Digital Maturity Embracing the Paradigm Shift with Composability

In my last post, The 5 Pillars of Composability, I broke down how composable systems have to be bottom-up, agile, democratized, human centric and compliant to enable a resilient digital  manufacturing environment. However, these pillars don't standalone and you may have noticed that the graphic drew the pillars within a structure, i.e. a house. Yeah a bit cliche but its a simple way to drive the point - the foundations is connectivity and data integrity while the roof is digital maturity. Without connectivity to reliable data and a high level of digital maturity, the benefits of composability can be diminished. 

• Data integrity ensures that the digital solutions operate on accurate, consistent, and trustworthy data, preventing breakdowns in decision-making or system performance. High-quality, accurate data is essential for making informed, evidence-based decisions
• Digital maturity enables organizations to effectively adopt composable architectures, ensuring they have the technical capabilities, culture, and processes in place to take full advantage of modular solutions. 

Together, data integrity and digital maturity complete the story of composability by ensuring that organizations can both build and sustain these flexible, adaptive systems in a reliable and future-proof manner. In this post I want to dive deeper into these concepts as they are foundational concept that propels us forward in the digital paradigm shift to reshape manufacturing operations.

Digital Maturity, Connectivity & Data Integrity complete the composability model

What is Digital Maturity?

Digital maturity represents an organization’s capacity to leverage digital tools and processes effectively based on their strategy with the objectives of significant increases in productivity. It's not a simple matter of capabilities related to adoption or implementation new technologies but rather about integrating them strategically to align with long-term goals. As companies mature digitally, they move beyond basic digital adoption to foster seamless connectivity across systems, data transparency, an empowered workforce and with that comes order of magnitude productivity improvements - the ultimate goal for transformation.

A digitally mature organization is one where digital tools support real-time decision-making, democratized technology access, and predictive insights - aligning perfectly with the benefits of composable principles. This is also what the Pharma 4.0 operational model prescribes, that manufacturers need to do more than automate - they need to integrate everything from operations to compliance in a way that’s seamless, agile, and deeply data-driven.

What is Connectivity & Data Integrity?

Its not news that data must be accurate, accessible, and trustworthy across all systems for true digital maturity. It must be connected, collected, contextualized and stored to ensure that data collected from production lines, suppliers, and product design all feed into a single, reliable source, creating actionable insights and reducing costly errors. Yet surprisingly it still is very much a challenge in many solutions that I encounter. Mostly in legacy situation, implementation of monolithic system, but also if not considered appropriately in newer digital technologies.

Connectivity in manufacturing is all about creating a seamless flow of data across systems, devices, and people. Imagine every machine, sensor, and workstation talking to each other and feeding data into a single network that anyone can access in real time. When systems are connected, it’s like moving from an isolated set of puzzle pieces to seeing the whole picture. Connectivity enables manufacturers to understand what’s happening on the production floor instantly, respond to issues faster, and improve coordination across departments. For example, in a highly connected factory, when a machine experiences a slowdown, that data can flow directly to maintenance teams and operators, letting them address the issue right away.

But connectivity is only as useful as the quality of data being shared, which brings us to data integrity. Data integrity is about making sure that information is accurate, reliable, and complete across its entire lifecycle. It’s not just about having data; it’s about having good data you can actually trust. In the Pharma 4.0 model, where data integrity is critical, maintaining high-quality data is a must, especially for meeting strict regulatory standards. This means putting practices in place to ensure that data isn’t duplicated, corrupted, or altered improperly, so everyone—from operators to auditors—can make decisions with confidence.

Together, connectivity and data integrity are the backbone of any digitally mature operation. They enable real-time visibility, reliable decision-making, and the flexibility to adapt to change. Without them, even the best technology can fall flat. So, as manufacturers embrace digital maturity and composability, focusing on solid connectivity and data integrity will be crucial for a smooth, resilient operation.

The journey from Technology Adoption to Strategic Transformation

Many manufacturers today are adopting digital tools, but there's a significant difference between early digitalization and achieving digital maturity. A mature digital approach emphasizes:

1. Strategic Data Utilization: Digital maturity involves a shift from collecting data in isolated pockets to having unified, actionable insights. For manufacturers, this means no longer relying on static, siloed data but leveraging real-time insights that span from the shop floor to the boardroom. Yes, this in a way nothing new and really dates to Industry 3.0 concepts - however with new digital tools this has become and achievable reality.

2. IIoT & Interoperability: Digitally mature systems don’t merely integrate; they interoperate, embodying the composable principle of Bottom Up where IIoT components are autonomous and collaborative. Composable architectures are inherently emergent in both design and control - the manufacturing solution is required to evolve with minimal friction.

