The evolution of the doorbell is just one example of digital transformation—the use of technologies such as data analytics, connectivity, cloud computing, and AI to transform products, processes, and entire systems.
Almost every organization seems to include digital transformation in its vision and strategy, but most struggle with executing digital transformation initiatives. There are myriad reasons: the challenges of introducing new technologies and providing the workforce with relevant skills, ensuring that the company’s culture and organizational structures are conducive to change, and anticipating correctly which processes need to change and how, to name a few.
To effect change, some organizations begin with proof-of-concept and pilot projects. They soon find themselves mired in a “pilot purgatory,” unable to scale up by formalizing the piloted approaches and making them part of the company’s standard workflows and practices. Other organizations start with large infrastructure development efforts that are difficult to execute and fail to meet the requirements of the actual projects, workflows, or products that emerge from the transformation strategies.
We have observed that organizations are often most successful with digital transformation when they adopt a pragmatic approach.
Pragmatic digital transformation does not require starting from the ground up or completely overhauling existing processes and assets. Just the reverse; its fundamental principle is reuse: In pragmatic digital transformation, data and models—and the engineering teams’ associated skills in developing analytics, models, and simulations—are applied systematically to workflows throughout the life cycle of the product or service.
The systematic use of data can start with analytics developed specifically to get insights from experimental and research data. But it also means scaling and extending those analytics to huge, heterogeneous sets of live and archived data, acquired from manufacturing, maintenance records, and other business processes, to enable data-driven decisions not only during research and design but also in production, operations, and maintenance.