Each year, digital technology has a greater impact on the industrial world. Perceptions from industry leaders across manufacturing, processing, oil and gas, mining, and power generation, to name a few, are transforming quickly. The recent release of the Smart Industry State of Initiative report is a testament to this – several different metrics show that companies are realizing the importance of digital tech in traditionally non-digital industries.
Here are 5 facts from the report that show the changing world of industrial enterprises:
1. Impact: Nearly 70% of respondents anticipate that digital technology will have “high or critical impact” on their industry in the next five years — up from 45% in 2015.
2. Strategy: 48% of companies have a formal strategy with timelines for delivery, as opposed to just 24% in 2015.
3. Lack of Strategy: 19% of companies have no digital strategy. In 2015, 45% of companies had no digital strategy.
4. Benefits: The top benefits of digital transformation were listed as:
- Increase productivity
- Reduce costs
- Optimize utilization
- Enhance customer experience
- Enhance safety
5. Obstacles: The biggest obstacles to digital transformation were listed as:
- Lack of business impact understanding
- Security concerns
- Lack of employee knowledge
- Workforce skills gap
- Weakness in technical infrastructure
There is virtually no industry that is unaffected by digital technology today. Even traditionally non-digital industries – like manufacturing, processing, oil, and mining – are working quickly to embrace digital in order to reap the rewards of innovation and competitive advantages.
Does your company have a digital strategy? Does your leadership understand the business impact of digital technology?