How Manufacturers Can Modernize Without Shutting Down Production

Fast Company Executive Board member Eddy Azad explains that in modern manufacturing, strategic execution matters more than speed.

Manufacturers know they need to modernize. Digital transformation promises efficiency, cost savings, and a competitive edge. But shutting down operations for a full system overhaul isn’t an option. Most factories run on legacy systems and aging machinery. Production schedules leave little room for disruption.

Eddy Azad, the leader of Parsec Automation, has worked with many manufacturers facing this challenge. Too many companies chase new technology before ensuring they have the right foundation. His approach prioritizes data infrastructure, nonintrusive technology, and step-by-step digital adoption—not as a best practice, but as a necessity.

Regulations Are Forcing Manufacturers to Adapt

In many industries, digital transformation isn’t optional. Regulatory agencies are demanding traceability, compliance tracking, and real-time reporting. Companies must adapt or risk losing business.

Azad points to the pharmaceutical industry, where the FDA’s Drug Supply Chain Security Act (DSCSA) is driving the need for full traceability of drug ingredients, suppliers, and production conditions. Compliance deadlines vary based on company type and size, with staggered timelines to ease the transition. However, companies that delay risk operational disruptions and regulatory penalties.

“Sometimes, regulations dictate change,” Azad says. “If you don’t have the right systems in place, you’re forced to adapt quickly—whether it’s convenient or not.”

This challenge extends beyond pharmaceuticals. From food production to automotive manufacturing, stricter rules on safety and environmental impact are pushing manufacturers toward digital solutions. Those that delay will struggle to compete.

The Trade-Off: Short-Term Needs Versus Long-Term Strategy

Most manufacturers can’t afford to pause operations for a major technology upgrade. They have to balance daily production with modernization.

This is especially difficult for brownfield manufacturers—factories with long-standing processes and legacy equipment. Unlike new (greenfield) facilities, which can be designed with digital infrastructure from the start, brownfield manufacturers must find ways to upgrade without disrupting operations.

“If you introduce technology that disrupts operations and slows production, you’re solving one problem while creating another,” Azad explains. “Your customers are waiting on products. Your factory needs to keep running.”

Rather than overhauling everything at once, manufacturers should introduce new technology in phases, starting with areas where they can get quick wins.

Data First, AI Second

AI gets a lot of attention, but Azad has been clear: Manufacturers can’t rely on it without the right data. AI models depend on clean, structured information. Without it, they produce unreliable results.

“You can’t just say, ‘We’re going to use AI’ and expect results,” Azad says. “If you don’t have structured, high-quality data, the insights won’t be meaningful.”

Most manufacturers don’t have a centralized system to manage real-time data. That’s where manufacturing execution systems (MES) come in. Parsec’s TrakSYS MES connects machines, workflows, and business systems to create a single source of truth. It is with this source of truth, through data, that the next-gen capabilities of AI can be found.

Retrofitting Instead of Replacing

Many factories rely on machines built decades ago. They still work, but they weren’t designed for digital tracking. Manufacturers often assume they need a full equipment upgrade to adopt digital tools, but Azad says that’s not the case.

Instead of replacing entire production lines, manufacturers can retrofit existing equipment with industrial IoT devices like the ones offered by Parsec. These devices work with off-the-shelf sensors to track temperature, vibration, motion, and pressure—providing real-time insights without major infrastructure changes since they integrate with existing networks.

“If you don’t have the data, the value of an MES is lost on you,” he says. “Before you invest in AI, automation, or predictive tools, you need a way to extract and normalize data from your operations.”

Retrofitting lowers upfront costs and makes digital transformation possible for manufacturers of all sizes.

Why ‘Point Solutions’ Create Bigger Problems

Many manufacturers take a piecemeal approach to digital transformation, adopting single-purpose technologies to fix immediate problems. The result is a network of tools that don’t communicate with each other.

“A company invests in a solution for one department, then another tool for a different problem, and before long, they’re dealing with a patchwork of systems that don’t communicate,” Azad says.

Instead of stacking tools, manufacturers need a scalable, integrated platform that allows them to expand over time without constant reconfiguration.

Why Leadership Buy-In Matters

Even the best technology won’t work without alignment across the organization.

“Transformation can’t come from one person’s vision alone,” Azad says. “A CEO can champion AI, but if the team doesn’t understand how to execute it, it won’t work.”

The future of manufacturing isn’t about chasing AI trends or quick fixes. Companies that focus on structured data and scalable platforms will be positioned for long-term success—without disrupting production.

For manufacturers looking to modernize, Azad reminds them: “Strategic execution matters more than speed.”

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