The hardware problem that is stalling half of all digital transformation projects

With worldwide spending on digital transformation forecasted to reach almost $4 trillion by 2027, transformation often is seen as a non-negotiable investment for companies that want to compete. Despite this massive investment, many initiatives struggle to scale from isolated pilot projects to enterprise-wide success.

This spending isn't just about modernization; it's a direct response to the clear consensus that America’s industrial advantage will be built on intelligent manufacturing systems—a belief shared by 93% of executives.

While companies have embraced these advancements in cloud computing, AI, and IoT, this investment in high-level technology is not always supported by the foundational tools used by the frontline worker.

See also: How mastery of digital transformation creates new revenue streams

Industry leaders are building sophisticated systems that depend on data, yet the primary communication tool on the shop floor is often a disconnected device that traps valuable intelligence. In fact, a new survey of industrial professionals found that the hardware used by frontline workers is actively undermining these strategic initiatives.

Nearly half of all industrial companies (48.2%) have had to delay or cancel operational improvement projects because their communication technology was too unreliable or outdated to support them. This data reveals a critical insight: You cannot build the factory of the future on a technological foundation from the past.

And if you’re wondering: Why is this foundational layer so critical? Because digital transformation is not just about technology; it’s about people and processes. Transformation hinges on creating a culture of continuous improvement, and that culture is impossible to build when your team’s most basic tools are unreliable.

See also: Epidemic of corporate caution gridlocks digital transformation

As leaders, we understand that progress requires a stable platform. Yet, the daily reality for many is one of constant technological churn, forcing managers into a state of reactive firefighting instead of orchestrating success.

Our research shows that this isn't an occasional issue; more than a third of frontline teams have a communication device fail every single day, with the top culprits being dead batteries and physical damage.

In today's interconnected operations, digital initiatives are data-dependent ecosystems. A new workflow or pilot project often requires a consistent stream of data from multiple points on the frontline to be successful.

See also: Too many options on the table: How manufacturers can break free from digital inertia

When even a single device fails, it doesn't just inconvenience one worker; it creates a hole in the data set, compromises the integrity of the entire system, and can render the results of a pilot unusable.

This outcome is all too common, and the cumulative impact is staggering. The unreliability of legacy hardware breeds more than just skepticism among employees; it directly impacts retention.

In fact, our research at Relay shows that 43% of workers say they would be less likely to quit if guaranteed access to modern, automatically upgraded devices.

This frustration also consumes the time and attention of managers. This troubleshooting adds up significantly; our data reveals that one in four organizations loses more than an entire day of productivity every month just dealing with broken tech, contributing to six-figure annual losses.

The frontline data black hole

Beyond stalling projects, outdated hardware creates a massive data black hole. Every verbal maintenance request, safety observation, and quality control check spoken into a disconnected radio is a piece of unstructured data that vanishes the moment it’s said.

These conversations represent the "ground truth" of your operation, a rich source of intelligence that is completely invisible to your new analytics platforms.

Consider the invaluable insights lost every day: a maintenance technician verbally noting that a specific machine is making an unusual noise hours before it fails; a line worker suggesting a minor change to a workflow that could save seconds per unit; a safety manager hearing about a near-miss incident that never gets formally logged.

See also: AI sparks demand for specialized, high-performance plant infrastructure

This is the operational “dark data” that legacy systems cannot capture. It is the real-time pulse of the factory floor, containing the patterns and early warnings that are crucial for predictive maintenance and continuous improvement.

A modern communication platform, however, can turn this ephemeral talk into structured, actionable data. Creating this kind of interconnected data flow is essential for success in a modern industrial environment.

By capturing and analyzing frontline communications, leaders can gain unprecedented visibility into their operations, spotting trends and opportunities for improvement that were previously hidden.

Building a foundation for the future

While many transformation efforts have been hampered by this foundational weakness, the path forward is clear. By prioritizing the implementation of robust, cloud-connected communication tools, industrial leaders can create the stable platform needed for innovation.

See also: Why Industry 4.0 can’t succeed without operational efficiency

This isn't just about keeping up; it's about leading the way. According to Deloitte's 2024 manufacturing industry outlook, a striking 86% of manufacturing executives believe that smart factory solutions will be the primary drivers of competitiveness in the next five years.

This investment doesn't just fix a problem; it unlocks the full potential of your people and your strategy, finally allowing your high-level vision to become a reality on the ground.