Digital transformation has become a buzzword in recent years, and for good reason. Companies that embrace digital technologies are more likely to stay ahead of the curve, differentiate themselves in the marketplace, and meet the evolving needs of their customers.
The benefits of digital transformation can be far-reaching, from improved customer experience to cost savings and increased efficiency.
In this blog, we will explore the various benefits of digital transformation, and why it is essential for companies to embrace this trend in order to remain competitive in the digital age.
What is Digital Transformation?
Digital transformation is a term used to describe the process of transforming an organization’s business model and operations through the use of digital technologies. It’s important because it can help you stay ahead of your competition, improve customer experience and attract new customers.
The benefits of digital transformation include:
- Improved customer experience: Digital transformation can help you better understand and meet the needs of your customers. With the use of data analytics and other digital tools, you can gather insights into customer behavior and preferences, and tailor your products and services accordingly.
- Increased efficiency and productivity: Digital transformation can automate many processes, reducing manual labor and freeing up staff to focus on higher-value tasks. This can lead to increased efficiency and productivity across your organization.
- Competitive advantage: By embracing digital technologies, you can stay ahead of your competitors and differentiate yourself in the marketplace. This can help you attract new customers and retain existing ones.
- Cost savings: Digital transformation can help you reduce costs by streamlining processes and eliminating unnecessary steps. This can lead to significant savings over time.
- Innovation: Digital transformation can open up new opportunities for innovation and growth. By embracing new technologies and ways of working, you can develop new products and services that better meet the needs of your customers.
See how JR Automation saved seven figures with embarking on their digital transformation journey:
Creating a Digital Transformation Roadmap
The first step to creating a digital transformation roadmap is to identify the scope of your transformation. What are you trying to achieve? What are the goals and objectives of your business? How will you measure success?
Once this has been determined, it’s time to set up a timeline for achieving those goals.
Once these steps have been completed, it’s time for action! You should now have a clear idea of what needs changing within your organization and how long it will take before those changes become visible.
Building a Digital Transformation Team
When you’re building your digital transformation team, it’s important to define roles and responsibilities. You’ll want to make sure that everyone understands their role in the process and what they are expected to do. For example, if someone is responsible for monitoring the performance of shop floor machines, they should know what the ideal OEE is of each machine, how they are going to collect that data, and how they are going to distribute it to enterprise decision makers.
It’s also important that you select team members who have complementary skillsets and experience levels. If one person has extensive knowledge of augmented reality while another knows nothing about it at all, this could lead to problems down the line when it comes time for them both to collaborate on projects together – and no one wants that!
Finally, creating a culture where collaboration happens naturally between team members will help ensure successful outcomes throughout your digital transformation project(s).
Adopting the Right Technology
The first step in digital transformation is choosing the right technology. You’ll want to consider:
Software: What are your current needs and how will they change over time? Will you need additional features or functionality?
Hardware: Do you have enough computing power and storage space for all of your data, or does it need to be scaled up or down depending on usage patterns at different times of day/year/etc.? Do you have sensors to track data that you need for production insight?
Tools: What tools do developers use to build applications on top of this platform (e.g., Creo vs. Solidworks)? How easy is it for them to integrate their code with existing systems like databases and messaging queues? Are there any security issues with using these tools – and if so, how can they be mitigated by using another tool instead (e.g., switching from MySQL database server software to Microsoft Azure).
Developing a Digital Transformation Strategy
The first step to developing a digital transformation strategy is to define the scope of the project. What are you trying to accomplish? What are your objectives, and how will you measure success?
These questions can help guide your organization through its transformation journey by setting realistic goals for both short-term wins and long-term gains.
Once you’ve defined what needs changing, it’s time for step two: defining how those changes will happen. This involves creating an action plan that includes timelines for each phase of implementation as well as resources required for each stage (e.g., time from IT staff).
Some companies may choose to tackle multiple projects simultaneously; others might choose only one area at a time depending on their resources available in terms of money/manpower/etcetera).
