Leveraging digital transformation to build a better future for your company

Over the past two years, we have seen unprecedented change in the way companies across the globe manage their operations. This change has been facilitated by digital transformation, or the adoption of digital technology into all areas of a business and has created a fundamental shift in the way companies operate and create value for their customers. While the world's digital transformation was underway long before COVID-19 emerged, the rapid onset of the pandemic created an immediate need for companies to be agile and adopt digital tools and solutions to keep business running smoothly. According to recent data, companies have accelerated the process of making their customer and supply chain interactions and internal operations digital by three to four years. 

As companies have managed through the pandemic, facing supply chain challenges, labor shortages and a need for infrastructure to support flexible work options, the increased productivity and efficiencies that can be achieved through digital transformation have been made clear. To capitalize on this momentum, companies will need to leverage data and operate with a digital mindset to unlock new revenue streams, enable a frictionless customer experience, optimize and automate business processes, and equip the factories of the future.

Digital transformation for industrial companies

As part of this fundamental shift in how business is conducted and services are delivered, companies are leveraging digital transformation as the path forward in an environment where customers' needs are rapidly evolving. This is particularly true of industrial companies which are at risk of being marginalized as simple product manufacturers if they do not participate in this transformation.

At Eaton, our approach to digital transformation means putting data and agility at the core of our business processes. Eaton's current and future customer base, workforce dynamics and the macro-economic conditions of the industrial markets we serve are accelerating our transformation into an intelligent power management company. Building on more than 100 years of power management expertise and our deep knowledge of the application of electrical and industrial products in our customers' environments, we're reimagining innovation by adapting digital technologies like connected devices, data models and insights to transform power management for safer and more sustainable and efficient power. 

Value creation through new business models and digital customer experience

Changes in market dynamics are also driving a focus on digital offerings. Digitally enabled hardware and software systems are increasingly important to support this significant industry shift. Industrial companies that have gained initial success by developing innovative hardware products must now evolve their portfolios to include digital solutions, such as connected devices, data models and insights to continue to provide customers with value.

Shifts in customer needs and expectations are driving an evolution in traditional service models. As a result, companies must take a fresh look at how they unite front-end digital tools with back-end processes if they are to succeed in delivering seamless end-to-end-customer interactions. With staffing challenges limiting in-person interactions, many customers want to interact with suppliers digitally, adopting virtual or self-service sales and support options. 

Digitalizing factories for the future 

The events of recent years have placed growing pressure on the performance of global manufacturers. These disruptions have underscored the importance of adopting Industry 4.0 technologies at scale to help organizations achieve operational excellence and keep operations running amidst challenging conditions.  

Industry 4.0 – known as the fourth industrial revolution – leverages automation of traditional manufacturing practices using digital technologies like the Internet of Things (IoT), robotics, additive manufacturing, factory simulation and augmented and virtual reality to adapt, predict and optimize factory performance. Manufacturing models that are innovative, scalable and data-driven result in higher product quality, decreased time-to-market, a reduced environmental footprint and a safer and more productive workforce. 

Optimizing and automating business processes to enable efficiency 

The way we work is changing. Through data analysis and the leveraging of technologies like automation and artificial intelligence, companies have an opportunity to reimagine and simplify work processes to create better work experiences for employees. 

This transformation can be accomplished through process optimization, intelligent automation and improved utilization of digital tools and systems. Wherever possible, companies must identify opportunities to eliminate waste from internal business processes and apply digital technologies to ease the burden on teams and make work more efficient. 

Transforming skillsets and mindsets of employees 

While digital transformation is primarily driven by technology, our people will ultimately determine if we succeed or fail. As Harvard Business Review recently noted, "…your ability to adapt to a digital future is reliant on the development of next-generation skills, closing the gap between talent supply and demand, and future-proofing your own and others’ potential." Put simply, even the best and brightest innovations cannot drive transformation if we do not have the skills and knowledge to use them. For digital transformation to be successful, investments in digital infrastructure need to be made in tandem with investments in building digital capabilities in our people. 

There is great responsibility among leaders to drive organizational change and foster an environment where employees feel empowered to reshape the way they think and work. Having a digital mindset when approaching innovation and daily work is critical, and the adoption of digital tools and technologies will accelerate digital transformation and enable a frictionless customer experience. This means continuously building digital skills, using digital technology to enable creative problem solving, leveraging data in decision-making, using digital tools to drive hyper collaboration, and digitizing data to improve speed and effectiveness.  

Learn more about Eaton's digital transformation.