Why Manufacturers Need a Phased Approach to Digital Transformation
MIT Sloan Management Review|Spring 2024
Those that succeed with this difficult work break it into three stages, each with its own guiding metrics.
Nitin Joglekar, Geoffrey Parker, and Jagjit Singh Srai
Why Manufacturers Need a Phased Approach to Digital Transformation

AS COMPLEX AS DIGITAL TRANSFORMATION CAN BE FOR MANufacturers, leaders in that sector tend to view it as a single process, the success of which can be demonstrated via a single metric: return on investment.

Such a simplistic view belies what’s actually involved: investing in and mastering new operational technologies (OTs), reskilling workers, keeping capabilities in sync with external supply-chain partner infrastructures, and enabling new digital ecosystems for partners and customers. Digital transformation for manufacturing differs substantially from transforming IT services or implementing e-commerce because it requires combining the staged integration of physical assets with digital technologies. For these and other reasons, many manufacturers struggle to adopt transformative tech and end up misaligning and wasting their investments or misdirecting their scarce specialized resources. As a consequence, their digital investments generally fail to enable the business transformation they seek.

This story is from the Spring 2024 edition of MIT Sloan Management Review.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the Spring 2024 edition of MIT Sloan Management Review.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM MIT SLOAN MANAGEMENT REVIEWView All
The Trouble With Your Innovation Contests
MIT Sloan Management Review

The Trouble With Your Innovation Contests

Not all innovation contests should be winner-takes-all or judged by senior executives. New research shows how to structure contests to meet specific goals.

time-read
9 mins  |
Spring 2024
Scaling Automation: Two Proven Paths to Success
MIT Sloan Management Review

Scaling Automation: Two Proven Paths to Success

Lessons from two leading hospital systems show how to overcome the obstacles to automation.

time-read
10 mins  |
Spring 2024
How Tech Fails Late-Career Workers
MIT Sloan Management Review

How Tech Fails Late-Career Workers

Managers must make deliberate choices to support older workers' use of complex technologies.

time-read
9 mins  |
Spring 2024
Building Culture From the Middle Out
MIT Sloan Management Review

Building Culture From the Middle Out

Midlevel leaders are critical to fostering an organizational culture that’s healthy and vibrant.

time-read
10+ mins  |
Spring 2024
Why Manufacturers Need a Phased Approach to Digital Transformation
MIT Sloan Management Review

Why Manufacturers Need a Phased Approach to Digital Transformation

Those that succeed with this difficult work break it into three stages, each with its own guiding metrics.

time-read
10+ mins  |
Spring 2024
Will Large Language Models Really Change How Work Is Done?
MIT Sloan Management Review

Will Large Language Models Really Change How Work Is Done?

Even as organizations adopt increasingly powerful LLMs, they will find it difficult to shed their reliance on humans.

time-read
10+ mins  |
Spring 2024
How to Make Better Friends at Work
MIT Sloan Management Review

How to Make Better Friends at Work

Friendships in the workplace can enrich our lives and make us better leaders and workers if we make the effort to cultivate truly healthy relationships.

time-read
10+ mins  |
Spring 2024
Health Care Platforms Need a Strategy Overhaul
MIT Sloan Management Review

Health Care Platforms Need a Strategy Overhaul

To succeed, digital health platforms must shift their approach in three key areas.

time-read
10+ mins  |
Spring 2024
Steer Clear of Corporate Venture Capital Pitfalls
MIT Sloan Management Review

Steer Clear of Corporate Venture Capital Pitfalls

Big companies and risk capital can be awkward partners. Here’s how to get corporate venturing right.

time-read
10+ mins  |
Spring 2024
New Markets, New Opportunities: Identifying Where and How to Make Your Play
MIT Sloan Management Review

New Markets, New Opportunities: Identifying Where and How to Make Your Play

How do leaders determine whether to build a new business around a promising new technology?

time-read
10+ mins  |
Spring 2024