Digital Transformation
It is amazing how much science has progressed in the last 100 years. It has affected every sector (e.g. transportation, medical care, telecommunication) and all of this has been possible thanks to pioneers that have dedicated their life and their mission to scientific research. However, any new step forward produces an extraordinary effort in managing change. A good example comes from the past century and the revolution of physics made by Albert Einstein.
The theory of relativity and the revolution of physics
At the beginning of the last century (1905) Mr. Einstein published the theory of "special relativity" where he stated that for an observer the speed of light has the same value (i.e. it is constant), regardless of the speed of the light source. I am sure that most of us can recall the example of the twins paradox. Even more disruptive was the introduction of the space-time matrix and therefore a universe made of 4 Dimensions where space and time are interchangeable.It is not hard to imagine that these new theories have received criticisms for many years, even after the theory of general relativity was proven. The funny thing is that, once these theories became well known a huge debate about their paternity started, but that is another story.
The innovation in the theory of relativity has been so huge that some of the technologies to prove it (e.g. gravitational waves) have become largely available only 100 years later. Hence, we can understand why relativity triggered so many debates in the scientific community. However, it is now a milestone of modern physics. Mr. Einstein became an iconic scientist and from his theories, many other phenomena have been explained (e.g. black holes).
Hence, the acceptance of revolutionary ideas even when supported by evidence, depends on several human life factors including social environment, communication ability, and the historic period.
Now, let’s change the subject and analyse better the age in which we are currently living in relation to "digital transformation": you will find a perfect parallel to the history of Mr. Einstein's theories. Today we are part of a milestone in human history: it is the fourth industrial revolution. Things are designed smart, produced smart, and shipped smart.
However, let's ask ourselves: why do we hear so often about "digital transformation" today? Is it because technologies (e.g. cloud, connectivity) play the role of the disruptive element?
Digital transformation: an example in the medical device industry
One of the top companies in the medical devices business (Roche) has recently presented their journey towards the digital transformation. The manager explained their value chain and the impact of some changes in the way they do business, for example in the way they design the product (e.g. introducing Agile methodologies). The presentation is focused on technology innovation and how things can be linked and easily managed through the support of modern IT solutions.The manager explains two key technology concepts:
- Virtual Prototyping with some direct consequences:
- Architecture and design exploration at an early stage using CAD tools.
- Library of Virtual components
- Customer engagement in the prototyping phase to finalize the solution
- Virtual Lab simulation:
- 3D model simulation (4 Dimensions model) of the operations in a diagnostics laboratory.
Availability of virtual prototyping and 4D model simulation
I have worked in designing and engineering products all my life and by nature I find the possibility to improve the status quo exciting. In relation to digital transformation and innovation, I can show you a couple of examples to demonstrate why technologies are not the main topic, in fact, many of them have been available for years.
Virtual Prototyping
In 2000 I applied virtual component co-design workflow and its toolchain for a project with one of the big telecom system providers. We redesigned a part of the network systems for radio communications and thanks to this approach we have been able to define the architecture and implement the required part.The concept of exploring architectural choices and simulate the implementation in a virtual environment is nothing new. It is well known that while this approach stretches the initial phase of the project (concept design), it shortens the overall time frame, for example, by eliminating multiple runs of prototypes. It provides the required needs to approach the design in an agile manner by testing several solutions quickly in a virtual environment until the requirements are fully satisfied.
Would it be feasible to introduce this technology in the medical diagnostics company 18 years ago?
4D Model Simulation
In 2008 I joined a company working on EPC (Engineering, Procurement, and Commissioning) contracts for power plant construction. Engineering companies master 3D design and simulation on virtual prototypes to limit the project risks. In fact, these contracts are very difficult to manage due to their complexity and hence the high exposure to risk (e.g. cost variation of raw material, on site accidents, change in regulation, etc.).The engineering team recognized that sometimes there are problems with the scheduling, in particularly:
- Due to the high complexity of the schedule (>6000 activities at engineering level), it is difficult to visualize the congestion area of planned activities on site (e.g. too many people working in the same part of the construction plant). This can lead to delays or accidents.
How would it be feasible to introduce this technology to the medical diagnostics company 10 years ago?
Conclusion
The technologies that allow the digital transformation journey have been ready for a long time and really do not represent the main problem for such programs.
The disruptive element today is that things like network connectivity, smart devices, cloud systems, and augmented reality are part of one's daily life, therefore "humans" are more open to change (e.g. decision makers and key stakeholders).
Digital transformation changes in the company's way of working, selling, communicating, and therefore it is the challenges to the status quo of people, products, and processes.
What the journey looks like depends on the technology gap and the change readiness of the organization. If you choose to cover a huge gap with one big step, then the result will most likely be a disaster because of the low acceptance level by the stakeholders. Hence, it may take several steps for a company to achieve the desired level of modernization.
The disruptive element today is that things like network connectivity, smart devices, cloud systems, and augmented reality are part of one's daily life, therefore "humans" are more open to change (e.g. decision makers and key stakeholders).
Digital transformation changes in the company's way of working, selling, communicating, and therefore it is the challenges to the status quo of people, products, and processes.
What the journey looks like depends on the technology gap and the change readiness of the organization. If you choose to cover a huge gap with one big step, then the result will most likely be a disaster because of the low acceptance level by the stakeholders. Hence, it may take several steps for a company to achieve the desired level of modernization.
The take away:
- In digital transformation programs, the technology solution is the easy part, the hard part is getting people on board:
- Make a holistic analysis of the problem that the digitization should solve.
- Make a solid business case to demonstrate to the executives where they need to invest money.
- Engage (not selling) the stakeholders in the value chain (e.g. engineering, product managers, supply chain, logistic, customer care, etc.).
- Plan the transition in a way that will not be disruptive to ongoing business operations.