3. Human-Centric Technology: In a departure from an automation focus, the current paradigm shift places people at the center of the digital equation. Technology becomes an enabler for employees, from line operators to managers, allowing them to respond dynamically to changes and resolve issues swiftly.

4. Resilient and Adaptive Workflows: A composable manufacturing ecosystem relies on digitally mature workflows that can adapt to disruptions, whether due to supply chain variances or unexpected equipment breakdowns. A digitally mature manufacturer leverages their digital capabilities to enable resilience, be predictive and adaptive.

The digital transformation journey towards order of magnitude productivity improvements

The path to digital maturity requires a tailored, strategic approach that elevates an organization from a technological upgrade to a business transformation—one that enables agility, resilience, and sustainable growth. The first step in this journey is to assess and align digital initiatives with overarching business goals. Defining what a mature digital state means for each organization—whether it's minimizing downtime, improving product traceability, or streamlining supply chain management—is critical. Aligning digital initiatives with operational excellence or lean initiatives by implementing data-driven approaches to cut down production waste and achieve near-real-time optimization are critical. Drive value by prioritizing areas where digital maturity will have the most impact on operational outcomes.

A characteristic of digitally maturity is how well your organization is equipped to handle the ever-evolving challenges and capitalize on new opportunities. Embracing composability allows your organization to not only keep pace with the current demands but to thrive in the future - thrive with the accelerated pace of digital innovation. Digital transformation should be more that mere adoption of new technology - it is embedding it deeply in your operational fabric, enabling sustainable growth and resilience in the face of change.

The 5 Pillars of Composability

I am seeing the industry converge on the term Composability to identify and explain the application of digital technologies that can effectively foster digital transformation. For digital transformation to happen, agility, flexibility, and human-centricity are a vital component that increase productivity in operations - the expected outcome. This is where the concept of composability emerges as the collective transformative paradigm. Let's also make it clear that the opposite of composable is monolithic and contrary to monolithic systems, Composable solutions empower manufacturers to adapt quickly, focus on the needs of their operators, and drive continuous improvement. 

Composable solutions are a critical ingredient in digital transformation because they empower manufacturers to enhance productivity by embracing flexibility, agility, and human-centric design. By focusing on the needs of operators and utilizing real-time data, digital tools enable rapid adaptation to changing conditions, boosting efficiency. This approach accelerates time-to-value, enhances collaboration, and supports sustained operational excellence, ultimately leading to higher productivity​.

The Composability Model for Digital Transformation

Let’s dive into the five key pillars that make composability such a powerful approach: Bottom-Up, Agility, Democratization, Human-Centric, and Compliance.

1. Bottom-Up: Building from the Ground Up

In contrast to the rigid, top-down structure of monolithic solutions, composable systems thrive on a bottom-up approach. This allows organizations to build solutions that are tailored to specific processes, activities, and operations. Composability starts at the operational level, focusing on solving problems at the frontline, rather than imposing broad, generic solutions from the top.

By empowering frontline operators and citizen developers to build apps that address their unique challenges, organizations can capture granular data about each activity. This leads to faster problem-solving, more efficient processes, and solutions that are adaptable to rapid changes​. The bottom-up approach is essential for increasing productivity and maintaining agility in a constantly evolving operational environment.

An interesting phenomena is that the bottom-up approach fosters an emergent design, where solutions are built iteratively, from the operational level up. This means frontline workers, who are closest to the challenges, contribute to the system’s development. By decentralizing control, emergent designs allows for rapid adjustments and iterations, ensuring that solutions evolve in real-time, in response to actual needs. This approach significantly reduces the time-to-value, as it enables immediate deployment and incremental improvements, accelerating innovation and aligning solutions with real-world demands​

2. Agility: Embracing Change through Lean and Continuous Improvement

Agility in composable solutions is crucial because it inherently supports Lean principles, which emphasize continuous improvement, waste reduction, and efficiency. Composability takes Lean further by bringing in adoption of digital technologies as a key enablers. Its the reunion of Lean and Agile, allowing for rapid cycles of innovation, quick iterations, and on-demand changes, which are essential for staying responsive in fast-paced environments.

In manufacturing, continuous improvement is key and agility is non-negotiable. Composable solutions, by design, are highly adaptable and enable organizations to iterate quickly. Unlike monolithic systems that lock you into predefined processes, composable systems allow for short test-fail-learn cycles that drive faster innovation. This agility extends to everything from software updates to operational adjustments, ensuring that you can stay ahead of challenges and capitalize on new opportunities. Agility also allows for faster implementation and a reduced time-to-value, meaning that benefits can be realized almost immediately after deployment​.

