Three focal points today for digital transformation.
Discussing Industry 4.0 without considering the influence of the context is impossible, and today we face significant challenges that are fully impacting the sector.
The first is related to the macro scenario. If the recent major “reset” for the world – and particularly for companies – was COVID-19 (since it was the turning point that accelerated digital transformation), what is currently happening is a second major “reset” related to energy issues.
In Europe, there is tremendous concern about energy rationing. While European countries have long focused on this aspect, the situation is now much more delicate. Since Russia’s invasion of Ukraine, fossil fuel costs have skyrocketed, leading to inflation levels worldwide. The current energy crisis is, in fact, a test to the risks of continuing to rely on fossil fuels, which is especially significant for industries.
In this regard, Europe’s great fear today is that industries will cease production due to a lack of energy. Energy is now more expensive than ever, and looking after it is a basic need. We see examples of countries depleting their last energy resources and even considering alternatives such as nuclear energy. Companies are trying to minimize energy costs, for example, by re-evaluating home office arrangements to reduce infrastructure and maintenance expenses. All efforts are directed at avoiding energy shortages and minimizing costs.
Another major point is that Industry 4.0 remains a label for the new phase of the industrial revolution we are going through, but many small and medium-sized enterprises still view it as distant, unattainable, or linked to complex technologies like robotics or artificial intelligence.
The reality is that Industry 4.0 is inclusive for any organization. According to the European Union’s definition of digital transformation, creating an ecommerce site, uploading data to the cloud, or launching an email marketing campaign already represents undergoing digital transformation.
In this context, another aspect to consider is which is the focus to start this transformation: data is at the core of a 4.0 strategy. Understanding that digital transformation involves simple and accessible processes within reach of such companies, it is crucial to start with data management: beginning to work on organized and strategic information management is the priority, with clear and coherent processes.
I want to emphasize that data is the starting point when beginning a digital transformation journey. I mention this because I often encounter companies wanting to embark on this path by starting with projects or initiatives that follow current trends: just as app development was years ago, today “artificial intelligence solutions” seem to be the trendy requirement, regardless of the reason why or what for. Data organization is the number one priority, with other, more complex digital transformation paths being evaluated at a later stage.
Lastly, no matter the stage of digital transformation, technologies are never above people. The human factor (talent training and customer needs) is the main focus that should always guide the design of a data strategy in Industry 4.0.
By Julio Cesar Blanco – 24 de enero del 2023
