Challenges and Strategies for Digitizing Manufacturing SMEs in Mexico

The digitization of manufacturing SMEs in Mexico faces several significant challenges. Below are these problems detailed, followed by strategies to overcome them:

Challenges

1. Large technology providers do not have offerings suitable for the economic capacity of SMEs.

- Manufacturing SMEs in Mexico face significant budget limitations for adopting advanced technological solutions. Large technology providers often offer products and services that, while robust, are expensive and beyond the financial reach of most small and medium-sized enterprises. This limits their ability to digitize efficiently and leverage the benefits of new technologies.

2. SMEs will not attract the best talent.

- SMEs struggle to compete with large companies when it comes to attracting and retaining talent specialized in digital technologies. Professionals with advanced skills in areas such as cloud computing, artificial intelligence, and cybersecurity prefer to work in larger companies that offer better salaries, benefits, and career development opportunities. This leaves SMEs with a less skilled workforce to face the challenges of digitization.

3. Mass training in technologies like the cloud will not solve the problem.

- Although training in emerging technologies is essential, it is not a complete solution. Mass training alone in technologies like the cloud does not address other structural issues, such as the lack of adequate technological infrastructure, resistance to change within organizations, and the absence of an integrated digital strategy. SMEs need a holistic approach that includes not only training but also continuous support, strategic advice, and affordable technological solutions tailored to their specific needs.

4. Limited help from large companies.

- Large companies, which could potentially serve as models or provide support to SMEs, often face their own digitization challenges. Many are still resolving internal issues and are not in a position to offer the necessary guidance. This leaves SMEs to navigate the digitization process with limited resources and no clear direction.

Strategies for Digitization

1. Develop a Strategy and Technology Roadmap

- It is essential for SMEs to build a clear and detailed strategy for their digitization. They need to take the necessary time to develop a technology roadmap that sets out the steps to follow, the goals to achieve, and the required resources. This includes identifying priorities and assigning realistic timelines for each phase of the project.

2. Hire Affordable and Specialized Consultancy

- To manage and support the strategy and its implementation, it is crucial to have affordable consultants with specialized skills. These consultants should be vendor- and technology-agnostic to ensure that recommendations are objective and focused on the company's needs. Consultancy should cover planning, execution, and ongoing support.

3. Mentorship

- Obtaining mentorship from individuals who have worked in the manufacturing industry is invaluable. It is important that mentors have experienced both successes and failures, as there is much to learn from both. Practical experience and lessons learned can guide SMEs through their digitization process, avoiding common mistakes and maximizing opportunities for success.

4. Platform

- SMEs should implement a flexible and integrative infrastructure or platform that connects various data sources, integrates IT/OT systems within the factory and with external partners, supports specific manufacturing and supply chain needs, adapts to evolving business requirements, and ensures a strong ROI with minimal resource requirements.

5. Subscribe to Applications

- Instead of developing or buying applications, SMEs should subscribe to applications that are already proven and validated in the market (TRL9). This reduces costs, implementation times, and risks associated with adopting new technologies. As-a-service solutions allow easier access to advanced technologies without the need for large initial investments.

6. Develop Data Skills and Capabilities

- SMEs need to develop a skill set that combines digital competencies with sector-specific manufacturing knowledge. It is crucial for companies to have data science capabilities to build and understand the insights generated by algorithms. This will enable data-driven decision-making and continuous process optimization.

By implementing these strategies, manufacturing SMEs in Mexico can overcome the challenges of digitization and leverage the opportunities offered by technology to improve their competitiveness and efficiency.