Digital Transformation

Why the Hardest Part Isn’t Digital 

For more than a decade, “digital transformation” has been a boardroom buzzword. Yet across Europe and globally, manufacturers are discovering that technology adoption is not the same as transformation. ERP systems, robots, and AI pilots may be procured, but the deeper challenge of organisational change i.e. workforce adaptation, and cultural readiness often remains unmet. 

The result? A widening gap between digital ambition and transformation reality. 

Studies suggest that over 70% of digital transformation initiatives fail to deliver their intended value. The reasons are rarely technical. Instead, they lie in the human and organisational domain: unclear priorities, siloed processes, skills gaps, or resistance to change. 

Even among Europe’s manufacturers, 59% of businesses report at least basic digital adoption, yet only 4% of SMEs achieve “very high” digital maturity. The remainder struggle to scale beyond pilots, leaving technologies underutilised. The World Economic Forum notes that while “lighthouse” factories achieve 15–30% productivity gains and 30–50% downtime reductions, most firms remain stuck in “pilot purgatory.” 

In short: technology is easy to buy; transformation is hard to embed. 

Ireland faces this reality acutely. We are the 9th most expensive country in the world for salaries, yet rank only 23rd in digital readiness and lag behind in industrial automation. Germany, for example, now deploys 429 robots per 10,000 workers, compared with far lower density in Ireland, often attributed to industry mix. 

Costs keep rising too. In 2024, three out of four Irish manufacturers expected higher wage bills. Two out of three named talent shortages as a critical risk. At the same time, global competitors are digitising at speed. Without real transformation, rising costs will outpace productivity and Ireland’s competitiveness will slip. 

But the opportunity is huge. Companies that succeed in embedding digital report jobs safeguarded, costs reduced, and lower carbon footprints. These are not just tech metrics. They are transformation outcomes. 

From what we see, the difference between stalled pilots and scaled success usually comes down to five things: 

• Clarity. Mapping priorities and processes before chasing complexity. 
• Capability. Giving people the skills and confidence to adapt. 
• Leadership. Getting senior teams aligned and committed to change. 
• Proof. Testing solutions in a way that shows real ROI before scaling. 
• Change management. Recognising that transformation is first and foremost about people. 

Nick Rowe, Commercial Director at IMR, has spoken about this many times at webinars, industry events, and forums like The Northern Ireland Manufacturing & Supply Chain Conference & Exhibition and his message is always clear. 

One of his strongest points is to start with small practical problems that impact your business.

Pick a pilot you can complete in 8 to 12 weeks. At IMR we help companies map their processes by providing the tools and guidance to your employees. This helps identify gaps and potential ‘digitalisation quick wins’ that will build momentum for real change in your organisation. 

Too many companies focus solely on the technology. Real transformation begins with leadership alignment and business priorities. By starting small, you manage business risk and embed real change in the organisation. Without that shared understanding, no tool or system will deliver lasting results.

On scaling, his advice is to expand carefully.  Success drives success by building momentum, increasing awareness and learning across the organisation — making sure people, processes, and leadership are connected at each stage. 

Nick often points out the common barriers: unclear priorities, vague definitions, and pilots that never go beyond trial stage.  He is equally clear on the enablers: having frameworks to assess where you are, a strong business case, the right funding, and trained people who are confident in applying new tools. 

The thread through all his talks is the same. Technology is important, but without people, clarity, and culture, transformation cannot take hold. 

No business can make this journey alone. Picking the right partner matters. When you are choosing who to work with, ask yourself: 

1. Do they understand your sector and your challenges? 
2. Do they focus on people and culture, not just IT systems? 
3. Can they show examples where they have delivered real results? 
4. Do they balance ambition with pragmatism, helping you focus on what works? 
5. Will they build your capability, or leave you dependent on them? 

IMR and AMIC are available and have the expertise to support companies take the first steps in their digital transformation journey.  

Leaders in manufacturing face a clear choice.

You can treat digital as a procurement exercise and risk stalled projects and rising costs. Or you can treat transformation as an organisational journey, aligning people, culture and strategy to unlock productivity, sustainability and resilience in your organisation. 

Ireland’s competitiveness depends on taking the second path.   

Digital transformation is not about systems. It is about confidence, capability and change.