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Wednesday, October 16, 2019

Digital Transformation: Top Down Or Bottom Up? | Innovation - Forbes

Peter Zornio, CTO for Emerson, a Fortune 200 global technology and engineering company headquartered in St. Louis, Mo. explains, While the purpose of DX is simple, there are vexing questions that can freeze an organization. Where do I start? How do I know if I’m succeeding? Who should be responsible? 

Photo: Dominic Smith via Flickr
Digital transformation (DX for short) is a very hot topic right now. We can broadly define it as the practice of applying new digital technologies to deliver business improvements, such as transforming or automating work processes with technology like robots and mobile-connected devices; using analytics to drive better decisions; or using artificial intelligence to replace human interactions. DX can benefit virtually any business process — from hiring practices to customer and market research to planning and scheduling decisions.

In industrial manufacturing, the biggest case I see for DX is improving the core business operation: the actual manufacturing process. Many manufacturers have DX programs focused on plant production metrics such as safety, product profitability, quality, plant reliability and sustainability. Given that the revenue for these companies comes from what they produce, it makes perfect sense that this would be their focus...

Facility-level folks can move fast. They can quantify the return on investment of a DX project easily because they know the business impact and how to tie in the facility-specific digital systems. They also have the domain expertise to apply to manufacturing problems — they know in detail how their equipment and processes work — something data scientists and DX technology gurus don’t necessarily have. As you introduce new digital technologies, it’s important to ensure that facility operators are willing to change and adopt the new digital tools or work practices the DX project has put in place. You can have all the greatest technologies at your fingertips, but nothing will happen unless the facility folks execute the “new digital way.”
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Source: Forbes