This document proposes a digital strategy approach for a company that includes: 1) Leveraging new digital technologies like IoT, robotics, and 3D printing to create value across operations, partnerships, and support processes. 2) Identifying and prioritizing digital initiatives through workshops and interviews to develop a roadmap aligned with business objectives and KPIs. 3) An initial 120 day plan to assess opportunities, define a transformation journey, and launch higher priority initiatives and quick wins.

1. Possible Digital Strategy approach
July 2017 – © Javier Cortina

2. Objectives
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• Leverage the potential of digital capabilities (SMAC or Social, Mobility, Analytics & Cloud), IT/OT
integration and new technologies such as Robotics, IoT or 3D printing to create further value
• Holistic perspective searching for value opportunities in operations, external partners relationships
and support processes
• In a disciplined business case and value realization driven approach, linked to predefined KPI’s.
Business case driven – KPI based tracking transformation
Support/Enhance Strategic
objectives:
Leadership in operational
efficiency
World class resource base
Leadership in strategic
markets
Leadership in Safety and
Sustainability

3. Proposed high level approach – Initiatives identification/screening /
prioritization
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Company´s as is and
strategic plan
assessment
Digital
Technologies
Industry
Trends
and
Expertise
Building Blocks for Digital
Roadmap, Themes and Initiatives
Potential Initiatives
Interviews
& Workshops
Company´s Tech
Landscape
Steel and Mining
trends
Competitive landscape
New business models
Platforms
Digital Roadmap
R&D
Proven
solutions
Trends
Y-Criteria
X-Criteria
• Business case
• Company´s strategic priorities
• Efficiency/ differentiation
• Market position
• Leadership in EHS
Awareness &
Communication
Facilitate quick wins, piloting new ideas and speed roll out of successful ones.

4. Possible initiatives to be evaluated/prioritized
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Increase Revenues Reduce costs and improve efficiency Leverage new business models/tech
- Pricing analytics
- Profitability driven capacity
allocation
- Customer segmentation
/experience
- New revenue streams/services
- …
- OTIF improvement (P&S)
- Portfolio/Mix analysis/improvement
- Material allocation to orders/
product definition
- Predictive maintenance/mobile
- Sales resource allocation
- ”Demanning” the plant
- Remote Operating Center (SSC)
- HR and performance management
- Life Safety digital solutions
- Cybersecurity: policies and strategy
- …
- eCommerce channel
- Explore segment specific
platforms/alliances
- Blockchain
- Backoffice robotics
- Observe new technology
improvements (i.e.: 3D printing,
new materials)
- …
q Lean processes: Waste less / Paperless
q From reporting to predicting: leverage data on defined valuable use cases
q Frictionless client and user experiences
q KPI driven: resource utilization, HC, CAC, OEE, OTIF, LTIFR, ….
q Proven, minimize exploration to selected R&D areas
Initiatives need to be validated vs current situation and strategic plan priorities

5. The first 120 days at a glance
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Before day 1 0-60 days 60-90 days
90 – 120 days &
beyond
• Align on vision
and
management
priorities
• Interview /workshops with key
stakeholders. DAFO.
• Understand improvement
opportunities and priorities.
• Identify priority areas of
intervention
• Assess current IT and digital
capabilities (systems and data
architecture, organization and
skills, team required)
• Validate and asses applicable
technologies against potential
opportunities across all company
processes
• Define the transformation
journey, governance and
tracking approach.
• Identify possible risks and
roadblocks.
• Detail plan for execution.
• Share, communicate &
align. Gain buy in.
• Set up Governance and
tracking structure.
• Refine when needed.
• Approve.
• Launch execution. Start
with higher priority
initiatives and quick wins.
• Build up the required
internal capabilities to
embrace digitalization as
per approved plan and
approach.
• Roll out/ Normalize across
Project oriented approach to start. Transition to a new “digital” normal

6. 23/7/176
Adapted from “Avoid Transformation failure” (by John Kotter-HBR ‘95)
#1 Understanding today
and potential for change
ü Understand Company’s competitive situation: tech trends, market and financial performance.
ü Share the terms of threat or opportunities ahead (a solid DAFO)
ü Listen, identify potential areas for improvement
#2 Build up buy in and
required capabilities
ü Workout systems and structure that could undermine the Vision. Remove the blocks, adapt
job categories and compensation schemes.
ü Encourage bold thinking, risk taking and non traditional ideas, activities and action.
#3 Create a Vision
#4 Communicate the
Vision
#5 Empower others to act
on the Vision
#6 Plan and create short
term Wins
#7 Consolidate Wins and
create new more change
#8 Anchor Changes in the
Corporate Culture
ü Culture is a key lever for sustained success. Make it “the way we do things around here”
ü Show people how new ways of working have driven towards performance improvement.
ü Ensure leadership further development and succession.
ü Leverage increased credibility to push further change in processes, systems, policies.
ü Be realistic. Premature victory celebrations may kill the efforts for long term sustained
transformation. Reinforce change agents within the organization.
ü Plan for visible performance quick improvements aligned with the Vision.
ü Make those improvements happen. Recognize and reward those involved.
ü Communicate, share, engage others in the journey.
ü Transformation should involve a significant part of the Company. Not a small team duty.
ü Top down sponsorship and involvement.
ü Develop a picture of the future, easy to communicate and appealing to customers,
employees and stakeholders. Set strategies for achieving that vision. Define metrics.
ü Be ready to learn and adapt the path in your way.
ü Share and align conclusions. Identify roadblocks. Analyze, define alternatives.
ü Assemble a critical mass team with enough power to lead the change.
Reference framework for digital strategy development
Approach to be adapted to Company´s specifics after initial assessment phase.