Digital transformation is a buzzword across all industries, with searches doubling from 100k per month to over 200k per month in just over two years. Yet, while this initiative is driving change across sectors, especially in engineering and manufacturing, some challenges still need to be overcome.
The Top 3 Digital Transformation Challenges
Digital Transformation Challenge #1: Getting Started
It’s clear that digital transformation is the next great thing in engineering and manufacturing—but for many organizations, it can be difficult to figure out where to start.
92% of industrial companies are engaged with digital transformation in some way.
The key is to start with a defined goal to drive an overarching strategy. This strategy should be aligned to overall business goals and values. It’s also important to remember that while complete digital transformation might be the ultimate goal, starting with a few impactful initiatives is best.
Manufacturers, on average, start with eight pilot projects, but only 25% of initiatives ultimately scale successfully.
Digital Transformation Challenge #2: Proper Implementation
It’s a common misconception that implementing new technologies is an easy win when it comes to digital transformation. The truth is that technology is just one part of the overall transformation strategy. Technology alone will not be able to solve all the problems within an organization. To successfully implement a digital transformation initiative, companies must identify critical issues, find specific solutions to solve them, and have a robust implementation strategy.
The implementation approach is a critical factor that significantly impacts the ROI of digital transformation projects.
To overcome this digital transformation challenge, companies need to recognize the far-reaching impacts their DX strategies have and make sure that everyone is involved to feel a part of the process. Some companies implement DX governing bodies, while others have regular town halls.
Digital Transformation Challenge #3: Scaling Up
Scaling digital transformation initiatives is the key to unlocking significant value for your organization. The key to overcoming this digital transformation challenge is to set your team up for sustainability and scalability from the beginning. This includes taking the steps to:
- Establish a plan that helps drive key business goals
- Design your DX initiative to align teams, processes, and technologies
- Prove value on a small scale to demonstrate the real-world value
- Scale-up based on the lessons learned
Digital Transformation Is the Future
There is no denying that digital transformation initiatives will shape the future of engineering and manufacturing. The first step is building strategies that can overcome the challenges that get in the way. It will be a complicated process, but with proper planning and implementation, your DX strategies are sure to prove ROI and have a significant impact.
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