Most managers have already encountered the term Industry 4.0, which also includes automation, digitization and automatic data collection and processing. Focusing on the technical side of the organization's development in this direction is certainly what has been a major issue in recent years in many meetings and conferences on a key topics of development of manufacturing companies. However, are you ready for what changes will come with new systems, and what this will mean for the corporate culture, people's competencies and their perception of their own work? Do you lead your people through the whole process of change also with a feeling for them? We would like to answer the question why it is important to address non-technical aspects related to automation and digitization as well.
64% of companies have already started investing in smart solutions.
71% of CEOs believe that Industry 4.0, and therefore artificial intelligence, will have a significant impact on their business.
And where do you see yourself? Not only manufacturing companies, but also companies in the field of services, banking and healthcare perceive the need for change and trends that are coming with the new digital era.
Digitization can help companies get closer to the customer, improve business and services. On the other hand, it also allows us to achieve a state where we do not pay our employees for rewriting data in spreadsheets and give them the opportunity to focus on creating value for the company, innovation and improvement. This change is so dramatic for employees that it is necessary to prepare them for it and to fully subject the management method and corporate culture to these changes.
THE ROUTE TO DIGITAL COMPANY
The path to digitization combines 6 basic elements, of which only half are of a technical nature.
- Technologies
- Data
- Processes
- Organization
- Management
- Safety, security
All these areas need to be evaluated and developed if we want to achieve a sustainable state after the implementation of Industry 4.0 elements. Sustainability, continuous improvement of internal processes, quality and loyal employees and working technologies together create a symbiosis of success.
Today's trend is to focus mainly on technical elements, including technology, data and security. Many companies are also currently limited to technology and data. Based on successful implementations, we already know that digitization and automation can help companies increase revenue by 2.6% while reducing costs by 3.6%. However, in order to achieve this goal, it is also necessary to respect non-technical elements: processes, organization and management. It is necessary to keep in mind that digitization will not replace all our subordinates and colleagues with robots, they will still be there even when the company's culture naturally changes and transforms into the digital age. These people need to accept change, learn to work effectively in a new environment, and constantly innovate internal processes. Everything must also go to the top goals of the organization, fulfill the long-term strategy and vision that the company has set.
Prepare your people, the most important things are that:
- People understand what is changing and why change is happening.
- People understand how a company changes and how they can be a part of it, how they can get involved.
- We are not afraid to involve employees from top management to people from production, who are still the most valuable thing for company also in the digital age.
- People acquire new skills that we actively develop.
- We emphasize processes and standards.
- We deal with business continuity.
HOW TO GO TO DIGITAL ERA STEP BY STEP
The transition to the digital age is not just an installation of new technology. It is a strategic, long-term, central change that affects every aspect of operation in companies. If people do not accept this change and are unable to adapt to the new environment, the change will not be sustainable, or it will create the illusion of sustainability, in which people will struggle with a different reality than the automatically processed reports will show.
If you strategically plan steps in all six elements from technology to security, you will succeed in digitization and automation. You can use the following procedure:
- an initial assessment of the current state of the organization for each element
- implementation of changes at the level of strategy and vision of the company
- description of the project, including its objectives, stakeholders, risks, course and involvement of external experts
- implementation of individual steps with regard to: technology, data quality, staff training, process changes, a new approach to management, etc.
- continuous evaluation of individual elements - where we moved, why we did not reach the goal, what was the cause
- anchoring the future state - digitization and automation is a never-ending process, it is necessary to proceed systematically in small steps