What is the digital transition?
Definition
The digital transition, also known as the digital transformation, is the process by which companies adopt digital technologies to improve their activity and productivity.
The benefits of the digital transition for industrial companies
The digital transition improves operational efficiency by automating numerous processes.
Companies can cut their production costs by using digital tools to monitor and optimize the use of their resources.
The digital transition can help companies to better understand their markets and customers, by collecting and analyzing data in real time.
Finally, it enables companies to develop new economic models, by creating innovative products and services that use digital technology.
The scope of application of the digital transition in industry
The digital transition can be applied to many fields of industry.
By way of example, companies can monitor the status of their equipment in real time and prevent failures by using the technology of the Internet of Things (IoT).
Data analysis can optimize the supply chain, improve product quality and reduce downtime.
Virtual and enhanced reality technologies can be used to train employees and improve safety.
Finally, robotics and automation can increase efficiency and cut production costs.
Industry 4.0
The impact of the digital transition on production processes
Robotization has increased productivity and the quality of finished products, while cutting production costs at the same time. The digitalization of production processes has also enabled better stock management and optimized procurement.
In addition, the digital transition has given birth to Industry 4.0, which involves the integration of digital technologies, such as the Internet of Things, enhanced reality, artificial intelligence and big data, into factories. This integration has enabled the creation of connected, autonomous and flexible production systems that are capable of adapting quickly customer needs and repairing themselves.
How digital technology has transformed customer-supplier relations
The digital transition has also transformed relations between industrial companies and their customers and suppliers. The digitalization of sales and marketing processes has enabled a better understanding of customer needs and the personalization of offers. Likewise, the digitalization of sourcing and supplier management processes has improved collaboration and cut costs.
The digitalization of customer-supplier relations has also improved chain supply management and enabled disruptions to be anticipated. As a consequence, companies can reduce the risk of shortages and late deliveries.
The new opportunities created by the digital transition
Finally, the digital transition offers new opportunities for industrial companies. The data collected on the Internet of Things and by sensors can be used to improve product quality, predict failures or anticipate customer needs.
In this way, companies can offer new services, such as predictive maintenance, product rental instead of product sales, or analyze customer data to propose personalized offers.
The digital transition allows for the rethinking of economic models. The functionality economy, which consists of selling a service rather than a product, can be developed by digitalizing production processes and collecting data. Consequently, companies can propose subscription, hire or product-sharing offers, which create new sources of income.