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. Merck & Company has a place in the Top 25 as it develops strategies to drive new product developments that benefit patients and 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 nineteenth in a series of blogs on the leaders in the digital transformation space.
Merck & Company Drives New Product Developments that Benefit Patients and Customers
Merck & Company’s three key business sectors - healthcare, life science, and performance materials - develop strategies to drive new product developments that benefit patients and customers. The company identifies innovation projects with the goal of moving beyond their current portfolio, from initial idea all the way to functioning business model. The company has been investing in a number of technologies, including IoT and artificial intelligence to improve the performance of its laboratories.
In addition to its process-oriented digital transformation elements, Merck is also working on stealth digital strategies, or open standards. These efforts include working with standards organizations for easier integration into the company’s manufacturing and laboratory activities. A strong proponent of standards, Merck believes that by deploying, engaging, and adopting more standards it will drive productivity into the organization.
Culturally, the company has an Innovation Committee (IC) that oversees the implementation of innovation projects both between and beyond its business sectors. It ensures that the decision-making process for selecting innovation projects is transparent and consistent.
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.