Terry Scanlon - Technology Adoption

‘how does any new technology interact with our overall plans?’ Because if the tech itself isn't going to connect to the overall strategic intent of the organisation, the project is not going to succeed.

The biggest obstacle to digital transformation in manufacturing is thinking in silos. That’s the central message from Terry Scanlon, director of technology operations for DMI, who goes on to say that full buy-in from the boardroom on down is crucial for companies to fully realise the potential of the cash they spend on IT.

“This is about asking, ‘how does any new technology interact with our overall plans?’ Because if the tech itself isn't going to connect to the overall strategic intent of the organisation, the project is not going to succeed. There won’t be any momentum, there won't be any focus there and the people who need to be passionate adopters will lack any sense of urgency to push it through,” he said

“And ultimately, that means the company in question won’t see the return on investment they should. This why it’s so important to make sure that the right stakeholders, the right people in your organisation, are at those discussions.”

DMI sees its mission as advancing the business goals of each manufacturer it comes into contact with, and it’s fully invested in making sure its projects are a success. For Scanlon, this is about something more than selling DMI well – he has experience of working with customers who have become jaded because previous technology projects with other partners haven’t delivered what was expected of them.

“Being sold on a project and not having it deliver naturally impacts the enthusiasm of companies when it comes to looking ahead. But change is a constant in business, and attitude to change is crucial,” he said.

“When a technology project goes wrong, there are many ramifications. But we’re at an inflection point in history, when things are genuinely changing and the pace of that change is accelerating. If a company has had a bad experience in the past and that makes it slow to engage in managing future change proactively, then it’s a real shame.”

The change Scanlon is talking about is the transition that’s currently underway from Industry 4.0 to Industry 5.0, or the so-called fifth industrial revolution. The first industrial revolution took place in the early 19th century and saw steam engines harnessed to automate previously manual tasks. The second took place in the early 20th century and saw electricity and the birth of the assembly line make mass production possible for the first time.

When computers came along in the mid-20th century, they facilitated automated production lines and allowed for much greater control of supply chains, resulting in the third industrial revolution. Industry 4.0, or the fourth industrial revolution, came about at the start of the 21st century as a result of the internet and the connecting up of manufacturing systems to allow for the free flow of data.

And for most manufacturers, industry 4.0 is the stage they’ve stalled at. But at each previous step, major fortunes were made and lost as companies either adapted quickly or struggled to keep up while competitors adapted faster around them.

Industry 5.0 represents an evolution on this, incorporating emerging technologies like artificial intelligence and machine learning, and leaning heavily into the concept of human-machine collaboration.

“The really interesting thing is that while Industry 5.0 is hugely empowered by technology it’s also strongly pro-human. It’s about fostering a cooperative relationship between people and machines, emphasising human creativity, problem-solving and decision-making capabilities while leveraging the power of emerging technologies,” said Scanlon.

“So really, it’s about human-centric manufacturing, with technology as an enabler but leaning heavily on people to do the things only people can do, and using machines to do the things that only machines can do. It’s not about replacing people but about creating sustainable and long term synergies between people and machines.”

What makes this new is the degree to which technology has advanced, and what that means for manufacturing. As well as a general industry trend towards cheaper and more competent sensor technology, faster processors and more connected storage solutions, machine learning and AI are driving significant change everywhere, from the Internet of Things (IoT) to collaborative robotics.

“It's about robots helping people to do more, be faster and become more accurate using advanced tech such as AI and big data. These buzzword technologies – AI, machine learning, big data and IoT – really are converging to transform manufacturing processes and enable smarter factories and production environments,” said Scanlon.

“It is resulting in a new kind of truly agile and flexible production environment, one that can do ‘batch of one’ type manufacturing, where the technology will allow you to produce one item as easily as 10,000. Obviously, not many companies need to actually do this, but the ability to do it is significant because it means you’re working with a really agile system that can adapt to change quickly.”

These industry 5.0 technologies promise to deliver great efficiency, better agility, lower waste, lower cost and improved product quality. They’re also key to companies meeting and exceeding sustainability targets, something that is increasingly pressing for anyone seeking to manage their supply chain costs as well as make themselves more palatable for government and large blue-chip customers that have sustainability criteria in their contracts.

“The key thing is that this is a synergy between people and machine collaborators, and it’s the fuel that’s needed to fire innovation. For a lot of companies, though, it’s unnerving to read and hear about this kind of thing because they’re not really sure where to start,” said Scanlon.

“They have existing technology and need to continue driving value from that investment, but they also know they can’t afford to sit still as the world turns around them. The challenge is in knowing how to make the right calls to make sure cash isn’t wasted. That’s what we’re here for and that’s what we do – it’s our job to understand what they do and make the kind of recommendations that will make industry 5.0 work for them.”