Book Image

Industrial Digital Transformation

By : Shyam Varan Nath, Ann Dunkin, Mahesh Chowdhary, Nital Patel
Book Image

Industrial Digital Transformation

By: Shyam Varan Nath, Ann Dunkin, Mahesh Chowdhary, Nital Patel

Overview of this book

Digital transformation requires the ability to identify opportunities across industries and apply the right technologies and tools to achieve results. This book is divided into two parts with the first covering what digital transformation is and why it is important. The second part focuses on how digital transformation works. After an introduction to digital transformation, you will explore the transformation journey in logical steps and understand how to build business cases and create productivity benefit statements. Next, you’ll delve into advanced topics relating to overcoming various challenges. Later, the book will take you through case studies in both private and public sector organizations. You’ll explore private sector organizations such as industrial and hi-tech manufacturing in detail and get to grips with public sector organizations by learning how transformation can be achieved on a global scale and how the resident experience can be improved. In addition to this, you will understand the role of artificial intelligence, machine learning and deep learning in digital transformation. Finally, you’ll discover how to create a playbook that can ensure success in digital transformation. By the end of this book, you’ll be well-versed with industrial digital transformation and be able to apply your skills in the real world.
Table of Contents (15 chapters)
Section 1: The "Why" of Digital Transformation
Section 2: The "How" of Digital Transformation

The emergence of the CDO and the digital competency

The later part of the last decade (2015 to 2019) saw several commercial and public sector organizations start a digital competency. This often resided outside the traditional Information Technology (IT) group and consisted of people with cross-functional knowledge. In the following sections, we will look at the roles and charters of this new group.

The rise of the CDO

According to a study by Deloitte, large companies typically spend between 3% and 5% of their total revenue on IT (Figure 2.12):

Figure 2.12 – IT budget as percentage of revenue

Figure 2.12 – IT budget as percentage of revenue

This often corresponds to the budget of the CIO. To simplify the math, let's say for every $100 of the company's revenue, $5 is spent on IT. Now, if the CIO makes the IT organization 20% more efficient and cuts the expenses by the same amount, then the top line of the company does not change but the bottom line or the profitability improves...