EAC Assessments help companies answer all those questions and how to get where they want to be.
Implementing the Digital Transformation Plan
Develop a timeline. The first step in implementing your digital transformation plan is to develop a timeline with milestones that will help you track progress.
Set goals and objectives for each milestone. Once you’ve established your milestones, it’s time to set goals and objectives for each one of them so that everyone involved knows exactly what needs to be done at any given time during the project.
Track progress regularly by reviewing dashboards or reports generated from data collected during testing phases of development projects (if applicable). It’s important not only for managers but also employees on lower levels within organizations who may not have access
Monitoring and Evaluating Performance
Monitoring and measuring performance is an important part of the digital transformation process. It allows you to identify areas where you are successful, and areas that need improvement.
Monitoring can be done using a variety of tools, including:
Data Analytics Dashboards (e.g., Thingworx Analytics)
Real-time Data Share (e.g., Windchill, EAC Productivity Apps)
Digital Twin Performance (e.g., Augmented Reality)
Adapting and Adjusting the Plan
As you progress through your digital transformation, there will be changes in the market that you need to respond to.
If a competitor introduces a new product or service, or if something happens in the industry at large, it may change how you approach your own strategy.
You might also find that your goals and objectives have changed since they were first set out; perhaps there’s been an increase in customer demand for something specific that wasn’t previously considered important enough for inclusion on the list.
The best way to handle these situations is by reviewing them regularly with other members of your team – and making sure everyone has input into decisions about how best to adjust course as needed.
Communicating the Benefits of Digital Transformation
In order to communicate the benefits of digital transformation, it’s important to understand who your stakeholders are and what they want.
If you’re working in an organization with a large number of stakeholders (such as a government agency), then there may be multiple groups that need convincing. For example:
The board wants to see results from their investment in IT infrastructure. They’ll likely be interested in metrics such as ROI and cost savings.
Executives want quick wins that will help them achieve their goals, but they also need proof that this new approach will work before they can commit time and resources to implementing it throughout the organization.
Employees want something tangible they can hold onto when explaining why this change is important for them personally (and why it matters).
Conclusion
Digital transformation is a powerful tool that can help you achieve your business goals. It’s important to remember that digital transformation is not just about implementing new technologies, but also about changing how you work and think as an organization.
Digital transformation requires commitment from everyone involved in the process – from the C-suite down through every level of your organization.
To be successful, it must be an ongoing effort rather than a one-time project or initiative. You will need to continuously innovate and improve what you’re doing if you want to stay ahead of competitors who are also pursuing digital transformation strategies.
In conclusion, digital transformation is becoming increasingly essential for companies to stay competitive and meet the needs of their customers in the digital age. However, the process of digital transformation can be complex and challenging, which is why EAC assessments can be extremely helpful.
By conducting an assessment of your organization’s current digital capabilities and identifying areas for improvement, you can develop a roadmap for digital transformation that is tailored to your specific needs and goals.
EAC assessments can help you identify gaps in your digital capabilities, streamline your processes, and develop new products and services that better meet the needs of your customers. By embracing digital transformation and leveraging the expertise of EAC assessors, you can position your company for success in the digital age.
PTC Windchill saves ALM Positioners 4 hours per project
If you are trying to confidently make a smooth transition from paper files to digital files with a complete PLM solution, you should contact us to learn more about PTC Windchill. Read on to learn more about a business who succeeds in digital transformation to reduce time-to-market, decrease costs, and increase collaboration.
Business Overview
ALM Positioners, Inc. is a manufacturing and assembling facility for state-of-the-art positioner lifts located in Rock Island, Illinois. Myron Pundt, VP of Engineering at ALM said, “We build positioners that lift, rotate, and turn machinery in the manufacturing industry. The positioners allow our customers to put their parts at the right elevation and rotation for their operators to build things efficiently.” Their business eliminates the need for straps, chains, and slings and instead allows the operator to raise and position weldments and assemblies to the necessary height and working position.
