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Digital
Transformation
Jan Eivind Danielsen
DanielsenConsulting
DCDanielsen Consulting
NTNU Forsker
Selvstendig - Innovasjon
Bouvet – Digitalisering & leder
Accenture – Digitalisering
Selvstendig – Digitalisering & leder
DCDanielsen Consulting
The industrial revolutions
DCDanielsen Consulting
5th
CoBots
Disconnected legacy Information Technology
ERP
Engineering Machines
Maintenance
FinanceCompliance
SLM
SCADAPDMS
HSEQ Project Mngt.
SchedulingDCDanielsen Consulting
HR
Drivers for
digitalisation
DCDanielsen Consulting
The Data
Science
Process
DCDanielsen Consulting
New value
driving
capabilities
Predikere atferd og hendelser
Optimalisere på tvers av disipliner
Simulere og modellere
Finne og forstå sammenhenger
Identifisere avvik
Beslutte basert på fakta og innsikt
Automatisere baser på regler
Lage selvregulerende regler
Visualisere kompleks informasjon
DCDanielsen Consulting
Use Case
Examples
Smart Maintenance
Production Optimization
Exploration
Logistics Optimization
Planning& Scheduling
Engineering & Construction
Asset Management
DCDanielsen Consulting
DataLake conceptual idea
Engineering
PDMS
Compliance
HSEQ
Machines
SCADA Project Mngt.
Scheduling
ERP
Maintenance
Finance
Logistics
Engineering
PDMS
Compliance
HSEQ
Machines
SCADA
Project Mngt.
Scheduling
ERP
Maintenance
Finance
Logistics
DCDanielsen Consulting
Data platform architecture components
DCDanielsen Consulting
Data Liberation Process
11
Data lake production pipeline
Business
 Request ingestion
(CREW lead)
 Provide data
source/API (POM)
 Provide
conceptual data
model (SME)
IT Service
 Ingest, tag and
catalog data
Integration
Service
API
Source
Business
 Make sense of
data structures -
model
 Set sensitivity and
quality attributes
 Set/define meta
data
IT Service
 Apply meta data
 Protect data
 Model/transform
data
Business
 Test data to ensure
data quality
 Define data
validation & quality
rules
IT Service
 Implement data
validity and quality
controls
 Run tests on
system integrity
Business
 Identify data
enrichment needs
 Build data
enrichment rules
IT Service
 Implement data
enrichment rules and
automate workflows
 Test and document
automations
Business
 Ensure data availability
 Steward data
 Create value from data
 Build ML models, test,
improve and deploy
IT Service
 Monitor system integrity
 Resolve issues
 Improve service
BETA DATA - EXPLORE CURATE - LEARN CONSUME - DECIDE
Data Engineers Data Scientist Consumers
Blended
platforms
DCDanielsen Consulting
Research on
digital Scaling
DCDanielsen Consulting
New Tech is
key
DCDanielsen Consulting
Success factors
 Management change story
 Digital tools for data access
 Digital Self service
 Management urgency
 Cross BU transformation collaboration
 SOP´s modified
 Management encourage employees to
experiment
 Key roles challenge old ways of working
 Key roles deeply involved
DCDanielsen Consulting
Management Change
Story
 Clear KPI´s
 Implementation timeline
 Defined digital initiatives
 Goals for tech adoption
 New business processes
 Business strategy change
 Enabled to reach new goals
 New products & services
 Inter-company collaboration
 New approach to customer needs
DCDanielsen Consulting
Struggling to scale
The four biggest
challenges:
• Defining digital value, from the
top down
• Aligning with middle
management
• Syncing talent pools with IT
assets
• Positioning in-house innovations
to win in the digital ecosystem
Scaling Digital Innovation
Scale like a Champion:
• Define the value that
will guide innovation efforts
• Focus on internal organizational
change and external digital value
• Build in-house innovation
factories with targeted influence
• Find out what enables
innovation in each business
function
DC Scaling
Experience
DCDanielsen Consulting
Manage the execution
DCDanielsen Consulting
Time
Business Cases Transformation Roadmap Digitalization Plan
Where to look for value
DCDanielsen Consulting
• Reduce safety incidents
& production loss with
smart analysis
• Use run-time/cycle time
to trigger maintenance on
non-critical equipment
Challenge safety limitsReduce incidents
• Automate safety barrier
functionality verification
• Use run-time or cycle-
time to reduce safety
critical maintenance
intervals
• Challenge defined
production safety limits
using smart calculations
• Challenge technical
safety barriers using
smart tolerance
calculations
Manage safety equipment
Fast-track to
Scaling check
list
DCDanielsen Consulting
1. Will the potential solution deliver considerable
value and do we think it’s doable?
