In addition to technological leadership, digital transformation is becoming increasingly important for the economic success of industrial companies. A successful digital transformation provides the basis for distinguishing oneself from the competition in further dimensions than just technological leadership and thus for increasing earnings and profit in the long term. Clear beneficiaries are topics such as Supply Chain Management, Product Life Cycle Management or Smart Factory.
The digital transformation also opens up new opportunities in the service business, for example. For example, the automation of service processes, new digital interfaces to the customer and new service products and business models are only made possible by digitalization. Compared to traditional product business, services offer many advantages:
- On average, services generate higher revenue growth than the product business
- Profitability in service is generally higher than in product business
- While products have to be sold new each time, service contracts are long-term and generate continuous and stable income flows
- Frequent interaction in the service generates a high level of customer proximity and increases customer loyalty
- Via services, companies collect valuable information on product usage
In order for the digital transformation to succeed, silos must be broken down and new, more permeable structures (organizational, functional and technical) and processes must be created that allow for comprehensive, digital and optimized collaboration. This not only within the boundaries of the company, but throughout the entire supply and value-added chain up to the end customer and also throughout the entire life cycle of a product up to its disposal. Only then can initiatives such as Lean, Asset Performance, Value Chain, Customer Centricity, Service or digital business models, which focus on the customer and his expectations, be effectively implemented to their full value.
Digital transformation as a success driver for industrial companies.
In order for the digital transformation to progress effectively and in a targeted manner, it is advisable to develop a digital strategy and to create a clear roadmap with directions and concrete projects. Since IT plays a central role in the implementation of the digital strategy, IT needs a corresponding IT strategy as well as clarity regarding IT governance and data management, for example.
The technologies, tools, architectures, concepts and models such as Industry 4.0, IIoT, platforms, MES and PLM systems, digital twins or data analytics for predictive or even prescriptive analytics are essentially widely available. The subsequent networking of production infrastructures and machines still poses a challenge. Existing and emerging standards, as well as edge devices and edge computing, are increasingly offering a helping hand here. On the IT side, the necessary technologies and applications are also generally available. Although large system manufacturers and suppliers are working on integrating more and more components on their platforms, a clear IT strategy, IT and data architecture and IT governance are needed to build up the overall system and operate the system effectively in the long term. Experience shows that the life cycle time of digital infrastructures is much shorter than in the physical world.
The available resources for this are few and far between on the market, so industrial companies would do well to address these issues in detail as soon as possible. Otherwise, there is a danger that the overarching benefits of digital interlinking will not materialize.
How we can assist you:
Our consultants have many years of expertise and practical experience with innovative solutions for industry. Each approach is based on a clear IT strategy and data architecture that takes into account the current and future requirements of Big Data Management as well as the highest levels of security, availability and flexibility. In addition, our experts will help you with suggestions for technologies, processes and structures to tackle upcoming challenges in daily operations in a goal-oriented and efficient way.
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