Augmented Lean represents this evolution of Lean, where digital tools and real-time data empower frontline workers to make immediate, informed decisions, maximizing efficiency and productivity in ways traditional Lean couldn’t achieve.

3. Democratization: Empowering Citizen Developers

The democratization of technology is another cornerstone of composability. This is where no-code and low-code platforms come in, they enable citizen developers - the people close to the operations, such as engineers, technicians, or operators - to create, modify, and maintain apps without needing deep IT or coding expertise.

This critically reduces dependency on a software skills, centralized IT and specialized OT departments - it speeds up the development of solutions that directly address operational challenges. As more people within the organization are empowered to contribute to solution development, it fosters a culture of innovation, encourages experimentation, and accelerates digital transformation​.

Democratization in composable solutions means empowering the people who know the process best, frontline workers and engineers, to create content. When those closest to the operations develop solutions, the results are more accurate, relevant, and effective. This drastically reduces development time because it eliminates communication gaps between IT and operations. With a no-code platform, these citizen developers can quickly build, test, and deploy apps that meet specific operational needs, accelerating time-to-value and promoting continuous innovation​

4. Human-Centric: Augmenting Human Capabilities

In a composable system, technology is designed to serve operators, rather than the other way around. In traditional monolithic systems, operators must conform to rigid workflows dictated by the system, limiting their ability to adapt and innovate. With composable solutions, however, operators are empowered by tools that assist them in performing tasks more efficiently, providing real-time insights, and reducing manual effort. This human-centric approach leverages the unique skills of workers, driving productivity increases by augmenting human decision-making and capabilities​

Therefore composability at its core is human-centric. It is built around augmenting human activity rather than replacing them, automating processes where it makes sense but still including them, ie "human in the loop". In a composable system, the technology is there to serve the operator, providing tools that digitize manual tasks, streamline workflows, and offer real-time data insights.

This focus on human-centric apps leads to more intuitive user experiences, reduced error rates, and improved operator efficiency. By connecting operators with their environment through digital tools, sensors, and IIoT devices, composable systems elevate the performance of the workforce, ensuring that technology acts as a productivity enabler.

5. Compliance: Built-In Validation

In the regulated industries, such as life sciences among others, compliance is a critical pillar and probably needs a deeper dive in a future blog post. Composable solutions, especially frontline operations platforms, must be designed with compliance in mind. They have to allow organizations to build and validate solutions iteratively while maintaining compliance. Digital data has to be captured and available to document all the required aspects such as: version control, audit trails, and automated validation processes.

With compliance built into the system from the ground up, organizations can ensure that their solutions are always aligned with regulatory requirements without stalling innovation. Continuous improvements and app iterations can be made seamlessly while keeping operations compliant​ with automatically captured digital data as evidence. 

Validation 4.0 is an essential component of composable solutions and is part of the Pharma 4.0 operational model. It applies a risk-based approach to testing, ensuring that apps are validated for their intended use without lengthy delays. This iterative process allows for continuous updates and improvements while maintaining compliance. Validation 4.0 integrates seamlessly into the digital transformation, supporting rapid deployment and constant change, enabling businesses to innovate faster without compromising regulatory standards. This agility is critical for modern operations to thrive in evolving environments​.

In Summary

Composable solutions represent a fundamental shift in how manufacturing operations are structured and executed. By embracing the principles of Bottom-Up, Agility, Democratization, Human-Centricity, and Compliance, organizations can achieve faster time-to-value, greater productivity, and enhanced operational flexibility. The future of manufacturing lies in building systems that are as dynamic and adaptable as the challenges they address.

Composability as defined here and if applied correctly can give your manufacturing operations a massive jump on your digital transformation. Interestingly it can also serve to sift through the hype and ambiguity in the different so called "digital" technologies. By simply asking the technology vendors how the implement and satisfy the 5 pillars you can effectively qualify any technology as being in or our of the new paradigm. Remember clear objectives and strategy are still the most crucial part of your digital strategy. These objectives have to clearly define how productivity is increased in your operation and clarity around the composability drivers is an excellent strategy.

About Accountants and Production Managers: ERP vs. MES

This is a rewrite of a whitepaper that I published in 2004 based on a long and frustrating MES selection process where the "can I use my ERP as MES" misunderstanding went rampant. I find that the discussion is still very relevant today and the topic gets even more confusing with some of the emerging digital technologies in this space. So this is an attempt to bring more clarity...

