In today's fast-paced digital world, many businesses find themselves visited by tech companies and business groups promising to help them digitize. Yet, for many, this journey isn't as straightforward as hoped, often due to limited resources. Plus, when suppliers claim their solutions can effortlessly digitize factories, it begs the question: Is digital transformation really that easy?
Particularly for the textile and garment industry, which deals with heavy labor, environmental concerns, complex equipment, and the need for quick responses, digital transformation comes with its own challenges. Employee resistance and equipment compatibility issues frequently obstruct progress. When companies are used to doing things the old way, starting the process of going digital can feel like hitting a wall right away.
Whether you're directly interacting with suppliers or making the big decisions for your company, understanding the right approach is crucial to fast-tracking digital transformation. This guide aims to simplify the journey, keeping things simpler, smoother and synchronized.
The Overall Impact of Digital Transformation on Businesses
Digital transformation affects more than just a company's technology; it also affects how the organization operates and how individuals perform their duties. By turning digital, organizations can not only improve the workplace and foster a more open and collaborative culture, but they can also employ automation and process improvement to reduce their dependency on human resources, saving money. Literally, anyone who knows how to operate a computer and access the internet can work at the manufacturing line. This not only helps the production industry cut down on staffing costs and turnover, but it also makes the industry less reliant on the skills of new workers, increasing output efficiency and giving enterprises more independence.
Customers benefit from improved service now that everything is digital. Businesses can use digital tools to provide more personalized and convenient services while also improving the efficiency of their operations and customer service. Businesses can use online management solutions to allow workers to work remotely while managing operations in real time, making operations more efficient and flexible. Being digital allows managers to observe manufacturing processes remotely and make informed decisions. Digitization is a key strategy for modern businesses since it enables them to be more competitive, efficient, and innovative
Selective Digitalization: A Strategic Approach in Manufacturing
When manufacturing businesses consider their digital transformation plans and challenges, they must consider more than just new technologies and a shift in business practices. They must also consider the needs and critical processes of each unit within the industry. Many businesses prefer to digitally transform only the most crucial aspects of their operations rather than going all-in on digitalization. Selective digitalization refers to the digitization of specific production lines or processes rather than the entire manufacturing chain.
But, while this strategy considers how resources are used and how advanced technology is, it also introduces new issues. The main issue is the difficulty in connecting different platforms. As the digitalization process progresses in stages, systems established at different stages frequently have difficulties integrating smoothly. This is especially confusing for employees who do not work in IT. People who work in purchasing, sales, manufacturing lines, and other areas frequently question why systems can't be linked and perform better together.
To address this challenge, businesses must invest in areas other than technology. They should also invest in group management and staff training. This includes creating a uniform digital platform strategy to help different systems interact and be interoperable. It also includes improving digital skill training for employees so that they can better understand and deal with technical and management issues that develop during the digital transition process. This is the only way for enterprises to overcome the systemic integration challenges associated with selective digitalization, proceed with entire digital transformation, and remain competitive in a highly competitive market.
The Stages of Digital Evolution in Garment Manufacturing
Clothing manufacturers takes three important stages to become more digital: digitization, digital optimization, and digital transformation. Each stage has its own set of goals, as well as technical tools or systems that assist clothing manufacturing in becoming more efficient, cutting costs, becoming more competitive.
During the digitization stage, garment factories start by transferring old business processes and data to digital formats, use ERP systems to combine manufacturing, procurement, inventory management, and financial reporting, and finally digitize the design process with CAD software. The major goal of this stage is to increase data accuracy and accessibility, setting the groundwork for future optimization and innovation.
During the digital optimization stage, garment factories begin to study and improve existing digitized data and processes. This includes using modern production scheduling and inventory management systems to eliminate waste, as well as installing automated manufacturing equipment like automatic cutting and spreading machines to improve production efficiency. Predictive analysis tools are important at this stage because they assist forecast market trends and consumer demand. Extended reading: How Automatic Machines are Reducing Financial Losses for a Global Sportswear Company
AI, which has become a hot topic in recent years, improving production efficiency and the ability to respond to market changes. AI technology, including as machine learning algorithms, can be used in predictive analysis to help garment factories foresee market trends, consumer demand, and inventory needs, thereby optimizing production planning and management. Additionally, AI can contribute to automated manufacturing equipment, such as AI fabric inspection machines, by enhancing quality control automation through the use of machine learning algorithms and image recognition technology. Extended reading:
In the final stage of digital transformation, garment factories leverage digital technologies to significantly alter their business models and enhance their market presence -commerce platforms facilitate direct customer engagement and sales. During this phase, production timelines are often reduced. Artificial Intelligence (AI) plays a crucial role, especially in innovating business models and delivering personalized customer support. The use of Internet of Things (IoT) technology improves supply chain visibility while also increasing operational efficiency and product quality through smart manufacturing processes and monitoring.
