summary
I’ve never stepped into a facility that appears to be running like clockwork. Do downtime be rare, the output is stable, and do all decisions feel informed and timely? In many cases, the real benefits are not from the number of robots on the shop floor, but from how effectively the facility is making use of the data. At the heart of today’s most successful industrial operations is the seamless convergence of people, data and technology. Everything is working together to create a smarter and more resilient manufacturing system.
This is the promise of digital transformation in the industrial space. However, for many businesses, the path to getting there is less clear. According to the World Economic Forum, more than 70% of companies are trapped in “pilot purgatory,” struggling to adopt new technologies and failing to see meaningful returns and increased efficiency from early digital initiatives.
why? Because transformation is not just about installing new technologies. It’s about rethinking how operations work at the very core.
Common pitfalls and success factors
Even with the right roadmap, many conversions are loose. Common failures include focusing solely on technology, ignoring cultural or procedural preparation. Underestimate the overflowing need and leave employees with overwhelmed or resisted. Skip basic steps and support by jumping directly to advanced tools without data maturation.
Conversely, successful transformational companies tend to appoint dedicated leadership for their transformation efforts. Set up a clear operational vision and use it to filter ideas and priorities. Celebrate small victories, strengthen the value of change and continue to make the most of momentum. Work with the right partners that bring you both technology and domain expertise.
At its best, digital conversion aligns the three forces of people, processes and technology. When these factors work together, the impact becomes profound. Reduced operating costs, reduced downtime, improved energy use, improved product quality, and more empowered workers. However, transformations also introduce new complexities. The traditional silos between it and the OT team will need to be demolished. Legacy equipment must be integrated into the digital ecosystem. And perhaps most importantly, organizations need a roadmap that balances their long-term vision with daily operational reality.
While every change journey is unique, our experience leading hundreds of industrial sites has revealed a common path to success. A three-stage approach: assess your site, digitize your core, and digitize it on scale.
Stage 1: Rate the site.
Digital transformation must begin with a clear assessment of where you are today. This foundational stage helps define goals, attract stakeholders, and identify gaps in data, infrastructure and skills. Start by asking:
What operational challenges are we trying to solve? Where is the bottleneck? Which data do you have and which data do you need?
At this stage, collaboration between IT and OT is essential. Many transformational efforts stall because teams do not share the same language or priorities. While OT is concerned with uptime and safety, it can focus on data architecture and cybersecurity. However, successful digital projects depend on integration. This requires establishing cross-working planning and design, with leadership actively involved in coordinating incentives and expectations.
This evaluation stage also includes understanding the maturity of the infrastructure. What kind of devices can I connect? Where do I need to upgrade? And how do you balance the balance between short-term victory and long-term scalability?
Stage 2: Digitalize the core.
Once the roadmap is in place, the next step is to digitize the essential operations by moving from the manual process (clipboard and spreadsheet) to a real-time connected system. The goal is to establish a robust digital foundation that is sufficient to support more advanced tools. The key priorities are:
Connectivity: Establishes reliable and secure data transmission between the device and the central system. Cybersecurity: Digitalization will expand the attack surface. It incorporates cybersecurity into your architecture, not as an afterthought. Lean Digital Practice: Integrate digital tools with lean management systems to promote continuous improvement and visibility. Workforce enablement: Human-centered by training staff to not only use digital tools but also contribute to evolution.
At this stage, many companies will launch pilot, edge computing, and digital twin simulations on IIOT platforms to unlock predictive maintenance, real-time quality monitoring, and faster problem-solving. But beware of the “Pilot Purgatory” trap. Without a clear objective and path to scale, many digital initiatives remain limited to isolated test cases.
Stage 3: Digitalization on scale.
This is where the transformation becomes reality. Standardization is required to scale digital practices across sites, lines, or regions. Different teams and facilities may have different habits, software, or priorities, but true transformation is not possible unless the system can communicate seamlessly. Scaling includes:
Centralizing Data: Aggregates data from machines, power grids, building controls, and more into a unified platform. Standardization Process: Defines shared ways of working that aligns local flexibility with enterprise-wide goals. Facilitate Cultural Change: Aligning KPIs, incentive structures and career growth with digital success, making it part of the company’s DNA transformation.
This is also the stage in which advanced technologies such as AI, machine learning, and digital twins can provide full value. However, their success relies on previously established foundations such as reliable data, clean architecture, and a digitally flowing fluent workforce.
It’s not a sprint, it’s a system
Digital transformation requires patience, persistence and adaptability. But most of all, it’s the system. It’s a way to adjust tools, people and processes along with shared goals. The keys don’t just start hard. It’s building a system that will keep itself up over time, evolve with your business, allowing all workers to promote better outcomes.
The future of industrial business is not about adding machines, but about making machines and the people who run them become smarter. Start with your reasons. Build your way. Next, expand your success.
This feature was originally featured in the June/July issue of Automation.com Monthly.
About the author
Gregory Tink is the Director of Digital Transformation at Schneider Electric. The company’s Industrial Digital Transformation Services consultants help businesses become more efficient, sustainable, resilient and safe. Find out more, read the white paper and get actionable guidance on achieving impactful digital conversions.
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