According to the latest Harvard Business Review study, approximately US$1.3 trillion was invested in digital transformation in 2018. Even so, a large percentage of this spending ends up being wasted on initiatives by companies that fail because they are not really prepared for change. Digital transformation is not just a matter of capital investment, but of developing strategies, executing and addressing the challenges and opportunities associated with it. Experience and skills related to digital transformation are now necessary for the strategic plan of almost all companies.
The two pillars of digital transformation in the industry are innovation and disruption. Companies must be attentive to the changing landscape of their industry and be sure to count with the right talent in order to carry out new business models, as well as train and retain existing talent. Disruptive forces abound in today’s business environment. For these reasons, retaining the impact of such a transformation generally requires a major restoration in mentality and behaviour.
What does digital transformation means for industry?
Digital transformation is the application of digital capabilities to processes, products and assets to enhance efficiency, increase customer value, manage risk and navigate through new revenue generation opportunities. This transformation is global and therefore involves adopting digital technologies for both internal operations and external ones; including sales, marketing and support efforts. To adapt, companies must fundamentally change the way they operate, be willing to accept cultural change and rethink their status quo.
Digital talent and capabilities are key to the transformation and exploitation of new business strategy opportunities. An Accenture study confirms this by claiming that “companies need limitless, adaptable, and essentially human systems to thrive in an ever-changing world.” The study recommends companies to stop viewing their applications, infrastructures and employees as independent entities, and move on to see them as cross-cutting, and to consider them interconnected systems giving rise to the term industry 5.0.
The client is at the core of the strategy. Nowadays personalisation plays a big role in consumption, and producing the same for everyone no longer sells. Products have to be adapted to meet customer needs, only this way companies will grab their attention and encourage conversion and loyalty. In addition, modern tools such as Artificial Intelligence and cross-device connectivity allow companies to automate product customisation and even run tasks remotely. In this way, essential facilities keep running and production systems are controlled virtually.
Digital transformation for industrial companies
Technology is not only improving people’s lives, but is also making work easier in many sectors. Digital transformation helps an organisation keep up with emerging customer demands and therefore survive in the face of the future. It allows companies to compete better in an economic environment that is constantly changing in response to technology evolutions. A proper management of the digital turnaround gives companies the opportunity to access operational and productive advantages.
The post-pandemic situation we live in is moving towards a digital fever mentality. Companies who will succeed will be those that create smart experiences and customer journeys that facilitate and/or complement people’s lives. Companies who will fail will be those that don’t seek to benefit from new AI technologies and don’t take advantage of data to anticipate trends in demand and make decisions that improve the workforce.
10 benefits of industrial digital transformation
Digital transformation in the industry provides an opportunity to combine practices and ways of doing that result in new techniques, skills and sources of income. Here are some of its key benefits:
- It reduces costs as a result of time savings in processes.
- It decentralises production by facilitating mobility and remote communication.
- It improves operational efficiency and productivity.
- It opens the door to new business opportunities and revenue streams, enabling the creation of new products and services.
- It increases the speed of response to changes in demand in the market.
- It generates a competitive advantage for the company by being able to enhance the quality of the products manufactured.
- It drives the culture of innovation, preparing the company to anticipate any disruption.
- It improves integration and internal collaboration by facilitating communication between departments.
- It empowers decision-making by deepening data analysis (Big Data).
- It attracts new talent, fostering the recognition of systems and awakening the interest of specialised professionals.
Digital transformation, a window into the future
Digitalisation is reinventing businesses and capturing unique competitive advantages, but companies continue to hold back when the time comes to change their current business models. Digital transformation has been a kind of slogan for many top managers in recent years. According to a Gartner study, 79% of corporate strategists claim to be digitalising their businesses to create new revenue streams. But so far change has been slow and less than half of the companies that claim to be transitioned bring their digital initiatives to the core of their strategy.
We live in a digital, global and hyper-connected world, characterised by a change at a social and technological level where the continuous emergence of new players in the markets, off-site mobility and continuous connectivity pose a big influence. Today, digital transformation is not an option; it is necessary to escape the comfort zone, reinvent themselves and compete in this world overrun by technological advances.
Embrace the digital transformation with Nexus Integra, an integrated operational platform that turns a traditional factory into a smart industry.