8 steps to initiate digital transformation in industrial companies

“Digital transformation” is probably the most popular phrase right now. Why? Because it is permeating every business, in every industry. It is inevitable: digital technologies are changing the world in a monumental way and, as a result, organisations now have no choice but to adopt these technologies and evolve if they want to have a chance of surviving in the coming years.

However, according to data from experts in the industrial sector, only 81% of companies consider themselves to be fully digitised, while 31% have undertaken ad hoc digital transformation projects and another 31% are still working on their plan. industrial digitisation.

Clearly, despite the global push towards digital, most businesses still have a long way to go on their digital transformation journey. The important thing is to make a plan and get started because, while the future of technology may be uncertain, one thing is certain: doing nothing is the biggest risk when it comes to digital transformation. Simply put, it is no longer a case of “if,” but “when.”.

And, although digital transformation is unique to each company, there are some important steps that everyone should take. consider when beginning your digitisation journey:

1. Determine what “digital transformation” means for the company. One of the most challenging aspects of digital transformation is the fact that there is no universal definition of what it is. Ask 10 chief executives, chief technology officers, or chief information officers what it means for their business, and you will get a different answer each time. This is not surprising, considering the fact that there are so many technological advances available and that each business has different customers, clients, and needs. Therefore, with this in mind, the first fundamental step when embarking on a digital transformation journey is to establish exactly what it means for your company.

   Look at the big picture and consider your challenges., level of digital maturity, industry, competition, value chain, customers, ecosystem, and any other variables that influence your business. Use this information to define what digital transformation means for your organisation in your own specific context, why you need it, and what you are trying to achieve.

2. Assess your current capabilities. Once you know why you need to digitally transform and what it will look like for your business, you must assess the digital capabilities you currently possess. Examine your technology stack, your technologies, and your employees; anything and everything used to make your business what it is today must be considered.

   It sounds simple, but most companies will develop their digital transformation strategy without considering how their organisation currently operates, which can leave them vulnerable to excessive or insufficient transformation.

3. Establish how you will go digital. With your goal and capabilities established, you will be in a good position to evaluate the various digital transformation alternatives available to you. From front-end transformations, such as products and customer experiences, to back-end transformations, such as cloud and IT infrastructure, or solutions that transform both, there are a multitude of options to consider when creating a digital transformation strategy. For example:

   • Redesign of products to include a digital component such as IoT.
   • Building digital ecosystems leveraging Big Data, connectivity and the cloud
   • Transform operations and factories through automation, machine learning, or 3D printing.
   • Build a robust IT infrastructure to provide a central digital nervous system for your organisation.
   • Evolution of the customer experience to leverage digital technologies and include features such as chatbots and online booking.

   Your strategy may be a combination of internal and external transformations, or it may be just a small change. Regardless, it is always important to remember that any digital solution is a means to an end; always keep your ultimate goal in mind when establishing your digital transformation strategy to ensure that you are adding value to your customers and your business and not just adding new technology for the sake of it.

4. Get the right level of engagement. Once you have thought through a digital strategy and solution, it is imperative that you gain buy-in from executives. Doing so not only demonstrates your commitment to digital transformation, but is critical to getting your project off the ground and running, and securing investment.

   It may seem like a relatively simple step compared to creating a comprehensive digital transformation strategy, but it can take time to gain adequate buy-in, so it is crucial that you implement it as soon as possible once you have a solid plan in place.

5. Create a roadmap. With the right strategy and proper buy-in, you need to take a practical approach to your digital transformation plan and create an effective roadmap. You cannot change everything at once, and you need to have a comprehensive plan for how your transformation will actually work.

   What will change first, what will have the greatest impact and generate the most value, and what is an inevitable obstacle to progress? It is essential to draw up a roadmap to establish when everything should and must happen, how your business will gradually change, and what your digital transformation will look like over a given period of time.

6. Ensure you have the right skills in your plant. When considering the reasons for the failure of digital transformation projects, one of the main ones that comes up time and time again is a lack of skills. It is not surprising, given the fact that digital transformations typically rely on emerging and cutting-edge technologies, that companies do not possess the necessary expertise and skills.

   In fact, in the 2017 State of Digital Transformation report, 31% of respondents noted that the lack of digital talent and expertise presented a real challenge to the success of their transformation initiatives. Echoing this, in a survey of 1,200 talent and human resources executives, 54% believed that the digital talent gap is hindering their company's digital transformation and competitiveness.

   Clearly, when planning a digital transformation project, companies must focus on hiring the skills that are essential to driving their transformations. In fact, it has even been proven that failing to do so leads to project failure and negative revenue.

7. Prepare the entire business. Communicating your plan and vision for the company is just as important as devising the strategy. In fact, it is widely recognised that successful digital transformation depends as much on cultural change within a company as it does on technological change.

   If the value of a transformation is not communicated well, the company may not gain the intrinsic acceptance of employees, which could act as an obstacle later in the journey. Provide employees with transparency, a clear structure and plan, and adequate training to prepare them for digital transformation.

8. Begin your digital transformation. A fairly simple step: Start executing your plan! Ensure you remain committed at all times. Companies that have had successful digital transformations are those that have set their sights on the end vision and worked to prepare the business for future success and growth.

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