The What: Navigating the Tangible Aspects of Digitalization

Welcome back to our Golden Circle series on digitalization, where we've already explored the Why and How of this transformative journey. If you are joining us mid series, we recommend you get caught up here first (link to first article).

In this last article, we dive into the concrete aspects of digitalization – the tools that can boost your productivity, tips on organizational change management, and what to consider when searching for the right implementation partner.

Let’s get to it.

Tools and Tangible Results

To truly understand the bottom-line value of digitalization, let's look at some data-based conclusions on use cases in the manufacturing and packaging industry, as well as some tangible results and pitfalls.

·?????? Big Data: Yes, collecting data on everything from your manufacturing capacity to customer preferences creates great business opportunities. But beware, it is not so simple. McKinsey’s guide for competing in the digital age, Rewired, reveals systematic pitfalls where companies invest large sums on huge data lakes that go largely unused. Data with no purpose is useless, so it’s important to have a process for turning it into a competitive business advantage.

?·?????? AI and Machine Learning: The key to making something of all the data you collect. It can help you keep up with the supply of your raw materials and demand from the customer, ensuring your products are available precisely when they are needed. As a caveat, it’s important to understand that training these systems to be reliable can take a long time. In the meantime, accept the growing pains. The wait will be worth it for your long-term bottom line.

?·?????? Digital Twins: A digital twin simulates physical processes. In the cases of fluctuating demand or personnel shortages, a digitalized production line assisted by digital twinning can help you quickly adapt the production flow, so you can dial in maximum efficiency at the touch of a button.

?·?????? Digital fulfillment: Every company knows that their customers always consider cost, time to deliver, and product characteristics. But what if you also had insight into what is most important to that purchaser, every time they look at your stock? This process brings the customer into the feedback loop, and in some manufacturing sectors it has already been proven to reduce unused stock and capitalize on surging demand.

Community and Change Management

As we’ve discussed, digitalization isn't just about adopting the tools above; it's about transforming the way your organization operates to effectively employ them. To navigate this transition, building a digitalization community and securing buy-in from every affected department within your organization is vital. When your entire team comprehends the advantages of digitalization, they become allies rather than obstacles.

Change management plays a pivotal role here. Communicate the why and how of digitalization clearly, involve employees in the decision-making process, and provide training and support. At the same time, have your IT and implementation teams tag along on the manufacturing operation. This builds trust and understanding, breaking down silos. By turning operations managers and key employees in these teams into change agents, you can let change manifest itself from within.

Consider forming workgroups with representatives from various functions. Collaboration across departments ensures a more holistic approach to digitalization and more creative, innovative solutions.

Selecting the Right Approach

Lastly, let’s tackle the most important and daunting step: Choosing the right partners to accompany and guide you in your digitalization journey. Alignment with your vision is key. A good partner should be able to grasp your long-term goals and help you achieve them, rather than offering one-size-fits-all solutions. They blend in seamlessly with your team, sharing your commitment to success. This means that there is accountability from both sides of the partnership.

Experienced partners bring valuable expertise and market insights to the table. They can help you navigate the ever-evolving digital landscape and tailor solutions to your specific needs. Collaborating with experts ensures that your digitalization strategy remains relevant and adaptive.

Personality and experience play a role as well. You must assess a vendor's commitment to your long-term success. Are they there for a quick profit, or are they genuinely invested in your digital transformation? Also consider their track record – have they successfully helped other businesses similar to yours navigate the digital landscape? Do they understand your industry-specific challenges and opportunities?

Putting your toolkit to work

In this series, we've traveled through the "Why" of digitalization, understanding the importance of aligning technology with your long-term vision. We've explored the "How," crafting a roadmap, fostering cross-functional collaboration, and building digital fluency. In this article, we delved into the "What," examining tools, tangible outcomes, vendor selection, and change management.

Digitalization isn't a mere trend; it's a strategic imperative to stay competitive. It's a journey that requires careful planning, the right partners, and a commitment to change. Now, it's time for you to take action.

Whether you're just getting your feet wet or are looking to adjust course on your digitalization journey, remember that continuous learning and adaptation are key.

Don't just follow the digitalization wave – lead it.

#Digitalization #BusinessTransformation #BigData #DigitalTwin #GoldenCircleTheory #SparringWithChiel

Link to Article 1: The Why: Figuring out your purpose for investing in digitalization

Link to Article 2: Reframing digitalization through the lens of Golden Circle Theory

Link to Article 3: The How: Getting practical about your digitalization journey