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– explored what respondents considered to be the abiding obstacles to momentum in digital transformation. Our study participants focused on three areas: turning data( from the digitalized production floor) into actionable intelligence; engaging better with the workforce to stimulate effective implementation; and digital transformation planning capabilities from senior management.
These findings were far from bland, then. In fact, the study uncovered some uncomfortable truths – most especially some lack of confidence in the ability of manufacturing’ s bosses to create viable digital transformation strategies.
Senior directors under the spotlight
Most other studies have not picked up on this issue, perhaps because they have concentrated on interviewing the very same industry bosses who come in for criticism – and who are unlikely to brief against themselves or admit any skills gap at the top.
If the leaders are not strategically capable and knowledgeable, they’ re also likely to be hesitant about investing in digital transformation in the first place. Or they’ ll invest in the wrong areas, with unrealistic expectations. In fact, I must admit to feeling somewhat sorry for such senior directors who are stuck on the horns of a dilemma – knowing they must act but not having a clear and knowledgeable idea how to do so.
... lack of strategic transformation planning skills at the top of an organization can fundamentally affect shareholders’ return on investment
The senior strategic skills gap is also an obvious political hot potato. It’ s difficult to break through the hubris of the leadership, who will tend to have a great deal of selfbelief( probably why they’ re in the top jobs). It’ s equally difficult to find knowledgeable middle managers and technical experts who are brave enough to challenge the bosses. Yet if the strategic framework for digital transformation is flawed from the outset, then the whole exercise is likely to collapse.
Mindset and value
Hannes Hunchovsky of EIT Manufacturing summarizes the point, saying:“ True transformation demands more than just technology – it requires cultural readiness, strategic vision, brave leadership and a commitment to overcoming obstacles. The challenge is not in adopting new tools, but in reshaping mindsets and workflows to embrace change. In an increasingly interconnected world, the manufacturing industry must work together along value and supply chains and across borders, while putting people in the center of all activities.”
It is, in many ways, surprising that stock market analysts and pundits have not got deeper into this issue – after all, lack of strategic transformation planning skills at the top of an organization can fundamentally affect shareholders’ return on investment. The issue is urgent. As Peter Welp of Siemens Financial Services says:“ Whether IoT, end-toend connectivity or analytics supported by AI, missing the right time creates more and more economic disadvantages that are difficult to make up for.”
What to do, then? I criticized analyst reports that identify problems but suggest no solutions, so, must not fall into the same trope.
Share and share alike
It was the clear and overwhelming opinion of our respondents that the answer lies somehow in a much deeper sharing of
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