Industrials Embrace the Digitization Concept, but Transformation Lags
The buzz about the “Internet of Things” has been brewing for years. Companies like SpaceX, Tesla, Apple, Uber, and Google have been pouring investments into universal satellite internet, autonomous cars, artificial intelligence, and wearables. Smart homes help us conserve energy, keep our families safer, and manage it all from anywhere in the world. With futuristic innovations enhancing our personal lives for years now, you would think that all companies would be digitally transforming their businesses as well.
For two years, MAPI and Spencer Stuart, an executive search and advisory firm, collaborated to study digital transformation trends in the industrial sector to gauge how quickly the industry has embraced digitalization. Progress is slower than in the consumer arena. Slightly less than a third of industrial manufacturing companies have mature programs that are 36 months or older, and 25% just started focusing on digital transformation in the last 12 months.
So why have industrials been slow to embrace digitalization? Executives tell us common technology change management obstacles are the culprit. Business process and system readiness is the biggest obstacle, followed by the technical and digital sophistication of the organization, internal culture, and budget constraints. The silver lining? Most companies are investing in hiring the right leader to help them take up the digital banner and meet changing customer expectations. More often than not, it’s an external hire.
Click here to learn more about how industrial manufacturers are tackling the opportunities and challenges they are facing with regards to digital transformation.