Today, when thinking about Industry 4.0, it seems that the potential of new technologies is dominating the world. In fact, digital transformation is often seen by many companies as a defensive investment—to protect rather than expand their business.
When it comes to Industry 4.0, the potential of technology is increasingly present in everyday life. Digital transformation is often seen by companies as a defensive investment to protect, rather than expand, the business. Nevertheless, it is acknowledged that organisations value digital transformation and recognise its strategic potential.
Why organisations hesitate
So why are organisations not experiencing this technological movement—enthusiastically dubbed Industry 4.0—in a more strategic way to expand their business?
One good reason may be the technology overload they are already facing; another is an almost overwhelming range of technologies whose real value they may not understand or be able to sustain, and which may seem too disruptive for the company’s line of business. Even so, the fact is that we are living through a period of intense change in the business world regarding how to correctly implement the necessary (and, in some cases, disruptive) digital transformation. And while the tendency to adopt a defensive position focused on preserving the current business prevails, the fact is that new competitors—with disruptive approaches and little to lose—will not wait.
How to leverage digital transformation in Industry 4.0
To leverage a digital transformation strategy, organisations should consider the following steps:
· Incrementally, go beyond operational upgrades. Digital transformation can drive revenue growth through improved products or services, which can even help create niche business models beyond the usual services;
· Invest for the long term, i.e., do not neglect long-term opportunities in pursuit of short-term goals;
· Increase the time spent and development. An example where this topic can be particularly relevant is the supply chain, where there is a growing focus among organisations. With new technologies becoming increasingly accessible, organisations of all sizes and types have the potential to break into an already established market and, in doing so, promote its true democratisation.
Companies need to reflect on all this potential in their strategic planning. Despite everything that has been stated, it is essential to make it clear that, however relevant technology may be in a transformation process, the real challenge for organisations lies in people and processes.
