Optimize Your Digital Value Chain to Build Resilience
Digital transformation is revolutionizing how industries manufacture, improve and distribute their products. Manufacturers are integrating new technologies such as the Internet of Things (IoT), data analytics, cloud computing, artificial intelligence (AI), and machine learning (ML) to effectively optimize their production. Companies are under immense pressure to determine the digital value of their business models and leverage its myriad possibilities. In this article at McKinsey, Sean Camarella, Satya Rao, Sidney Cerqueira Bispo Santos Filho, and Zhibo Zhao explain how digital technologies, when implemented wisely, can accelerate cross-functional efforts and position companies to excel in the coming years.
Realizing Digital Value in the Industrial Sectors
Several high-tech, consumer, and financial organizations embraced digital technology years ago. Therefore, most individuals are exposed to digital experiences such as mobile banking, online payment, and online shopping. However, industrial sector leaders have differing views of digital value for their businesses. Industrial companies often operate in a chaotic environment with dramatic shifts in customer purchasing behaviors, labor force participation, and supply chain networks. Today, many companies that seek to outperform are reassessing their growth strategies, operating models, and approaches to talent.
Can Digital Value Build Long-Term Resilience?
To sustain digital value creation in the long run, industrial players must focus on the following priorities:
Implementing a Customer-Centric Approach
“As modern-day operations grow increasingly complex, effective innovation requires an intimate understanding of end-customer pain points and operational needs from a comprehensive ‘solution selling’ mindset,” explain the authors.
Addressing the Skill Gap
Organizations must focus on retaining skilled employees. As industrial sector organizations grow closer to customers, they must invest in new services and solutions to build internal productivity. Furthermore, they must develop or acquire talent to drive digital transformation efforts forward.
Making Digitization Imperative
According to industry experts, many complex business scenarios that leaders face can be alleviated through digital solutions. Additionally, realizing digital value helps organizations improve their performance at a much-reduced cost. However, complexity in developing robust, secure end-state architecture, fragmented data landscapes, and complex legacy infrastructures are some significant challenges industrial business leaders face. Experts believe investing in sophisticated and coordinated tech stacks will help industries overcome the issues.
To learn more about the digital value of advanced tech for the industrial sector, click on https://www.mckinsey.com/industries/industrials-and-electronics/our-insights/the-digital-revolution-is-brewing-in-the-industrials-sector.
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