STEPHEN SHIH: All machinery executives arefacing a new wave of digital technologies.
Many within this group are taking await-and-see attitude, but some business leaders are recognizing that just as machinerywas core to the Industrial Revolution, it's also going to be core to the new digital revolution.
They're proactively looking for ways tocreate more value for their customers, and they're seeking to disrupt and not be disrupted.
Digital technologies create twoopportunities for companies in this sector.
The first are ways to innovate the product offerusing sensors, 3-D printing and advanced analytics to offer new products and solutions for customers.
The second is to transform the value chain–moving awayfrom only selling products to developing new business models centered around services and solutions.
In order to capitalize on digital,executives can take three actions.
The first is to make sure they're understanding how digitalis affecting their industry and taking a clean-sheet-of-paper view.
Not being too narrow, but looking at all theopportunities for redefining their sector.
The second is to redefine thecustomer relationship and move away from the traditional models of interacting with customersto a more continuous interaction with customers.
And the third is [finding] ways to adaptoperations to improve efficiencies.
From an implementation perspective,executives need to simultaneously find ways to increase the speed of decision making intheir organizations, develop a test-and-learn mindset, while also ensuring that their organizations are preparedfor a multi-year commitment to a digital transformation.