For nearly a decade now we’ve been inundated with talk of digital transformation, Industry 4.0, and the Industrial Internet of Things. So sometimes it really pays dividends to be reminded that while these monikers represent the tools and technologies that can help effect change, it’s really the business—your processes and your people—that are to be transformed.
“The true power is not just in technology but in the collective force of people driving change,” stressed Prabhu Ramachandran, senior manager, digital transformation, for chemicals manufacturer Kaneka North America, in a YNOW2024 presentation that touched on the broad range of technology tools available—but not before grounding his audience in the upfront priorities necessary for success.
What transformation means in 2024
His first order of business was to remind attendees what business transformation consists of—aided and abetted, of course, through the application of digital technologies. Ultimately, it’s fundamental changes throughout the business in how that business operates, featuring digital technology that most importantly delivers value to end users.
“It is also a huge cultural change that requires organizations to challenge existing practices, experiment often and get comfortable with failure,” Ramachandran continued. “Organizations will find the need to walk away from old business processes and embrace new ways of doing things. They will also find that new data-driven insights can enable workers to take proactive actions for safer, higher performing process operations,” he added.
Stick to the basics to get started
Rather than start with what sorts of digital tools and technologies are available and look for applications within your operations, it works far better to first describe the changes one would like to see in one’s operations. “This is very important!” Ramachandran stressed. “Transformation is about driving action—and every change effort should start with defining the expected outcome.”
A plan for any organization’s transformation strategy should start with how it will create value for the business. “Define outcomes and specify the actions you expect the effort to drive forward,” Ramachandran said. “If data and insights are to create any value, they must influence the behavior of people and systems,” he said. “Have clarity and alignment around the changes you foresee with the management team and all stakeholders.”
Always start with desired with desired outcomes that will either solve pain points, drive value or deliver return on investment. Think through what actions will deliver the desired outcomes, and what insights will drive those actions.
Another strategic priority is to find use cases that can be satisfied narrowly to start, then scaled across the organization. Only then should you begin evaluating the technical drivers and digital tools available to achieve your planned goals.
Flywheel your way to continuous improvement
Once your transformation efforts are underway and you’ve registered some wins, it’s important to continue to communicate and collaborate among stakeholders to improve, change, adapt and sustain those initial successes. “Understand new business requirements, implement several projects to resolve business pain points. Use flywheel methodology to continuously improve and change.
“Again, think how to create value for the end user,” Ramachandran said. “People are ready to change and adapt when they see value.”
