Artificial intelligence in manufacturing tends to conjure up ideas of predictive maintenance, supply chain optimization or quality control. All are true, of course, but as a data specialist, I view these more as outcomes. What drives these outcomes is an underlying AI-powered employee experience technology that delivers greater employee engagement, a single source of truth, and best-in-class internal communications — all of which empower your people to excel in all they do.
Our recent State of the Intranet and Future of Employee Technology report provides valuable insights into manufacturing, highlighting the significant role that industry-leading intranet technology plays in boosting productivity, enhancing employee engagement, and driving profitability.
In this post, I’ll address why intranet technology is crucial for frontline employees in the manufacturing sector, the negative consequences of subpar digital employee experiences, and the surprising AI gap in manufacturing.
For a deep dive into our comprehensive research across all industries, get your free copy of the full report. Or, download the executive summary for an overview of key findings.
Manufacturers’ intranet advantage: Ahead of the curve
The manufacturing sector’s early adoption of intranet solutions indicates the unique challenges facing this industry. In our survey, 82% of manufacturing organizations reported having intranet systems for more than two years, compared to the 76% industry average.
The high intranet early adopter rate for manufacturing businesses begs the question: What driving forces have made manufacturers earlier adopters of digital workplace technology?
The answer likely lies in the complex nature of manufacturing operations. A typical manufacturing environment includes production lines, warehouse and distribution centers, teams dispersed across various locations, plus remote sales and service offices. The organization is likely comprised of desked, deskless and remote employees.
Looking ahead, manufacturing organizations must view their intranets not as static tools but as evolving platforms capable of adapting to emerging technologies and changing workforce needs. Integrating AI, machine learning and advanced analytics into intranet solutions could unlock new possibilities for predictive maintenance, supply chain optimization and personalized employee experiences.
Recommendations: The message is clear for manufacturers that have yet to implement an intranet: the time to act is now. The benefits are too great to take a back seat. But implementation is just the first step — continuous improvements, like those listed below, must also be part of the technology strategy.
- Regular updates and enhancements: Continuously evaluate the intranet’s effectiveness and make necessary updates to ensure it aligns with your corporate goals and objectives.
- Employee feedback: Use surveys and other mechanisms to gather feedback to identify areas for improvement and ensure the intranet meets your people’s needs. In our survey, 70% of respondents cite ease of use as the most important characteristic of an effective intranet — so be diligent in ensuring your platform delivers UX excellence.
- Leverage emerging technologies: Explore opportunities to integrate technologies such as secure and responsible generative AI and machine learning to enhance your intranet’s capabilities and provide additional value to users.
- Measure and analyze performance: Track key metrics to assess the intranet’s effectiveness and identify areas for improvement. Across all industries, our survey found that content and search quality (61%), intranet engagement (57%), and operational efficiency (52%) are the most important KPIs for respondents.
Learn more: Intranet implementation made simple
The impact of sub-par digital employee experiences
Manufacturers are not exempt from the universal truth that subpar employee technology experiences, including with their intranets, create a ripple effect across multiple bottom-line metrics — including lower profitability, productivity and engagement.
Consider these data points from our research:
- 68% of manufacturing organizations with poor intranet experiences report decreased profitability, compared to 52% across all industries. This significant difference underscores how critical a well-functioning intranet is in a manufacturing setting, where efficiency and streamlined communication directly impact operational costs and profit margins.
- 73% of those surveyed note reduced productivity, versus 61% in other sectors. Productivity loss is often more pronounced in manufacturing due to the complex coordination required among various departments. A suboptimal intranet can disrupt workflows, slow decision-making, and affect production timelines.
- 79% observe lower employee engagement, compared to 70% overall. In manufacturing, employee engagement is key to maintaining quality standards and fostering a culture of safety. Employees may feel disconnected when the intranet fails to support communication and collaboration, leading to higher turnover rates and reduced job satisfaction.
Recommendations: Regularly assess your intranet’s performance and user satisfaction. Canvas users at all levels for their feedback. Make sure content is regularly and thoroughly updated. Do you have a cross-functional intranet program management team that represents all aspects of your organization? Is your budget adequate to support investments in upgrades or new solutions if your current system is underperforming? The cost of inaction far outweighs the investment in a high-quality intranet platform.
Learn more: What you need to know about intranet ROI
The AI gap in manufacturing intranets
Despite being ahead in long-term intranet adoption, manufacturing organizations trail in providing AI functionality through their digital workplace platforms.
This gap highlights a missed opportunity to leverage advanced technology to streamline operations, enhance decision-making, and boost productivity.
While manufacturing has been slower to adopt AI in their intranets, the potential benefits are too significant to ignore. AI can revolutionize multiple facets of manufacturing operations, from predictive maintenance that minimizes equipment downtime to supply chain optimization that reduces costs and improves efficiency. Furthermore, AI tools can support real-time decision-making, enabling faster responses to market changes and operational issues.
Recommendations: Start to explore what AI applications or capabilities can be integrated with your intranet. A gradual approach is best, beginning with applications like AI-powered search or virtual assistance that can improve employee access to information and enhance support services. Once these basic tools are in place, look to more complex use cases such as predictive analytics for equipment maintenance or AI-assisted quality control. There’s no reason this production-centric AI can’t live in your intranet with need-to-know transparency. These applications will bring your intranet into the next generation, and the phased strategy allows for manageable adoption while gradually unlocking AI’s transformative potential.
Upgrade your employee technology experience
Manufacturing as an industry has been proactive in adopting and maintaining intranets, but there’s a clear need to evolve these platforms to meet today’s challenges. The negative implications of subpar digital experiences underscore the importance of continual investment and improvement in intranet technology. Additionally, a systemic approach to closing the AI gap presents a major opportunity for manufacturing organizations to outpace their competition by attracting top-tier employees who value a “smart” work environment.
Alongside machine learning on the production floor and optimization algorithms in the supply chain, manufacturers need to place equal emphasis on enhancing their intranet platforms. A digital workplace that boosts productivity, engages employees across all environments, and drives profitability is a clear path to a sustainable leadership position in any competitive and complex marketplace.
How Simpplr can help
A trusted partner to more than 1,000 leading brands, Simpplr drives employee engagement and productivity through our comprehensive employee experience (EX) platform. Leveraging AI, Simpplr delivers personalized, frictionless digital experiences, empowering employees to perform their best work from anywhere.
Request a demo today to learn more.