Partnering You on the SME Automation Journey

These days, it seems that digitalisation is all we ever hear of. This is unsurprising, though, considering that much of the talk surrounding transformation and growth in the next decade is inherently linked to automating processes.

But embarking on the automation journey is never an easy one to take. After all, it requires heavy investment in terms of capital, resources, manpower and the like.

According to a survey by QBE Insurance Singapore, apprehension about digitalisation among SMEs in Singapore is causing them to fall behind in terms of preparedness for the future digital economy. In fact, this is a worrying trend, seeing as our competitors in the region have already embraced digitalisation as a way of life and are now ahead of the curve.

So if you’re an SME owner still hesitant at taking the next step towards automation, or struggling to justify your digitalisation investment — here’s how you can stretch the benefit of every dollar invested in digitalisation, and reap that promised ROI we have all been vying for.

In South Korea, where the K-beauty industry is a huge market, cosmetic brand Etude House has opened its own Colour Factory — allowing shoppers to create customised, engraved lipsticks by hand at the factory and that are not sold on the market.

This concept applies even in the B2B industry. German automaker BMW has been providing a glimpse into the advanced manufacturing technologies adopted at several of its factories in Germany and the US. The company has been making use of collaborative robots, smart glasses, exoskeletons and innovative work gloves at its plants and they are not afraid to flaunt their smart factory technologies to the world.

These examples from the region teach us one thing: With digitalisation, comes the opportunity to show the world your digitalisation process. By opening your automated factory to the world and being completely transparent about your new processes, you stand to gain more consumer confidence and improve credibility in the industry.

As an SME owner, think about it. Opening up to consumers directly about your manufacturing process is a great way to let your digitalisation investment go the extra mile for you, bringing in the sales and then attracting the right business partners.

The advantages of the C2M model is clear: Manufacturers can make use of technology to gather information on scattered, individualised customer preferences. Big data and cloud computing can be used to match product data models to customer needs. This level of customisation brings smart manufacturing to a whole new level.

This in-depth extraction of user value represents a new wave of manufacturing innovation, and can only be done with automation, digitalisation and the Internet of Things.

A new wave of manufacturing innovation calls for a new wave of ideas, and quite possibly, a new wave of talent. According to a report by the Committee on the Future Economy, smart manufacturing could help the manufacturing sector in Singapore maintain its share of about 20% of the country's economy in the future.

As smart manufacturing continues to be a game changer for Singapore, SMEs should look at how they can fill this talent gap. Traditionally, the manufacturing sector is thought to be rather dull, old-school and a thing of the past. Some have even described manufacturing jobs to be ‘blue collar jobs’.

Growing up, our children have been taught to do well in school and get good grades to become doctors and lawyers — hardly anything to do with the manufacturing industry. It’s no wonder that Singapore is facing a shortage of talent that can facilitate companies' transformation to smart manufacturing.

At iPlast 4.0, we have been on a journey to mould the future of manufacturing. This is done through an Education Revolution of enabling development and adoption before we can enable Industry 4.0. To start from the ground up, we first have to tackle the challenge of changing the mindset of youths, an integral step before discussing technical and vocational training.

In order to better engage youth, what manufacturing SMEs should do is to develop aspects of manufacturing jobs that involve creativity and innovative ideas. By riding the automation wave, there will be a demand for creativity and innovative thinking since machines need to be designed, programmed, built, and operated—and this offers opportunities to work with modern, evolving technology that plays an increasingly crucial role in today’s society.

According to Yeoh Pit Wee, director of operations for Asia-Pacific, Europe, Middle East and Africa at Rockwell Automation, “the type of talent required for smart manufacturing is different from that for the general manufacturing sector.”

Smart manufacturing requires engineers who can understand the processes, machines and technology on the shop floor and then be able to convert the generated data into enterprise-level information so that decision-makers can use it to make informed decisions. This skill gap within our economy will likely widen as Singapore moves towards a digitalised and innovation-driven economy.

This is why there is a pressing need to drive change in the mindset of the younger generation — to make manufacturing cool, fun and even sexy again. Without attracting the youth and their fresh take on things, manufacturing is almost set to become stagnant.

By introducing digitalisation and automation into your operations, you are expediting change. The youths will have a chance to learn that manufacturing is the future, full of valuable opportunities for growth and where their ideas and imaginative minds have a place. They bring with them their digital capabilities, which then further propels innovation within the industry.

It all starts with digitalisation.