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Digitalisation | Technology is not the key challenge of digitalisation – Momentum is

Technology is not the key challenge of digitalisation – Momentum is

by | May 10, 2017 | Digitalisation

More and more manufacturing companies are trying to lead their employees to drive innovation and change. A clear direction reduces uncertainties and aligns actions.

Many manufacturers struggle to adapt to changing customer expectations, in the digital world. Their performance falls behind the competition, as well as new- and sometimes disruptive- entrants. The missing link that differentiates the leaders from the laggards is momentum, as opposed to business strategies, digital expertise, or commitment from the board-room. In today’s rapidly changing world, the ability to continuously adapt and drive change is crucial; this helps create sustainable performance for today, tomorrow and the rest of the future. A stronger brand and higher growth rate is usually achieved by industry leaders, who develop their digital offerings and experience at an advanced pace.

A well-known example is Tesla’s game-changing approach of continuously developing new functionality for cars, that are already on the road. A massive number of Tesla cars have already driven millions of kilometres with self-driving capabilities in passive mode. This not only enables engineers to benefit from a step learning curve to optimise their capabilities before going live, it also offers Tesla drivers new features ‘over the air’.

The Missing Link

Many business leaders may notice their employees behaving defensively, by pointing fingers at each-other, pushing new practices and solutions away, not joining forces with other teams, not taking ownership and disagreeing with stretched aspirations. Driving change absorbs a lot of energy and this can cause, what we refer to as a resistance to change. This is when there is no momentum to adapt and change.

The commonly used “plan & control”-management practices of the 20th century, is the root cause of a resistance to change. These practices push people into a short-term focus of maintaining a ‘status quo’ and hitting target numbers every week, month and quarter. The over-used management mantra of ‘failure is not an option’ creates an uneasy environment, increasing ‘resistance’ even more.

The alternative

Imagine if everyone in your company was enthusiastic to perform, drive, and adapt to change; all whilst keeping up-to-speed with the rapidly evolving business world. Every member, from every department would take ownership of aligned initiatives, and collectively take action to accelerate the servitization process and outperform within your industry. Your employees would learn from setbacks and adjust their priorities and strategies to succeed. Remember, that as a business leader, your role is not about ‘pushing’; nor should you be driving every initiative and intervention at the risk of your own sanity. It is immediate change that energises people.

The solution

To achieve this momentum, we need to adjust our management practices and create a safe, constructive and forward-thinking environment. An environment in which people seize power, passion, and the confidence to continuously adapt and drive change.

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Technology is not the key challenge of digitalisation – Momentum is

More and more manufacturing companies are trying to lead their employees to drive innovation and change. A clear direction reduces uncertainties and aligns actions.

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With today’s disruption from Covid and the economic downturn, continuing services innovation is paramount to survive and thrive. Customer needs are changing, and new competition is entering your industry. Some of the critical success factors are service R&D, service product management and sensitivity analysis.

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Stay up to date

Receive the latest insights and updates from our articles, interviews with your peers and ongoing research into best practices.

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