The hottest industry 40 paradox overcomes the disc

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Paradox of industry 4.0: overcome the disconnect on the road of digital transformation

Deloitte tries to understand how the company invests in industry 4.0 to achieve digital transformation. Therefore, we conducted a global survey of 361 executives from 11 countries who are expected to maintain a slight increase in the market in the future. Although the definition of the fourth industrial revolution has been expanded, its root still lies in manufacturing. Therefore, our global survey focuses on manufacturing, power, oil and gas, and mining companies, studying how and where they invest or plan to invest in digital transformation, some of the main challenges they face in making such investments, and how they develop technical and organizational strategies around digital transformation. The survey revealed a series of disjointed phenomena between enthusiasm and ambitious plans for future investment, as well as the company's plans and actions

we will discuss this in the next chapter. Although almost every organization in the world is undergoing digital transformation, there are still paradoxes in its strategy, supply chain transformation, talent reserve and investment drive. This shows that the desire for digital transformation is still strong, but the organization is still looking for a balanced path to improve current operations by taking advantage of the opportunities provided by industry 4.0 technology for innovation and business model transformation

strategic paradox. Almost all respondents (94%) said that digital transformation is the primary strategic goal of their organization. However, although respondents seem to understand the strategic importance of digital transformation, this does not necessarily mean that they are fully exploring the strategic possibilities brought by digital transformation. In fact, 68% of respondents regard it as a way to make profits

supply chain paradox. Executives believe that supply chain is the primary area of current and future digital transformation investment, which shows that supply chain planning is the top priority. However, people other than supply chain managers and executives who guide the daily actual business operations, that is, those who personally experience and participate in the implementation of digital technology, seem to have no say in the decision-making of digital transformation investment

talent paradox. Consistent with Deloitte's previous research on industry 4.0, 3 executives said they were very confident in finding the right talent to support digital transformation, but they also seemed to admit that this was indeed a big headache. In fact, only 15% of the respondents said they needed to significantly change their staffing composition and skills. At the same time, however, executives point out that finding, training and retaining the right talent is the biggest organizational and cultural challenge they face

innovation paradox. Executives said that their digital transformation plan is mainly driven by productivity and operational goals. In essence, the use of advanced technology is mainly to improve efficiency. This discovery has been confirmed in Deloitte's previous research, which shows that in the recent business operation, the adoption of advanced technology has become more and more widespread, but this does not mean that the blow molding industry, mainly plastic film blowing machines, has a large proportion in the market, which does not mean a real opportunity for change, at least in the initial stage. However, innovation opportunities abound and should not be ignored. Organizations driven by other factors, such as the desire for innovation and increased attention to internal strategies, have reaped the same positive return on investment

physical digital physical loop. Making full use of information from related assets and using it to make informed decisions is very important for the full implementation of industry 4.0, and many organizations may not be able to fully implement this function in practice. Our research shows that executives in manufacturing, oil and gas, power and utilities, and mining are aware of the opportunities brought by the fourth industrial revolution, and they believe that digital transformation is a way to harness this growth. At the same time, however, the disconnect between different areas shows that executives are not sure how to achieve this goal, even if they plan to make more significant investments in the future. When trying to transform their organizations into interconnected enterprises that can operate in the increasingly digital era, executives have many opportunities to build a more interconnected, responsive and intelligent operation mode, and find a way to truly realize the promise of the fourth industrial revolution

break the paradox of industry 4.0 and overcome the disconnection of the digital transformation road

industry 4.0 is real and increasingly exists in every corner of modern industrial organizations. Our findings seem to confirm the leaders' belief that digital transformation attaches importance to process and talent commitment, whether it is human capital or financial capital. However, no method can successfully cross the road of industry 4.0, and no paradox is more urgent than other paradoxes. But our research results finally found that:

digital transformation is not an abstract effort separated from core organizational strategies and goals. Once implemented, it will become the core of the organization, touching on all aspects of the company, from profitability to supply chain management, and then to the spirit of the organization. Digital transformation may not be just a faster or cheaper means of doing things

there is no single definition of digital transformation. In the final analysis, digital transformation is the unique meaning given by each company and what the company wants to achieve from it. Digital transformation serves the needs of the organization; There are absolutely no two identical digital transformation plans

digital transformation may have a profound impact on talents. New digital organizations are bound to thoroughly understand and respond to their talent needs, including helping traditional talent understand how their roles will be reshaped

the culture of digital organizations should be inclusive. Everyone in the organization will promote digital transformation at all levels and ensure its daily vitality. Their ideas are important

the changes that digital transformation may bring to the organization will continue to develop, which may be unpredictable to anyone. This will be the basic technology that constitutes industry 4.0 and promotes the evolution of digital transformation at a faster speed

even if executives implement digital transformation, they may also be regarded as defensive investments aimed at protecting rather than developing the business

there may be a significant disconnect: the Organization recognizes the importance of supply chain in digital transformation, but does not regard it as a driver of digital innovation, nor does it allow its leaders to participate in strategic decisions

executives are preparing for a more digital future. In the future work, strengthening innovation will be a very important link, otherwise it is likely to fall behind

the accessibility of digital technology seems to continue to affect the concept of talent

this ability to fully utilize each stage of the physical digital physical loop is crucial to the full implementation of industry 4.0, and many organizations may not be able to fully achieve this in practice

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