In modern factories, a quiet revolution has transformed manufacturing behind the scenes. The dusty file cabinets and dog-eared catalogs that once tracked every asset are long gone. In their place, seamless streams of data now flow through the digital backbone of modern plants. This shift isn’t just about swapping paper for pixels—it’s fundamentally rewiring how manufacturers track, maintain, and optimize their most valuable resources in ways that were unimaginable just a decade ago.

Yet many manufacturers remain stuck in the past. Some still haul around filing cabinets stuffed with maintenance logs and equipment specs, while others conduct daily business entirely on paper forms. According to SOTI’s Mobility in Motion Report, 21% of businesses worldwide still rely on manual paper forms, despite the availability of far more efficient digital alternatives. These lagging organizations risk falling behind—missing out on a 25% productivity boost (as identified by McKinsey Global Institute) forfeiting the enhanced security, agility, and collaboration that modern asset management platforms deliver.

Digitization and Digitalization

Digitization is the process of converting analog information into digital format. It’s about transforming physical items—paper documents, handwritten records, or analog measurements—into computer-readable data. This foundational step creates the digital assets needed for more advanced transformations.

Digitalization, by contrast, involves using digital technologies to transform business processes and create new value. It leverages digitized data to improve operations, enhance decision-making, and develop new business models.

Why Manufacturers Should Digitize First

Manufacturers must recognize that digitization is the essential first step before meaningful digitalization can occur:

• Build the foundation – Without properly digitized data, attempts to implement advanced digital technologies will likely fall short

• Reduce errors – Digital data is more accurate and accessible than paper-based information

• Enable real-time analytics – Digitized information allows for immediate insights into production processes

• Prepare for AI integration – AI systems require digital data to function effectively

Advantages of Digitization and Digital Transformation

Manufacturers who embrace digitization and digital transformation gain significant competitive advantages in today’s rapidly evolving marketplace. These technologies deliver measurable improvements across all aspects of operations (data from McKinsey):

• Increased operational efficiency – Digital transformation can boost throughput by 10-30% and reduce machine downtime by up to 50%

• Cost reduction – Manufacturers typically see production costs decrease by 15-30%, with some achieving reductions of up to 70%

• Enhanced data analytics – Digital systems enable real-time insights for better decision-making and predictive capabilities

• Improved product quality – Digital quality control reduces defects and improves first-pass yield

• Supply chain optimization – Digital visibility improves On-Time In-Full scores by approximately 10 percentage points

• Workforce productivity – Labor productivity increases by 15-30% through automation of manual tasks

• Better forecasting – AI-powered systems improve forecasting accuracy by up to 85%

• Environmental sustainability – Digital transformation reduces CO2 emissions and water consumption by approximately 15%

• Enhanced safety – Data-driven safety monitoring reduces workplace incidents and lost time

• Process consistency – Digital systems ensure standardized operations across facilities

• Data-driven culture – Organizations develop more logical, evidence-based decision-making processes

Next Steps

After recognizing these benefits, manufacturers must follow a strategic approach to implement changes effectively:

• Define your transformation vision – Establish clear objectives such as handling more orders through digitized processes, reducing error rates, or cutting wastage costs. A well-defined vision aligns all stakeholders and provides direction for the entire journey.

• Select aligned technologies and prepare data – Choose digital tools that directly support your business goals rather than adopting technology for its own sake. Simultaneously, focus on data readiness by collecting, cleaning, and processing data methodically

• Start with high-impact pilot projects – Begin with small, strategic initiatives that demonstrate value quickly. This phased approach helps secure stakeholder buy-in and provides learning opportunities before scaling

• Develop workforce capabilities and culture – Invest in comprehensive training programs to equip teams with necessary digital skills. Foster a data-driven culture that encourages all stakeholders to use data for logical, evidence-based decisions. According to Forbes 86% of digital transformations fail often due to poor change management.

• Measure progress and adapt continuously – Establish key performance indicators to track transformation success and create feedback loops for improvement. Digital transformation is not a one-time project but an ongoing journey.

Successful digital transformation requires both technological implementation and organizational change management. Manufacturers who thoughtfully navigate this journey position themselves to thrive in an increasingly competitive global marketplace.

Final Word

Manufacturing’s digital evolution starts with converting paper-based asset information into digital formats—an essential first step before implementing advanced technologies. Companies that digitize gain measurable advantages: 25% productivity increases, reduced errors, better analytics, and stronger decision-making capabilities. While 21% of businesses still rely on manual processes, forward-thinking manufacturers are leveraging digitization to reduce costs, improve quality, and build more responsive operations. This transformation isn’t just technological—it requires vision, strategic implementation, and organizational change.

Want to jumpstart your manufacturing digitization journey with proven expertise? Contact AAXIS. Our specialists will help you transform paper-based assets into powerful digital resources that drive efficiency and growth. Make an appointment today and stop leaving productivity gains on the table.