About ERP and MES

With today’s increasingly accelerating manufacturing technology innovation, digital transformation is critical for staying competitive. Among the key systems that have traditionally driven manufacturing operations are Manufacturing Execution Systems (MES) and Enterprise Resource Planning (ERP) systems. The myriad of opinions and discussion on these concept in the context of digital transformation and therefore understanding the differences between these two systems is crucial. In addition, as digital technologies continue to advance, the lines between MES and ERP are increasingly blurring, especially with the advent of No-Code democratization and Frontline Operations Platforms. I have found that and effective ways to conceptualize this is through the analogy of a production manager and a company accountant.

The Accountant: ERP’s Role in Manufacturing

In the last decade ERP systems have seen massive proliferation into many businesses, including manufacturing businesses. These businesses have invested heavily in ERP systems and today struggle to realize payback from these investments. In the case of manufacturing businesses, realizing ROI is logically focused on the production floor, an area in which ERPs are traditionally considered weak.

As the ERP market becomes increasingly saturated, vendors are looking for ways to increase revenue and expand their footprint. ERP vendors have turned their attention to shop floor management and manufacturing execution systems (MES). By adding MES functionality, they can increase license revenue. 

Consider the role of an accountant in a manufacturing company. The accountant manages financial records, oversees budgets, handles payroll, and ensures that all financial transactions comply with regulations. Their work involves high-level data analysis, financial forecasting, and strategic decision-making that influences the entire organization. This is akin to the role of an ERP system.

At their core, ERP systems are advanced accounting information management systems, they are enterprise-wide management tools designed to integrate various functions across a business. In manufacturing, ERP systems handle tasks such as procurement, inventory management, finance, human resources, and supply chain operations. They provide planning tools like Material Requirements Planning (MRP) and Manufacturing Resource Planning (MRP II), which help companies predict future resource needs based on historical data and forecasts.

However, despite their comprehensive nature, ERP systems are not designed to manage the real-time, dynamic environment of the production floor. They excel at providing a broad, strategic view but lack the granular control needed to manage the intricacies of manufacturing processes. Just as an accountant isn’t equipped to manage the day-to-day operations on the production floor, an ERP system isn’t designed to handle the real-time demands of production management.

The Production Manager: MES’s Role on the Shop Floor

MESs have evolved to address the inherently complex production management functions. An MES is a specialized system focused on the shop floor, where it manages real-time production activities. It coordinates equipment, workers, materials, and processes to ensure that production is carried out according to plan. Unlike ERP systems, MES operates in real-time, responding instantly to changes and ensuring that production goals are met. It tracks production data minute by minute, making it possible to identify and correct issues as they arise.

Imagine the role of a production manager. This person is in the thick of things, ensuring that production runs smoothly and efficiently. They manage workers, monitor machines, and make real-time decisions to keep everything on track. The production manager is intimately familiar with the production process, knows when to adjust schedules, and reacts quickly to any disruptions. This role exemplifies what an MES does in a manufacturing environment.

While ERP provides a high-level overview of production schedules and resources, MES is concerned with execution ensuring that production is executed as planned. MES is deeply integrated with the physical aspects of manufacturing, enabling it to manage the nuances of the production process that ERP systems cannot.

Differences Between MES and ERP

Aspect	ERP  (Enterprise Resource Planning)	MES  (Manufacturing Execution System)
Scope and Focus	Covers a wide range of business functions across the entire enterprise. Designed for strategic planning and resource management across departments.	Specifically focused on the production floor, with deeper engagement in executing production processes, equipment monitoring, and labor management.
Data and Time Frame	Deals with high-level, aggregated data, often historical or forecast-based and financially biased. Works on a broader timeframe for long-term planning and decision-making.	Operates in real-time, handling detailed, granular data from the shop floor, responding immediately to production needs.
Integration and Flexibility	Integrates various business functions but often lacks the flexibility needed for real-time adjustments on the production floor.	Highly flexible and adaptable to the dynamic environment of manufacturing. Integrates with machinery, sensors, and other shop floor systems.
Decision-Making	Supports strategic, long-term decision-making at the corporate level, focusing on overall financial business performance and resource allocation.	Highly flexible and adaptable to the dynamic environment of manufacturing. Integrates with machinery, sensors, and other shop floor systems.

Blurring the Lines: How Digital Technologies Are Redefining MES and ERP

As digital transformation continues to reshape manufacturing, the era of traditional monolithic MES may be coming to an end. New technologies and platforms are presenting a different way to solve the shop floor management coordination challenge. Based on the foundations of MES these new solution incorporate advanced digital technologies such as No-Code, IIoT (Industrial Internet of Things), machine learning, AI-driven analytics, Generative AI and enhanced user interfaces. They offer a more holistic view of manufacturing operations, providing real-time insights that empower workers on the shop floor to make data-driven decisions.

