Industrial Digital Transformation in the US
Discover the driving factors and benefits of industrial digital transformation in the US, as well as the four building blocks for successful implementation. Learn how to embrace the transformative potential of data and analytics, AI, and machine learning.
- Industrial digital transformation involves integrating digital technology into all aspects of a business, resulting in fundamental changes that increase efficiency, reduce costs, and improve the quality of products and services.
- The US has always been a leader in industrial innovation, and digital transformation is no exception. Four driving factors include cost reduction, improved quality, increased productivity, and gaining a competitive advantage.
- To successfully implement a digital transformation, companies must have a clear roadmap, identify and fill talent gaps, effectively manage and leverage data, and scale initiatives throughout the organization.
Industrial digital transformation is the integration of digital technology into all areas of a business, resulting in fundamental changes to how businesses operate and how they deliver value to customers. It's a complete overhaul of traditional business processes, making them more efficient and effective by leveraging technology and data.
Industry 4.0 has increased the focus on industrial digital transformation. A recent McKinsey survey showed that two-thirds of B2B customers prefer remote human assistance or digital self-service when making a purchase. What’s more, 80 percent of B2B leaders said that omnichannel sales were equally or more effective than traditional methods.
What's Driving Industrial Digital Transformation in the US?
The US has always been a leader in industrial innovation, and digital transformation is no exception. Several factors are driving the adoption of digital technologies in industrial settings, including:
- Cost Reduction: Industrial companies are always looking for ways to cut costs and increase efficiency. Digital technologies like automation, predictive maintenance, and real-time monitoring can help reduce costs and increase efficiency.
- Improved Quality: Digitalization improve the quality of products and services by allowing for real-time monitoring and analysis. This means issues can be addressed quickly, resulting in better-quality products and services.
- Increased Productivity: Automating processes, reducing downtime, and improving communication between departments, ultimately improves productivity.
- Competitive Advantage: Finally, digital technologies can provide a competitive advantage by allowing companies to operate more efficiently, respond to customer needs more quickly, and stay ahead of the competition.
How are Industries Embracing Digital Transformation in the US?
Over the past five years, I have seen a select group of forward-thinking companies really pull ahead in their efforts to implement digitization across their manufacturing networks.
These leading industries have truly embraced the transformative potential of data and analytics, AI, and machine learning (ML), and are now reaping the rewards of their investments.
For manufacturers who are still stuck in pilot purgatory, the future is somewhat bleak.
They're missing out on the opportunity to drive efficiencies, reduce costs, and improve the customer experience.
The industrials need to zero in on four building blocks to accelerate their digital transformation initiatives:
A Clear Road Map
To successfully pursue digital opportunities organizations must develop and align on a digital vision, assessing capabilities and estimating required resources and potential partnerships.
They must also evaluate the feasibility and potential value of proposed initiatives, considering how digital can transform core business processes or generate new opportunities.
When developing a strategic roadmap, industrial companies should address potential channel conflicts and decide which products will be sold through online platforms.
They should manage distributor relationships and identify appropriate partners based on factors such as customer size and geographic location.
Pricing issues must be considered, including pre-log-in prices and how they may vary in B2B versus B2C contexts.
Harnessing the Right Talent
To successfully implement a digital roadmap, industrial leaders must first identify and fill talent gaps in their organization. This requires evaluating immediate and long-term talent needs, determining if they can upskill current employees or if external hires are necessary, and incentivizing employees to achieve digital goals.
They may need to create new roles or structures to integrate digital team members and establish metrics for e-commerce success.
Digital-learning programs and modernized systems are also essential for increasing knowledge and capabilities across the organization, optimizing sales and marketing, and reducing human errors.
Learn to Read Between the Lines (aka Data)
A good data strategy lies at the heart of a successful digital transformation. Industrial companies gather an enormous amount of data related to asset performance and maintenance requirements, yet many do not have a clear plan to effectively organize and leverage that data.
Research by Forrester reveals that between 60% to 73% of data collected by organizations are not utilized for strategic purposes.
This underutilization of data prevents companies from taking advantage of opportunities to streamline their operations and expand their business.
Industrial companies face several challenges when mining data for insights, including inconsistent processes for managing data flows and legacy technology that lacks connectivity.
These challenges make it difficult for industrials to identify priority actions and synergies across business lines.
To overcome these challenges, companies should consider data-related issues in their road maps, including data architecture requirements, data governance, and prioritizing data solutions.
They can also improve data management by identifying specific use cases that will benefit from analytics and defining how to collect, store, present, and use customer information.
By uniting customer, product, sales, and transaction data, companies can gain meaningful insights that inform product design and feature enhancement.
Scaling Digital Initiatives
Although digital initiatives may generate favorable results, industrial companies should implement comprehensive programs throughout their organization to achieve meaningful impact.
The expansion process will demand the implementation of fresh enterprise-wide procedures.
As conventional channels, such as face-to-face interactions, remain crucial, industrials must also be able to manage any potential conflicts as their online visibility increases
In conclusion, industrial digital transformation is a complex and exciting topic that has the potential to revolutionize the way we do business.
By embracing digital technologies, industries can reduce costs, improve quality, increase productivity, and gain a competitive advantage. While there are challenges to overcome, the benefits are well worth it.
If you're interested in exploring the possibilities of industrial digital transformation for your business, contact UniAspect Digital today!
Our team of experts can help you identify areas for improvement, develop customized solutions, and guide you through the implementation process.