The Time for Digital Reinvention Is Now Manufacturers Build a Platform for Innovation
Total Page：16
File Type：pdf, Size：1020Kb
DIGITAL BUSINESS The Time for Digital Reinvention Is Now Manufacturers build a platform for innovation © 2021 NTT DATA, Inc. All rights reserved. Content The silver lining 3 Digital reinvention is all about business, but the right technology backbone is critical 4 A digital platform can help aggregate 5 Leapfrog to reinvention 6 Grow the top line 7 Speeding experimentation and innovation at Toyota Research Institute 8 Manage the bottom line 9 Keep pace with an experienced partner 10 Managing complex workloads 11 About NTT DATA Managed Hybrid Cloud Services 12 Sources 13 Companies that once had multi-year accelerate their vision and value creation. digital transformation plans have realized This positions these organizations to not they must expedite change. Seven in 10 only survive the pandemic but also profit executives surveyed in a recent NTT DATA and grow in the face of it. With the help of and Longitude report agree, saying their their technology portfolios and capabilities, organizations would have been more Leaders have built resilience and agility resilient today if they had invested more in that enables them to adapt faster than the digital technologies prior to the pandemic.1 competition at times of great uncertainty. The research defined business “Leaders” We’ve come a long way since zeros and “Laggards,” with the Leaders effectively and ones were the primary defining implementing leading digital capabilities The silver lining characteristic of digital. Over the past such as cloud, artificial intelligence (AI), decade, nearly every aspect of business automation, advanced analytics, mixed While Leaders use technology to operation has been digitized — and reality and the internet of things (IoT) to differentiate and transform businesses, continues to be so. Accelerated innovation, the good news for those who haven’t yet technology viability and a focus on digital done so is that it’s still possible to start maturity have launched a new era of digital How has the COVID-19 crisis and achieve — or exceed — market parity. reinvention. In this new era, manufacturers impacted the following aspects of With the right vision, culture, approach, can scale their digital landscape, integrate 1 your business to date? digital technology capability foundation, across the value chain and drive never- 55% and adoption of agile business and before realized value. 50% 42% technology practices, manufacturers can While a high tide floats all boats, the social 33% 29% 34% leapfrog to a competitive market position. 25% and economic upheaval caused by the 21% According to a Chinese proverb, “the best global pandemic created a low tide that 11% time to plant a tree was 20 years ago. The illuminated clear disparities between Number of customers ProfitabilityRevenue second best time is now.” In this spirit, let’s different organizations’ digital readiness. Increase No change Decreased begin digital reinvention now. 3 Digital reinvention is all about business, but the right technology backbone is critical From a business perspective, digital Opportunities for value creation are Because business is dynamic, digital reinvention should focus on enabling everywhere: reinvention should deliver sustainable enterprise-wide business value creation. value that can adapt and grow with • Enhanced customer experience: This could include rethinking a variety Manufacturers are discovering new and the business. This isn’t one and done. of functions, from supply chain and creative ways to sense and serve changing It’s a journey toward continuous quality control to customer management, customer demand with greater agility. competitiveness and differentiation. logistics and compliance. And it’s critical that the foundation on • Optimized operations: Connecting, optimizing and fortifying manufacturing operations, which your business relies is built atop supply chain and other business operations is an agile and flexible digital technology key to maintaining a resilient value chain. capability model. • Next-generation business models: It’s vital Achieving such a model requires having to capitalize on additional revenue streams the right mix of technology components, enabled through newer digital business models to stay competitive and grow. such as cloud, analytics, AI, IoT, augmented reality, digital twins, intelligent • Digital workplace culture: Enabling a digitally workflows and process orchestration. It’s savvy workforce and culture is also becoming one of the keystone capabilities of any also important to choose a platform that organization aspiring to digital reinvention. can fully underpin this digital capability model like Amazon Web Services (AWS). 4 A digital platform can help aggregate A digital platform can help aggregate innovations, such as improving production and assess data quickly and efficiently, line efficiency through IoT-based allowing the business to speed feedback predictive maintenance. For example, 92% of Leaders loops — and gain a competitive advantage report maturity in data Though the Leaders in our survey don’t with each iteration. It can support quick analytics while 94% say velocity, enabling the business to react cite a particular technology that helps quickly to changing market demands. them unlock additional market value, they’ve achieved it in both IT And it can provide the structure for they do demonstrate the importance of support and cybersecurity. maturity when using a suite of advanced digital initiatives, giving the business Laggards agree that maturity the flexibility to enact a wide variety of technologies. in these areas is key, but they’ve only achieved that level 19%, 45% and 35% of the time, respectively.1 In general, firms with wider technology adoption drive business taransformation and revenue growth faster than others. 5 Leapfrog to reinvention For manufacturers looking to leapfrog the competition and create a structure To what extent have manufacturers implemented each of the following as part of that enables the business to effectively their digital transformation plans?1 compete today — and well into the 41% 36% future — the good news is that digital 34% 34% 31% 31% 32% 31% innovation isn’t like the rungs of a ladder. 30% 28% 27% Manufacturers can identify their end 23% 23% goal and work directly toward it. In 19% 19% the NTT DATA survey, manufacturers identified several areas where they seek to grow maturity. A platform for innovation allows these organizations to directly 6% 12% 6% 6% 3% 8% 6% 3% 6% 5% target, extend and expand to emerging IOT Application modernization Application management Data analyticsCloud migration areas such as IoT, AI, machine learning Not at all Not yet We are in the We have adopted it but We have (ML) and automation.1 (we have no plans to) (we have future plans to) early stages of adoption have not reached maturity yet achieved maturity If an employee has a great idea today, how long would it take to start working on that idea? How long would it take a minimally viable product to move through to production? For many organizations, it’s in the order of months. The competition won’t sit around and wait. If you don’t have a technology platform agile enough to support the digital reinvention goals of the business, start building one today.2 6 Grow the top line A digital platform empowers IT leaders to: length how small iterations create a flywheel effect where momentum • Help the business bring new ideas to derived from small iterations grows to market faster create competitive advantage.4 The point • Deliver more quickly and in at which the flywheel’s weight starts smaller increments working to a team’s advantage isn’t • Increase time for innovation with automated the result of a single turn of the wheel. self-service provisioning that frees IT Similarly, it’s the consistent application resources and speeds development of learning through experimentation that grows competitive advantage. Manufacturers pursuing a path of digital • Pursue greenfield opportunities, such as pairing sensor data collection with AWS and reinvention can accelerate top-line data analytics for real-time insights Such experimentation can reveal growth by leveraging digital technologies opportunities for new business models to enhance the effectiveness of digital These capabilities also help manufacturers and revenue prospects. For example, sales channels, attract and retain more experiment faster. Experimentation drives servitization introduces a new business customers, and grow loyalty and the innovations that help manufacturers model that moves manufacturers away remain relevant to customers. Experiments lifetime value. from a traditional product model to a need not be big; small tests that facilitate solution-focused model that delivers When the business needs to move fast, IT learning and improvement can be just as desired outcomes. When paired with leadership must quickly align technology useful, because any step that takes the IoT, this model can help manufacturers unlock vast amounts of data to offer resources to meet corporate goals and business forward in its digital reinvention efforts is valuable. insights not only related to predictive ensure capabilities can flex and scale as maintenance but also into customer use needed. And, when the organization has In the book “Good to Great: Why Some patterns. These insights can fuel additional an idea, it must have a digital platform that Companies Make the Leap...And Others experimentation and lead to new allows it to act — swiftly if necessary.3 Don’t,”