Machsync

Digital transformation involves integrating modern technologies and communication methods into products, services, and processes, enabling companies to change the way they create value for customers. This is the core of 'Digital Transformation.

Verheof et al.（2021）identify three stages of Digital transformation:

1. Digitization: The process of converting analog information into digital form.

2. Digitalization: The use of digital technologies to change existing business processes.

3. Digital transformation: Guiding new business models and methods through information or digital technologies.

Currently, many companies in Taiwan are only at the first or second stage and still have a long way to go to achieve the true goal of digital transformation. The process of digital transformation not only involves integrating technology into various aspects of the enterprise but also requires ensuring that the adoption of technology generates positive impacts on the company's operations. To maintain competitiveness in the market, companies cannot merely rely on digital tools; instead, they must adjust internal processes, organizational structures, and develop employees. This allows for innovation in products and services to enhance competitiveness and differentiation, reducing the risk of being replaced or phased out.

Lin Shih-Chang (2022) points out that the manufacturing industry is facing challenges such as labor shortages, an aging workforce, and rising labor costs. This is particularly true for traditional industries, which struggle to compete with the favorable conditions provided by the high-tech industry. In addition, the trade war between China and the United States in 2018, the global COVID-19 pandemic in 2020, and the Ukraine-Russia war in 2022 have not only had comprehensive impacts on the global economy but also significantly impacted the manufacturing industry. However, the current market and supply chain demands are no longer as clear as they used to be, and risks are gradually increasing. This requires companies to gather more information to speed up decision-making and judgment, thereby strengthening the entire operation of the enterprise and changing existing business models.

The manufacturing industry faces many challenges, and digital transformation is not just about digitizing work processes, but rather about transforming and improving existing business models to create more value. For the manufacturing industry, it essentially involves automating processes, optimizing workflows, and digitizing data to enhance product diversity and optimize efficiency. Through the collection and transparency of data, companies can make more timely and accurate decisions in the rapidly changing market. This applies to operations, production, sales, experiences, services, customer feedback, and even bringing more value to suppliers or partners.

Digital transformation not only enhances value for enterprise but also has a positive impact on the environment and society. Therefore, digital transformation can maintain competitiveness and reduce the risk of obsolescence for manufacturing industry. It brings many benefits that are worth everyone’s attention.

• Enhancing Product Quality: By integrating sensors, automation and quality control into the manufacturing process, the industry can produce higher quality services and products. Through machine learning, more recommendations and information are obtained, allowing for adjustments in processes that reduce errors and waste production.

• Enhancing Production Efficiency: Automation reduces the likelihood of human errors during the manufacturing process. Additionally, by combining artificial intelligence and machine learning for process analysis, adjustments can be made to improve areas of inefficiency, thereby increasing the effectiveness of the output.

• Eco-friendly: With the growing emphasis on ESG（Environmental, Social and Government）issues, both manufacturers and customers are increasingly concerned about whether products and manufacturing processes are eco-friendly. As a result, enterprises are exploring various methods to find solutions. Digital transformation aids in improving efficiency while reducing energy consumption. Enhanced efficiency also leads to lower material wastage, thereby creating an environmentally friendly production model.

• Customer-Centricity: The demand for customization has significantly increased, with customers prioritizing responsiveness and speed over cost. In response to these demands, enterprises need to provide agile and high-quality operational models to meet customer requirements.

Of course, implementing digital transformation successfully is a long journey. Many enterprises find it challenging to drive reforms despite their desire to do so. Transformation can have a impact on existing organizations and members, and even if the members accept changes, low enthusiasm, coupled with outdated equipment and insufficient understanding of digital transformation concepts, can result in stalled progress.

Firstly, considering the current industry landscape, equipment replacement is crucial for successful transformation. Additionally, the training of existing personnel to adapt to new technologies pose a significant challenge. If these factors cannot keep pace with the plan, the transformation process may face obstacles. Secondly, there are existing configurations and spatial limitations within production lines in factories. Automating production lines requires reconfiguring and rearranging factory floors. There is often a prolonged period of adjustment before witnessing tangible results, leading many companies to hesitate and opt out of transformation altogether.

Even if enterprises are willing to start embarking on digital transformation, the actual costs associated with equipment, maintenance, and even software expenses usually end up being higher than initially estimated. If there are no relevant domestic solutions to improve the current situation, companies may have to seek assistance from foreign providers for planning and implementation. The back-and-forth communication and the costs associated with it in terms of time and manpower become significant factors to consider in the transformation process. In the traditional manufacturing sector, there is a shortage of talent in smart manufacturing, and most of enterprises hope to assemble their own teams for digital transformation. However, there are very few individuals with the relevant knowledge in the existing workforce. If companies wish to cultivate talent internally, it would require substantial investment.

Given the challenges mentioned above, digital transformation may indeed be an inevitable path for businesses in the current scenario. However, its actual execution presents numerous difficulties. Factors such as finances, manpower, equipment, and time are all critical considerations. Whether at the executive level or among frontline employees, significant effort is required. Moreover, companies must bear the burden of high costs and even the possibility of failure. Therefore, before embarking on transformation, long-term assessment and planning are necessary to identify the optimal starting point for the enterprise.

Many manufacturing industries engaged in machining processes struggle with monitoring and determining cutting tool life. They often rely solely on the experience of seasoned machinists for tool replacement decisions. However, premature tool changes may not fully utilize the tool’s potential, while delayed replacement could lead to poor workpiece quality or even tool breakage. Although some companies have implemented monitoring systems or methods, most cannot effectively digitize cutting condition data. In such cases, MachSensing, an exclusive development of Machsync, can provide assistance. MachSensing digitizes cutting data, allowing on-site personnel to intuitively understand the current cutting conditions. Furthermore, the data can be analyzed to improve processes. This approach truly enables machining to transition towards digitization and realize the benefits of Digital transformation.

Main photo by Adobe

Reference

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889-901.

林世彰(2022) 工業數位化轉型升級：為什麼製造業需要啟動「智」造？ 機械工業雜誌，470期，4-11

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