How to restart your stalled digital transformation
Most digital initiatives sputter before they take full effect. A new survey finds that organizations stand a good chance of recovering lost momentum because slowdowns typically happen for reasons within their control.
McKinsey – At organizations pursuing digital transformations, more than seven in ten survey respondents say the progress of these efforts has slowed or stalled at some point. In the latest McKinsey Global Survey on the topic, we set out to understand what organizations can do to prevent burnout or to restart their engines if burnout occurs during these transformations, which previous research has found have a lower success rate than do more traditional transformations. The good news is that in most cases, organizations can prevent or overcome a loss of momentum.
More than 60 percent of respondents who report stalled digital transformations attribute the problem to factors that—with the right discipline and focus—organizations can control in the near term to medium term. This finding runs counter to widespread assumptions that external pressures, such as market disruptions or regulatory changes, pose the biggest threats to digital initiatives. More commonly reported sources of derailed progress include resourcing issues, lack of clarity or alignment on a company’s digital strategy, and poor quality of the digital strategy to begin with.
If a digital transformation stalls, the results suggest that organizations can regain momentum by implementing rigorous change-management and internal-communications programs and clarifying the transformation’s projected impact, which can help build alignment and commitment. For scaling digital programs beyond the pilot phase—the first stumbling block in a transformation’s execution—clarity on the time frame and expected economic impact is important, as is partnering with operations. Should an intervention be needed to reenergize a transformation, having the CEO step in appears to be advantageous. Further lessons come from respondents at companies that avoid stalling in the first place. They often say their organizations maintain momentum by obtaining strong alignment and strategic clarity before a transformation gets under way. more>
Posted in Business, Economic development, Economy, Education, How to, Net, Science, Technology
Tagged Business improvement, Capital, Digital transformation, McKinsey, Productivity, Skills
By John Lusty – Digitalization is transforming the global Energy & Utilities (E&U) industry, and the most exciting part is that it’s happening so differently in each industry sector depending on their unique plans and priorities. That’s because each organization has a slightly different digital legacy and is executing a different business model that is making them a leader in their respective sectors of the market. It’s also because E&U businesses are inherently non-uniform due to mergers and acquisitions, project mindsets, boom and bust business cycles, breakthroughs in technology, and sudden societal or geopolitical shifts that ripple through the global energy economy at the speed of light.
This blog is the first in a new series from Siemens Digital Industries Software, where we’ll discuss trends in digitalization that relate to the Energy & Utilities industry. At Siemens, we have the privilege of working closely with industry leaders and people from an extensive range of manufacturing sectors with different degrees of digital maturity. That lets us see what’s working great as well as some things that didn’t go quite as planned.
We’re also the software business unit within Siemens AG, a mega-enterprise of close to 400,000 colleagues that acts as a massive internal customer for our solutions. People usually look at us a little differently, knowing that as a global engineering and manufacturing organization that relies extensively on our software solutions, we truly have “skin in the game” as our supplier.
Much work has been done across the E&U industry to assemble and apply the “digital twin” of assets, projects and facilities to be more efficient, profitable, and operationally excellent. In this blog, we’ll review examples of excellence in these areas and speak with some of the people who made them happen. more>
Posted in Business, Economic development, Economy, Education, Energy & emissions, How to, Net, Science, Technology
Tagged Business improvement, Climate change, Digital transformation, Energy, Siemens, Skills
How Gulf companies can overcome the five biggest challenges to their digital transformation
By Dany Karam, Christian Kunz, Jigar Patel, and Joydeep Sengupta – By now, most companies in the Gulf region understand the necessity of going digital. After all, 82 percent of the region’s population already owns smartphones.
Yet despite this awareness, progress on digital transformations among companies in the Gulf Cooperation Council (GCC) has been limited, at best.
Some companies have tested the waters, while others have moved more aggressively but haven’t scaled their programs. Many companies, however, are still sitting on the sidelines wondering how to move from strategy to action.
Almost no GCC companies have reached the end goal where analytics drives everything they do, agile operations and a culture of failing fast are the norm, and a mature and flexible technology stack is available to continually evolve offerings.
Regardless of where a company stands now, Gulf executives need to act quickly to move their organizations to the next level. Based on our work with incumbents in the Middle East and across the globe, we have identified five of the most common challenges GCC companies face when trying to go digital, as well as strategies for overcoming them and dramatically increasing the chances of success.
It’s understandable that Gulf executives would be reluctant to hit the go button on digital transformations. These efforts are largely new to the region, require considerable capital expenditures, and can lead to very different ways of working. You can’t transform only a little. Leading financial-services companies, for example, spend more than 4 percent of their revenues on digital transformations (with some spending as much as 9 to 12 percent). And digital transformations can go on for at least five years, with a breakeven point that can be one to four years away. more>
Posted in Broadband, Business, Economic development, Economy, Education, How to, Net, Science, Technology
Tagged Broadband, Business improvement, Digital transformation, Internet, McKinsey, Risk
Digital transformation: Improving the odds of success
By Jacques Bughin, Jonathan Deakin, and Barbara O’Beirne – or established companies, the pressure to digitize business models and products has reached new intensity. McKinsey research shows that the best-performing decile of digitized incumbents earns as much as 80 percent of the digital revenues generated in their industries.
Ascending to that elite group is far from easy. In a new survey of more than 1,700 C-suite executives, we learned that the average digital transformation—an effort to enable existing business models by integrating advanced technologies—stands a 45 percent chance of delivering less profit than expected. The likelihood of surpassing profit expectations, on average, is just one in ten.
The good news is that executives can decisively increase the chance that a transformation focused on digital enablement will beat performance expectations.
