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SMEs hesitant about digital transformation due to confusion: Made Smarter

13-Sep-2024 - Last updated on 13-Sep-2024 at 15:58 GMT

Made Smarter hopes to prevent SMEs from falling behind in the switch to digital technology. Credit: Getty / primeimages

Small and medium sized businesses are hesitant to embrace digital transformation due to a lack of confidence in technology and digital skills, the head of Made Smarter's North West adoption programme has warned.

Donna Edwards said that leaders and employees are at risk of being left behind unless they move quickly to adopt new digital technologies.

Set up by the government to support the UK manufacturing sector, Made Smarter has just published a new white paper – Digital Transformation: A Made Smarter Roadmap for SME Manufacturers – that has been designed to help firms that are looking for a place to start.

It explains the Made Smarter process, the services available and showcases some of the businesses that have benefited across the North of England and the Midlands.

The white paper also spotlights some of the partner organisations that are working to help with digitalisation and decarbonisation such as Make UK, Innovate UK, the Centre for People-Led Digitalisation, InterAct and the Smart Manufacturing Data Hub.

Since launching in the North West five years ago, Made Smarter has helped create 1,300 new jobs in manufacturing, while 2,500 existing roles have been upskilled.

Digital transformation seen as 'daunting and confusing'

“Ask a hundred SME manufacturing leaders what digital transformation means to them, and you’ll likely get a hundred different answers,” said Edwards.

“But the common view is that it is daunting and confusing. SMEs, while aware of the benefits technology brings, lack the resources and skills to approach digital transformation in the right way. Many hesitate or become paralysed, risking being left behind, or wasting time, effort and money.”

In light of this, Edwards explained that it is time for Made Smarter to redouble its efforts and attempt to reach more SME manufacturers in order to “showcase the opportunities afforded by technology”.

Edwards continued: “As we approach the first decade of Made Smarter, the pace of change has quickened. The conversation has already shifted from Industry 4.0 and the smart factory to an emerging phase of industrialisation where humans work alongside advanced technology and AI-powered robots to enhance workplace processes.

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