Human-centric strategies will be critical in achieving the full value realisation from connected factory worker initiatives, according to Gartner.
By assessing these initiatives at three levels of value, manufacturing strategy leaders can develop a framework to achieve higher levels of return on investment (ROI) that go beyond pure hard-dollar savings.
Connected factory workers use digital tools and data management techniques to improve how work is done in factories. Access to new knowledge and technology reduces variability, decentralises decisions, and proliferates knowledge.
Gartner research emphasises the role of the connected factory worker in the advancement of an overall smart manufacturing strategy.
“The connected factory worker can serve as a strategic pillar in supporting an organization’s aim of localizing manufacturing and expanding capacity,” says Simon Jacobson, vice-president analyst in Gartner’s Supply Chain practice. “Successful implementation of these initiatives is key to overcoming labour shortages, revitalising the frontline workforce and reinventing the employee value proposition in manufacturing for a new generation.”
The three levels of value associated with connected factory worker initiatives provides a pathway for organisations to achieve value creation. In the near-term, they can achieve operational cost savings, while in the longer-term they gain strategic benefits centered on enhancing the employee experience, upskilling talent, and creating new organizational roles that will appeal to and engage the next generation of workers.
The three levels of value to effectively assess ROI for connected factory worker initiatives are:
- Level 1: Drive Savings by Improving Day-to-Day Operations – The first level of value focuses on achieving initial financial returns and operational cost savings using connected factory worker technologies to standardise processes and eliminate inefficiencies.
- Level 2: Expand Upon Financial Savings with Data-Driven Insights – The second level of value comes from a data-driven culture where guesswork shifts to insight that drives significant improvements in efficiency and employee engagement, supporting the development of a skilled and adaptable workforce.
- Level 3: Shift the Focus from Technology to Human-Centric Workforce Strategy – The third level of value emphasizes a strategic shift towards a human-centric workforce strategy, rather than one centered on technology as the primary driver of improvements. At this level, the connected factory worker strategy serves as the catalyst that connects sustained improvements and the employee experience.
Characteristics of the value captured in Level 3 in shifting the focus from technology to human-centric workforce strategies include:
- Talent Pipeline Development: Organisations must regularly update roles and job descriptions to reflect new responsibilities and competencies. By doing so, companies can facilitate internal talent movement, allowing employees to transition into roles that better match their skills and interests, while also attracting new generations of workers who are seeking dynamic and meaningful career opportunities.
- Formalised Skills Training: Implementing structured and ongoing skills training programs is vital for maintaining a competitive and capable workforce. Organisations should assess current skill gaps and design training modules that address both technical and soft skills, especially through technology that can enhance the accessibility and effectiveness of training initiatives.
- Career Pathing: Establishing clear career paths helps employees understand the opportunities available to them within the organisation, fostering engagement and retention. Organisations should work to create transparent career progression frameworks that outline potential career trajectories, and the skills or experiences required for advancement.
- Radical Flexibility: A flexible workforce for frontline workers is effective at engaging and retaining employees, yet leaders hesitate to fully embrace it. Even with pilots for flex work in factories organisations remain cautious about setting flexibility targets for hourly workers due to labour market uncertainty and instead are focusing on succession planning to mitigate more imminent turnover.
“Organisations that involve their frontline associates in shaping smart manufacturing are more likely to exceed expectations,” says Jacobson. “This approach ensures that the workforce is engaged, skilled, and prepared for future challenges.”