FEATURE Food & beverage
Don’t get stuck in ‘option paralysis’ Don’t get stuck in ‘option paralysis’
Maggie Slowik, Global Industry Director for Manufacturing at IFS, outlines how food and beverage manufacturing companies can tackle the top three digital transformation challenges—cybersecurity threats,
T
he food and beverage industry is at a pivotal point in 2025. Companies understand digital transformation is essential but are spoilt for choice with every option seeming right, yet every decision is fraught with challenges. The result is companies are falling behind due to ‘option paralysis’ and a reluctance to disrupt existing systems.
Food and beverage was a key market
of the recent IFS report, which surveyed global manufacturing leaders and found that while they all admit their businesses cannot survive without the right technology, fewer than 10% qualify as digital leaders. A striking 65% of respondents labelled themselves as ‘laggards,’ who have stalled at the early plans in place. option paralysis’
where every option is seen as essential. Add to this the sheer volume and rapid pace of technological advancement, along with the fact that every option comes with its own hurdles and you have indecision, which makes digital transformation progress slow. According to the IFS report, digital leaders invest 45% of their budget on digital transformation, driven by clear strategies and ROI-focused investments. Meanwhile, laggards continue to fall deeper into the digital abyss, paralysed by too many choices. Technology has the potential to
improve production optimisation, energy management/waste management, and
32 April 2025 | Automation
design and development but only if companies are able to successfully integrate technologies into their existing ecosystem. So how can food and beverage manufacturers turn the tide? By meeting the challenges, the road to digital transformation 1. Cybersecurity remains an indiscriminatory force The IFS report shows cybersecurity was the top business challenge for 36.5% of food and beverage respondents—and it’s no wonder when we consider how of all sizes. Dole, Sysco, and Mondelez are just three of the big names that experienced cyber incidents in 2023 alone. Any downtime on production lines by cyberattacks can lead to a chain reaction of delays, which puts strain on organisations, costing them already limited time and resources. According to the IFS report, 20.6% of food and beverage companies plan to prioritise improving cybersecurity in the next 2-3 years. Interconnected systems and reliance on digital tools increase vulnerability to attacks. This is why it is important companies invest in secure technologies such as cloud computing. Yet it’s equally important to have security
measures built into supporting software architecture to increase success in the new cyber arms race and ensure business operations can continue in a safe manner. A
single-tenant cloud architecture for example, management control and higher levels of isolation—perks they would not be able to receive from a multi-tenant hosting architecture. This removal of access points allows companies to dramatically reduce the risk of data inadvertently falling into unauthorised hands. In the event of a cloud neighbour becoming compromised by a cyberattack, a single-tenant architecture can ensure that the customer remains isolated from the threat and their data is left intact. 2. Climate challenges create new reporting confusion
Meeting ESG and sustainability demands was the second most pressing business challenge for 34.9% of food and beverage respondents in the IFS report. While it found many manufacturers are actively developing ESG initiatives, most lack a credible strategy. Data collection and management remains the number one ESG reporting challenge for manufacturers, but the introduction of new regulations such as the SEC disclosure requirement, is creating a new level of regulatory uncertainty that is holding up production and delivery. Encouragingly, the research found 27% of food and beverage companies plan to prioritise developing a sustainability strategy and team in the next 2-3 years, with a further 20.6% planning to embed sustainability goals in operations. Executed correctly, sustainability
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