CHEManager editor Volker Oestreich sat down with Mike Train, executive president of Emerson Automation Solutions, to talk about how automation is reshaping the manufacturing industry and discuss how companies can drive performance by investing in technologies and behaviors that empower a new generation of digital worker.

CHEManager: What impact will automation have on manufacturing over the next few years? Where do you see the industry headed?

Mike Train: Indeed, there’s been a lot of talk about the role of automation, and a lot of anxiety. We’ve all seen the sensational headlines in the media warning of a “robot-apocalypse,” asking whether there will be any jobs left for humans once machines take over the world. The reality is more complicated. Over the last 30 years, manufacturers have benefitted from advances in automation technology that have helped them achieve amazing gains in terms of efficiency and doing more with less. Today, despite big efforts, performance gains are getting smaller, even as expectations get higher and competition gets tougher. Many companies are hard pressed to find anywhere else to cut. It’s become nearly impossible to “efficiency” your way to achieving performance within the top 25 percent of your peers, and that has led a lot of managers to wonder what’s next.

What do you say to those who worry that automation will steal their jobs?

M. Train: The truth is that automation has always promised to change our lives, for better or worse. History has taught us that while technology can unsettle the current nature of work, disruption consistently brings new opportunities for value and net employment growth, not loss. Studies show that companies that invest in technology to outperform their peers have a lower rate of headcount loss than those that perform in the lower quartiles. I believe we are at an inflection point, nearing the end of an era when companies led by cutting costs. In the new age of manufacturing, companies that embrace digital transformation and rethink business models from the ground up will be best positioned to achieve long term growth.

What is the best way for manufacturers to leverage new digital automation technologies? Where should they invest first?

M. Train:  I believe using technology and data to empower human talent is going to be the lynchpin for success. That’s because regardless of how advanced technology becomes, it’s still about people making good decisions and taking the right actions to enhance profitability. Advanced technologies like analytics and decision support software, mobility tools, augmented reality, and on-demand expert services are already making this possible in the chemical and pharmaceutical sectors, and across the manufacturing industries.

What kinds of best practices will separate winners from losers in this new digital era?

M. Train: By analyzing the behaviors of top-quartile industry performers, Emerson has identified five essential competencies that are critical to helping workers achieve digital transformation: automated workflows, decision support, mobility, change management, and workforce upskilling.

The first competency, automated workflows, means letting technology handle repeatable tasks, freeing up people to focus on higher-value activities. The second competency is decision support. New analytics tools in the hands of experts will enable faster decision making and better collaboration with experts. Third is mobility. Thanks to reliable and secure wireless data storage and delivery solutions, the days of engineers being shackled to the control room or the maintenance bench are over. Now experts can collaborate, plan and troubleshoot anytime, anywhere.

The fourth competency, and one of the biggest difference-makers, is how companies manage change—how they harness technology investments and evolve their organizations to leverage them. Old habits die hard, and it’s very challenging to completely rewrite company standards and work processes, but companies are doing it—and seeing huge benefits. The last competency is workforce upskilling. Perhaps more than any other behavior, this has the greatest potential to foster real transformation or hold a company back if it’s not addressed. Achieving top-quartile performance means enabling workers to evolve their knowledge base, build their skills, add value to their company and enrich their careers.

How are automation companies working with manufacturers to upskill their workers and solve the broader structural staffing issues challenging the industry?

M. Train: If you think about it, the “workforce” is three generations deep. There is the current workforce, who must be retrained and upskilled with new technologies; second, university and high school students thinking of their future career options; and third, our children whose interest in science, technology, engineering and mathematics (STEM) we need to encourage.

To that end, we are proud to be collaborating with more than 300 educational institutions and organizations around the world, like the University of Surrey in the UK, where Emerson is providing state-of-the-art automation technologies to help researchers develop solutions as part of their “6th Sense” program to “see into the future” of industrial processes. Another example is the collaboration we have with the King Fahd University of Petroleum and Minerals in Saudi Arabia, where Emerson just opened its new headquarters in the Dhahran Techno Valley (DTV). We are collaborating with Saudi Aramco, SABIC and the University to develop curriculum around new automation strategies and technologies, preparing the Kingdom’s workforce of the future.

Finally, what advice would you give managers and business leaders who are wondering how to get started on implementing a digital transformation strategy of their own?

M. Train: First, I’d say be rigorous about defining clear business objectives for organizational productivity rather than focusing on the technology itself. Even small steps can have a big impact, so focus on scalability and leverage technologies you’ve already installed. Ask whether a new technology helps with repetitive tasks so that people can focus on exceptions and other opportunities. Will it enable faster and better decision-making? Will it facilitate mobility by giving employees access to information regardless of their location? Will it simplify operations and accelerate the adoption of best practices? Above all, for any investment to deliver returns, companies should ask themselves how they can train their employees to ensure they have the knowledge and skills to support it. By putting power in the hands of workers to realize their own full potential, manufacturers can put themselves on the path to achieving top-quartile performance in any market.