FEATURE PROCESS AUTOMATION START AS YOU MEAN TO GO ON
carry the authority needed to cut across managerial bias and help increase the likelihood of buy-in for the project at all levels of the workforce. Also consider where you’re starting out
from, the data, digital tools and skills you already have, and the challenges you are likely to encounter, before deciding on the best pathway to take. A digital strategy should be fully
integrated across every function of a company. Look at the Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis for every business unit and ask where a digital approach might help. A truly holistic digital strategy will also consider future drivers for business such as sustainability and reducing the environmental impact of operations. When all of these elements have been
Dr Andy Levers, executive director of the Virtual Engineering Centre (VEC), sets out the key factors that should inform a digital transformation strategy and explains why small and medium- sized enterprises (SMEs) are well-placed to reap its benefits
S
ay the words ‘digital transformation’ and many business leaders will
immediately think of the dynamic technologies driving it. But for those companies which embark on digitalisation without considering it within the context of their broader business and, crucially, the people they employ, the chances of failure are high. The Made Smarter Review estimates that
UK industry could achieve a 25% increase in productivity through digital adoption by 2025. However, for many companies, and SMEs in particular, the range of technology on offer, coupled with the perceived urgency to adopt Industry 4.0 technologies, can be daunting. The failure rate for digital
transformation projects is high, with even major players such as Nike and Lego seeing their multimillion pound projects fail. So, how can companies avoid the pitfalls and ensure that their digital transformation projects deliver concrete operational benefits and added commercial value? The first thing to recognise is the wealth
of expertise, unbiased advice and practical support that SMEs can tap into to maximise their chances of success. University based digital impact centres
such as the VEC have recognised that access to digital technologies and tools such as sensors and virtual reality is not enough. SMEs need support to ensure they have a cogent and sustainable cross- functional digital strategy from the outset to drive their change project forward.
18 APRIL 2020 | PROCESS & CONTROL The VEC and its regional partners
recently launched the £3.9 million LCR4 START initiative. It offers targeted support to Liverpool City Region SMEs, to help them develop a digital strategy and identify where they can develop and deploy digital technologies to achieve business gains, growth and savings. Successful digital transformation is as
much about cultural and behavioural readjustment as it is about innovative technology, and the most successful strategies take into account a number of key considerations. Digital transformation must be driven by
a clear future vision for the business - and that has to come from the very top. Board members are as likely to lack digital skills as any operative, so it is crucial to have board-level digital transformation champions with the skills and vision needed to guide implementation. They
Dr Andy Levers, executive director of the Virtual Engineering Centre (VEC)
A dynamic digital strategy is key to being able to respond to the disruption to an organisation, product development and new marketplace
taken into account, you have the foundation for your digital strategy. The next question is, who will implement it? Digitalisation is about creating
commercial innovation and value for the business as a whole. The adoption of technologies must be driven by the business itself. No amount of technical nous from an
external consultant can compensate for a lack of in-depth insight into the everyday operations of your company, and an understanding of the needs of your workforce. The need for workforce engagement
cannot be overstated. Ideally, a digital implementation team should involve colleagues from across every business function, led by an in-house project manager who understands the business and the benefits digitalisation can bring, and has the ambition and focus to drive the project. Awareness of the skills-shift that digitalisation will bring about, and the recruitment and staff training needed to meet that challenge, is fundamental. A dynamic digital strategy is key to being
able to respond to the disruption to business organisation, product development and new marketplace. Working with digital impact centres like
The need for workforce engagement cannot be
overstated. Ideally, a digital
implementation team should involve colleagues from across every business function
the VEC facilitates greater insight into emerging technologies and trends which are likely to influence industry sectors and supply chains, so companies can evolve their digital roadmap to meet changes in customer demand and new technologies. To achieve success, digital
transformation should not be viewed as an end destination, but rather a driver that continues to create value. With prudent planning and implementation, it can have a huge impact and reap game-changing results. Failure really need not be the overwhelming norm.
Virtual Engineering Centre
www.virtualengineeringcentre.com
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