The second annual ARC Industrial Digital Transformation Top 25 report continues to highlight companies that are succeeding at integrating digital technology into all areas of business, fundamentally changing the way they operate and deliver value to customers. This year’s Top 25 companies include many who made the list last year, together with some new companies. Positions were reshuffled due to the changing business dynamics and weighting components of the analysis: financial indicators, transformation indicators, and collective community intelligence. Caterpillar embraces digital transformation for efficiency and productivity and is ranked #7 in this year’s report.
The last few years have been particularly challenging ones for industrial growth. We’ve been cornered from all sides: pandemics, political unrest, climate change, and macroeconomic uncertainty. The world as we knew it a few years ago has capsized and the boundaries of the new normal are constantly shifting and realigning. Digital transformation is now an imperative and digital transformation leaders can be found across many different industries, sharing common traits and visions, helping organizations overcome complex challenges to innovate and stay agile. Several key trends were identified in this report: importance of sustainability, actively seeking to scale solutions in multiple dimensions, benefits of focus and prioritization, empowering the operational front line, recognition that culture change is required, and active outreach to others.
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 seventh in a series of blogs in the digital transformation space.
Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company has embraced digital transformation using technologies such as IoT, data analytics, and AI to improve the efficiency and productivity of its operations. In the area of transportation, Caterpillar has implemented various digital initiatives, such as the use of telematics systems to track and monitor its fleet of vehicles, as well as the development of autonomous vehicles for use in its operations. In addition, Caterpillar has invested in the development of digital tools and platforms to improve the maintenance and repair of its transportation equipment, including the use of predictive analytics and machine learning to identify potential issues before they occur.
The company looks at its digital transformation as a journey comprised of five key steps: Drive digital transformation from the top; define digital vision; develop a digital strategy; create a digital roadmap; and build a digital organization structure.
Digital transformation is a continuous journey and ARC will continue its research in all areas related to digital transformation. We want to learn more about what is working – and what isn’t – as companies pursue their unique digital transformation activities. A lot is happening both on the supplier and user sides, and we would like to know about the pitfalls and success stories. The ARC Industrial Digital Transformation Top 25 report will be published on an annual basis. With this being our second year, your feedback is very important to us as we will continue to investigate new approaches and measures to adjust our methodology, identify successful digital transformation initiatives, and help the industry as a whole digitally transform. We are on this journey together!