Digital transformation

Andreas Mühlbauer,

Digital adoption as an opportunity for industrial production

Manufacturing SMEs in Germany do not have it easy: a shortage of skilled workers, geopolitical conflicts and the associated supply difficulties and inflation are just some of the challenges in an increasingly complex and uncertain environment.

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Added to this is the pressure to implement the digital transformation - whereby a large discrepancy can be observed here between large corporations and small and medium-sized enterprises. However, successful digitalization is essential, particularly in the area of industrial production, in order to ensure competitiveness in an international comparison.

The digital transformation is bringing about fundamental changes to production processes at all levels. Integrated system solutions such as MES and ERP systems and the use of AI technologies are therefore having a significant impact on modern industrial production.

Why do IT investments rarely pay off?

Software solutions that have been specially developed for industrial production are used, particularly in the course of digitally networked production. Their aim is to configure, manage and monitor all devices used in manufacturing processes. As in all sectors, billions of euros are invested in new software in industrial production. To ensure that the full potential of the software is unleashed and no time and costs are lost, employees must be able to master and understand the software applications. But this is precisely where the problem lies: IT investments are often a losing proposition because new software is not properly integrated into company processes and used efficiently by people. Around 31% of employees lose an hour of working time every week due to incorrect operation of software programs (Digital Adoption Report 2022).

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The consequences of this are far-reaching: from overburdened IT support teams assisting with software application comprehension problems and investing a lot of time, to high costs and a declining return on investment. 65 percent of all software projects do not deliver the expected value - even worse: the costs of unused Software-as-a-Service applications amount to around 4,345,360 US dollars per 1000 employees (based on a calculation from the 2024 State of SaaS Usage Report).

Digital adoption: the most modern way of teaching software skills

Digital adoption solutions are one approach to greater efficiency. This AI-based approach not only supports companies in the successful use of their employees' software applications, but also uncovers the potential of unused software and makes it possible to measure how IT applications are already being used in the company. How does it work?

Within just a few days, managers and IT employees gain a data-based insight into the effectiveness and efficiency of all software programs in use. The Munich-based software-as-a-service company Userlane has developed the world's first standardized digital adoption model with the "HEART" framework based on five criteria: Happiness, Engagement, Adoption, Retention and Task Success. It determines how actively users interact with the application (engagement), how extensively they use it (adoption), how often they return to the application (retention) and whether they complete their tasks (task success). Surveys are used to explain how satisfied users are with the application (Happiness). This gives companies a full overview of the performance of their employees - including, for example, whether software is being used to its full extent or whether workarounds have been created. This makes it possible to identify at an early stage where time and costs are being wasted in dealing with the software portfolio. The insights gained enable well-founded strategic decisions to be made, costs for unused applications to be saved and a higher return on investment (ROI) to be achieved.

In the next step, digital adoption solutions offer the possibility of integrating AI-based real-time support into the applications used in order to support employees directly in the work process. Whenever an employee needs help with software, assistance is offered for all work steps. This is particularly useful for software whose potential has not yet been fully exploited. As a result, investments in training and support can be saved and used efficiently. Another advantage is that a company's IT support team is relieved and can concentrate on the essential aspects of its work.

In summary, digital adoption solutions can improve digital acceptance and the digital performance of employees and enable industrial companies to achieve and even exceed their goals for successfully managing the digital transformation. This is an opportunity for small and medium-sized companies in industrial production to close the gap between themselves and large corporations. This is the only way to ensure production efficiency and competitiveness in the long term.

Hartmut Hahn, CEO of the software-as-a-service company Userlane.

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