Australian manufacturers are facing a mix of new challenges and opportunities as digital technologies become more central to operations. Hosts Phil Seboa and Ed Fuentes, along with guests Shane Williams and Paul Mason, unpack the realities of digital transformation, the struggle to make sense of data, and evolving business models. Manufacturers and industry professionals will gain practical strategies to improve business outcomes, avoid costly pitfalls, and prepare for the future.

Defining Digital Transformation in Manufacturing

The term "digital transformation" often sparks confusion across the industry. As Paul Mason points out, “Ask 10 people at a conference, you'll get 10 different answers.” For manufacturers, the heart of digital transformation lies in understanding the “why”—focusing on real business improvements, not just adopting technology for its own sake. Shane Williams reinforces this by steering the conversation away from tech buzzwords: “As a GM or a business owner, I'm like, so effing what?” Instead, successful efforts begin with identifying the outcomes that matter—improving on-time delivery, streamlining cost structures, and making operations more efficient. These real-world drivers should shape digital efforts, ensuring technology investments deliver measurable value.

The Data Challenge: Integration, Visibility, and Decision-Making

One of the biggest hurdles for Australian manufacturers is turning mountains of shop-floor data into useful information. Phil Seboa highlights how companies “are still using pen and paper in the plant floor to aggregate their data, but they're not seeing continuity of data validation.” This fragmentation leads to inefficiencies and missed opportunities. Ed Fuentes elaborates on the challenge of disparate legacy systems, where “the old stuff still hangs around and then they buy some new stuff…and sometimes they don't even integrate it.” Practical solutions include starting small—identifying key metrics to track, digitizing manual processes, and normalizing data across systems. The ultimate aim is to provide real-time visibility so decision-makers can respond quickly and with confidence.

Changing Business Models and the Role of AI

The conversation shifts to emerging business models such as “production as a service,” where manufacturers provide uptime or output guarantees rather than just selling equipment. Shane Williams asks, “Are you seeing businesses genuinely pick that opportunity up and run with it?” These models require robust data collection and integration to even be possible. At the same time, artificial intelligence (AI) and machine learning are becoming more accessible. Phil Seboa notes that “automation…has been doing ML for decades,” but the latest trend is using AI at the edge, from simple anomaly detection to optimizing production in real time. Success depends not just on the technology, but on having a clear business case and addressing organizational resistance to change. As Ed Fuentes remarks, “The premise is getting that nice clean data set…it’s a journey to do that too.”

Key Quote From The Episode

“Digital transformation is this massive change or a substantial effort to make a change within your business so that you can see that end result.” – Phil Seboa

Key Takeaways

• 00:08:59 – Digital transformation should be goal-driven; start by identifying the business outcomes you want to achieve, not just the technology you want to try.
• 00:13:08 – Data integration and real-time visibility are common pain points; begin by digitizing key manual processes and normalizing data sources.
• 00:44:04 – New business models like servitization are emerging, but require strong data infrastructure and cultural buy-in before AI and advanced analytics can deliver results.

Wrap Up

Digital transformation in Australian manufacturing is about achieving real business value, not just implementing new technology. Manufacturers should begin by clarifying desired outcomes, then focus on breaking down data silos to deliver information where it's needed most. New business models and AI present real opportunities, but only if data challenges and cultural hurdles are addressed first.

Start by documenting your top operational pain points, experiment with digitizing a few manual processes, and foster better communication between IT and OT teams. Investing in data integration and analytics today builds the foundation for successful adaptation and innovation tomorrow.

About the Guests

Shane Williams is a podcast host with over five years of experience bringing clarity to complex technology topics, drawing on his IT background and time at News Corp. Paul Mason is a mechatronics engineer focused on manufacturing innovation and commercialization, offering practical perspectives on design and digital adoption.