The challenges Nissan has faced transitioning from manufacturing to tech

Digital transformation has affected many industries as new technologies force companies to adjust their processes.

One such company is Nissan, which is currently in the process of transitioning from a manufacturing company to a tech company as automation becomes more and more commonplace.

“The way I describe it is it’s not an evolution; it’s a revolution. It happens to us fast and unprecedented. It’s faster than ever. And that’s the same with the way that technology exponentially is growing. That’s affecting our industry, and we need to change very quickly in order to be able to do that from a skills perspective,” said Tas Papasimeon, global learning and development manager at Nissan.

“From COVID-19, the change that you see coming from the technology being injected into our product, into the way we work, in the last few years has been more than it’s been the whole duration of the other time I’ve ever been with the organisation.”

This digital transformation creates challenges as businesses need to adjust processes to keep up with an evolving workforce.

“It’s not us exclusively; it’s the industry. But with that comes a lot of challenges. Or, you can flip it around and say opportunities. How do we now learn to work with this technology? What does that mean for us as a company? And what that means is, we need to hire more skills, and we need to upskill our existing staff,” Mr Papasimeon said.

“We’re looking at 3,000 engineers globally that we need to bring into the organisation just to keep up with this rapid transformation and change when it comes to technology and innovation. We want to look at what skills are required to become more digitalised.”

Mr Papasimeon noted that the evolution of technology has made it easier than ever for people to enter the automotive industry, meaning increased competition is another factor to consider.

“Our models of manufacturing, selling, and servicing are all changing. There’s different customer expectations, all the while our competition is increasing. Now, the barriers to entry that were there in automotive a while ago have seemed to have broken down. And now there’s more competition out there, especially as we move towards electrification,” he explained.

“In 12 years’ time, the combustion engine is going to be non-existent. And that’s law in Europe. So, the rest of us will follow suit in some fashion or another. And then we’re looking at autonomous driving, and all the associated technologies and ways of working in thinking around that.”

With these challenges in mind, Mr Papasimeon said that it’s crucial for organisations to prioritise upskilling and reskilling to keep employees up-to-date with evolving tech.

Mr Papasimeon continued: “With all of that change happening within the industry and affecting us directly and right now, so quickly, we need to think about from an HR perspective, and a new learning and development perspective, what are those skills that we need now to upskill, to reskill and to bring into the organisation?”

He added: “Part of that is also new opportunities now to partner with tech companies, as we align ourselves more in that realm. So, we’re currently partnering with the likes of Sony, Apple, Google, Samsung, all those big tech companies that are out there. And they are becoming very relevant in the way that we produce our products.”