Are you Organized for a Successful Digital Transformation Investment?

Creating a Digital Transformation Investment Plan is Essential

Manufacturers around the globe are beginning the journey of digital transformation investment.  Some are well into the transformation.  Unfortunately, many enterprises are not sufficiently equipped from an organizational point of view.  Creating a strategic IT-OT investment plan is essential, as indicated in a previous post on this blog.  However, many will look at this as an IT-OT technology-based digital transformation investment plan, rather than holistically as an enterprise transformational plan that involves organizations and people as well as the latest digital technology.   

Internal Organizations and Personnel must be Ready

Preparing to properly utilize the new digital technologies is more than an engineering department’s function.  Of course, engineers and technicians will have to learn how to use the tools to configure, deploy, and maintain the new technology, but others also need to be able to work with the new technology.  Ideally, the new technology will not just perform the same functions as the technology it replaced, but will improve the business and simplify the work processes involved.

At the plant and shop floor, the operators will be impacted by the transition.  It’s much better to get them onboard sooner than later.  If left out of the discussion, many may assume that their jobs will be replaced by the transition.  Better to include their opinions when developing your strategic investment plan.  Many day-to-day tasks and events could be greatly improved by the new digital technologies.  Who better to help the team understand what these things are than the plant personnel that are there 24/7. 

Of course, management must first recognize the need for appropriate training, not only on how to deploy the new technology, but also how to use it to improve the business.  Part of the training at the operations level could be a “proof of concept” project.  If the project enables the operating personnel to perform their work more easily, this will go a long way toward getting them onboard the transition.

Create a Digital Transformation Investment Plan sooner rather than Later

To be successful, corporate executives must also be involved at the early stages of digital transformation.  IT executives need to know what is happening at the operation level, and operations management need to understand how the business IT structure works and interacts with the operational technology (OT) in their plants.  Often, the simple step of having IT management visit an operating plant to see how OT impacts the ability to keep the plant operating and producing product can have a significant impact on the resulting strategic plan.

The devil is in the details, as the saying goes.  It is not unusual for operating plants in the same enterprise to operate their assets differently.  It is important to make sure you understand how each facility works before implementing change.  As part of the analysis, it’s important to understand both the timing of change, as well as the change itself to ensure that it doesn’t disrupt the plant operation.

ARC believes that, if not addressed appropriately, current organizational factors and the lack of key internal processes will hamper the ability of many industrial organizations to succeed in digital transformation, thus retarding agility and business performance and leaving them at a competitive disadvantage.

ARC can help you assess your organizational readiness to execute this plan.  This assistance could be as simple as helping organize the first strategic meetings, or a workshop to assess organizational readiness for digital transformation. This and other digital transformation services are designed to help you and your organization succeed in the transformation journey.