Digital transformation is driving significant change across the global supply chain, leading to the adoption of new, innovative business models and cutting-edge technologies. The ability to adapt to these changes is crucial for companies aiming to remain competitive and deliver exceptional value to their customers.
Technology plays a pivotal role in accelerating change, helping companies to automate operations and enhance productivity. The modern workplace is evolving, with a growing emphasis on flexibility, sustainability, and employee well-being. Companies must navigate the challenges of integrating new systems and processes, a reality that requires a cultural shift towards innovation, experimentation, and continuous learning.
The benefits of embracing change are substantial, including improved quality, increased efficiency, and enhanced customer experiences. To successfully manage change, companies must measure its impact using data and insights to inform decision-making. Leadership plays a critical role, with a clear vision and strategy essential for success. By fostering a culture of adaptability and continuous improvement, companies can thrive in the dynamic landscape of digital transformation.
The case for (rebooting) digital transformation
Since the early days of the COVID-19 pandemic, industry has learnt several key lessons:
- Worker health and safety are key priorities for business
- Employees are critical talent and need to be deployed strategically
- Asset-based industries like transport & logistics can benefit from remote monitoring and operation
- These same industries also need the ability to make decisions in the field, on the edge
As organisations embrace digital transformation, many face significant challenges stemming from outdated technology and processes, which can hinder their ability to initiate this critical transformation effectively.
The goal of digital transformation is to move businesses along a customised path, from adding automation process steps to fully autonomous operations. Along the way, enterprises will pass various milestones that reduce the fraction of human involvement and orchestration into the process: from done by humans, through done with humans, to done for humans.
The key for asset-driven industries is to begin with the desired goals in mind, and establish key performance indicators (KPIs) to measure progress toward those goals. The work of digital transformation involves breaking down business operations into manageable processes that can be orchestrated or automated with the help of technology.
Technology drivers of digital transformation
Data, the currency of digital transformation, enables several technologies to build new capabilities and deliver enterprises’ desired results.
Some of the technologies that can propel digital transformation include:
- Artificial intelligence and machine learning, which enable autonomous decision-making at the data source.
- Robotics, which performs routine, monotonous tasks independently or in collaboration with workers.
- Extended reality-XR (augmented reality-AR / virtual reality-VR / mixed reality/MR), which empowers workers to collaborate remotely without being physically on site.
- Internet of Things (IoT) / Industrial Internet of Things (IIoT), which include sensors embedded in assets that transmit data about the health of machines. This data enables predictive maintenance to maximise uptime, asset life, and capital payback.
- Digital twins, a simulation of all physical assets and their interdependencies, enable enterprises to proactively predict system functions before changes are made.
- 5G and network infrastructure for connectivity of IIoT-embedded machines
- Cloud computing, which enables infinite computing scale while increasing resiliency, and security.
Selecting which of these technologies best fits depends on the digital maturity of the company in question and the KPIs they intend to measure.
Digital transformation isn’t always smooth sailing
According to a 2020 McKinsey research report, 70% of enterprises who pursue digital transformation find their momentum stalls at some point. It is worth understanding the reasons – e.g cultural or scalability issues – causing the slowdown because payoffs for successful transformation can be impressive; leading to more efficient operations, with enterprises enjoying autonomy beyond their operations. An entire ecosystem with data transparency functions more smoothly as inefficiencies are easier to pinpoint and fix.
Businesses must also watch market trends and shifts in consumer behaviour to adapt and thrive in the evolving landscape. The 2024 update to McKinsey’s tech trends focused on generative AI, coupling with electrification and renewables in terms of interest and investment. Gen AI is the next step in digital transformation, with the potential to enhance nearly all performance metrics.
Rugged mobile devices (especially AI-capable) contribute an invaluable benefit to the digital ecosystem. They connect workers to vital information necessary to keep operations running in harsh environments, often where and when workers need the data most.
Employees can use a rugged mobile device for asset management software or enterprise resource planning systems to troubleshoot problems quickly and efficiently whenever worker intervention is called for. Using rugged mobile devices also allows for the easier digitised recording of processes, so the enterprise always has a record related to every machine.
Limitless potential
Looking to leverage advanced technologies, organisations throughout the supply chain are taking a careful view of business operational workflows and finding ways to improve the bottom line. Expect AI-fuelled digital transformation to quickly become a mindset for companies as they move toward autonomy in their digital transformation. Rugged mobile devices will be essential today and even more so tomorrow to future-proof technology fleets. Their secure and open architecture enables enterprises to use it as a communications platform now and into the future.
- Digital Supply Chain