Myths about Digital Transformation/Manufacturing.

Many myths exist about digital transformation and the manufacturing industry. Learn the truth about these misconceptions and how to work with them.

What is a myth, but a traditional narrative that catches people’s imaginations and soothes their sentiments! The stories get told with much conviction, with minimal or no corroborative proof, and soon become a widespread belief. Business myths are misconceptions arising from the assumptions made by ill-informed minds. Mythological tales can be very entertaining and form a part of a rich culture. Business myths might not serve any purpose and can be misleading, discouraging, and detrimental to company culture, too. If only we were to read between the lines, we would discover truths. 

Ever since tales of the Industry 4.0 became rife, innumerable ideas — true and false — regarding the digital transformation of manufacturing have started doing the rounds.  

Here are some myths we thought needed busting so that you can make informed decisions based on facts: 

Myth #1: Digital transformation is a big-budget affair, therefore, not meant for small companies.  


The first thought that comes to mind when discussing digital transformation is the costs involved. As nothing comes for free, digitalization comes at a cost, but strategically planning an AI adoption strategy will not drill a hole in your pocket. On the contrary, the resultant business benefits in terms of ROI will outweigh all expenses. Phasing out the transition could also help SMEs streamline their processes and enjoy profits. Industrialists have been reinvesting their gains into leveling up on the digital platform. AI applications for manufacturing optimization are accessible and affordable by all.  

Myth #2: AI is a disruptive technology that will remove the ‘man’ from the equation in manufacturing.  


All of the previous industrial revolutions since the late 17th century changed our life drastically.  History stands as proof that technological development has only created more jobs and better opportunities for humans to progress. AI is yet another technology designed to enable human capabilities and not cripple society. With AI assistance, humans can increase productivity by completing job tasks faster with precision accuracy, making businesses profitable. That will also leave more scope for skilled workers to get employed in more meaningful roles.  

Myth #3: The outcome of Smart Manufacturing is not measurable in tangible values. The benefits are not immediate.  


 For an average USD 5 billion company with a 10% margin, investments in digital technologies produce an additional USD 425 million in profit. Of all surveyed industrialists, more than 60% have stated that digital transformation can help organizations address the business objectives of prime importance — reducing operational costs and growing market share organically. [1] 

Neewee’s own ready-to-deploy AI apps can be integrated with any IoT platform to streamline the manufacturing process end to end, deliver higher ROI and improve product quality within six to eight weeks of implementation. We do this by creating Process Digital Twins that connect and mirror the manufacturing life cycle, revealing cause-and-effect relationships between components, raw materials, and processes. The apps then provide predictions and actionable recommendations using Machine Learning and AI.  

  • Improving process yield by 8-10% 
  • Enhanced product quality by 10-12% 
  • Reduced working capital by 8-10% 
  • Cut maintenance costs by 15-20% 

Myth #4: You can take your own sweet time to digitalize your manufacturing processes. Also, it’s optional!  


The general tendency is to wait and watch how the early adopters of technology are faring with the new intelligent manufacturing methods. However, sitting on the fence is not a healthy strategy if you wish to stay relevant in the rapidly increasing competition. A digitally connected lean manufacturing eliminates wastage, reduces batch-cycle times, and repeatedly delivers consistent quality and throughput. This directly translates as increased customer satisfaction. While traditional ‘unintelligent’ linear manufacturing systems will continue to struggle with delivering on promises, which can end up putting off the customers. Modernization of manufacturing is no longer an option but an imperative for business growth. 

Harvard Business Review sums up: “By the time a late adopter has done all the necessary preparation, earlier adopters will have taken considerable market share; they’ll be able to operate at substantially lower costs with better performance. In short, the winners may take all and late adopters may never catch up.” [2] 

Myth #5: For successful AI adoption in manufacturing, you need to digitalize the entire factory in one go! 


Big Data Analytics, Industrial Internet of Things, Machine Learning (ML), and Artificial Intelligence (AI) apps are different aspects that work together to turn your business operations toward Smart Manufacturing. Each involves cost and complexities. It is neither advisable nor practical to digitize the entire facility in one go. AI applications implementation into the system, working with integrated data analytics, is a step-by-step process involving reiterations to arrive at the best fit for optimizing different production processes. Since there can never be a one-formula-fits-all solution, only a well-developed strategy for AI Adoption guarantees astonishing results.   

It is not debatable anymore, manufacturers can optimize their business to achieve agility, efficiency, quality, and sustainability with AI Applications.  

Final Takeaway: 

The hype cycle about digital transformation of manufacturing carried many myths and even more facts. We have debunked some myths that might be keeping many from taking timely decisions for a digital strategy. It is therefore essential to confirm the credibility of the source before you believe the bit of news. Taking decisions based on myths would be like that notorious game of Chinese Whispers. You run the risk of falling for inaccurately transmitted gossip. 

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