How the Digital Transformation Industry Works

1. How the Digital Transformation Industry Works =========================================== Digital transformation provides industry with unparalleled opportunities for value creation. It used to take Fortune 500 companies an average of 20 years to reach a billion-dollar valuation; today’s digital startups are getting there in four.” The World Economic Forum’s Digital Transformation of Industries (DTI) Initiative Most business leaders have a vague grasp of digital transformation. How could they not– it’s been the buzzword of every keynote for the last five years. Still, few fully understand how the digital transformation industry impacts their bottom line, the economy, and society. Hopefully, by the end of this article, you will. What is Digital Transformation? Digital transformation means integrating digital technology into all areas of business. More than merely digitizing existing processes, digital transformation means reshaping how companies operate and create value for customers. Successful digital transformation requires lean thinking and a culture of continuous improvement. Cloud-based soutions have lower switching barriers than legacy on-prem solutions, enabling businesses to adopt a test and learn approach, making data-driven decisions and punching way above their weight. Digital Transformation in Manufacturing Merging operation technology with information technology–that’s digital transformation in manufacturing. The aim: to build an online-physical production system that delivers greater efficiency, innovation, quality, and value for customers. We’re witnessing the rise of so-called “smart factories”–fully connected systems, linked by continuous data flows, that predict and adapt instantly to new demands and conditions as they arise. Digital transformation examples in manufacturing include: 1.Condition Monitoring and IIoT (Industrial Internet of Things): Networked sensors placed inside production equipment, instruments, and other devices, provide real-time feedback that predicts product quality issues, improves machine lifespan, and reduces downtime in a process known as condition monitoring. It’s one of the most cost-saving benefits of digital transformation in manufacturing. 2.Big Data and Analytics: In addition to condition monitoring, big data is used by manufacturers to make improvements across the board, from product quality to energy management, safety, and R&D. It can also be used to improve customer journeys by personalizing experiences and shortening sales cycles. 3.Cloud Computing:Without cloud computing, there’s no big data. The amount of data needed to create intelligent factory networks won’t fit on a server in the office cupboard. More than 59 zettabytes (ZB) of data (a zettabyte being 1021 or one sextillion bytes) was created, captured, copied, and consumed in 2020. The sky’s the limit on what you can do with your share when paired with intelligent algorithms. 4.Additive Manufacturing (3D Printing): The ability to print hardwearing, intricate 3D objects using little more than a CAD model looks set to change the face of manufacturing. It takes power out of the massive factories' hands and puts

2. it into smaller localized facilities that can offer short production runs to a broad customer base. 5.Industrial AR (Augmented Reality): The ability to overlay digital content onto the real-world in a composite view without restricting movement has numerous manufacturing applications, including assembly guidance, maintenance and repair; quality control; and training. Unlike AR, VR shuts out the world, placing users inside a simulated reality, which, although useful for training, lacks AR's broad range of applications. How to Win at Digital Transformation With Software While additive manufacturing, industrial AR, and condition monitoring might lie outside the scope of small and medium-sized businesses, adopting the right software might be all that’s required to transform your company. Many of the best solutions are relatively inexpensive with an incredibly short time to value. Fortune favors the brave when it comes to digital transformation. The compounding impact of data collection and analysis can provide an insurmountable first-mover advantage. Those that use data-driven insights to make ambitious bets will secure future growth and prosperity. Those that take a wait-and-see approach will be left behind. Don’t hold off on exploring the wealth of SaaS solutions on the market. 3 Fundamental Aims of Digital Transformation Software: To “win” at digital transformation, businesses have to use digital technologies to provide: 1.Extraordinary customer experiences 2.Personalization at scale 3.On-demand access The specific mix of technologies required to achieve the above aims will vary significantly according to each company’s budget and strategy. But as users of solutions like Splunk (data), Slack (internal comms,) Zendesk (customer service,) Hubspot (marketing,) Shopify Plus (B2B eCommerce,) and Salesforce (CRM) know well, there are tons of SaaS solutions on the market that can provide digital transformation progress in weeks with a only a modest investment, scalable investment. How Just One Solution Achieves All 3 Fundamental Aims: Manufacturers selling complex products can deliver on all three of the above aims by investing in a visual CPQ (configure, price, quote) like KBMax. With KBMax, non-technical users can quickly and easily build-out custom products from scratch, free from mistakes and engineering input. It does so as follows: 1.A 3D product configurator with virtual and augmented reality capabilities provides a fully immersive customer experience. 2.Each buyer receives a personalized product catalog, prices, and intelligent recommendations based on in-depth customer profiles and machine learning. 3.Embedding a visual product configurator into a B2B eCommerce website enables buyers to get to know your products in detail before configuring and purchasing independently. It’s not all sunshine and roses Digital transformation is revolutionizing entire industries, providing businesses with matchless opportunities for generating a profit and creating value for customers. But digital transformation is not without significant risks–both economic and social.

3. These are risks that businesses should be held partly responsible for assessing and addressing. Digital transformation promises global mobility such as we’ve never seen before thanks to fully digital workforces and workplaces. It’s our responsibility to ensure that digital transformation serves more than the chosen few. 3 Major Risks Posed by the Digital Transformation Industry Employment: The terms “automation” and “digital transformation” are often used interchangeably, but they’re not the same. Digital transformation is about using technology to create and deliver new value to customers. Automation is a means to an end. Nevertheless, there’s no avoiding the fact that digital transformation will lead to the loss of some jobs, albeit at the more replicable, low-paying end of the spectrum. Larger employers should take steps to reskill and upskill their employees, making them digital savvy and ready to adopt the numerous novel career paths that the digital transformation industry produces. Energy Since the dawn of the Industrial Revolution, economic growth has been correlated with carbon emissions and depletion of natural resources. The result–we’re on the verge of a climate catastrophe. In China, we've watched this process in fast-forward. In the 1960s, the country emitted a fraction of the fossil-fuel-generated carbon produced by the United States, but by 2006, it had become the world's biggest emitter. Mercifully, China's green revolution seems to be tempering its fossil fuel consumption. Still, as digital transformation spreads opportunities and prosperity worldwide, it's up to each company to ensure that digital investments are sustainable. Intel, SAP, and Apple are among a handful of tech companies that use 100% renewable energy in their operations. Security This is a big one. Concerns over data privacy and security have ballooned in recent years. Events such as the Cambridge Analytica Scandal have infected the public consciousness and, rightly or wrongly, stirred up a lot of mistrust and resentment over the exchange of data with third-parties–a practice that's intrinsic to digital transformation success. In the wake of Covid, FOMO has left companies scrambling to keep up with the Joneses, leading to the adoption of the latest and greatest in digital solutions without adjusting their privacy policies to match. Businesses need to be ahead of any future security fallout. This means over-investing in safeguards and communicating their credentials in layman's terms to prospective customers. Governments and regulators need to get involved too. Their mission should be to implement regulations and policies that protect privacy without stifling innovation: current privacy laws and industry self-regulation lack transparency and coherence. A practical regulatory framework calls for close collaboration with the private sector and compromises on both sides.