Avoid Pilot Purgatory in Industry 4.0
Industry 4.0 is the fourth industrial revolution, and it is characterized by the use of advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), and cloud computing. These technologies promises significant benefits for manufacturers, such as increased production capacity, reduced material losses, improved delivery lead times, higher employee satisfaction, and lower environmental impact.
However, many manufacturers are struggling to realize these benefits and scale up their digital initiatives across their networks of factories, in other words, stalling in pilot purgatory. According to a McKinsey survey[1], less than a third of respondents have moved critical use cases, such as digital performance management, into large-scale rollout. Many companies are experiencing “pilot purgatory”, which is when they invest in digital projects that do not go beyond the initial small deployment or deliver a satisfactory return on investment[2].
Common Pitfalls
There could be various reasons why companies get stuck in pilot purgatory. Just to list most common ones:
- Lack of clear goals and objectives: Companies often don’t have a clear understanding of what they want to achieve with Industry 4.0 technologies. They end up implementing pilots that are not aligned with their business goals.
- Poorly defined scope: The scope of a pilot project is often not well-defined, which can lead to problems down the road. For example, the project may not include all of the necessary stakeholders or it may not have a clear timeline.
- Lack of capabilities and skills. Many companies do not have the right talent and expertise to design, implement, and operate digital solutions. They may also face challenges in upskilling and reskilling their existing workforce and attracting new talent with digital skills.
- Lack of buy-in from stakeholders: If there is not enough support from all of the stakeholders involved in a pilot project, it is unlikely to be successful.
How to Avoid
If we understand the reasons to fall in purgatory clearly, we’ll have a chance avoid these points:
- Start with the end in mind. Manufacturers need to define their digital vision and strategy based on their business objectives and value drivers. They need to identify the most impactful use cases that can deliver quick wins and long-term benefits. They also need to develop a roadmap for scaling up successful pilots and integrating them into their core operations.
- Define the scope of your pilot project carefully: What are the specific goals of the pilot project? Who are the stakeholders involved? What is the timeline for the project?
- Develop capabilities and skills. Manufacturers need to invest in building or acquiring the right talent and expertise to design, implement, and operate digital solutions. They also need to train and empower their existing workforce with digital skills and tools. They also need to create an attractive value proposition for new talent with digital skills.
- Get buy-in from all stakeholders: Create open and clear communication channels with all relevant stakeholders to give the message about project’s purpose, objectives, and potential benefits, involve them as early as possible to increase the overall embracement.
I believe manufacturers can escape pilot purgatory and capture the true value of Industry 4.0 by following these success factors.
What are your personal experiences and ideas about avoiding or escaping pilot purgatory?
Additional Resources
Industry 4.0 is the fourth industrial revolution, and it is characterized by the use of advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), and cloud computing. These technologies promises significant benefits for manufacturers, such as increased production capacity, reduced material losses, improved delivery lead times, higher employee satisfaction, and lower environmental impact.
However, many manufacturers are struggling to realize these benefits and scale up their digital initiatives across their networks of factories, in other words, stalling in pilot purgatory. According to a McKinsey survey[1], less than a third of respondents have moved critical use cases, such as digital performance management, into large-scale rollout. Many companies are experiencing “pilot purgatory”, which is when they invest in digital projects that do not go beyond the initial small deployment or deliver a satisfactory return on investment[2].
Common Pitfalls
There could be various reasons why companies get stuck in pilot purgatory. Just to list most common ones:
- Lack of clear goals and objectives: Companies often don’t have a clear understanding of what they want to achieve with Industry 4.0 technologies. They end up implementing pilots that are not aligned with their business goals.
- Poorly defined scope: The scope of a pilot project is often not well-defined, which can lead to problems down the road. For example, the project may not include all of the necessary stakeholders or it may not have a clear timeline.
- Lack of capabilities and skills. Many companies do not have the right talent and expertise to design, implement, and operate digital solutions. They may also face challenges in upskilling and reskilling their existing workforce and attracting new talent with digital skills.
- Lack of buy-in from stakeholders: If there is not enough support from all of the stakeholders involved in a pilot project, it is unlikely to be successful.
How to Avoid
If we understand the reasons to fall in purgatory clearly, we’ll have a chance avoid these points:
- Start with the end in mind. Manufacturers need to define their digital vision and strategy based on their business objectives and value drivers. They need to identify the most impactful use cases that can deliver quick wins and long-term benefits. They also need to develop a roadmap for scaling up successful pilots and integrating them into their core operations.
- Define the scope of your pilot project carefully: What are the specific goals of the pilot project? Who are the stakeholders involved? What is the timeline for the project?
- Develop capabilities and skills. Manufacturers need to invest in building or acquiring the right talent and expertise to design, implement, and operate digital solutions. They also need to train and empower their existing workforce with digital skills and tools. They also need to create an attractive value proposition for new talent with digital skills.
- Get buy-in from all stakeholders: Create open and clear communication channels with all relevant stakeholders to give the message about project’s purpose, objectives, and potential benefits, involve them as early as possible to increase the overall embracement.
I believe manufacturers can escape pilot purgatory and capture the true value of Industry 4.0 by following these success factors.
What are your personal experiences and ideas about avoiding or escaping pilot purgatory?
Additional Resources