The blog article is the second entry in the series about using Corporate Performance Management (CPM) for digital transformation.
As long as you’re around technology, you will experience digital transformation. As defined in Part 1 of Using Corporate Performance Management for digital transformation, digital transformation is what happens when businesses reconstruct processes, products, and services in terms of what is possible utilizing modern technology. If the definition previously stated seems too abstract, think of digital transformation as organizations using cloud budgeting tools to change and enhance the way they handle finances rather than sticking with traditional ways. This type of technology has entered a new era of innovation, which includes advanced analytics, machine learning, cloud computing, physical transfer from digital, human operator and machine integrated interfaces, and more. To remain competitive, businesses will continue to adapt and challenge themselves to meet the growing needs of their customer base, and digital transformation is not limited to large organizations that have a large selection of resources and tons of money to be spent. With modern cloud Corporate Performance Management (CPM) and Business Intelligence (BI) tools, any individual or company can access and benefit from the most advanced resources. This article will cover the last two fundamental pillars of digital transformation based on The Art of Digital Transformation – Four Pillars of Industry 4.0 by ANEGIS Consulting, a Microsoft Gold Partner.
Here’s a brief overview of the previous article: we have discussed the significance of engaging with customers and empowering employees through digital transformation. Digital transformation makes communication more effective and responsive by allowing businesses to reach customers directly and accommodate their business models. It helps shift your focus to your customers. It not only affects your customers, but also your employees by encouraging them to handle processes and assets by connecting them with the data they need at any time, any place, and with any technological device. Now that we have covered the first two pillars of modern technology transformation, let’s jump into the last two foundational pillars of digital transformation.
3) Optimize Operations – adjust production to meet the changing needs and demands of the customer. Manufacturers can access insight on production and component behavior in real time. With access to advanced cloud analytics, money and time is no longer wasted on analyzing large amounts of data from smart sensors. Organizations of all sizes can now take full advantage of powerful data analysis and software learning capabilities to recognize waste, improve patterns, enhance speed of automation processes, and maintain equipment. The example ANEGIS Consulting uses to convey this foundational pillar of optimizing operations is on Jabil Inc., a United States-based global design and manufacturing services company, and how it created digital factories utilizing machine learning, predictive analytics, and the cloud to analyze an immense amount of data points from machines. Jabil was able to predict and identify errors and problems before they occurred with 80% accuracy.
4) Transform Products and Services – Enabling developers and engineers to make better roadmap choices, strengthen product usability, and improve design elements by providing the best tools. Rather than waiting for feedback after days or even weeks for services and products, organizations are able to respond, innovate, and execute change in real time using insights based on telemetry information gathered from actual live product performance and customer utilization. Internet of Things (IoT) capabilities, combined with advanced machine learning models and data visualization tools such as dashboards, allow organizations to consume data from any source and in any format, enabling others to offer products that are more personalized and customized. Revenue gains can also be accomplished by offering new digital products and features, or by sharing analytics and other digital services to customers. Transformative products and services, such as industrial products, can track their own activity. They also provide powerful insights into those who use the products, specifically how they operate, when they experience delays, and how they work around adversity. Organizations can use this data to develop profitable new services and products. For example ANEGIS Consulting uses is Rolls-Royce. Rolls-Royce has built a scalable data analysis program to transform how data is being used to better serve their clientele. By aggregating and collecting on-engine health data, air traffic information, fuel usage and processing data in real time, Roll-Royce is able to help its aviation clients improve their fuel usage and planning as well as reduce flight disruptions saving millions of dollars each year.
As mentioned in the previous article, “86 percent of CEOs say digital transformation is their number one priority,” based on a study performed in 2016 by Price Waterhouse Cooper. Whether the four pillars stated in this article and the previous article may or may not feel relevant, digital transformation is prevalent and it is reframing business structures, services, and products. The digital realm is constantly evolving as we speak, and any business can incorporate modern technology while keeping the two foundational pillars mentioned in this article, Optimize Operations and Transform Products and Services, as well as the first two foundational pillars, Engaging Customers and Empower Employees, to enhance experiences for customers and employees.
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