Digital Transformation, a delicate balance

According to a large study by Cap Gemini, the future of industrial digitalisation is based on a delicate balance between two priorities:

  • The use of digital technology to develop and market new products faster
  • Investing in new smart products that can generate new revenue via the service.

It should be noted that 92% of growing companies have not only already set up a digital division but also KPIs to monitor the progress made. However, nearly 60% of manufacturers say they have difficulties in digitising manufacturing processes over the entire production cycle.

A connected digital transformation

What stands out as a key issue for the industrial sector is the necessity of connecting all new products; indeed, 47% of companies think that their future production will be of smart devices. They see in this constraint dictated by the digital world, an opportunity for growth and better profitability for their business. Companies still need to be able to exploit the data that their objects collect from their clients (consumers or businesses). Because the integration of technology and the exploitation of data pose serious resource problems for industrial R&D departments. But if this study is to be believed, the performance of companies is already strongly correlated to their canny use of data.

The analysis of the Data, one of the stakes of the digital transformation

Analysing the data produced and stored by connected objects is becoming an imperative at a time when we are witnessing an explosion of the volume of data produced by human activities. Companies that have understood this issue and integrated it into their business model are taking a considerable lead, which can provide them with a sustainable competitive advantage in their market. They profit from the data by extracting decisive and innovative insights for future production (take note that, most often, weak indications lead to the strongest innovations). It is a safe bet that this trend will increase the differences in competitiveness between ‘smart’ companies and others.

An axis of competitiveness

Enabling partner companies to improve their ability to collect and analyse data from their customers can also be a relevant service in a global competitive environment. We can understand why GAFAM or BATX (the Chinese version) are the most active in the financing or buyout of start-ups that have this goal, whether in the areas of mobility, health or even education.

 

Source:Cap Gemini study of 1,000 industrial company executives from 9 countries. The connected devices market is expected to reach $685 billion by 2020.