2. Does the use-case have a sponsor with the
resources to fund the development?
3. Are we sure we don´t introduce any new risk to
health, safety, environment or economy (due to
factors such as user error, data errors, algorithm
errors or system downtime)?
4. Can the use-case be solved using Data Science
methods on multiple data sources combined in
our Data Platform ?
5. Can the solution be realized and value captured
without radical changes to BMS procedures,
organizational roles and responsibilities?
6. Do we have an established business function
who can act as the customer and is ready to
adopt the finished solution and release the
promised value?
7. Do we have an existing support function for the
solution once it´s implemented?
Value
Sponsor
Risk
Data
BMS
Customer
Support
Ideate!
Metodikk
1. Gjør hjemmeleksen; google, gå på referansebesøk, ring en venn
2. Beskriv noen virkelig gode forbedrings-ideer som vil gi stor verdi med
minimal innsats. Utred dem og tallfest dem, skjekk at data er
tilgjengelig med riktig kvalitet, hvordan skal verdien realiseres..
3. Sikre en god forankring i toppledelsen, de må bli inspirerte, se verdien
og kunne kommunisere den
4. Begynn med noen få og enkle caser for å lære og skap verdi, bevis verdi.
Lag et program med god forankring og styring.
5. Eksperimenter med agile gjennomføringsmetoder. Sett sammen
tverrfaglige team som sammen har kompetansen på faget/caset, IT,
databehandling og statistikk. Lever brukbare ting ofte og lær av feil og
suksesser fort
6. Lag en god grunnmur med god datakvalitet, datasikkerhet og riktig
kontekstualisering som svarer på oppgavene. Er det mulig å slå flere
fluer med en smekk?
7. Satse og tørre å investere tid og penger, del med andre
DCDanielsen Consulting
Gjennomføring
Lykke til!!
DCDanielsen Consulting

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Digital Transformation

  • 2. NTNU Forsker Selvstendig - Innovasjon Bouvet – Digitalisering & leder Accenture – Digitalisering Selvstendig – Digitalisering & leder DCDanielsen Consulting
  • 4. Disconnected legacy Information Technology ERP Engineering Machines Maintenance FinanceCompliance SLM SCADAPDMS HSEQ Project Mngt. SchedulingDCDanielsen Consulting HR
  • 7. New value driving capabilities Predikere atferd og hendelser Optimalisere på tvers av disipliner Simulere og modellere Finne og forstå sammenhenger Identifisere avvik Beslutte basert på fakta og innsikt Automatisere baser på regler Lage selvregulerende regler Visualisere kompleks informasjon DCDanielsen Consulting
  • 8. Use Case Examples Smart Maintenance Production Optimization Exploration Logistics Optimization Planning& Scheduling Engineering & Construction Asset Management DCDanielsen Consulting
  • 9. DataLake conceptual idea Engineering PDMS Compliance HSEQ Machines SCADA Project Mngt. Scheduling ERP Maintenance Finance Logistics Engineering PDMS Compliance HSEQ Machines SCADA Project Mngt. Scheduling ERP Maintenance Finance Logistics DCDanielsen Consulting
  • 10. Data platform architecture components DCDanielsen Consulting
  • 11. Data Liberation Process 11 Data lake production pipeline Business  Request ingestion (CREW lead)  Provide data source/API (POM)  Provide conceptual data model (SME) IT Service  Ingest, tag and catalog data Integration Service API Source Business  Make sense of data structures - model  Set sensitivity and quality attributes  Set/define meta data IT Service  Apply meta data  Protect data  Model/transform data Business  Test data to ensure data quality  Define data validation & quality rules IT Service  Implement data validity and quality controls  Run tests on system integrity Business  Identify data enrichment needs  Build data enrichment rules IT Service  Implement data enrichment rules and automate workflows  Test and document automations Business  Ensure data availability  Steward data  Create value from data  Build ML models, test, improve and deploy IT Service  Monitor system integrity  Resolve issues  Improve service BETA DATA - EXPLORE CURATE - LEARN CONSUME - DECIDE Data Engineers Data Scientist Consumers
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  • 23. Success factors  Management change story  Digital tools for data access  Digital Self service  Management urgency  Cross BU transformation collaboration  SOP´s modified  Management encourage employees to experiment  Key roles challenge old ways of working  Key roles deeply involved DCDanielsen Consulting
  • 24. Management Change Story  Clear KPI´s  Implementation timeline  Defined digital initiatives  Goals for tech adoption  New business processes  Business strategy change  Enabled to reach new goals  New products & services  Inter-company collaboration  New approach to customer needs DCDanielsen Consulting
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  • 26. Struggling to scale The four biggest challenges: • Defining digital value, from the top down • Aligning with middle management • Syncing talent pools with IT assets • Positioning in-house innovations to win in the digital ecosystem
