2. Digital transformation (DT) – The use of technology
to radically improve performance or reach of
Major Drivers are :
Smart Embedded Devices
3. The 3 main reasons are :
8. "The possibilities of the digital revolution must be put to
good use. That involves designing, developing and
manufacturing our products much more efficiently and
much faster. In the aerospace industry, we are currently
seeing a level of competition that we have never
TOM ENDERS, CEO, Airbus Group
9. The European logistics industry stands to gain an extra 54 billion euro's a year
in value added by the digital transformation.
From smart factory to the autonomous vehicle: If it vigorously tackles the
challenge of digitization, the automotive industry can rake in an extra 35 billion
euro's in value added in 2025.
Enabling the digital transformation: Electrical engineering can look forward to
another 26 billion euro's of gross value added a year.
The digital transformation as a product and a service: Mechanical and plant
engineers have tremendous opportunities for digital growth and can pocket an
extra 89 billion euro's a year.
An innovative leap forward in research and production: More digitization
could drive up value added in organic photovoltaic's and the rest of the
chemical industry by 25 billion euro's a year.
Boosting growth: Europe's aerospace sector can realize value-added potential
worth 10 billion euro's in 2025.
If Europe fails to turn the digital transformation to its own advantage, the
potential losses for the EU-17 countries add up to 605 billion euro's by 2025 –
equivalent to the loss of well over 10 percent of the continent's industrial base.
This would push the EU's stated aim of increasing manufacturing's share of
European GDP to 20 percent by 2020 way back out of reach.
12. Top priority must be given to raising awareness among
companies and mobilizing them.
Digitization challenges current business models rather
than boosting efficiency
It also promises new and hitherto untapped potential to
First aspect involves increasing their penetration of
digital trends and possibilities.
Secondly to gain a better understanding of how the
digital space is changing the rules of competition, as this
will allow them to optimize existing business models and
develop new ones.
Third, firms must cultivate the ability to develop and
multiply the resources they need in order to seize new
opportunities in practice.
15. Initiation challenges
Lack of impetus
Regulation and reputation
Unclear business case
18. Envision the digital future for your firm
Identify and diagnose strategic assets
1. Sales force
2. Point of sale and distribution channels
3. Products and content
4. Product innovation
5. Partnership network
Create a transformative vision
Invest in digital initiatives and skills
Find the right skills
Invest in initiatives that advance the vision
Lead the change from the top
Engage the organization
Establish digital governance
21. In future all Products and Services will be digitized
Huge potential to grab from multiple industries
India being service oriented few keys to be observed
Major chunk of revenue will come from services in the post digitalization phase
Indian IT enabled digital service ready based companies can tap upon this
Major devices will be governed by Internet Of Things
India must prepare itself for the first wave of digital
transformation especially in the sectors of Automotive and
22. Digitalization of all the industries are imminent
in due phases. Thus we as a company must
take the right steps right now in the path of this
great opportunity and transformation.