First Steps Towards a Digital Future: AKFA Group's Experience

Two years ago, I had the honor and responsibility to stand at the forefront of the digitalisation at AKFA Group, one of the leading manufacturing holdings in Uzbekistan. At that time, the company was just beginning to realize the need for profound changes to remain competitive in the era of Industry 4.0.

Being appointed as the Director of Digital Transformaiton, I was given a unique opportunity to shape the vision of AKFA Group's digital future and develop a step-by-step plan for its implementation. It was a challenging yet incredibly exciting task, as we were not only to introduce new technologies but to change the very DNA of the company, its culture, mindset, and ways of working.

The first step on this path was an honest and comprehensive diagnosis of the current state. We conducted an analysis of the As is business processes across the entire company, collected and analyzed data on processes, systems, and staff competencies. It became evident that we had a long way to go, from modernizing the IT infrastructure to transforming the operating model and corporate culture.

Shaping the Vision: How Did We Want to See AKFA Group's Digital Future?

Based on the results of the As is analysis and world best practices, we began to form a target vision of the To be digital architecture of AKFA Group. At the core of this vision was the concept of an "Intelligent Enterprise," where data and advanced technologies become the basis for decision-making, process optimization, and the creation of innovative products and services.

We envisioned AKFA Group as a flexible, adaptive organization capable of quickly responding to market changes and customer needs. Smart, fully automated production lines managed by artificial intelligence. Digital twins of products and processes, allowing for modeling and optimization of operations in a virtual environment. Personalized solutions for customers, created based on big data analysis. All these were not just dreams but quite achievable targets of our digitalisation.

We justified the To be target architecture for each department, showing how it would eliminate the weaknesses of current processes and implement world best practices.

But we understood that technology was only part of the picture. No less important were changes in the operating model, ways of working, and corporate culture. In our IT department, we implemented fundamental changes, dividing employees into focus groups. Previously, "everyone did everything," but now each person had their own specialization and area of responsibility.

We also successfully implemented a hybrid working model, combining remote and office formats. This allowed us to increase the flexibility and efficiency of the team while maintaining close interaction and team spirit.

Setting Priorities: Where Did We Start the Digitalisation?

Having a general vision of the future, we began to identify specific initiatives and projects that were to bring us closer to its realization. This was not an easy task, given the scale and complexity of the forthcoming changes. It was necessary to carefully prioritize, find the right balance between quick wins and long-term strategic bets.

As our top priorities, we identified the following areas:

1. Modernization of the IT infrastructure: transition to cloud technologies, building a unified data platform, introduction of modern production automation systems and enterprise resource management.
2. Pilot projects for the introduction of advanced technologies: the Internet of Things for collecting data from production lines, machine learning for process optimization, blockchain for ensuring transparency and security of supply chains.
3. Enhancing the digital competencies of employees: launching training and retraining programs for staff, creating a center for digital competencies, attracting external experts and talents.
4. Developing partnerships in the field of innovation: cooperation with leading technology companies, universities, and startups for the exchange of experience, joint development, and implementation of innovative solutions.
5. Transformation of corporate culture: promoting the values of innovation, customer-centricity, agility, encouraging initiative, and readiness for change at all levels of the organization.

For each of these areas, we formed detailed roadmaps with clear goals, KPIs, resources, and areas of responsibility. We understood that the path would not be simple and fast, that mistakes, adjustments, and iterations were inevitable. But we were ready to learn, adapt, and work hard to achieve our vision.

Engaging and Motivating: How Did We Ensure the Support and Participation of All Employees?

We firmly believed that true digitalisation is impossible without the active participation and support of all AKFA Group employees. It is people, not technology, who are the main drivers and beneficiaries of the upcoming changes.

Therefore, we paid great attention to communication, engagement, and motivation of staff. Regular meetings, seminars, and informational mailings helped convey the vision of change and its benefits for each employee. We spoke honestly not only about the opportunities but also about the challenges, uncertainties, and temporary difficulties that would inevitably arise on the path of transformation.

We also launched programs for change ambassadors - employees from different divisions and levels who were to become the conductors of the new culture, supporting and motivating colleagues on the ground. A system of non-material and material incentives was planned to recognize each person's contribution to the success of the common cause.

We understood that it was unrealistic to ensure 100% engagement and support from the very start. There were skeptics and open opponents of change. But we were set up for open dialogue, ready to listen and take into account different opinions, to adapt our plans along the way. We believed that over time, more and more people would see the real results of the changes and join our movement.

Conclusion: Looking Back, Looking Forward

Now, two years after the start of our journey, I can proudly say that we have made the first, but very important, steps towards the digital future of AKFA Group. We were striving for these changes because our goal was to prepare the company for an IPO and to become a leader in the era of Industry 4.0.

Of course, not everything went smoothly. There were mistakes, resistance, and moments of despair. But the main thing is that we did not turn off the chosen path, we continued to learn, adapt, and believe in our vision.

We also implemented a number of important initiatives within the IT department. We divided employees into Run and Change groups to ensure a balance between supporting current operations and implementing innovations. We introduced the Digital Operations Maturity Assessment (DOMA), a comprehensive maturity assessment developed by PwC and the FTE metric for assessing the efficiency of resource use. We started the integration of all corporate systems through a single data bus. But I will tell more about this in the next post if this topic generates interest among the audience.

And most importantly, we began to change the mindset, culture, and approaches to work. Of course, there is still a long way to go. Digitalisation is a marathon, not a sprint. Much remains to be done in terms of modernizing infrastructure, scaling pilot projects, developing competencies, changing processes, and business models. But the main thing is that we have a clear vision, a reliable strategy, and the most important resource - our people who believe in the need for change and are ready to change themselves.

I am sure that one day, looking back, we will proudly remember these first, perhaps uncertain, but such important steps. Steps from which the path of AKFA Group began towards acquiring a new image of a modern, innovative, data-driven organization. And I am proud that I had the opportunity to stand at the origins of this path.