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Industrial Digital Transformation
Industrial Digital Transformation

Industrial Digital Transformation: Accelerate digital transformation with business optimization, AI, and Industry 4.0

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Industrial Digital Transformation

Chapter 1: Introducing Digital Transformation

Industrial digital transformation is the journey that organizations undertake where they integrate business model change, process improvement, and cultural shift, often leveraging a number of digital and emerging technologies. We will refer to industrial digital transformation often in the context of companies from the commercial or public sector that deal with physical assets, factories, and field operations, generally dealing with business-to-business scenarios, and the transformation involves improvements in these products, equipment, and operations. On the other hand, when the transformation involves software or business enhancements for asset-light or pure tertiary services companies, including business-to-consumer scenarios, then we will refer to it as digital transformation. To include both, we will refer to it simply as transformation. Likewise, our use of the term industrial includes both the commercial and public sectors, in the...

Exploring industrial digital transformation

Industrial digital transformation may often bring a radical rethinking to the use of technology, culture, people, and processes in an enterprise. This can lead to a fundamental change in business performance and outcomes, as well as how the customers perceive the company. Figure 1.1 provides an easy way to look at the transformation. It shows that culture and technology changes go hand in hand with the business process and business model changes. Several books have been written on the broad topic of digital transformation, and some of these will be referenced here. George Westerman and Didier Bonnet wrote a book en titled Leading Digital: Turning Technology into Business Transformation, George Westerman, Didier Bonnet, Andrew McAfee, Harvard Business Review Press, published in 2014:

Figure 1.1 – Digital transformation

The technologies used to help drive an industrial digital transformation may include one or...

Identifying the business drivers for industrial digital transformation

The power of transformation applies to some or every aspect of an organization. It can generate business value, agility, and resilience. The importance of resilience is shown at the time of local or global crises. This book will focus on driving transformation in industries – in both commercial and public sectors – to accelerate business outcomes, by deploying the digital technologies in combination with transformative planning and shifts in the culture.

The different forces that help to shape the industrial digital transformation in an organization are shown in Figure 1.2. The industrial digital transformation often entails a series of big bets or bold steps, to achieve large-scale benefits or competitive advantage. This differentiates transformation from regular generational changes, which are often linear or a series of small and gradual steps. Humans climbed mountains through the historic ages...

The evolution of industrial transformation

Changes in the global landscape seen during the healthcare and economic crisis in the first half of 2020 due to COVID-19 (https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/Immunization/ncov2019.aspx) have highlighted the need to develop a deeper understanding and preparedness for transformation, not only for the government at different levels (federal, state, and local), but the commercial sector as well, across the board, be it a family-run business or a global enterprise. This book will cover some of the major crises the world has experienced in the last several decades and the lessons learned from each of them. This would allow us to see concrete examples where the industry has successfully identified an opportunity for transformation.

Let's look at some examples of past crises and the lessons learned in the following table:

Progressive companies take the approach that no crisis should...

The impact of industrial digital transformation on business

The internet, web applications, and the easy availability and low cost of massive amounts of computing power and storage have revolutionized the way that businesses operate and, in the process, have reset the competitive landscape. In some cases, industrial digital transformation is a competitive advantage, but in other cases, it is simply the minimum effort required to stay in business. For many organizations, digital transformation is a do-or-die proposition.

Industrial digital transformation can serve one or more of three purposes for business:

  • Improve internal processes, thereby reducing costs and increasing competitiveness.
  • Streamline the delivery of existing solutions within an existing business model to reduce costs or improve customer service.
  • Transform a business completely, resulting in new products and business models.

A true digital transformation is a disruptive innovation that fundamentally...

