EDITOR ’ S QUESTION

WHAT STRATEGIES CAN MANUFACTURERS ADOPT TO OVERCOME OPTION PARALYSIS AND ACCELERATE THEIR DIGITAL TRANSFORMATION EFFORTS ?

We ask experts for their insight on how digital leaders can utilise Digital Transformation to help make optimised decisions .

The study surveyed 815 global manufacturing leaders and found that while they all admit their businesses cannot survive without the right technology , fewer than 10 % qualify as digital leaders . A striking 65 % of believing they can last up to five years without new investments . And while a promising 39 % are actively developing ESG initiatives , most manufacturers ( 71 %) lack a credible ESG strategy , even though 28 % identify climate change as a top concern .

‘ Option Paralysis ’ hindering the industry ’ s future

The research blames a debilitating state of ‘ option paralysis .’ When asked to prioritise technologies , more than 80 % of respondents listed every option as essential , underscoring the confusion that prevents decisive action .

The ‘ option paralysis ’ experienced by manufacturers is exacerbated by the fact that each job level is pulling in a different direction . Almost all ( 94 %) C-suite executives believe that cloud computing is the most important technology to Digital Transformation efforts , however , operations personnel saw Digital Twins ( 85 %) and AI ( 84 %) as their priority technologies .

Those at the VP level were most likely to believe that IoT ( 81 %) is the most important technology to focus Digital Transformation efforts on . This indecisiveness is widening the gap between digital leaders and laggards .

Manufacturers know Digital Transformation is essential , but are falling behind due to ‘ option paralysis ’.

Digital leaders – those at the forefront – are more than just ahead ; they are winning . They invest 45 % of their budget on Digital Transformation , driven by clear strategies and ROI-focused investments . Meanwhile , laggards continue to fall deeper into the digital abyss , paralysed by too many choices leading to the inability to evaluate new technologies . respondents labelled themselves as ‘ laggards ,’ falling dangerously behind and stalled at the early stages of Digital Transformation with no firm plans in place .

A fifth of respondents said that change management ( 22 %) and IT complexity ( 21 %) are the major barriers . Without overcoming these hurdles , manufacturers are setting themselves up for failure .

The clock is ticking on resilience

The IFS research sounds an alarm : 82 % of manufacturers say their business won ’ t survive more than one-to-three years without a stronger commitment to technology . The urgency is clear – market turbulence , supply chain disruptions and the looming impact of climate change make Digital Transformation a necessity for survival , not a choice .

By contrast , digital leaders are confident they can weather future storms with over a quarter ( 28 %)

Guiding manufacturers from digital paralysis to leadership

“ The manufacturing industry is at a crossroads . Many understand the urgency but remain immobilised by indecision , waiting for proven results or guidance from a trusted partner before committing to action ,” said Maggie Slowik , Industry Director , Manufacturing at IFS . “ The longer manufacturers delay , the further they fall behind . In today ’ s volatile market , resilience and digital maturity aren ’ t just advantages – they ’ re essential for survival .”

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