  • 27. Scaling Digital Innovation Scale like a Champion: • Define the value that will guide innovation efforts • Focus on internal organizational change and external digital value • Build in-house innovation factories with targeted influence • Find out what enables innovation in each business function
  • 29. Manage the execution DCDanielsen Consulting Time Business Cases Transformation Roadmap Digitalization Plan
  • 30. Where to look for value DCDanielsen Consulting • Reduce safety incidents & production loss with smart analysis • Use run-time/cycle time to trigger maintenance on non-critical equipment Challenge safety limitsReduce incidents • Automate safety barrier functionality verification • Use run-time or cycle- time to reduce safety critical maintenance intervals • Challenge defined production safety limits using smart calculations • Challenge technical safety barriers using smart tolerance calculations Manage safety equipment
  • 31. Fast-track to Scaling check list DCDanielsen Consulting 1. Will the potential solution deliver considerable value and do we think it’s doable? 2. Does the use-case have a sponsor with the resources to fund the development? 3. Are we sure we don´t introduce any new risk to health, safety, environment or economy (due to factors such as user error, data errors, algorithm errors or system downtime)? 4. Can the use-case be solved using Data Science methods on multiple data sources combined in our Data Platform ? 5. Can the solution be realized and value captured without radical changes to BMS procedures, organizational roles and responsibilities? 6. Do we have an established business function who can act as the customer and is ready to adopt the finished solution and release the promised value? 7. Do we have an existing support function for the solution once it´s implemented? Value Sponsor Risk Data BMS Customer Support
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  • 35. Metodikk 1. Gjør hjemmeleksen; google, gå på referansebesøk, ring en venn 2. Beskriv noen virkelig gode forbedrings-ideer som vil gi stor verdi med minimal innsats. Utred dem og tallfest dem, skjekk at data er tilgjengelig med riktig kvalitet, hvordan skal verdien realiseres.. 3. Sikre en god forankring i toppledelsen, de må bli inspirerte, se verdien og kunne kommunisere den 4. Begynn med noen få og enkle caser for å lære og skap verdi, bevis verdi. Lag et program med god forankring og styring. 5. Eksperimenter med agile gjennomføringsmetoder. Sett sammen tverrfaglige team som sammen har kompetansen på faget/caset, IT, databehandling og statistikk. Lever brukbare ting ofte og lær av feil og suksesser fort 6. Lag en god grunnmur med god datakvalitet, datasikkerhet og riktig kontekstualisering som svarer på oppgavene. Er det mulig å slå flere fluer med en smekk? 7. Satse og tørre å investere tid og penger, del med andre DCDanielsen Consulting Gjennomføring

Editor's Notes

  1. Struggling to scale:  The four biggest challenges “Innovation is known to impact much more than the direct bottom line of the product in which it is implemented,” Jorge Guzman, Assistant Professor of Business at Columbia Business School, told us. “Besides net income for a specific product or service, innovative work also changes the capabilities of a company to tackle the future and helps them try new ideas that could be risky, but potentially highly profitable.”  New innovations require companies to reimagine how they work, to digitally transform their operations and to exceed their customers’ ever-evolving needs. Each of these tasks comes with a unique set of challenges. Executives of discrete producers and process industries repeatedly ranked four issues as the top barriers to scaling proof-of-concept projects: 1. Defining digital value, from the top down Whether it’s improving the customer experience or innovating a new product, adding digital value can mean different things to different people. But if top leaders disagree on the customer experience they want to deliver, the cascading effect of such conflict can be deeply problematic. 2. Aligning with middle management Top management needs a vision for how middle management should build, execute and scale pilots and innovate efficiently. If there’s friction among middle managers and between middle and top managers—amid time and budget pressures—the company will fall short of its goals. 3. Syncing talent pools with IT assets Many mechanized products manufacturers are burdened with legacy IT tools and solutions. Rising digital experts find these cumbersome and ill-suited to designing, developing and scaling digital offerings for the company and customers, while middle and senior managers can’t always leverage new IT and digital technologies. David Abood
