Part III: Digital transformation approach for chemical companies
Opinion

Part III: Digital transformation approach for chemical companies

Different CxO offices need to interact and collaborate to execute the plan while Program Management Office orchestrates the whole operation and reports progress to top management

  • By Vishal Kelkar & Chetan Badhe , Thought Leader, Industry 4.0 | May 07, 2023

In the previous article, we highlighted on defining a digital roadmap based on three dimensions – people, process, and technology to ensure maximum efficacy of the transformation that organizations plan to undertake. The next and most important step is to execute this plan successfully.

Digital roadmap execution approaches

The pre-requisites for a successful execution are digital maturity assessment and a carefully crafted digital roadmap that has been discussed in detail in our previous articles. Multiple levers need to be used to steer and monitor roadmap’s execution. These levers can be applied at multiple hierarchies simultaneously to ensure progress at all levels as per the plan. Different CxO offices need to interact and collaborate to execute the plan while Program Management Office orchestrates the whole operation and reports progress to top management. Following points should be considered to achieve maximum efficacy in execution:

Identify and prioritize high value applications

From the application landscape prepared in the earlier phase, short list areas that will benefit the most from digital transformation. Alternatively, these will be the pain points where adequate value is not being captured. Additionally, identify satellite applications that surround the main one and club them together for a concurrent execution. The whole package will show tangible results and motivate the decision makers.

Target low hanging fruits

Executing a large digital transformation initiative can be overwhelming. In addition to the high priority applications mentioned above, also look to score quick wins with smaller, non-core areas too.

Execution in logical groups

Before embarking on digital roadmap implementation, logically group different applications from the landscape. Applications that interact most with each other or are highly interdependent should be modernized together. It will lead to a significant value addition that can be measured and shared with the stakeholders.

Monitoring and reporting of value adds

A comprehensive set of dashboards should clearly show the gains made by implementing the digital strategy to get the best view of all the efforts made. Key performance indicators like OEE, productivity, cycle times, inventory levels and turnover should be highlighted show the progress made.

Integrated program management

Program Management Office (PMO) led by digital transformation officer directly reports to CTO, COO daily and updates CEO on its progress. Technology and operations teams collaborate to execute the roadmap that has been prepared earlier. This structure promotes clear communication and accountability, allowing the organization to work towards a shared vision and achieve its objectives. PMO should monitor the progress with two lenses, namely:

Conclusion

A successful roadmap execution will lead to achieving the long-term digital transformation vision for a corporation that is aligned with its core vision and values. The three stages explained across articles are an attempt to highlight the important considerations for a large and high complexity digital transformation that touches upon not only the technology and process part but also integrates human resources who lie at the very core of any organization.

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