Digital Transformation
In the last five to ten years, digital transformation has entered the agenda of companies in practically every sector.
As long as we are prepared, we can embrace it. The world is changing at a phenomenal rate. Ever since the dawn of the information age, both companies and consumers have been changing the way they operate, to make sense of the fast-changing context. This time, however, digital transformation is bringing with it a change in mindset. It is a radical, systematic change, which is going to influence every aspect of our lives. More than just a technical change that leads organizations to modify their processes and infrastructures, it is a kind of cultural and behavioral change.
Digital transformation has become an absolute necessity for every industry and every company, no matter whether it is small or large, Information Technology (IT)-related or not, newbie, experienced or legendary. It is hard to predict what our digitally-enabled world will look like, and determining the specifics of the digital future will involve an exact definition of what customers want.
Digital transformation is going to blur the line between IT and business. It is enabling businesses to innovate faster, become more agile and gain a competitive advantage in their market. On the other hand, it cannot be denied that it also harbors many unknown risks and the potential for considerable disruption.
At Kordsa, our digital transformation journey started three years ago, when we prepared our digital assessment, and we are continuing to apply the strategy on a global basis. Now it is time to implement the transformation in selected prioritized areas, like Big Data Platforms on which data connected with a field can be assembled, Manufacturing Execution Systems (MES) for increasing Overall Equipment Effectiveness (OEE) and product quality, Supply Chain Optimization, Advanced Data Analytics for extracting greater value from the new gold, data, and the Cyber Security that is required for all these environments.
Amidst all these priorities, here are the elements of our Digital Transformation on which we are currently focussing:
Connected Things Analytics
One of the great benefits of going digital is the potential it brings to track metrics and analyze the data that is gained during production processes. Indeed, by exploiting these insights, businesses can optimize their strategies and processes in order to yield even better results.
In business, two things matter more than most: costs and revenue. It’s possible to make massive changes to both by integrating data-based insights into a company’s culture.
Using data-driven insights to understand customers better can feed into business strategy and enable hyper-personalization, improved relevancy, heightened flexibility, and real-time feedback. To achieve this, businesses need to make use of structured data (personal customer information) as well as unstructured data (sensors and image-processing metrics); fusing all our data in a Big Data Platform will be the starting point for the transformation journey.
The importance of data in decision-making should not be underestimated. A company that displays the leadership needed to make the whole organization aware of the importance of data will soon find itself advancing smoothly on the road to a higher Return of Investment (ROI) and OEE.
Customer Experience
The world’s obsession with the latest technology, social media and applications is rooted in a desire for an easier life. People want effective and fruitful solutions to their problems. More importantly, they want them fast.
The experience of customers lies at the heart of the digital revolution. The digitalized world should bring benefits for everyone, making people’s lives easier. For this reason, the primary objective of digital transformation is to use cutting-edge technology to improve the customer experience.
Many companies recognize this, with 90% of leading firms developing mature digital transformation strategies, specifically to enhance the consumer experience.
Cyber Security
The landscape of information security is changing rapidly, and digitization is expanding, resulting in an increase in the frequency and magnitude of cyber attacks. Once attackers infect a company, it can take months to detect the breach, let alone win back territory. Any system-critical infrastructure faces the threat of cyberwar and cyberterrorism, and every firm is a potential target. The worst consequence of an attack might not be the damage incurred directly but the high level of public knowledge of the attack and the loss of trust in the entire system.
At Kordsa, we understand that information security risks constitute major business risks. We appreciate too that, during our Digital Transformation journey, a well-defined strategy can become a powerful competitive advantage.
Organization and Culture
Many people fear change. The thought of the entire organization undergoing a massive digital transformation can be a daunting prospect for the whole workforce, from leadership to entry-level employees. In such a transformation, all processes and strategies need to be addressed, down to the core structure and company culture.
This, however, brings with it the opportunity for unity throughout the workforce. Strong communication is vital for enabling a successful switch to the new digital reality.
With encouragement, employees can overcome age gaps and social divisions, engage in conversation and learn together. Since Kordsa Reinforcers are being mobilized to maximize global collaboration, we are confident that the existing climate will improve the digital intelligence of the workforce.
The foundation for a smooth digital transformation is digital congruence. When all departments are aligned, a strong company culture will emerge, and this will lead on to a successful and confident transition. This is why, at Kordsa, we have set up a Digital Transformation Committee on which the heads of various departments sit. We shall continue the journey of Digital Transformation in the spirit of collaboration.
Only a strong digital workplace can be flexible and adaptable. Such an environment will allow the workforce to remain productive and engaged in the transformation without feeling overwhelmed or disconnected from the process.
Merely having the technology in place is not enough. If a business is to succeed in the future, it has to adopt a company culture that embraces change.
Given that 60% of professionals do not feel equipped for change, a company culture that immerses the workforce in a digital learning environment can only be beneficial. Such a culture will help professionals develop the skills they will need in the years ahead, encouraging them to climb up the ladder and become digital-savvy employees.
Digital transformation allows this to happen by making an impact on leadership and driving culture from the top down. Such is its importance that, by 2020, 90% of large companies are expected to have a Chief Digital Offcer on their staff.