Johnson & Johnson’s Artificial Intelligence Initiatives Drive Transformation

Author photo: Sharada Prahladrao
BySharada Prahladrao
Industry Trends

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. ARC developed a rigorous process based on financial performance, a community intelligence based ranking system, and software and sustainability data. Leading companies take a strategic approach, integrating digital technology throughout their value chains. Johnson & Johnson, with its focus on artificial intelligence initiatives, ranks #4 in this report.

Digital transformation is a whole new way of transacting businesses, supporting customers, leveraging the available services, and adapting to a volatile and fiercely competitive marketplace. The digital transformation journey has its share of challenges for both suppliers and end users. Technology is only part of the equation. People, capability, willingness, process simplification, and adopting a multidisciplinary approach are also required. Transforming to an organization where constant change and adjustment define normal operations is still very conceptual for some industrial companies. Each company is at a different stage of digital maturity, so there is no “one-size-fits-all” approach. Digital transformation leaders can be found across many different industries, sharing common traits and visions, helping them overcome complex challenges to innovate and stay agile. The companies mentioned in this report not only have their transformation initiatives well underway, but they also have their eye to the future tackling the next set of challenges on their journey.

This is the fourth in a series of blogs in the digital transformation space.

Johnson & Johnson

Johnson & Johnson's digital strategy includes cross-functional partnerships and a new culture around its digital tools, company-wide. Emerging as a leader in 3D printing, IoT and automated order fulfillment, the Artificial Intelligence Initiativescompany is using artificial intelligence as part of their product development. IoT is being used to track and trace products throughout the entire supply chain, from manufacturing to distributors and to medical facilities such as hospitals. Getting access to real-time information has helped manage inventories, anticipate product demands, and drive high-value manufacturing decisions. In addition, knowing where a product is and whether it is being maintained a proper way (such as temperature control for a vaccine) provides a higher level of quality assurance.

J&J is heavily invested in data science starting with its Data Science Council. The goal of the council is to use data to validate the decision-making process to make a positive impact. The council is made up of members from supply chain, R&D, finance, and HR. Artificial intelligence initiatives are enabling the company to continuously create breakthrough drugs and surgical solutions.

Going Forward

Digital transformation has emerged as the fulcrum of business operations. This year’s Top 25 companies include many who made the list last year, together with some new companies and reshuffling of positions. ARC will continue its research in all areas related to digital transformation and analyze the outcomes. The ARC Industrial Digital Transformation Top 25 report will be published annually. 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. Let’s travel together!


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