalisation and DT, creating a synergetic atmosphere where issues are openly illustrated and described, but also scrutinised and brought into solutions.
The workshop series are aligned to the DT-framework developed by Bumann and Peter (2017). In their research they propose, as a result of a meta-analysis of 18 digital maturity models, six fundamental action-fields or business dimensions that are vital to consider in any DT strategy. The identified dimensions emerged through a commonness analysis, meaning that the six dimensions included in most models made it to the framework; strategy, organisation, culture, technology, customers, and people/employees.
During the workshop series, we meet six times, two full days and four half days. The series is initiated with an introduction and concluded by a final assessment and presentation. Each action-field are covered during a half day, including theory, interesting research results and discussions. For each action-field is also presented a method and/or tool to be used for assessing and evaluating the status/progress at the company. When completing the workshop series they have made an initial evaluation of their company´s digital maturity based on the six action-fields of DT. They also have a tool box for further work and development.
Results and Benefits
Four companies participated the pilot workshop series during spring 2024. During the workshop series we visited the different companies and also had a tour of their production facilities. This was much appreciated and lot of discussions about implemented solutions were initiated. The main result of the workshop series are as previously described:
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The participants have got broader and deeper knowledge of DT and how you can make it happen.
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The participants have made an initial evaluation of their companies digital maturity.
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The participants have got a tool box for further work and development aiming a DT of their organisation.
Beside the increased knowledge and refilled toolbox for an continued transformation endevour, three other outcomes as a result of us meeting and discussing during the workshop series stand out:
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Identified approaches and solutions to common production system challenges led to that two of the companies booked further visits at each plant so that their colleagues also would have the chance to see what and how the others had approached the common challenges within production processes.
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Two of the companies decided to “swap” staff for a limited time so that experiences and knowledge could flow between the two organisations. Each company identified a couple of individuals within production engineering who then would stay for some weeks at the other company. This exchange is planned for autumn 2024.
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One of the companies found out that that another company had addressed a specific welding problem they had struggled with for a while. After the workshop series they continued working together further addressing the challenge.
The companies involved in the workshop series definitely showed evidence on sharing some of the common challenges related to SMMEs in relation to DT. Following the finding of Kane, et al. (2015) the companies had problems with too many priorities and also lacked a digital strategy which could guide them in the overall planning as well as act as a guiding star when prioritising internal resources, such as IT and production development resources.
Perceived social/economic impact
The workshop series focused on promoting methods and tools, which, in turn, increased the awareness and knowledge of various perspectives or facets of DT. Consequently, the participants also became equipped with hands-on tools and procedures to address internal challenges and to reap benefits of digital solutions in a company context. In addition, by creating opportunities to meet, which is often neglected in a day-to-day work life, with many obligations and operational duties, the workshop series also fostered novel collaborations between companies expanding beyond Spring 2024. Three concrete examples of outcomes of this networking were described above.
Moreover, following the end of the pilot workshop series, two of the companies immediately promoted the importance of offering the workshop series again, allowing more people in their organisations to leverage their understanding of the complexity in DT. In response, a new run of the workshop series will start late Autumn 2024. Three of the companies have also continued and expanded their engagement in other events offered by Shiftlab and two of the companies have asked for continuous in-depth collaboration with the University of Skövde, either through Shiftlab, other research projects or life-long learning projects.
Measurable data
Four companies attended the workshop series March - May 2024. The workshop series was lead by two researchers from the University of Skövde and it was planned as follows:
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Meeting 1 - Introduction & Strategy (Full day)
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Meeting 2 - Organisation (Half day)
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Meeting 3 - Culture (Half day)
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Meeting 4 - Technology & Customer (Full day)
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Meeting 5 - People (Half day)
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Meeting 6 - Presentations and conclusion (Half day)
Each action field "got half a day" and the agenda was as follows:
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Presentation of theory and recent research within the area/action field including an applicable method or tool to be used by the participants
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The participants reflected upon their own organisation using provided questions/method/tool
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The participants discuss together their finding with each other facilitated by the workshop leaders
Of course questions and discussions were always welcome throughout the meetings. During the final meeting the participants made an extensive presentation of their findings and a plan of how they could carry on the work "back home" aiming a DT.
We have met at the University but also at the companies. When visiting a company we have also had a tour of the production facilities and as previously described this was highly appreciated and in parallel to the more theoretical parts of the workshop series also led to further cooperation and development among the companies.
Lessons learned
Meeting people from different companies and have the possibility to discuss and approach different challenges, in different guises, that everyone faces is stimulating and rewarding. It is not only the company representatives who learn new things during these workshops. Also as a researcher these workshops have been very rewarding and collaboration with the companies engaged has continued and deepened. So a lesson learned is really – Do it! Meet each other and discuss the challenges you are facing. Much insight and experience are released during these meetings.
Using a series of workshops to discuss and dig into such a complex challenge as DT was fruitful and received good feedback from the participants during the concluding evaluation. Of course, not every company have the possibility to engage as much time (six occasions) but an “offer” only including short seminars and a one-day workshop does not have a chance to address such a composite area as DT. It has been positive that we can offer a palette of events within the DT-area, from an introducing short seminar to a six-occasion workshop.
Other Information
The actions fields/dimensions identified by Bumann and Peter (2017) include; strategy, organisations, culture, technology, customers, and people/employees. Research also argue that the actions-fields/business dimensions of DT are intertwined and over-lapping. All of them are also strongly linked to another action-field not making it to the final six, leadership, which highly influences all strategic work or business plan revisions in any company. For clarity, since it may be confusing to include the actions-field/dimension strategy as part of a DT strategy, Bumann and Peter promote, aligning other research, the importance of actually formulating a digital strategy, that is well communicated. In addition, in relation to the dimension strategy they also underline the importance of safeguarding the availability of sufficient resources and the importance of exploring and evaluating new trends.
The included figure below illustrates the DT-framework with actions-fields/business dimensions and subdimensions to consider in the process of digitally transforming an industrial organisation. The text included for each action-field high lights some of the important subdimensions of each action field covered during the workshop series.