As you probably know by now, digital transformation (DT) is taking the manufacturing industry by storm. And we think it’s important that as the vendor of CPQ for manufacturing, we help prepare you for the journey ahead. Just look at some of the posts we’ve already written on the subject:
- How to Ensure Digital Transformation Success
- How CPQ and eCommerce Bring Manufacturers Closer to the Customer
- 3 Phases of the Manufacturer’s Digital Transformation Journey
- CPQ: Taking B2B Companies into the Era of Digital Transformation
- Focus on the Customer to Ensure Manufacturing Digital Transformation Success
- How to Drive Digital Transformation for Your Sales Force
- You’re Doing it Wrong: How to Avoid Digital Transformation Failure
In this post, we want to address common hurdles that manufacturers experience as they embark on their DT journey. What’s holding them back? What do they need in order to power through?
Let’s take a look.
10 Most Common Hurdles Manufacturers Run Into (and How to Overcome Them)
In a recent study, ARC found that the most pressing problems for manufacturers on their digitization journeys were as follows (listed in order of most common to least common for industry leaders).
1. Cybersecurity, data security and privacy, and confidentiality
57.1% of industry leaders and 55.7% of industry challengers cited these as issues. This means you may have to do things differently than you have in the past in order to meet requirements and ensure items such as data security, usability, and performance considerations are taken into account.
2. ROI or business case for digital transformation
48.6% of leaders and 40% of challengers. Here’s how to build a business case for CPQ.
3. Business process opportunities cross multiple silos
37.1% of leaders and 28.6% of challengers. Learn more about the silo problem here.
4. IT/OT gap
34.3% of leaders and 20% of challengers. Learn how to bridge the complexity gap.
5. Risk-averse culture
31.4% of leaders and 41.4% of challengers. See how the common risk objection makes tech sales cycles take so long.
6. Lack of budget
25.7% of leaders and 45.7% of challengers. Did you know? Digital transformation projects are usually accompanied by a starting budget of $5-6 million rolled out over three to five years.
7. Limited analytics talent in our company
25.7% of leaders and 32.9% of challengers. Learn more about predictive analytics and how they can take your business to the next level.
8. Management vision and buy-in
22.9% of leaders and 47.1% of challengers. Here’s what you need to do to get buy-in from stakeholders.
9. Lack of industry standards
22.9% of leaders and 28.6% of challengers. You need to benchmark your performance against competitors and industry standards alike.
10. Bandwidth issues; “We’re running lean and we’re all busy”
22.9% of leaders and 28.6% of challengers. Learn how solutions like CPQ can help your most inexperienced sales reps sell like seasoned product experts.
Many of these hurdles relate to technology issues, and that’s because manufacturing plants today still aren’t highly connected. This could be because, as Forbes put it “organizations are forging ahead with massive digital investments, even though they don't fully understand what technologies they need”. Other hurdles mentioned aren’t about technology, but are normal business hurdles (getting stakeholders on board, lack of budget, etc.).
Keep an eye out for these potential problems, and check out the above linked resources for solutions, as you embark on your digitalization journey. Analyzing them and having potential solutions at your fingertips ahead of time could save your organization valuable time and money!