Renovation or modernization? Difficult questions of Polish industry

Renovation or modernization? Difficult questions of Polish industry

Innovation is a challenge for Polish industry

Renovation or modernization? – it is a common dilemma amongst Polish industrial entrepreneurs. Although statistics show that the Polish industrial production sector is driven by export and is one of the engines of the national economy, it still faces many challenges related to innovation and entering the next stage of development known as Industry 4.0. Despite the universality of new technologies, incl. digitalization, according to CSO data, only slightly more than 20% of Polish industrial companies are innovatively active. What is more important, these are mainly large companies employing over 250 people. So we have a lot to catch up on, especially when it comes to the SME sector.

Future or here and now actions?

This question presents what decisions entrepreneurs face every day – do we focus on what is happening now or do we think about improvements? Implementing innovations usually requires planning and performing a number of modernization activities. They can be equated with a far-reaching view on the development of a company that does not focus solely on current sales results. Ad hoc operation, focusing on ensuring continuity of production and allocating funds to perform only necessary reparis may lead to loss of competitive advantage on the markets – both international and domestic. Optimally, these areas should interpenetrate.

 

Check how the innovations implemented by Scanways really translate into profit! – read Cegielski case study (click).

Smart Industry in Polish edition

Decisions, which from an external observer’s perspective may seem short-sighted, obviously have their reasons within the organization. The Smart Industry Poland 2018 report, developed by Siemens in cooperation with the Ministry of Entrepreneurship and Technology, describes them.

 

It indicated that the decision makers in implementing innovative technological solutions in the SME sector are business owners (90% of the cases) or their management boards (62% of companies). In addition, only 45% of Polish industrial companies have their own R&D departments that can significantly contribute to their development.

 

The centralized way of making decisions about modernization, combined with the two most common factors inhibiting the development of innovation in productive SMEs, i.e. the lack of funds (in 65% of companies) and time (62% of cases), creates a situation in which activities here and now to ensure business continuity wins with long-term planning of company development. However, our entrepreneurs do not lack the awareness that the implementation of innovative solutions brings benefits. Automation of production lines, data analytics and implementation of software reducing the costs of producing new products are assessed as solutions that bring benefits in terms of increasing product quality, production profitability and increasing sales. The solutions that Scanway offers, e.g. 3D measuring systems dedicated to production, also allow this.

Strategic decisions

Polish industry knows in which direction it should go, but it often lacks the opportunity to “stop itself” and make strategic decisions. The combination of production continuity and modernization of the company’s operations, when properly planned, does not have to stand in opposition. It is also worth taking a broader look at the expenses incurred for ongoing maintenance or repairs – although they are individually lower than comprehensive changes in workspaces, they do not increase the quality of the product or the company’s efficiency. In total, over several years, they can be a greater cost than introducing modernization solutions. They are a kind of temporary “patching holes” that allows you to continue operating, but slowly slow down its development.

What about the competitors?

Entrepreneurs can’t forget that staying behind the competition in terms of modernization might create an technological gap that cannot be made up (especially if competing entities decide on the implication of changes earlier). Modernizing the production can optimize the costs of manufacturing the products and increase their quality. This, in turn, allows you to meet the needs of customers, regardless of whether they expect the same product at a better price or a more advanced, better quality product. If a competitive company offers it faster, the lack of modernization will expose the company to real losses.

 

Do you already know that your company needs new technologies? Check what solutions we offer to our clients – Scanway offer (click).

Innovation = advantage

Research indicates that Polish industrial companies show lower technological advancement compared to companies from Western Europe. Overcoming Polish enterprises’ own organizational barriers and obtaining financing for modernization (whether by optimizing expenditure on renovations of existing resources or using public programs) will allow them to consolidate their national position and establish equal competition with foreign companies. It is also worth adding that following the trends of Industry 4.0, Smart Industry or Smart Factory are also wider benefits for the entire economy. The path of development set by technology is a way to improve the quality of the entire society and to revitalize local or regional economies.

A partner in search of solutions

In assessing the risks and benefits of both renovation and modernization, a group of specialists is an invaluable help. At Scanway, we work with clients when considering and assessing the situation. During free consultations we get to know the company, determine its specifics and evaluate the possibilities. Thanks to this, our clients gain experience and a new, engineering view of the problem.

 

Feel free to contact us, we’ll be happy to talk about the needs of your company, we’ll consider whether the better option is renovation or modernization, we will present our solutions and familiarize you with current possibilities of technology. Click – contact us.

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