Cultural change of people, key to the success of industrial digitization
Kaizen Institute brought together Carles Miranda, Manager of Industry 4.0 and Circular Economy of ACCI, the agency for business competitiveness of the Generalitat de Catalua, Daniel Manzano, Innovation Manager of Vodafone and Giovanni Inturrisi, Site Leader Manufacturing & Research at Zoetis to talk about the keys to digital transformation in Industry and what are the main challenges in the implementation of this process. “In less than a year, digitalization has become widespread throughout the world, in particular through the generalization of remote work, online training and e-commerce. The tools associated with Industry 4.0 have been part of organizations’ strategic plans for several years. However, 7 out of 10 digital transformations fail, ”explained Javier Langa, Research & Development manager at the Kaizen Institute.
Towards industry 5.0
Carles Miranda, Head of Industry 4.0 and Circular Economy at ACCI gave an introduction to the digital world in industry seen as a paradigm shift in the way things are conceived, designed and produced.
“In Catalonia, we are seeing an increase in the offer of solutions and services to the company in the field of Industry 4.0. In four years, the number of this type of suppliers has tripled, we currently have more than 1 100 companies that provide these advanced digitization services to industry in the field of cybersecurity, artificial intelligence and the Internet of Things, a reality that spans many sectors from automotive to metallurgy, which are leading this digital transformation process, to others such as the food, logistics, distribution, machinery, textile, retail, health, energy, etc. sectors, which massively integrate this type of solutions to digitize their processes , business models and services. To this must be added the very rapid evolution of the technologies included in the concept of Industry 4.0. At present, this evolution is so rapid that it means that we can have to this day around 50 references in the advanced technologies associated with this concept, among which there are a dozen technologies that have a significant weight and impact such as Additive Manufacturing, Cloud, AR / VR, Connectivity, Cybersecurity , IoT, AI, Robotics, Quantum / Photonics, Simulation, DLT and Big Data “.
Regarding what digitization brings to companies, and in particular to SMEs, Carles Miranda highlighted four clear aspects: “it offers greater visibility, more transparency, predictive capacity and more adaptability”.
He also mentioned the evolution towards Industry 5.0: “We detect that this rapid evolution of technologies also applies to the evolution of the very concept of Industry 4.0. The European Commission is already talking about Industry 5.0. An industry based on resilient economies that goes beyond the achievement of the objectives of economic growth and employment. Industry is the basic pillar which promotes prosperity, takes care of the environment and protects the well-being of the worker “.
On how to ensure the success of this digital transformation, the ACCI representative stressed that it is about “promoting innovation, supporting SMEs and combining a series of business support services “. He identified “people” as a key element, who should be seen as the main protagonists of this organizational, cultural and technological change. It is also necessary to analyze and select the most appropriate solutions for the business. Establish a digital transformation plan aligned with the company’s strategy and create your own ecosystem of suppliers, partners, technology partners who will help you carry out this process. Finally, he underlined the importance of the implementation of digitization, through pilot projects.
During his speech, Carles Miranda also underlined the support programs for this technological transition to help SMEs and industry meet these challenges launched by all Administrations at European, national and regional level. “Expansive business reactivation measures are being promoted by all administrations, including European ones. We perceive these changes not only thanks to the support of the administrations but also by the commercial fabric.”
Next Generation: a decisive commitment to digitization
Carles Miranda looked at the contribution of the European Union’s Next Generation initiative: “it aims to be a plan that allows the building of a competitive Europe for the next generations and requires a decisive commitment to digitization and sustainability. Previously, 750,000 million euros, 150,000 million for Spain, whose objective is to apply 39-40% to actions of sustainability and ecological transition and 30% to digitization. Spain has prepared the draft Resilience and Recovery Plan presented in October 2020, already approved by the European Commission and which will result in the arrival of a first aid shipment of 19,000 million euros. The Plan envisages supporting projects based on 10 policies and driving levers, there are two very important levers for the industry, that linked to the Modernization and digitization of the industrial fabric and SMEs, revival of tourism and promotion of an entrepreneurial nation. Spain and the ocadas to Spain’s industrial policy 2030 “.
He also named, at the national level, the “Connected Industry” strategy, promoted by the General Secretariat for Industry and SMEs, focused on the challenge of digital transformation and at the regional level there is a catalog of all initiatives developed at regional level. . At European level, within the framework of the Digital European Program, promoted by the European Commission, he cited the initiative promoted by the Commission concerning the future European network of “European Digital Innovation Hubs”, strategic at European level to achieve the objectives of digital transformation. They constitute a community of networked services, within which industry and public administrations can access a set of infrastructure services to foster their digital transformation in the medium term, acting as a connector between supply and demand. in the field of territorial action, as well as at the European level. Its objective is access to digital experimentation as a preliminary step to investment.
Digital transformation: cultural change of people is the key
Daniel Manzano, Innovation Manager at Vodafone, highlighted the following factors as success factors of the digital transformation: “the process part is fundamental, in the sense that we analyze how the company works, what is the point of start, what model is established and the blockages or challenges that exist from the start. Likewise, the new ways of working with the KPIs or business engines that you want to promote must be aligned. Once the analysis is complete, the cultural change of people is the key, the involvement of the beginning of all parties and that the management is convinced of this change. They will also analyze what is out there and how it fits into the way you work and your corporate culture. “In this sense, he pointed out that” the costs of employee training and digitization are two of the biggest sticking points that companies tend to have when it comes to tackling digital transformation. Therefore, to remedy this, participation is necessary. management, but they are not the only ones concerned, the need to be more agile and more digital must go from top to bottom, for the whole organization to participate ”.
Daniel Manzano also assured that “the part of the spaces was very important, the whole design of the spaces allowed us to establish a different environment, and changes in the environment help cultural change”. In addition, the firm commitment to the digital workplace and flexibility, where the office is at your side and access to information and collaboration is practically ubiquitous.
He also highlighted the importance of tools and technologies that guide the business to data, indicating what information is relevant, how it is stored, analyzed and what conclusions are drawn, which helps eliminate unnecessary processes and improve the customer experience. Finally, he underlined the relevance of knowledge management. Exploiting the informal structures and knowledge available to employees before and after a digital transformation is essential not to lose the value already created and to be more agile when it comes to detecting the company’s experts in areas not always obvious. In our case, using AI tools for training and expert discovery is something that helps a lot in improving this interaction and knowledge management.
The importance of pilot projects
Giovanni Inturrisi, Site Leader Manufacturing & Research at Zoetis, summed up the success of the digital transformation process in four fundamental aspects: “people, because starting a digital transformation requires having a highly motivated team with this objective. The second aspect to consider is the convenience of exploring the solutions that exist in the market and learning success stories, then running pilot tests, before considering rolling out projects throughout the plant. “
At this point, Giovanni Inturrisi underlined the importance of a controlled implementation process, which allows us to verify that the expected objectives are achieved in each of the phases. “It is only when the expectations of the previous phases are met that we must implement a controlled escalation plan that will lead us to success.”
Inturrisi also stressed the importance of people and their involvement in the process, as part of its success. “In a mature organization with a culture of continuous improvement, this fosters the creation of an environment of continuous challenge in operations, raising concerns about how to simplify processes. In our case, initiatives come from the bottom up. up and top management has a responsibility to support them, providing them with the necessary resources. This reverse flow makes initiatives very likely to be successful. “