Our latest research shows that exceptionally effective digital transformations are distinguished mostly by the practices that executives choose to follow. Adhering to a well-defined set of transformation practices lifts the likelihood of exceeding profit expectations to more than 50 percent—about five times better than transformations that involve none of these practices. What’s more, the same combination of practices works for every type of digital-enablement effort that our survey covered. more>
Posted in Business, Economy, Education, How to, Net, Technology
Tagged Business improvement, Digital transformation, Internet, McKinsey, Productivity, Success, Technology
By Stuart Carlaw – When looking at optimizing the digital transformation process in industrial and manufacturing verticals, the task is complex, fraught with risk and subject to increasing pressures in abundance. ABI Research has outlined a number of best practices that fall within a two-step process that will help in “de-risking” the transformation process.
Probably the most profound challenges for anyone looking to implement a technology-driven transformation process is clearly understanding where you are currently in terms of solution maturity and what the end vision should be. Once you know where you are, then you can realistically look to where to target for advancement.
The Industry 4.0 Maturity Model by ABI Research has been designed to provide companies with a quick snapshot of their maturity level and should be viewed as a tool to help align corporations objectively about not only where they stand in the spectrum of industrial development but also where their vision should be aligned regarding future projects.
Once an organization has a good perspective of where it sits on the maturity scale, the job of avoiding common mistakes becomes a far easier prospect. The chances of chasing unrealistic technology goals and making poor decisions based on stock price rather than operational viability become far less when leadership is honest and aligned around a clear understanding of state zero represented in today’s modus operandi.
However, any company is not out of the woods until it galvanizes around a few golden rules when it pivots towards making meaningful changes to your future fortunes. >more>
Posted in Business, Economy, Education, How to, Net, Science, Technology
Tagged Broadband, Business improvement, Digital transformation, Internet, Manufacturing, Productivity, Technology
By Derek Thompson – Before getting to the future, let’s start with the present of television. Pay TV—that is, the bundle of channels one can buy from Comcast or DirecTV—is in a ratings free fall among all viewers born since the Nixon administration.
This has created a business crisis for entertainment companies like Disney. Old Disney’s television strategy was: Focus on making great content and then sell it to distribution companies, like Comcast and DirecTV. This worked brilliantly when practically the entire country subscribed to the same television product.
Thanks to virtuous cycle of bundling, separating content and distribution used to be the obvious play for Disney
But New Disney is looking for a fresh play. Now that young households are cutting the cord, it wants to own both content and distribution.
There aren’t many great examples of legacy media empires successfully transitioning to the digital age without a few disasters along the way, or at least a long period of readjustment. Just look at American newspapers, or the music labels at the beginning of the 2000s. more> https://goo.gl/jfcC64
Posted in Broadband, Business, Economy, History, Media, Net, Technology
Tagged Broadband, Digital transformation, Entertainment, Internet, Pay television, Technology
Smart Trains And Beyond: GE’s Jamie Miller To Talk Digital Disruption At Tech Confab
By Bruce Watson – Deutsche Bahn Cargo trains crisscross Europe daily carrying everything from coal and steel to cars and cabinets. If a train gets stuck or needs to be taken offline, it can cause problems for the entire system. Now GE digital technology is making the trains smarter and reducing downtime. By tapping sensors embedded on 250 of DB Cargo’s trains, GE will be able to collect several terabytes of data to help keep the trains running efficiently.
Digital transformations like this are the focus of Fortune’s Brainstorm Tech summer retreat this week in Aspen, Colorado. The idea behind Brainstorm is deceptively simple: Gather 600 of the world’s top business leaders, tech entrepreneurs and investors to discuss the tech trends that are poised to transform the world. It’s an opportunity to feed innovation, discuss future trends and — in general — find a way to make disruption a little less disrupting.
Digital disruption isn’t only hitting the tech world. We’re seeing it in industry as well. In manufacturing, for example, digital innovations can lead to a difference of billions of dollars in productivity. more> https://goo.gl/DoqxoN
Posted in Broadband, Business, Economic development, Economy, Education, How to, Leadership, Net, Science, Technology, Transportation
Tagged Brainstorm, Digital transformation, GE, Sensors, Software
By Henning Meyer – The digital revolution, used here as shorthand for broader technological change, is one of today’s most hotly debated topics in politics, economics and business.
We are undoubtedly faced with large-scale disruptions in many areas that require adjustments.
To analyse exposure to the digital revolution and potential policy solutions you need to start breaking it down into manageable dimensions. Three areas in particular warrant special attention: What are the forces shaping the application of new technologies? What does the digital revolution mean for the future of work? And what kind of policies could help to address these issues?
There is a general lack of structured analysis of the ways in which technological progress translates into real life. This is an important shortcoming as it leads to a distorted view of real-time developments. Here we try to structure this process and identify five filters that in effect moderate technology’s impact.
First, an ethical filter. This filter restricts research itself as it sets a permission framework for what can be done.
Second, a social filter. Social resistance against technological change is not new and it is likely to be more intense in areas where there is a perceived threat to people’s jobs.
Third, a corporate governance filter.
Fourth, a legal filter also moderates what is possible and what is applied in the real world.
Last but not least a productivity filter. This filter means in principle that the application of new technology does not have a dramatic effect on productivity because either the productivity bottleneck lies elsewhere or diminishing marginal returns mean that there is little real improvement in products or services. more> https://goo.gl/nZdclG
Posted in Broadband, Communication industry, Economic development, Economy, Education, Net, Science, Technology
Tagged Bottlenecks, Capital, Digital transformation, Productivity, Public policy, Technology adoption