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 tech 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. For factories steeped in traditional processes, starting on the path to digital transformation can feel like hitting a roadblock right out of the gate.
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 straightforward yet professional and modest.
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. As the situation evolves, anyone who knows how to operate a computer and access the internet can join the manufacturing line. This not only helps the manufacturing industry reduce personnel expenses 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 from home while managing operations in real time, making operations more efficient and flexible. 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 can take 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, and finally developing new methods to manage their operations in a rapidly changing market.
During the digitization stage, garment factories start by transferring old business processes and data to digital formats, then 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.
Additionally, AI, which has become a hot topic in recent years, may be used to thoroughly evaluate enormous volumes of data, 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. Furthermore, 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.
In the final stage of digital transformation, garment factories use digital technologies to make substantial changes to their business models and market positioning. E-commerce platforms allow for direct sales to customers, while CRM systems improve customer service quality and facilitate personalized sales methods. Furthermore, AI’s function becomes even more important, particularly in developing new business models and providing individualized customer support. Garment factories can utilize AI to create smart recommendation systems that provide consumers with individualized shopping experiences and 24/7 customer care via chatbots. The use of IoT technology not only increases supply chain transparency, but it also improves operational efficiency and product quality through smart manufacturing processes and tracking.
The digital transformation of garment factories is a multi-phase process that begins with the digitalization of old operations, progresses to digital optimization to improve efficiency and quality, and concludes in a fundamental shift in business models and marketing tactics. Throughout this journey, Artificial Intelligence (AI) plays an important role, not only by increasing production power and quality control through predictive analytics and automation during the optimization phase, but also by driving changes in business models and customer service innovations during the transformation stage. This transition not only improves the market responsiveness and competitiveness of garment manufacturers, but it also creates new opportunities for providing more personalized and high-quality customers experiences, demonstrating the importance and value of technological innovation in today’s fashion sector.
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
In the highly competitive business environment of today, embracing digitization is key for enterprises to capture every competitive advantage available. Since 2018, over 89% of senior executives have prioritized a digital-first strategy, a trend that has only grown in subsequent years. However, barriers such as poor communication and incomplete planning remain significant obstacles to successful digital transformation.
To ensure the success of digital transformation efforts, the following four strategic preparation and implementation steps are crucial:
• Identifying the Starting Point: Assess the current level of digitization of systems and resources, determine which areas are already digitized, which require the introduction of IoT technologies, and whether you rely on a modern, scalable ERP system. Prioritize processes critical to business operations and choose the most straightforward digitization path.
• Defining 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.
• Planning the Blueprint: An excellent digital transformation blueprint should balance flexibility and sustainable growth. Start with a few key, attainable goals, including robust change management and transition strategies. Remember, digital transformation is as much about technology as it is about people’s transition.
• Preparing the Team: “Things do not change; we change.” Although digital technology can alleviate repetitive tasks, boost employee engagement, and facilitate collaboration, the full benefits are realized only when the entire workforce is committed to the goal. Engage in open communication, actively seek employee feedback, address their concerns, and allow ample time for adaptation to change.
A successful digital transformation transcends mere technological updates; it requires a deep transformation of corporate culture and strategy. Businesses must understand that true transformation involves the participation and contribution of every employee. Developing a culture that is adaptable to the digital age is key to long-term development and innovation. 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. Central to this process is positioning employees at the heart of change, fostering a culture attuned to the digital era, which is the cornerstone of successful digital transformation.
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 factors often hinder the progress of digitization. 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 half a century 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 deeply understands the unique needs and challenges faced by the textile and garment industry. With its expertise in digital laying machines, AI inspection machines, and other cutting room equipment, Oshima helps your business maintain competitiveness in the digital age, achieving continuous growth and development. The process of digital transformation necessitates a comprehensive adjustment of strategies, technological updates, and a deepening of organizational cultural reforms. With its rich industry experience and professional technical capabilities, Oshima becomes a reliable partner on your digital transformation journey
{Contributed by Oshima Apparel Machinery (Taiwan)}
