Overcoming Risk Aversion in Manufacturing Tech Adoption

Nearly half of all manufacturers worldwide believe that technological innovation is the most important factor for their future success (Statista), and yet, the same number of manufacturers say they are concerned about the risk associated with investing in new technologies (PwC). This has created a paradox wherein manufacturers know they need to adopt new tech to survive and remain competitive, but risk aversion is driving them to avoid new tech and retain the status quo they’ve spent decades establishing.

Understanding and Addressing Apprehension

As marketeers for manufacturing ourselves, we understand what drives risk aversion in the industrial sector, and we’ve developed our platform to address it.

Concerns About ROI (Return on Investment)

According to a survey by Accenture, 57% of manufacturing executives cited concerns about achieving a positive ROI as a significant factor in their risk aversion to technology adoption.

The MARTECH3D sales and marketing platform has a proven track record in helping manufacturers achieve outstanding ROI results. For example, we helped MEON UK achieve a 32% increase in live leads, TouchscreenRentals.co.uk saw their conversion rate increase by 25% in just 12 weeks, and ChargePoint Technology managed to reduce their trade show costs by 50% whilst simultaneously increasing their lead generation.

Our platform is designed specifically to help manufacturers increase ROI through increased engagement, reduced sales cycle length, improved lead generation, and higher conversion rates. All of our clients have achieved verifiable ROI success within weeks of launching their MARTECH3D application.

Lack of Clear Business Case

In the same Accenture survey, 53% of manufacturing executives said that a lack of a clear business case for new technologies was a barrier to adoption.

The business case for digital transformation in manufacturing is clear:

- Crucial for Competitiveness: 68% of manufacturing executives believed that digital manufacturing technologies would be crucial for their companies' future competitiveness (McKinsey & Company).
- Enhancing Productivity: 74% of manufacturing companies considered digital technologies as a means to enhance productivity (PwC).
- Improving Decision-Making: 85% of manufacturing companies believed that data analytics and digital technologies were improving their decision-making processes (Deloitte).
- Driving Innovation: 68% of manufacturing leaders believed that digital transformation would be the primary driver of innovation in their organisations (The Manufacturer).
- Meeting Customer Expectations: 47% of manufacturers said they were investing in digital technologies to meet evolving customer expectations (Capgemini).
- Enabling Customisation: 78% of manufacturing executives believed that digital technologies were essential for enabling product customisation (Infosys).
- Sustainability Goals: 67% of manufacturing executives believed that digital transformation was essential for achieving sustainability goals (KPMG).

These principles extend beyond the factory floor; any manufacturer that wants to be competitive on the global stage needs to streamline productivity and innovate at all levels, including in sales and marketing. Buyer preferences are changing - interactivity and sustainability are key focusses - meaning cutting down on wasteful marketing collateral and trade show pollution, whilst providing a unique, interactive buying experience are key. MARTECH3D allows you to do all this on one simple platform.

Skills and Workforce Challenges

According to McKinsey & Company, 53% of manufacturing executives expressed concerns about their workforce's ability to effectively utilise new technologies, and 57% of manufacturing employees said they feel they lack the necessary digital skills.

The MARTECH3D platform is easy to use and doesn’t require any heavy learning or training. We work with your team every step of the way to ensure they understand the tools and how to use them effectively, and all content is managed from a centralised customer portal. This allows you to edit and change content as you see fit in just a few clicks, and you can explore real-time analytics to see how your 3D tools are performing.

Cybersecurity Concerns

Cybersecurity concerns are a key reason that just over a third of manufacturing CFOs are risk-averse to technology adoption (BDO).

At MARTECH3D, we are extremely security conscious. We ensure customers have the relevant SSL security certificates, make sure we are GDPR compliant, and we use secure endpoints for data transfer to ensure our clients are completely secure and legally compliant.

Lack of Digital Strategy

Despite living in a digital world, 31% of manufacturing executives said a lack of a clear digital strategy is a barrier to technology adoption (Deloitte).

According to a PwC Global Digital IQ Survey, “only 5 percent of companies are doing what it takes to win with digital”. These are called ‘Transcenders’, and they have an entirely different idea of what a digital strategy involves. In fact, 45% of Transcenders defined digital as: “Beyond tech. It’s a mindset of constant innovation and tech integration in all phases of business”, whereas only 18% of other companies agreed with this definition.

Comparatively, Transcenders reported higher profits and happier staff than other businesses, proving that their willingness to extend new tech to every department of their business reaped enviable results for their bottom lines and their people. Developing a digital strategy doesn’t need to be mind-boggling; taking small steps like introducing 3D tech to your sales and marketing processes can be enough to help you become a high-achieving Transcender.

Capital Constraints

A PwC study found that 42% of manufacturers considered capital constraints a significant obstacle to digital transformation.

At MARTECH3D, our platform is run on a yearly subscription-fee model. We’ve priced our solutions as such so that, on average, one sale made through the platform is enough to pay for a subscription for five years. Given the proven ROI results our clients achieve, the MARTECH3D sales and marketing platform is a smart investment that ambitious manufacturers can’t afford to ignore.

Conclusion

The manufacturing industry is undeniably moving towards digital transformation, and the MARTECH3D platform helps manufacturers achieve digital success with minimal risk. Whether you’re concerned about ROI, cybersecurity or workforce training, our suite of award-winning 3D tools are a safe, smart digital investment.

Speak to us to learn more.

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