Aligning Technology Adoption With Your Business Maturity

5/16/2025

BY: STEVE HELMINEN

Implementing technology to support production and/or business operations at the wrong time is a recipe for disappointment, even if it's the right solution. Premature investments often result in underutilized systems or insufficient staff support, while delayed adoption means missing significant opportunities as competitors advance. Understanding your business maturity level is a crucial first step to making the right technology decisions and maximizing return on investment.

Manufacturing Business Maturity Model

As a company grows and operations mature, the tools and technologies needed to support the business will also. What we have found to be true at the Michigan Manufacturing
Technology Center (MMTC) is that there are five maturity steps in a manufacturing business shown in the image below beginning with the Reactive Manufacturing Step. Advancement to each subsequent step requires institutionalizing key elements, beginning with metrics and measurements.

We are witnessing this with MMTC’s very own Real Factory that kicked off late 2024. The Real Factory will be used to augment the in-person training and classes offered at MMTC. The project began with an assessment of equipment needed and a series of safety reviews to guide set-up decisions. Further efforts focused on fixing post-process quality issues and hitting takt* time. Through skill development we were able to more reliably produce a quality product. We then built out Standard Operating Procedures (SOPs), establishing current best practices. Now we are layering machine monitoring, digital work instructions, and 3D printed fixtures to track and optimize the process. On a larger scale, this maturing process is what we see happening at manufacturers as they grow and scale.

*Takt Time: available production time divided by customer demand

Figure 1: Business Maturity Steps [1]

Reactive Manufacturing

Characteristic:

• Operations rely heavily on paper-based systems requiring multiple data entries
• Production lacks consistent cadence and metrics
• Limited connection between operational performance and financial outcomes
• Tribal knowledge dominates over documented processes
• Quality issues often discovered after production completion

Self-Assessment Question: Do you find yourself constantly fighting fires with limited visibility into what's causing production problems?

Technology Focus to Advance: As the administrative demands grow, scaling will be limited without information systems like Enterprise Resource Management (ERP) or Manufacturing Execution Systems (MES) to help manage workflows and improve reporting. With software systems in place, inventory management may begin to be augmented with barcode scanning and/or RFID. These technologies create the data infrastructure necessary to move beyond reactive operations.

Cognitive Manufacturing

Characteristics:

• Key Performance Indicators (KPIs) established but inconsistently achieved.
• Production processes vary between shifts and operators.
• Problem-solving primarily occurs after issues arise through root cause analysis.
• Process deviations go largely untracked or unanalyzed.
• Limited understanding of true machine capabilities and performance.

Self-Assessment Question: Do you only understand profitability at month-end rather than having real-time visibility into production performance?

Technology Focus to Advance: To build stability, companies should begin measuring machine utilization with Industrial Internet of Things (IIOT) products, implement a Computerized Maintenance Management System (CMMS) with scheduling, and digitize standard work procedures with version control. Simulation software is used to reduce movement waste and increase throughput. Simple automation begins to be installed to reduce setup or machine tending time. These technologies provide the visibility and standardization needed to transform cognitive understanding into preventive capabilities.

Preventive Manufacturing

Characteristics:

• Standard work procedures are established and generally followed.
• Prevention and trend analysis begins to take priority over reactive approaches.
• Organization values continuous improvement methodologies.
• Manual intervention is still required to address negative trends.
• Information systems exist but often operate in silos.

Self-Assessment Question: Do your systems alert you to potential problems before they impact production or quality?

Technology Focus to Advance: Operational excellence requires technology that proactively signals when trends indicate potential issues. Implement Supervisory Control and Data Acquisition (SCADA) systems or intuitive dashboards that trigger alerts when negative patterns emerge. Deploy data historian software for long-term trending analysis. Introduce vision systems to enhance quality inspection capabilities and catch defects earlier in the process. Begin integrating industrial robots, collaborative robots (cobots), or Autonomous Mobile Robots (AMRs) to augment human labor, improving both throughput and product quality consistency. These technologies establish the foundation for predictive capabilities by generating the comprehensive data needed for advanced analytics.

Predictive Manufacturing

Characteristics:

• Operations shifted from reactive to proactive approaches.
• Integrated systems make automatic adjustments with reduced manual intervention.
• Organization makes data-driven decisions with high confidence.
• Planning, scheduling, and execution systems communicate effectively.
• Material ordering triggered by real-time inventory levels and production demands.

Self-Assessment Question: Can your production systems anticipate problems and automatically adjust parameters before quality or efficiency is compromised?

Technology Focus to Advance: Continued optimization involves ERP, MES, and other systems being connected to ensure seamless data flow across the business. Simulation tools optimize plans before execution, while smart scheduling adapts to material and machine readiness. IIoT sensors enable predictive maintenance by flagging issues early. The use of AI is beginning to underpin many of the tools and software in use. These integrated technologies create the comprehensive digital ecosystem necessary for the evolution to autonomous manufacturing.

Autonomous Manufacturing

Characteristics:

• Work cells operate independently with minimal human intervention.
• Human capabilities are amplified to high-value activities including oversight, innovation and strategic problem-solving.
• Enterprise data flows seamlessly across the entire value stream.
• AI systems support decision-making by reducing noise, surfacing insights, and managing routine optimization.
• Both systems and people adapt in real time to changing conditions.

Self-Assessment Question: Do your work cells operate independently with minimal human intervention?

Technology Focus to Advance: Advanced robotics, AI, and edge computing create a self-optimizing environment. AI systems continuously improve operations using real-time data. Edge computing enables immediate decision-making. Autonomous robots self-manage and adapt to changing conditions. Digital twins simulate before physical implementation. Sensor networks provide complete operational visibility. Self-adjusting systems resolve issues without intervention. Adaptive scheduling platforms optimize production based on changing conditions.

Important Notes

1. Cybersecurity Requirements Evolve: As manufacturing environments become increasingly interconnected, cyber vulnerabilities multiply. Each advancement in maturity requires corresponding enhancement of cyber resiliency practices.
2. Technology Implementation: The technologies mentioned at each maturity level serve as guidance rather than rigid prescriptions. Specific business needs may justify implementing certain technologies earlier or later in your maturity journey.

CONCLUSION

The manufacturing maturity journey fundamentally represents continuous improvement in action. Each step enhances efficiency and scalability. By aligning technology with your business needs and future goals, you can build a more efficient, adaptable operation. Start where you are and take the next step toward a stronger future today.

Success depends on aligning technological investments with current organizational maturity while maintaining a clear vision of future objectives, as determined by the business strategy. Manufacturers do not need to achieve autonomous operations to realize substantial benefits. The most sustainable approach involves mastering capabilities at each level before prematurely advancing to the next.

At MMTC we teach Enhanced Operations Management (EOM) that dives into the different maturity levels and considerations to grow and thrive. We also help manufacturers build a technology roadmap that aligns with business goals. Our Technology Opportunity Assessment is a practical first step. Contact your Business Solutions Manager today to schedule a no-cost assessment or to learn more about how we can support your digital transformation efforts.

[1] https://www.the-center.org/Blog/October-2018/Leveraging-Technology-to-Grow-Your-Business

About the Author: At MMTC, Steve Helminen guides small and medium-sized manufacturers in adopting smart manufacturing technologies that drive innovation, efficiency, and competitiveness. With more than a decade of experience in manufacturing, Steve has worked alongside teams at all levels to help businesses optimize their operations.

Categories: Advanced Manufacturing, Industry 4.0, Innovation, Smart Manufacturing, Technology