Industrial digitalization: Get to know the term

9 Oct, 2025

As demands for quality, traceability and flexibility grow, more manufacturing companies are experiencing increasing pressure to digitize. But what does industrial digitalization mean in practice? And where do you start?

In this article, you’ll get an overview of what industrial digitalization means and how it can strengthen both operations and business.

What is industrial digitalization?

Industrial digitalization is about making production data-driven, coherent and less dependent on manual workflows.

In practice, it’s about replacing paper, whiteboards and Excel sheets with integrated digital systems that automatically record, process and share data between production and the business.

Not only do you get a better overview, you eliminate time waste, errors and data silos and give your organization a common basis for decision-making.

As we see it, digitalization typically starts with an MES solution, as MES creates an excellent data foundation for all other systems and manages, automates and optimizes your production with real-time data.

Why invest in industrial digitalization?

Without digital and coherent systems, manufacturing companies typically face challenges such as:

  • Limited overview of key metrics and bottlenecks
  • Difficulty reacting quickly to deviations
  • Increased risk of errors, waste and complaints
  • Slow follow-up and complexity in scaling
  • Difficult to adopt new technology such as AI

By digitizing production, companies gain access to tools and systems that can:

  • View real-time data on performance, usage and downtime
  • Automate the data foundation for OEE, quality and output
  • Support consistent work processes through digital workflows
  • Improve planning and delivery reliability
  • Strengthen documentation and compliance with customer and regulatory requirements

But digitalization is not just about optimization in the here and now. It’s also about being stronger in a future where the market demands more flexibility, technology, sustainability and transparency.

A digital setup is a prerequisite for utilizing new technology

A concrete example of why a digital setup is important is the ability to adopt new technology, such as AI. Here we can talk about the digital readiness of a manufacturing company.

Although AI technology is already widely available, achieving real benefits in a manufacturing company requires a high-quality data foundation. So this is where you should start if you want to implement AI in your organization.

Companies that already have structured, digitally accessible production data – for example, through an MES system – will be in a much better position to implement AI for purposes such as planning, maintenance or optimization.

Conversely, without a digital infrastructure with well-structured data, companies will often start from scratch with data collection and standardization before they can even test or train algorithms.

This means that investments in digitalization and data collection not only create value today, they also prepare the company to take new technological steps when opportunities arise.

Digital use case: Say goodbye to Excel in batch reporting

Many manufacturing companies still document their production in Excel sheets that the operator fills in manually at the end of a shift or batch. The sheet may be printed out, saved in a folder and later entered into a quality system. The risk of error is high and data only becomes available to other parts of the organization after days or weeks.

With industrial digitization, you connect production data directly to the MES system. For example, the operator digitally registers start-ups, shifts, deviations and causes, and the system automatically extracts relevant information such as batch number, machine status and raw material consumption. Data is saved instantly and can:

  • Sent to ERP and BI for follow-up and stock adjustment
  • Display on dashboards for the daily board
  • Used in traceability documentation and audits
  • Analyze across lines and periods

The result? The Excel sheet becomes redundant.

Other examples of industrial digitalization in practice

From paper to digital batch registration

In the food industry, many companies are digitizing their batch logbooks. Instead of manual paper routines, the operator records directly into an MES system, which automatically stores data, sends it to ERP and documents the entire process in real time.

From whiteboard to digital performance boards

Daily whiteboard meetings move to large screens with live data. Production managers can track output, waste and downtime, while operators see how their line is performing without waiting for the monthly spreadsheet.

From firefighting to data-driven maintenance

By attaching sensors to critical components and analyzing vibration, temperature and runtime data, you can predict wear and plan maintenance before failures occur. This reduces unexpected downtime and makes maintenance efforts more targeted.

What does it take to digitize production?

Industrial digitalization is not just about buying software. It requires the company:

  • Have control of your processes and information needs
  • Have access to the right data and data sources
  • Choose an architecture and integration strategy that is scalable
  • Involve production, IT and management in decisions
  • Starting small – but thinking big

It is often advantageous to start with MES as it creates the foundation for integration and data flow.

Conclusion: Industrial digitalization creates impact throughout the value chain

At Integra2r, we help manufacturing companies find the right path into industrial digitalization – with a focus on MES and integration.

Want to hear what it could look like for you? Please contact Niels Nyhus at nn@integra2r.com or 29638313 for an informal chat.