3M Features in ARC’s Digital Transformation Top 25 Report

ARC has been tracking the digital transformation initiatives of companies by conducting surveys and analyses for the last 5-7 years. All this information has been collated, and the Top 25 global industrial digital transformation leaders, across multiple industries and geographies, have been identified. ARC’s Industrial Digital Transformation Top 25 report highlights companies that are successfully integrating digital technology into all areas of business, fundamentally changing the way they operate and deliver value to their customers.

The tidal wave of digital transformation has restructured global industrial operations. In a pandemic-affected world, digital transformation has moved beyond the “nice to have” boardroom jargon to a “must-have” imperative. Organizations were forced to adapt with agility and flexibility to this new normal and accelerate industrial innovation. Established practices and business models were disrupted and destroyed, but destruction led to reconstruction and new ways to resolve challenges. 

Defining “digital transformation” is complex as it encompasses the gamut from technologies, processes, and collaboration across teams and geographies. ARC Advisory Group defines digital transformation as: “The integration of digital technology into all areas of business, fundamentally changing the way companies operate and deliver value to customers. The organization is typically charged to innovate and improve across multiple dimensions such as digital/disruptive technologies, culture and leadership, operational agility, workforce engagement, customer experience, environmental, social and governance, and competitive performance.”

This is the fifth in a series of blogs on the leaders in the digital transformation space.

3M

3M has four business groups, 22 operating divisions, 51 technology platforms and tens of thousands of products sold in 200 countries. As part of internal operations, they have connected 240 plants, distribution centers and enabled capability to monitor the flow of products. The company used to operate autonomously in the local country subsidiary structure, but now their digital transformation efforts are driven more to alignment and standardization.

3M uses technology to monitor operations data to streamline, optimize, improve, and accelerate their entire workflow. The company uses data to change the customer experience – becoming more interconnected and able to do business in real time with customers. 3M is using an artificial intelligence platform to develop and deploy AI-based applications with predictive healthcare and supply chain analytics to better serve customers with more agility and efficiency. Data analytics, culture, and prioritization are the three enablers driving a robust transformation effort within 3M.

Going Forward

The prevailing philosophy behind digital transformation has been that this transformation naturally translates to success. ARC will continue its research in all areas related to digital transformation to learn more about what is working – and what isn’t – as companies pursue their unique digital transformation activities. The Industrial Digital Transformation Top 25 report will be published annually. With this being the first issue, your feedback is very important to investigate new approaches and measures to adjust our methodology, identify successful digital transformation initiatives, and help the industry as a whole digitally transform. To download the final report, please click here.