Unlike traditional monolithic MES, which focused solely on production execution, the new breed of technologies leading with the Frontline Operations Platforms encompass a broader range of activities, including quality control, maintenance, lab operations, inventory management, and workforce training. This transformation is a direct response to the growing need for systems that not only manage production but also integrate seamlessly with other digital tools and platforms to enhance overall operational efficiency. It also aligns with the broader digital paradigm, where the goal is not just to automate existing processes but to create a more connected, intelligent, and responsive manufacturing environment. The integration capabilities of Frontline Operations Platforms enable a seamless flow of information between the shop floor and the enterprise level, blurring the traditional lines between MES and ERP.

Several key trends are driving this convergence:

1. IIoT and Real-Time Data Integration:

The proliferation of IIoT devices on the shop floor allows for the real-time collection and analysis of data. This data can be fed into both MES and ERP systems, enabling more informed decision-making across all levels of the organization. For instance, real-time production data captured by IIoT sensors can be used by the ERP system to adjust supply chain logistics or by the MES to optimize production schedules on the fly.

2. Advanced Analytics and AI:

Machine learning and AI are increasingly being used to analyze the vast amounts of data generated by manufacturing processes. These technologies enable predictive maintenance, demand forecasting, and process optimization, functions that traditionally belonged to either MES or ERP. The use of advanced analytics allows these systems to overlap, as both can now contribute to strategic and operational decision-making.

3. Human Centric Platforms:

The new no-code platforms take a human centric approach that break down the traditional process centric solution. They allow to build solution that can be used across manufacturing modalities and also allow to combine MES and ERP functionalities blurring the lines between the two. The new solutions provide a democratized platform for managing all operational process. Workers on the shop floor, managers, and executives can all access the same platform, though with different levels of detail and control, depending on their role.

4. Cloud Computing and Edge Computing:

The shift towards cloud-based solutions and edge computing is enabling greater integration and scalability of MES and ERP systems. Cloud computing allows for centralized data management, making it easier to integrate MES and ERP data. Edge computing, on the other hand, brings computational power closer to the production site, enabling real-time data processing and decision-making that benefits both MES and ERP functions.

5. Interoperability and Open Standards:

Increasingly, manufacturers are adopting interoperable systems that can communicate with each other through open standards. This trend is making it easier to integrate MES and ERP systems, allowing for a more seamless exchange of data and better collaboration between different departments.

The Future: A Converged System for Manufacturing Excellence

The convergence of MES and ERP functionalities into more integrated platforms represents the future of manufacturing. As these systems continue to evolve, they will offer manufacturers the ability to manage both high-level strategic planning and detailed operational execution through a single, cohesive platform. This convergence will enable a more agile and responsive manufacturing process, better equipped to meet the demands of the modern market. The systems are working together more closely than ever, driven by advancements in digital technology that empower manufacturers to achieve new levels of efficiency, flexibility, and innovation.

In Summary...

In the rapidly changing landscape of manufacturing, understanding the distinct yet increasingly interconnected roles of ERP and MES systems is crucial. As digital technologies continue to advance, these systems are evolving and converging, offering manufacturers a powerful toolset for driving operational excellence. The transformation of MES into Frontline Operations Platforms exemplifies this convergence, blurring the lines between strategic planning and operational execution. By embracing these integrated platforms, manufacturers can unlock new opportunities for efficiency, agility, and competitiveness, setting the stage for a new era of manufacturing excellence in the digital age.

Yet, it is naive and risky to assume that one of these systems can be extended to effectively do the other’s job. Similarly, one would not assign an accountant to be a production manager, or vice versa. Each might be an expert in his own field, yet it takes a completely different set of skills, expertise and knowledge to effectively tackle each task.

The Power of Teams

I have always inherently felt that there is immense power in teamwork with well-defined team roles. Done well, ie well functioning roles within teams, enhances collaboration and increases productivity. We have to recognize that complex projects and innovative solutions often require the collective effort of diverse skill sets and perspectives. However, the effectiveness of a team is not merely a function of bringing people together; it hinges on how well the team is organized and how clearly the roles within the team are defined. Well-defined roles enhance collaboration and increase productivity by providing clarity, fostering accountability, leveraging individual strengths, and streamlining communication.

I know this topic is a bit of departure from my normal themes around digital transformation and intelligence in manufacturing. I see many companies struggle with how to organize their digital initiatives and sometimes the essence of a good team that can help move the needle get's lost between all the technology and change management topics.