  2. Four ways to scale  innovation like a Champion What sets Champions apart? To maximize their scaling efforts, they’ve developed a muscle memory reflected and supported by their structure and organization. Action #1: Define the value that will guide innovation efforts Champions know that if their goal is not clearly defined, they are more likely to try to scale digital pilots that don’t have the organizational backbone to succeed. They assess the opportunities before them, and, at the senior-most levels, narrow in on the market problems they want to pursue. Then they direct their innovation efforts to secure expected returns. Action #2: Focus on internal organizational change and external digital value Too often, there is a divide between what a company is trying to scale for customers and the technologies supporting the efforts. This gap can cause delays or unexpected bursts of internal change. Champions across discrete and process industries blend organizational change and digital transformation initiatives, creating what we call an ambidextrous organization. Managers and employees never fall into a learning curve that is too steep. Instead, they become accustomed to the climb, and to the collaboration and flexibility it demands. In fact, 62.2 percent of Champion discrete manufacturers are keen to embrace this ambidextrous approach at an enterprise level, while 52.9 percent of other discrete manufacturers are. Meanwhile, 63.5 percent of Champion process industry leaders are keen to embrace an ambidextrous approach at an enterprise level, while 54.8 percent of other process industries leaders are. For Champions, ambidexterity enables an organization that continuously uses rapidly maturing digital technologies to grow its core and taps emerging technologies to develop and scale new endeavors. 62.2% of discrete manufacturing Champions want to blend organizational change and digital transformation initiatives ambidextrously 52.9% of discrete manufacturing non-Champions want to achieve the same 63.5% of process manufacturing Champions want to blend organizational change and digital transformation initiatives ambidextrously 54.8% of process manufacturing non-Champions want to achieve the same Action #3: Build in-house innovation factories with targeted influence When it’s time to scale a successful pilot that’s been developed by an autonomous entity, Champions recognize the enormity of integrating rapidly advancing technologies, along with talent and assets, back into the larger organization. They seed and grow new digital innovations organically within organizational boundaries. They bring in new talent, but also integrate and develop existing talent as they go. They keep the new group linked to, and accountable to, the company’s profit and losses so they can preview the effect of scaling a proof of concept on the larger organization. Action #4: Find out what enables innovation in each business function In the end, how do you make innovation work? In short, companies can put “enablers” to work— from software applications for supporting operations to platforms for capturing and analyzing data. We found some from the second group (Contenders) —and even the third (Cadets)—select the same types of enablers as their Champion peers to facilitate innovation. However, Champions alone are masters at matching the support to the function that needs it most and will use it best. For example, Champions have redefined their ecosystem partnerships (by adding new partners or rewiring existing relationships) to ensure that they have access to the digital talent they need from product design to scaling. Many Chinese organizations are adept this kind of “iterative innovation,” Zhu Hengyuan, Associate Professor and Vice Chair at Department of Innovation, Entrepreneurship and Strategy, School of Economics & Management, Tsinghua University, tells us. Champions have redefined their ecosystem partnerships to ensure that they have access to the digital talent they need from product design to scaling. “To begin with, they introduce a minimum viable product or service into smaller markets,” Zhu says. “They gather feedback from customers and partners in the innovation value chain. Based on this feedback they initiate the next round of product innovation—many times with stakeholders in the ecosystem. In this way, they evolve the product or service very quickly and sustainably.” Companies in China keep a sharp eye on the context in which their products and services are to be sold, Zhu says. “They focus on innovating at a speed that can help them roll out products and services relevant to that context,” Zhu says, whether it’s internal to the company, such as the manufacturing context or supply chain context, or external, such as the emergence of new markets. Haier calls its operating model “rendanheyi”—ren, in Chinese, refers to the employees, dan means user value, and heyi indicates unity and an awareness of the whole system.
  3. https://www.scaledagileframework.com/#