Digital transformation examples
How do you structure a digital transformation process, who needs to be involved, where to start?
Rethink the future
Digital Transformation Programs are one of the main triggers why large enterprises contact us. Traditional (industrial) corporates feel the pressure to rethink their business models. In order to do so, the whole organization has to evolve. Both how to interact and engage with customers as for how to operate and manage your resources.
List of 22 ‘transformation cases’
How do you structure a digital transformation process, who needs to be involved, where to start? In our own innovation consultancy projects, we regularly look at how other companies approached this problem. Below there is a list of pilot case & examples that are part of larger digital transformation initiatives. This is a preliminary list of cases that will be updated on a regular basis. Feel free to share your own references.
Tesla made all their electric vehicle patents available for free. 2 Reasons: to accelerate the market and to make their technology the standard. Ford (Electric), BMW (Electric) and Toyota (hydrogen) followed their example
Eaton, the US-based power management major, offers the “eNotify Remote Monitoring” service that provides 24×7 remote monitoring of connected Uninterrupted Power Supply (UPS) systems. The service is offered free for one year after product purchase but is charged for in subsequent years.
Ingersoll-Rand PLC, the maker of Trane commercial heating and air-conditioning gear, supplies remote monitoring of HVAC systems and data analysis through its Trane Intelligent Services. Ingersoll develops operating strategies for its customers that balance the need to keep buildings lighted and cool with the need to meet increasingly rigorous goals for lowering energy consumption, including sometimes reducing usage on short notice to qualify for special utility payments.
Caterpillar and Uptake (data analytics startup) co-develop “predictive diagnostics” tools for the larger company’s customers to take the mountains of data spewing from bulldozers and hydraulic shovels and turn it into meaningful information that can help Caterpillar’s customers catch potential maintenance issues before breakdowns occur, minimizing downtime.
Pay-per-lux leasing program sold to eg. Washington Metro and Schiphol Airport by Philips and energy services company Cofely. Clients pay for the light it uses, while Philips remains the owner of all fixtures and installations. One of the main reasons: energy savings without investment costs of LED lights.
The fast pace of projection disruptions resulted in cinemas to either work with outdated technology or spend more than they earn. Barco proposed to deliver a projection service instead of selling the projectors with a cost per hour projected of LED lights.
Joy Global Inc. is a Fortune 1000 company that manufactures and services heavy machinery used in underground and surface mining. The company also deals in aftermarket parts. By installing sensors in their machines they noticed their clients that the machines needed replacement parts or service. (Smart Services monitoring program)
GE launched Predix as an industrial internet cloud solution for predicitivity solutions that can keep an eye on locomotives, collect data about heat and vibration, and predict when you need to perform maintenance or replace parts. (Value created for GE in 2014 => +$1B)
Developed a mobile online tool which enabled the digital disease identification of plants on the field. A direct connection between the most applicable BASF products and the disease is then established to treat the affected plants. Upsales resulted in big growth in South America.
DHL has successfully carried out a pilot project testing smart glasses in a warehousein the Netherlands as the first step in their Augmented Reality journey. In cooperation with DHL customer Ricoh and leading wearable computing solutions expert Ubimax, the technology was used to implement ‘vision picking’ in warehousing operations. (Check youtube video)
Airbus invests in OneWeb, a company building a constellation of 640+ satellites in order to provide broadband internet access to the world. (Total disclosed funding $500M by Airbus, Qualcomm, Virgin, etc.)
Dow Corning launched Xiameter in 2002 to comprise an online-managed, low-cost, no-frills sales channel for its commodity silicones, offering competitive pricing to customers willing to buy in bulk, without research or technical support. (Difference with ‘just an e-store’ is the creation of a totally new brand without any technical support.)
Cisco outsources all of its manufacturing to contract manufacturers. Although outsourcing has several benefits in terms of variable versus fixed costs, it also introduces the challenge of controlling outsourced production processes, particularly product quality. To manage this challenge, Cisco developed a “virtual” MES (manufacturing execution system) platform or VMES, which provides real-time visibility to supply chain quality. The VMES covers three fundamental aspects, the “3Ts” of outsourced production operations: Traceability, Transformation, and Test.
Trelleborg introduced collaborative robots to operate their CNC machines in their production site. The company managed to handle 8 machines with 1 person (instead of 3), could use the extra people for quality improvement and even increased their hiring of real employees.
GE is working on ‘the digital windfarm’. They estimate that the technology could boost a wind farm’s energy production by as much as 20 percent and create $100 million in extra value over the lifetime of a 100 megawatt farm. (build on Predix platform GE)
GE is making the biggest, most efficient gas turbine to date (100m in length), filling it up with sensors to monitor temperatures, vibrations, and other conditions. The sensors will be able to feed the data over the Industrial Internet to software built on GE’s Predix platform for analysis. EDF can use the results to improve performance and also to schedule maintenance and prevent unplanned downtime. (1B in sales in the first 18 months after production start)
Smart Silo eliminates administration and takes the guesswork out of cement supply and silo management:
- CEMEX installs sensors in the customer’s silos to track consumption and inventory information.
- The cement inventory levels are monitored and transmitted Online to CEMEX.
- CEMEX personnel use this information to create a demand plan.
- Cement is dispatched to the customer’s site, ensuring a seamless and continuous supply.
- Customers can view current stock levels and orders received in the CEMEX Connect customer Online resource center.
Proximity monitors, speed controllers, lane keeping assistants – such systems are commonplace on cars. Now, similar systems are finding applications in mining vehicles as well. The objectives: greater productivity, efficiency, and safety.
DSM charging clients a percentage of extra energy generated because of DSM anti-reflective coating on their solar panels.
EnerNOC offers solutions for demand response and energy management for commercial end-users, utilities, and wholesale suppliers. They acquired a Vancouver-based startup that provides energy insight for small and large commercial customers (Pulse Energy: leading customer engagement software provider for utilities). This increases the company’s software product offerings, but it also enables the company to tap into previously inaccessible markets. EnerNOC Pulse Energy’s software enables utilities to deliver targeted energy-saving recommendations in a branded environment, catering to each customer’s unique profile, including business type, location, and energy usage. With this partnership, utilities can now increase customer satisfaction, manage system demand and increase operational efficiencies. The platform works by communicating unique recommendations and tips, which can help utilities drive the behavioral changes of their customers.