In the optimization phase, predictive analytics and automation increase production power and quality control. This transition increases garment manufacturers' market responsiveness and competitiveness and opens new doors for more personalized and high-quality customer experiences, demonstrating the importance of technological innovation in fashion.
The Critical Challenge: Cultural Transformation and Strategic Planning
Digital transformation represents a significant leap for enterprises, but research by renowned thought leaders like McKinsey and Harvard Business Review indicates that approximately 70% of businesses fail in their digital transformation efforts. These failures are often not due to flaws in the technology or business innovations themselves but are the result of poor planning, communication barriers, frequent changes in strategy, and a lack of support and sense of belonging among the teams affected by the changes. Among the three main stages of digital transformation, the often-overlooked "cultural transformation" is actually a key element of success.
Four Pillars of a Smooth Digital Transition
Digitization is essential for businesses to gain every competitive advantage in today's highly competitive economy. Over 89% of senior executives emphasize a digital-first strategy since 2018, a trend that has expanded. However, barriers such as poor communication and incomplete planning remain significant obstacles to successful digital transformation.
For digital change efforts to be successful, the four steps below must be taken to prepare and carry them out strategically:
1. Figuring Out Where to Begin: Figure out how digitalized your systems and resources are now, what parts need to be digitalized, and whether you use a modern, scalable ERP system. Pick the easiest way to digitize the processes that are most important to running the business.
2. Setting Priorities: Before fleshing out all the details, clarify the preliminary focus of the transformation plan. Recognize that digital transformation cannot be achieved overnight; establishing achievable goals is essential.
3. Making the Plan: A good plan for digital transformation should strike a mix between adaptability and long-term growth. Set a few clear, achievable goals at the start, such as strong strategies for change management and transition. To keep this in mind, remember that going digital is about more than just technology.
4. Preparing the Team: always remember that “Things do not change; people change." Digital technology can help with repetitive jobs, getting employees more involved, and making it easier for people to work together, but the full benefits can only be seen when everyone is working toward the same goal. Openly talk to your employees, ask for feedback, address their worries, and give them plenty of time to adjust to change.
Digital transformation goes beyond technology to change organizational culture and strategy. Businesses must understand that true transformation involves the participation and contribution of every employee. Long-term development and innovation require a digital-age-adaptable culture. With thorough preparation, clear execution steps, and an open, inclusive communication approach, enterprises can effectively overcome the challenges of digital transformation, thereby optimizing business processes, enhancing efficiency, and strengthening market competitiveness. Successful digital transformation requires placing employees at the center of change and creating a digital culture.
Conclusion
Facing digital transformation, enterprises, especially in the textile and garment industry, must overcome multiple challenges, including changing employee perceptions, equipment compatibility issues, and the urgent demands of the market. These issues often slow digitalization. While selective digital transformation strategies consider resource allocation and technological maturity, they also introduce challenges in system integration. Difficulty in achieving seamless integration between different systems, especially for employees outside the IT domain, poses significant confusion. Overcoming these challenges requires efforts beyond technological aspects, including organizational management and employee training.
In this context, Oshima, a Taiwanese garment equipment manufacturer with over 50 years of industry experience, not only provides professional equipment manufacturing services but also stands as a strong supporter in the digital transformation process of enterprises. Oshima understands the problems and challenges faced by the textile and garment industry. With its expertise in cloud-enable fabric spreading machine, AI fabric inspection machine, and other cutting room equipment, Oshima helps your business maintain competitiveness in the digital age, achieving continuous growth and development.
The process of going digital requires a complete overhaul of strategies, new technology, and deeper changes to the way organizations work. With its rich industry experience and professional technical capabilities, Oshima becomes a reliable partner on your digital transformation journey. Contact us today.
