A Wake-Up Call, Not a Whitepaper
If you’ve been wondering how to start digital transformation in manufacturing, really start, not just talk about it, the latest 2025 SIRI Global Benchmarking Report offers the most useful reality check you’ll read all year.
The 2025 Smart Industry Readiness Index (SIRI) report by the International Centre for Industrial Transformation (INCIT) is the most comprehensive assessment to date of global manufacturing maturity. With thousands of factories benchmarked across 60+ countries, it delivers a sharp, evidence-based picture of how manufacturers are progressing on their digital transformation journeys.
The findings are as clear as they are sobering: while some are racing ahead, most are stuck in first gear. And the gap between leaders and the rest isn’t narrowing, it’s growing.
So, if you’re a manufacturing leader wondering how to start digital transformation in manufacturing, this report offers both a warning and a roadmap.
Here are five insights that matter most, along with the challenges they expose and the opportunities they unlock.
The Digital Maturity Gap Is Getting Real
It’s no longer theory, we now have the numbers.
The top 10% of manufacturers globally are operating on a different level. They’re more integrated, more automated, and more intelligent in how they run their factories. The difference is not incremental, it’s exponential.
Vertical integration alone shows a maturity gap of nearly 300% between the leaders and the laggards. Even among the “broad middle,” the distance from the front-runners is now substantial. This isn’t a transformation curve; it’s a canyon.
The challenge:
Manufacturers that delay transformation are falling behind not just in technology, but in competitiveness, resilience, and profitability. The data shows that basic digitisation isn’t enough to catch up. The bar has moved.
The opportunity:
Starting now, with the right priorities, gives you a chance to leapfrog. Focus on practical, high-impact improvements in integration and intelligence. You don’t need to match the leaders overnight, but you do need a structured starting point.
“How to start digital transformation in manufacturing?” Start by understanding where you stand, and where the leaders already are.
Starting with Tech Is Still the Norm, And Still the Problem
Despite years of evidence, many manufacturers still begin with technology.
That means new software, shiny dashboards, and isolated automation projects. The 2025 SIRI report shows that these efforts often fail to deliver impact. Why? Because they aren’t backed by the process integration, governance, and leadership needed to make them work.
Bottom-tier performers are stuck not because they lack tools, but because they lack alignment. Tech-first remains the default, and that’s the trap.
The challenge:
Implementing technology without process or organisational change often results in isolated gains and frustration. Many firms digitise inefficiencies instead of solving them.
The opportunity:
The smart way to begin isn’t with tools, it’s with priorities. Align tech deployment with business impact. Use frameworks like SIRI to identify the areas where digital investment will actually move the needle.
If you’re asking how to start digital transformation in manufacturing, the answer isn’t “buy software.” It’s “find your ‘why’.”
The Biggest Gap Isn’t Tech. It’s Leadership.
The most powerful transformation lever in manufacturing today? Leadership.
Not platforms, not sensors, not AI. The SIRI data shows that top-performing companies are consistently stronger in leadership competency and governance. In some cases, more than twice as strong. These are the firms that align teams, build adaptable strategies, and invest in capability. And they’re getting the results to match.
Technology without leadership is just more complexity.
The challenge:
Without strong, informed leadership, even the best technology falls flat. Many manufacturers lack the change management, cross-functional coordination, and accountability frameworks needed for transformation to stick.
The opportunity:
This is where mid-sized firms can gain an edge. Empowering cross-functional leaders, investing in capability building, and creating transformation champions across departments helps build momentum.
To start digital transformation in manufacturing, build your leadership awareness and insight first.
Fewer Projects. Better Results.
There is a myth that more initiatives equal more progress. The truth?
The best manufacturers are narrowing their focus. They’re choosing strategic, high-impact dimensions like vertical integration and enterprise intelligence, and going deep. These aren’t flashy projects. They’re deliberate bets on value.
The data shows that doing less but doing it well delivers far better outcomes than broad scattergun initiatives.
The challenge:
Too many manufacturers are spreading their resources thin across disconnected initiatives. This leads to transformation fatigue and underwhelming results.
The opportunity:
Start small and go deep. Focus your early digital transformation efforts on a handful of dimensions that are linked to your core KPIs: asset efficiency, quality, and planning effectiveness.
Use prioritisation matrices like the SIRI TIER Framework to ensure alignment with business value.
It’s not just about knowing how to start digital transformation in manufacturing, it’s about knowing where to start.
Benchmarking Works, When You Keep Using It
Benchmarking is not a box-ticking exercise. It’s a habit of high-performing firms.
The SIRI report shows that companies that use benchmarking consistently, not just once, are the ones that improve the most. They learn faster, focus sharper, and adapt better. They treat benchmarking as a strategic practice, not a compliance tool.
The result? More momentum, less drift.
The challenge:
Many manufacturers treat benchmarking as a one-off. They do the assessment, get the slide deck, and move on. Without follow-up, the insights fade and behaviours revert.
The opportunity:
Use benchmarking as your compass, not your trophy. Reassess regularly to guide investments, measure progress, and adapt your roadmap as you grow.
If you’re asking how to start digital transformation in manufacturing, start with benchmarking. And keep going.
Final Thought
SIRI’s 2025 report shows what happens when digital transformation is done with focus, leadership and purpose. The gap is real, but so is the opportunity.
You don’t need a flashy digital strategy. You need a clear “why”, a grounded starting point, and a rhythm of continuous improvement.
If you’re still wondering how to start digital transformation in manufacturing, it begins with the simplest step:
Start by knowing where you are, and committing to where you want to be.
‘Start’ with SIRI, ‘Scale’ with Purpose
At Nick Leeder & Co, we use the SIRI framework to help mid-sized manufacturers start operational transformation with focus and confidence. This is the ‘Start’ phase of our four-stage methodology to transform your operations.
We don’t sell systems, we help you turn digital theory into operational traction by:
- Benchmarking your factory against global and sector peers
- Identifying high-impact areas that deliver real ROI
- Building alignment across teams and leadership
- Coaching internal champions to drive progress from within
If you’re ready to start digital transformation in your manufacturing business, without the fluff, just book some time to catch up
Discover more from Nick Leeder & Co
Subscribe to get the latest posts sent to your email.