Defeat These 5 Digital Maturity Hurdles in Process Manufacturing
Talking about digital maturity isn’t difficult. For process manufacturers, turning that talk into action is where the struggle begins. Here’s how to jump over the biggest hurdles standing in your plant’s way.
Talking about digital maturity isn’t difficult. For process manufacturers, turning that talk into action is where the struggle begins. It’s difficult to improve digital maturity when there are hurdles to jump.
In a previous blog, we discussed ways to measure your plant’s digital maturity and where to focus your efforts if you want to see big improvements. Now it’s time to talk about how to solve the problems that keep you from moving your plant’s digital maturity forward.
1. Too many systems and protocols in use
It’s not unusual to find different operational philosophies, design standards, architectures, protocols, manufacturers and generations of equipment inside a single process manufacturing environment. In addition, different types of data come from all kinds of sensors, while different acquisition systems are used to capture and transmit the information these devices acquire.
This lack of standardization often causes process manufacturers, such as oil and gas companies, to assume that improving digital maturity isn’t possible or practical.
But there are ways to bring different systems and protocols together—without replacing or upgrading equipment—to ensure interoperability and communication. This creates standardization and allows your legacy equipment to exchange and use data securely, no matter what protocol it relies on or what generation it is.
2. No way to share valuable data
One of the first steps toward improving digital maturity involves establishing harmony among your data.
For example, condition-monitoring data helps teams evaluate the health of devices on the plant floor, such as pumps and compressors. It also supports predictive maintenance so components can be repaired or replaced before failure occurs. But there are other people or teams that may be able to use this data, too.
By feeding condition-monitoring data into a maintenance management system, for instance, work orders can automatically be generated when device performance falls outside certain parameters, or new purchase orders can be created for new parts when needed. Back-office integration can also give decision-makers the insights they need for better strategic planning.
By making sure data is visible and accessible to everyone who requires it, you can improve digital maturity while avoiding downtime.
3. Constrained capital budgets
According to the Institute for Energy Economics and Financial Analysis (IEEFA), capital expenditures for oil and gas companies have shrunk by nearly half over the past decade. This makes it difficult to find the dollars to invest in future growth.
To overcome this hurdle, it’s critical to explore solutions that don’t require your company to “go all in” on a new technology or digital transformation strategy. Major transformation doesn’t have to happen all at once, and it doesn’t have to happen overnight. You can upgrade equipment over time and in accordance with budgets. Migration scenarios are key to making sure your digital transformation occurs in a practical, cost-effective way, according to your own timeline.
You should also find partners that can help you determine when legacy vs. new equipment can be used to achieve your goals.
4. The industry’s natural aversion to risk
Oil and gas companies have always been hesitant to change, often relying on old-school thinking and manual processes. This is primarily due to the nature of the industry itself, which is full of uncertainty and potential volatility due to uncontrollable factors like consumer demand, price fluctuations and geopolitical issues.
Because the services they provide are critical, any change that has the potential to disrupt operations or involves steep learning curves can make companies think twice.
McKinsey reports that nearly every oil and gas company runs operational digitization projects in some way, but 70% are stuck in the pilot phase. As more oil and gas companies take the leap, there will be examples to follow and learn from. But this also means that the companies refusing to improve their digital maturity may be left behind as more forward-thinking process manufacturers rapidly deploy new technology at low operational costs. These companies will be the ones that successfully scale their digital maturity and achieve production KPIs.
5. A workforce that’s ready to retire
Like many other industries, workers in process manufacturing are moving quickly toward retirement. According to Energy Digital, the average age of oil and gas workers is 56, with nearly half the workforce over the age of 45. This means that half of the industry’s engineers will be eligible for retirement in the next decade.
Recruiting is also difficult; younger generations don’t always consider career paths in process manufacturing. But improving your company’s digital maturity may help attract the new workers you need. Research shows that employees are 158% more engaged at work and have 61% higher intent to stay in their roles when they have technology experiences that support what they do.
Help to advance your digital maturity
Do some of these obstacles to achieving digital maturity sound familiar? If so, then Belden is here to help.
Our Customer Innovation Center (CIC) experts can show you how to grow network capacity, achieve better connectivity and accelerate flexibility to advance digitization. We can also help you establish a plan to improve digital maturity according to a timeline that works for you and your budget.
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About the Author
Saurabh Gupta joined Belden in 2019 as a vertical sales manager before becoming the solution sales director for smart buildings in India and SAARC. In this role, he guides customers on how to maximize building efficiency, optimize resource use, enhance security and reduce operating costs. Prior to joining Belden, he worked for IBM and Siemens developing business plans and identifying new market opportunities. Saurabh holds an MBA in Marketing from the University of Rajasthan.