ALM specializes in custom designs and manufacturing solutions for their customers who need positioners to meet specific requirements. Their unique selling proposition in the Industrial Automation Industry allows them to offer significant cost savings for equipment, improved safety for welders and operators, and increased manufacturing and assembly production efficiency to their customers.
Business Challenges
ALM was challenged by an increasing number of custom design requests. These requests increased product design cycle times. Inaccurate and inefficient information was finding its way to engineers and technicians because product data was stored in paper documents throughout the manufacturing facility.
Pundt reported, “We would have a lot of problems with not having the right prints, so something would end up being built wrong – requiring rework or just extra time to disassemble or reassemble it.” Modifications were being made to designs that weren’t communicated to other departments. This created a bottleneck in operations causing stalls in production and higher costs due to rework. “We’re looking to streamline our processes and get rid of the paper on our shop floor.”
To keep up with the demand of their customers, ALM knew they had to be able to securely store and access product information, Bill of Materials (BOMs), and design requirements all in one place to eliminate the bottleneck and to operate at maximum speed and efficiency on the shop floor. Kevin Toft, President at ALM, proclaimed, “Our company is growing at a fast rate. Last year we saw a forty-six percent growth in our sales revenue and we expect that we are going to double sales by the end of 2019. We need to have systems that work for us so we can continue to see that kind of growth. We have to be as efficient as possible.”
Solution
ALM Positioners turned to EAC Product Development Solutions to help solve their bottleneck problem. EAC helps companies optimize their product development systems so they can succeed in the market place. EAC is a PTC value-added network partner, offering the latest advancements in technology utilized by companies around the world, including PTC Windchill. EAC’s Solution Architects proposed PTC Windchill, a product life cycle management (PLM) tool that allows organizations to consolidate and manage product information into digital form.
Implementation
With the help of EAC’s implementation team, ALM incorporated Windchill throughout their organization so they could view, operate, and manage up-to-date CAD designs on computers throughout the shop floor. “Before we implemented Windchill we were running paper copies. Our ERP implementation was through exported BoMs in Microsoft Excel and we would import them back into the ERP system. It was very time consuming and inefficient,” Pundt explained. Windchill eliminated the obligation to use multiple systems to view product information, associated BoMs, and CAD designs.
Overall employee morale was up because there was less redundancy throughout the early design stages. Brydon Sanders, Product Design Engineer at ALM, reports, “Before Windchill we had an archive of data that was not necessarily 100% accurate. So, when we were sorting data that we thought was right, we’d find out there was a problem after we made changes to it. EAC helped us customize a life cycle specifically for how small of a company we are to help facilitate changes and make the correct revisions. Everything is much faster when designing and validating the product.”
EAC helped customize Windchill to optimize operational efficiencies specifically for ALM’s needs. Colten Brunenn, Product Manager at ALM, reported, “EAC’s implementation specialist was on site for several days at a time throughout the implementation process to help us customize the application to our needs. The specialist was giving us examples, walking us through the processes, showing us how it would work if we did it a certain way, and showed us how to make things easier. It opened our eyes to the capacity and abilities of what we could do with Windchill for our specific needs.”
Results
Compared to previous processes, ALM is able to more quickly and accurately meet their customer’s needs because of their Windchill implementation. “We save about four hours per job with just the front-end BoM load and getting the information into the ERP system – which has been huge,” Pundt explained. “Customers tend to want what they want and a lot of times we can get their order over our competition because we’re willing to customize it for them. Windchill and our new ERP system make it very easy to manage those customizations and helps us to make sure that we have materials in-stock and on-time to meet those needs.”
“With the implementation of Windchill, our manufacturing efficiency is greatly improved. Everything is live on the shop floor now, there are no more paper copies, no more prints getting lost, and nobody building something off the wrong or unrevised print. It has really improved our efficiency through the manufacturing process,” Pundt said. Transitioning into a digital workflow with Windchill allows ALM to reduce time-to-market, decrease costs, and increase collaboration throughout the organization.
