Digital transformation (DX) is more than just implementing new technology. Whether you're kickstarting your DX journey or looking to enhance existing operations, you must begin with a clear roadmap.
It’s becoming more important for companies to implement digital projects in today’s competitive landscape. Here are the main factors to consider when beginning digital projects.
92% of global manufacturers have started their DX journey. Discover key strategies for identifying the value of the change, streamlining collaboration and engaging your team in new processes.
There's no point investing in new technology without measuring its impact. Companies must establish a baseline of current operational performance from which new data can be compared. Here are five factors to consider before starting the DX process:
Tracking metrics on equipment performance, operating costs and maintenance expenditures are necessary to assess return on investment. This helps to analyse the success of new technology.
Having a range of value drivers aims to address top challenges. Metrics including product quality and energy consumption should be looked at in this step.
Evaluating use cases before implementing new technology is crucial. This ensures each team within the company has visibility over how new processes will be implemented across different areas.
To evaluate the effectiveness of new technology, new performance must be compared to previous activity. This helps to flag any shortcomings of expected value.
The final step is to determine the overall impact of new technology against financial metrics. This includes revenue, operating margins and asset efficiency.
Strong leadership can make or break digital transformation success. Leaders must take charge of the entire DX journey, beyond simply implementing new technology. In doing so, departmental barriers are broken down and cross-collaboration improved.
Companies that lack committed leadership increase their likelihood of DX failure, with a 61% chance of falling short of ROI goals. Effective leadership drives DX initiatives to success, preventing delays and maximising value.
Successful journeys to DX need to be embraced throughout the entire organisation. Each employee within every team must feel empowered to take ownership of new technology.
Leadership is crucial to this pillar, as teams require top-down guidance to achieve bottom-up innovation. Long-term company goals must be communicated across the organisation, so each team is aware of the operational benefits with their department.