Digital possibilities are transforming industry
Within manufacturing and process industries, these changes relate closely to the introduction of “Industry 4.0”, where developments promise to unlock a wealth of opportunities for innovation and automation.
In this space, the proliferation of sensors and other connected devices facilitate a more data-driven approach to operations – enabling manufacturers to boost productivity, increase product quality and flexibility, reduce costs, and improve sustainability.
Every day, articles and blogs are published discussing the benefits and success stories of digital transformation – and, as a result, many established firms face pressure to reshape business models and modernise operations.
But the truth is, digital transformation is not happening with the pace that was projected a decade ago. And it’s not because companies don’t invest time and effort into digital initiatives. It’s quite simply because 70% of these projects fail.
One big reason for this is that digital transformation is not a one-size-fits all activity. Organisations have unique infrastructures, business models, skillsets, and ambitions. And readiness for digital transformation also varies extensively. All of which means transformation strategies and roadmaps must be tailored to meet specific needs.
To keep up with the rapid developments in their markets, manufacturing and process companies must set aside their traditional focus on assets alone, and instead undertake three important tasks:
- Assessing their current organisational capabilities
- Determining clear business drivers
- Creating a holistic approach to transformation activities
Without a clear view on these topics, we often see organisations struggle, trying to implement isolated initiatives to keep up with changing environments, rather than taking a long-term, big-picture approach to transformation.