A Compelling Case for Digital Transformation In Manufacturing
“Everyone needs different information to do their job correctly. Getting it all together instead of playing ‘Telephone’ makes sharing and making decisions easier.” -Cary Bandstra
Manufacturing is rapidly evolving beyond manual operations and push-button controls. Smart automation and advanced analytics are reshaping the industry, giving companies new ways to overcome challenges like aging hardware, cybersecurity threats, and ongoing labor shortages. Digital transformation isn’t just about adopting the latest technology; it’s about creating seamless connections between your equipment, processes, and team to unlock real-time insights and long-term value.
In this dynamic landscape, staying competitive means thinking strategically about modernizing your operations. Embracing digital transformation lays the foundation for increased efficiency, stronger resilience, and a future-ready manufacturing environment. With digital transformation, you can make the best decisions that align with today’s needs and tomorrow’s opportunities.
The Role of Digital Transformation in Manufacturing
Digital transformation involves upgrading technology from manual or semi-automated processes to full automation. It goes beyond simple upgrades—it creates a seamless flow of information throughout an entire organization. Traditionally, plants relied on manual entries, with operators physically recording data from equipment. This process slowed down operations, left room for errors, and missed opportunities for improvement.
With digital transformation, everything from machines to sensors is interconnected through a robust data infrastructure. Equipment automatically shares real-time performance data with centralized systems, eliminating the need for manual input. Modern software platforms can capture metrics such as run times, maintenance needs, production rates, and quality checks directly from the source.
This automatic connection and collection of data lets plant managers monitor operations instantly and quickly identify inefficiencies. On top of that, since information flows smoothly from the plant floor to corporate management systems (such as ERP or MES platforms), leadership can make faster, evidence-based decisions that align with business goals. This results in unified, reliable data that pushes continuous improvement. You can break down silos between plant operations and corporate strategy, all while streamlining the entire manufacturing process.
The Need for Digital Transformation in Manufacturing
Although there are several reasons to embrace digital transformation with the current evolving industrial landscape, here are three of the most prominent ones:
Hardware Obsolescence: Every piece of equipment—whether it’s a machine on the plant floor or the computer on your desk—has a finite lifespan. Understanding each asset's lifecycle is crucial for maintaining reliability and managing budgets. Digital transformation allows manufacturers to build comprehensive databases that track all gear, components, devices, and machines. They record vital details like installation dates, usage history, manufacturer information, and expected end-of-life.
With this level of visibility, facilities can proactively plan for equipment replacement, schedule upgrades, and allocate resources effectively. Instead of reacting to failures or errors, organizations can make informed decisions and ensure smooth production with more predictable maintenance expenses.
Cyberattacks: As manufacturing operations become more connected, protecting your plant and assets from cyber threats is more important than ever. Outdated software and legacy systems often have vulnerabilities that weren’t known—or didn’t even exist—when they were initially installed, making older equipment a target for attacks. Regularly updating software closes security gaps and helps defend against incoming threats.
Digital transformation also creates a smarter approach to cybersecurity with the ability to isolate and contain potential cyber threats. With a secure, robust connection between business (IT) and plant floor (OT) networks, companies can quickly detect and minimize the impact of any breach. Secure connectivity allows data to flow where needed while preventing threats from spreading.
Worker Shortage: Automation is vital in helping manufacturers manage workforce shortages. By programming equipment to automatically carry out processes, producers reduce the need for manual intervention. Instead of relying on operators to initiate actions or enter data at each step, automated systems keep operations running smoothly with fewer hands on the floor.
This digital approach streamlines production and ensures consistency and reliability, allowing plants to maintain output and quality standards. Embracing digital transformation helps companies stay resilient and competitive, despite labor market challenges.
Starting Your Journey with Digital Transformation
The first step of your digital transformation journey is assessing your current operations. This goes beyond surface-level checks and involves asking deeper questions:
- How modern is your existing infrastructure? How adaptable is it?
- What hardware do you already have in place, and how well does it support your goals?
- Are your servers and systems regularly updated and patched?
- Do you plan to source replacement parts or expand your systems in the future?
- How prepared is your facility to collect and analyze real-time data?
Answering these key questions will give you a clearer picture of your current situation and help pinpoint what you need to do to move forward. Taking these questions and collaborating with an experienced systems integrator or consultant can provide valuable expertise, helping you plan and execute a digital transformation that aligns with your unique business needs and future goals.
Four Benefits of Implementing Digital Transformation
Here are four main benefits of making the move to digitally transform your operations:
- Enhanced Cybersecurity: The right digital infrastructure can significantly strengthen your company’s defense against cyber threats. Modern systems offer built-in security features like regular software updates, encrypted communications, and network segmentation. By proactively managing and protecting both your plant floor and business networks, digital transformation helps safeguard sensitive information and critical equipment.
- Improved Product Quality: Digital transformation empowers manufacturers to monitor and control product quality at every stage of the production process. Automated systems can perform batch testing, real-time quality checks, and collect data better than manual methods. If there’s a recall or a quality issue, digital traceability lets you quickly identify which products are affected and find the source of the problem. This level of oversight reduces the risk of defects and helps refine processes for better quality and reliability.
- Fewer Workers on the Plant Floor: By automating routine tasks and streamlining processes, manufacturers can operate efficiently with fewer workers on the plant floor. This is especially valuable when facing workforce shortages or hiring challenges. Automation minimizes the need for constant operator involvement, giving teams the opportunity to focus on higher-value tasks.
Digital Transformation in Action
An Interstates client with a manual pellet mill recently started their digital transformation journey. At the start of their transformation, the equipment required someone to be physically present throughout the day, constantly adjusting settings to keep production on track. Productivity often fluctuated depending on whether an operator was available. Production would slow down or even pause during breaks and shift changes, making it difficult to maintain consistent output.
After a digital transformation audit, Interstates recommended targeted upgrades. This included automating key processes and introducing data analytics for real-time cost, throughput, and quality monitoring. These changes did more than eliminate the need for constant manual intervention—they also revealed how much production was lost when operators weren’t present.
With these improvements, the plant’s daily throughput nearly doubled. The new system now delivers comprehensive reporting—tracking ingredient usage, quality, and performance trends—giving the team all the insights they need to sustain and continuously improve their production, regardless of staffing fluctuations.
Digital transformation in manufacturing is more than just replacing old hardware—it’s about building a smarter, more connected, and resilient operation for the future. To get the most value, look beyond short-term fixes and consider how digital tools, automation, data analytics, and robust cybersecurity can work together to streamline your workflows. Partnering with experts, whether in-house or trusted system integrators, ensures your transformation is grounded in best practices and tailored to your unique needs.
Remember, meaningful transformation is a journey, not a sprint. Every step you take toward deeper connectivity, better data, and automated processes lays the groundwork for a more efficient and adaptable organization—now and for many years to come.
Cary Bandstra is an Automation Manager at Interstates, specializing in plant floor automation and programming.
This article was originally published in Control Engineering and was updated on 5/30/2025.