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The secret sauce for a successful digital transformation may not be what you think

May 24, 2024 | 1,067 views

Whatever size of the business, digital transformation (DX) has become one of the hottest and most urgent topics within the industry, and across the globe in general. In fact, 74% of organizations consider successful digital transformation a top priority, and according to a recent Statista report, global digital transformation spending is forecast to reach 3.9 trillion U.S. dollars by 2027.

Industrial companies are turning to technologies such as software-defined automation, cloud, Internet of Things (IoT), artificial intelligence (AI), and industrial robotics to better optimize plants, empower their workforce, increase agility, and bolster innovation efforts. Even though the smart factories and operations era is well and truly here, embarking on a digital transformation, regardless of size or timeline, can still seem overwhelming, particularly if an existing operation is already doing well. And while it’s an obvious move forward for most organizations, successful implementation can be challenging.

According to a 2021 study of 850 organizations by BCG, only 1 in 3 digital transformations were considered successful.

There is, however, plenty of evidence to show that the benefits of a successful digital transformation are in fact significant and well worth doing – when done well.

Businesses like IKEA, UPS, and Amazon have all carried out huge digital transformations since the pandemic and not only survived but truly thrived in today’s new normal of digital, producing remarkable business outcomes and edging out competitors despite the constant challenges of the unpredictable business landscape.

So, how do you ensure a digital transformation journey is a successful one?

In digital transformations deemed unsuccessful, a prevalence of poor planning and communication, a lack of change management, and the general failure to seek buy-in from teams impacted by the changes were some of the common issues observed.

It seems the secret sauce to success when it comes to a digital transformation is not just about what is being implemented, but importantly, how.

Careful assessment and planning, effective change management strategies, discussions with the existing workforce, and of course, an expert consulting team that can fully understand an operation and create customized solutions and roadmaps to meet specific business needs are key to ensuring a successful outcome.

Understanding this, Schneider Electric has developed comprehensive digital transformation services organized around five key consultancy practices:

Operational excellence: Simplify and digitize production processes and supply chains by empowering the workforce.

Asset management: Optimize and digitize asset maintenance to reduce downtime and maximize usage.

Sustainability and energy efficiency: Reduce CO₂ emissions through a digitized and decarbonized value chain.

Cybersecurity: Address IT/OT cybersecurity as a core enabler of digitalization.

Change management: Enable a governance and transformation office for technology deployment with a measurable impact.

Our services bring a unique combination of experience, industry knowledge, and deployment capabilities, and by addressing these areas, we ensure that our customers’ digital transformation journeys are holistic, impactful, and create synergies that maximize value.

To facilitate a seamless transformation, our end-to-end service model combines five phases: discover, strategize, design, deliver, and sustain. This structured approach ensures that customers receive guidance and support throughout their entire transformation process.

Our DX offering is based on a proven and scalable methodology for impactful industrial digitalization which we have deployed across all 200 of our own smart factories and distribution centers, using Schneider Electric and AVEVA products and solutions.

Of those, three sites have been recognized by the World Economic Forum, achieving their coveted Sustainability Lighthouse status for exemplifying successful and sustainable digital transformations. Outstanding results have been seen, with the latest of our Sustainability Lighthouses in Hyderabad, India, achieving a 59% reduction in energy consumption, 61% decrease in CO2 emissions, 57% cut in water consumption, and a 64% reduction in normalized waste generation.

With the rapid rate of technological advances in digital tools like AI and machine learning, it appears that the DX journey is one without a clear end date for those companies wanting to harness the powerful benefits of the data-driven era. For the rest, there now seems to be a very real risk of being left in the dust.