Digital Factory Planning: Why SMEs Are Struggling with Transformation
A new Fraunhofer IGCV study highlights critical gaps in digital transformation across industries.
Despite the increasing focus on digital twins, Building Information Modeling (BIM), and the Industrial Metaverse, many companies, especially small and medium-sized enterprises (SMEs), continue to plan factories using outdated 2D CAD systems. A new study conducted by the Fraunhofer Institute for Casting, Composite and Processing Technology IGCV, in collaboration with industry partners, identifies the main barriers to adopting holistic digital factory models.
Over a two-year period, the research team surveyed and interviewed more than 70 professionals from various sectors. The findings, published on Springer Nature, offer a comprehensive view of the current state of digital factory planning.
A Gap Between Research and Industrial Reality
"Many companies are falling behind the technological possibilities available through research," explains Fabian Bermpohl, lead author of the study and expert in collaborative factory planning at Fraunhofer IGCV.
According to Bermpohl, businesses often lack a clear understanding of modern technologies and show limited willingness to adapt. Internal barriers, such as siloed departments and fragmented data systems, further complicate the implementation of simulation tools, digital twins, or real-time planning solutions.
Digital Transformation Is an Ongoing Process
One of the study’s key findings is that digital factory planning should not be treated as a one-time project. Instead, it must be approached as a continuous process that evolves alongside market demands. This is especially relevant for SMEs in manufacturing that require flexibility and speed.
"Companies are no longer producing simple products in stable markets. Adaptability is now essential, and digital processes are critical to success," says Bermpohl.
Focus on Fundamentals Before Advanced Concepts
While the Metaverse is generating widespread discussion, Bermpohl emphasizes that most SMEs are far from ready for such advanced technologies. A successful transformation starts with digitizing existing assets and making internal processes transparent. Only then can tools like digital twins and edge AI be implemented effectively.
The study also highlights that planning models are rarely integrated into operational workflows. New models are created for each redesign, and valuable data from previous phases is often discarded.
"Research should lead to practical application, not just theoretical progress. That is the mission of our institute," says Bermpohl.
Supporting SMEs Through Partnerships
Long-term collaboration with software providers and consultants can help SMEs transition to digital solutions and improve data flow across departments. Study partners such as Contact Software, Autodesk, and Ingenics are already working to integrate the findings into their product development processes.
Read the full study: Industrial study on holistic digital factory models