Quantifying business outcomes and shareholder value

The decision process in large public or private organizations is often driven by strategic goals or value of investments to its stakeholders while making the organization stronger and sustainable. As a result, any new initiatives beyond the incremental efforts to preserve the business goes through a business case of Return on Investment (ROI) analysis. As a result, it is important to understand the key benefits of the industrial digital transformation to the business. The desired outcomes of digital transformations are often as follows:

  • New digital revenues
  • Productivity gains
  • Corporate social responsibility

In Chapter 10, Measuring the Value of Transformation, we will look in-depth into how to quantify these outcomes. Let's understand these outcomes qualitatively here.

New digital revenues

In this scenario, transformation is used to drive new lines of business or new digital revenues for an existing...

The phases of the digital transformation journey

Let's look at an example of a phased approach to digital transformation using the example of the automotive industry. In recent decades, we have experienced phases such as going from gas to electric cars to the use of driver-assisted technologies on its way to the different levels of autonomous driving. This journey continues and next, we may witness unmanned taxis and possibly flying taxis in the future.

In this example of autonomous cars, it is important to think through the breadth of the impact. As autonomous cars become mainstream, it has an impact on how roads, traffic signs, and even cities and airports are designed. Likewise, it may have a profound economic impact not only on the automotive industry, but also on the utility providers, due to electric vehicles, and finally, on employment via the automobile and the trucking industry.

Finally, auto insurance and the department of motor vehicles would have to adapt to...

Summary

In this chapter, we learned about the importance of the cultural, technological, and business drivers for industrial digital transformation. We learned about the history of such large-scale industrial transformations to understand how to identify and select transformation initiatives going forward. Part one of this book will go further into the details of these topics and part two will show detailed examples of industrial digital transformations at work.

In the next chapter, we will explore the capabilities necessary to enable successful digital transformations. A digital transformation simply cannot be accomplished with existing staff with existing skills in the existing culture. We will discuss how to create the right culture for transformation as well as the skills required. We will discuss the rise of the chief digital officer and their role in implementing a digital transformation.

Questions

Here are some questions to test your understanding of the chapter:

  1. What are the main drivers of industrial digital transformation?
  2. Are there major differences in the commercial sector compared to the public sector for transformation objectives?
  3. What is the role of digital technology in driving transformation?
  4. What are the benefits of industrial digital transformation to an organization?
  5. Why is it important to understand the history of the industrial revolutions in order to understand industrial digital transformation?
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Key benefits

  • Identify potential industry disruptors from various business domains and emerging technologies
  • Leverage existing resources to identify new avenues for generating digital revenue
  • Boost digital transformation with cloud computing, big data, artificial intelligence (AI), and the Internet of Things (IoT)

Description

Digital transformation requires the ability to identify opportunities across industries and apply the right technologies and tools to achieve results. This book is divided into two parts with the first covering what digital transformation is and why it is important. The second part focuses on how digital transformation works. After an introduction to digital transformation, you will explore the transformation journey in logical steps and understand how to build business cases and create productivity benefit statements. Next, you’ll delve into advanced topics relating to overcoming various challenges. Later, the book will take you through case studies in both private and public sector organizations. You’ll explore private sector organizations such as industrial and hi-tech manufacturing in detail and get to grips with public sector organizations by learning how transformation can be achieved on a global scale and how the resident experience can be improved. In addition to this, you will understand the role of artificial intelligence, machine learning and deep learning in digital transformation. Finally, you’ll discover how to create a playbook that can ensure success in digital transformation. By the end of this book, you’ll be well-versed with industrial digital transformation and be able to apply your skills in the real world.

Who is this book for?

This book is for IT leaders, digital strategy leaders, line-of-business leaders, solution architects, and IT business partners looking for digital transformation opportunities within their organizations. Professionals from service and management consulting firms will also find this book useful. Basic knowledge of enterprise IT and some intermediate knowledge of identifying digital revenue streams or internal transformation opportunities are required to get started with this book.

