Key Takeaways
- Every aspect of ETO manufacturing thrives on innovation, including ETO automation software. Growing this mindset into company culture is important for Custom Machine Builders to succeed.
- Innovation will always come with some risk, without it manufacturers get stuck in their old ways. It’s important to know when to walk away and purposefully abandon an project.
- The right technology can help innovative leaders deal with industry disruption. A culture of innovation is best supported when all workers have the best tools available.
So much of Engineer To Order manufacturing relies on remaining innovative in both the research and development side and the production side of the business.
To stay fresh and continually move forward, managers must find new ways to boost efficiencies and streamline operations. Encouraging a culture of innovation is a great way to do this. It’s important to remain competitive in an increasingly disruptive industry, reducing costs, and growing the business.
Embracing a culture of innovation must happen throughout the entire production process, from sales all the way to shipping. More Engineer To Order manufacturers are taking note too. According to the latest data from the National Science Foundation, manufacturing investment in R&D surged 6.7 percent from 2012 to 2013, increasing from $302 billion to $323 billion. This is good news for Engineer To Order companies that specialize in automation. To help prepare for this influx in business, custom design job shops need to continuously innovate their processes and product offerings. It’s an efficient way to stay competitive against new and more flexible companies entering the industry.
Embrace risks – to a limit
Every business is built on a certain amount of risk; without it, companies would never grow. Without veering out into the unknown, a company will become stuck in its old ways without ever evolving. However, managers shouldn’t avoid innovation for fear of risk, but there’s always a chance of failure. It’s important to understand when to walk away and purposefully abandon a project. Managers need to continuously calculate their return on investment, measure the impact on growing the market, and ensure the offering is advancing the company’s vision and strategic goals.
Take it incrementally
Innovation doesn’t necessarily involve ground-breaking inventions or game-changing revolutions. Simple, easy-to-implement innovations are sometimes more successful and contribute more to a company than major changes. Managers can avoid significant costs by implementing gradual process improvements instead of drastic changes. This approach reduces training expenses and minimizes the risk of defective products.
Writing in Forbes, contributor Josh Linkner noted how merely putting a new twist on an old staple can create micro-innovations. After collecting, these micro-innovations build up steam and ultimately keep manufacturers more efficient over the long term. Simple tasks such as remapping the shop floor’s layout to boost mobility, or re-imagining how to conduct the weekly sales meeting. This relieves the burden of waiting for the world-shifting epiphany that can sometimes create more pressure instead of propelling the company toward solutions.
Incorporating the right technology
Incubating a culture of innovation involves expanding capabilities and attempting to go on new routes. Writing in ITWorldCanada, Brian Clendenin noted how CEOs are turning to IT leaders to help them deal with the disruptive forces in their industries. One of the foundations for innovative evolution for Engineer To Order manufacturers is ensuring all workers have the best tools available. This includes ETO automation software.
Using a configurable ERP solution like Total ETO, Engineer To Order manufacturers gain detailed, real-time access to all the financial data available, and managers are able to identify inefficiencies and trim away wasteful spending. Total ETO provides managers with alerts to let them know when a project is meeting or exceeding its estimate throughout the entire manufacturing process. The company can then take action to ensure the project stays on track and remains profitable.
Learn more about Total ETO by requesting a demo today.
Written by RJ Ahuja
