Software is the medium of digitalisation. If you don’t understand software, you have no hope of coming up with a decent digitalisation strategy.
Attempting to use business cases to justify industrial digital transformation (Industry 4.0) was always a time consuming work of fiction. During the corona crisis there is no time for fiction. The fact is that industrial digitalisation breeds its own success. Therefore, business cases should be the consequence of industrial digitalisation and not a justification for it.
At a time when business managers typically retreat from pursuing new initiatives, the benefits of Industry 4.0 have moved from “nice to have” to “essential for survival”.
The full economic consequences of the coronavirus pandemic are far from being understood, but it is already clear that there will be lasting if not permanent changes to global trade. Industrial Digitalisation will play a key role in helping manufacturing companies survive the coming turmoil.
The strategic importance of digitalisation, Industry 4.0, amongst executive and senior management in many industrial companies is undervalued and poorly understood. There’s really only one way to address the challenge of digitalisation: act now, act fast.
The strategic importance of digitalization, Industry 4.0, amongst executive and senior management in many industrial companies is undervalued and poorly understood. The compound gains to be had from digitalization will rapidly create a widening gap between the smart and the slow. There’s really only one way to address the challenge of digitalization: act now, act fast.
Digitalization offers businesses an opportunity to move higher up the value chain, build customer intimacy, and generate additional revenues from new business models. Lakana was engaged by a mechatronics company to provide advice and on the use of software to help them achieve these benefits.
Evidence that predictive maintenance delivers significant business value is presented in a recent report by PWC. In a survey of 268 European companies, of those that have implemented predictive maintenance (11%) a surprising 95% reported improvements in maintenance value drivers.
Understanding the ability of software to generate value is utterly key to successful digitalisation and not a core competence widely present amongst the leaders of High-Tech industry.