What you will learn

  • Get up to speed with digital transformation and its important aspects
  • Explore the skills that are needed to execute the transformation
  • Focus on the concepts of Digital Thread and Digital Twin
  • Understand how to leverage the ecosystem for successful transformation
  • Get to grips with various case studies spanning industries in both private and public sectors
  • Discover how to execute transformation at a global scale
  • Find out how AI delivers value in the transformation journey
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Length: 426 pages
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Table of Contents

14 Chapters
Section 1: The "Why" of Digital Transformation Chevron down icon Chevron up icon
Chapter 1: Introducing Digital Transformation Chevron down icon Chevron up icon
Chapter 2: Transforming the Culture in an Organization Chevron down icon Chevron up icon
Chapter 3: Emerging Technologies to Accelerate Digital Transformation Chevron down icon Chevron up icon
Chapter 4: Business Drivers for Industrial Digital Transformation Chevron down icon Chevron up icon
Section 2: The "How" of Digital Transformation Chevron down icon Chevron up icon
Chapter 5: Transforming One Industry at a Time Chevron down icon Chevron up icon
Chapter 6: Transforming the Public Sector Chevron down icon Chevron up icon
Chapter 7: The Transformation Ecosystem Chevron down icon Chevron up icon
Chapter 8: Artificial Intelligence in Digital Transformation Chevron down icon Chevron up icon
Chapter 9: Pitfalls to Avoid in the Digital Transformation Journey Chevron down icon Chevron up icon
Chapter 10: Measuring the Value of Transformation Chevron down icon Chevron up icon
Chapter 11: The Blueprint for Success Chevron down icon Chevron up icon
Other Books You May Enjoy Chevron down icon Chevron up icon

Customer reviews

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Full star icon Full star icon Full star icon Full star icon Half star icon 4.8
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4 star 5.9%
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R M Feb 24, 2021
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Given my interest in AI/ML startups in industrial space, I was very impressed by the fact that it includes reference to some latest research papers, especially to improve semiconductor manufacturing in Chapter 5. Even otherwise, I think anyone in any enterprise will learn how to introduce transformative changes (in their organization) defined by latest AI/ML and Cloud technology of today.
Amazon Verified review Amazon
Radhika Gopakumar Dec 02, 2020
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Even though this book is put together by four accomplished technology experts with diverse background, the tight integration, coherent editing and smooth hand-off between successive chapters make it appear as if a single author had written the whole book.Book describes what is digital transformation and why it is important. The second half of book focuses on how digital transformation is executed. This book will help the readers to identify potential industry disruptors from various business domains and emerging technologies:• Leverage existing resources to identify new avenues for generating digital revenue• Boost digital transformation with cloud computing, big data, artificial intelligence (AI), and the Internet of Things (IoT)Book describes transformation journey in logical steps and helps understand how to build business cases and create productivity benefit statements. Book presents various case studies in both private and public sector organizations. Private sector organizations such as industrial and hi-tech manufacturing are described in detail and book helps to get the grips with public sector organizations by learning how transformation can be achieved on a global scale and how the resident experience can be improved. Book will help to understand the role of artificial intelligence, machine learning and deep learning in digital transformation.Book also provides step by step descriptions on how to create a playbook that can ensure success in a digital transformation project. Highly recommended for a broad set of users from university students to Information Technology engineers/Managers and C-suit executives.
Amazon Verified review Amazon
Leo Jun 19, 2022
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Highly recommend this book for anyone interested in Industrial Digital Transformation
Amazon Verified review Amazon
Glen Jan 09, 2021
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Over the past few weeks, I've been reading the content within this amazing book. As our world continues to develop in the technology age, we can see how digital transformation is happening all around us. This book has covered to the true insights and the how-to aspects of the new age of industrial digital transformation and applying the most suitable business model to achieve it. I definitely recommend this book to anyone who is interested in learning and understanding the industrial digital transformation.
Amazon Verified review Amazon
Prof. R. Behara Nov 02, 2021
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Shyam and his co-authors provide a clear and precise exposition of the underpinnings of the digital transformation that all human activity is going through worldwide. It is a “must read” for everyone leading or working within any organization. It helps us come to grips with our rapidly evolving world.
Amazon Verified review Amazon
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