New challenges for industry have appeared in 2024. Rapid developments involving AI are forcing industry players to speed up digital transformation to derive maximum benefit from this disruptive technology. This is also an opportunity for them to rethink their business models and develop new performance indicators to become more resilient, more productive, and more innovative.
“Measuring the return on investment for digital twins is very difficult, as the benefits can only be seen in the longer term.” This is what you might hear or read concerning the ROI for digital investments by industry. But I think that we have to dig deeper (much deeper) in our assessment of the appropriateness of PLM, CRM, ALM, or digital twin solutions. For one simple reason: industry bosses have to make future projections before committing significant resources to digital transformation.
In this article, Cédric Kalifa, VP Sales WER & France Country Manager at PTC is presents 4 leading ROI for any digital investment.
1/ Income
The leading ROI for any digital investment is clearly income. Time is money in industrial processes! In a market that places great emphasis on innovation, the key challenge is to minimize time-to-market through design and manufacturing solutions that speed up the capacity to conceive, assemble and distribute new products. And faster production means the ability to create business opportunities before others do!
2/ Product Quality
The second pivotal metric of ROI is product quality. It applies to two areas: on the one hand, the digitalization of design and manufacturing enhances the reliability of industrial processes; and on the other, data-driven management (focusing on products or customers) enables us better to identify potential improvements and the most relevant innovations.
3/ CSR
However, these two ROIs for digital investments should not mask another, more topical challenge that is set to become increasingly strategic – CSR! Today’s industries are pondering the adaptation of their business models, not only to better serve their customers but also to stand out as players committed to the good of the planet and society.
In light of the CSRD legislation, which will entail the comparability of CSR performance by all companies, industry will compete in terms of image and reputation. And this is a “battle” that must not be lost. How can digital technology help? Quite simply. CSRD is a reporting exercise, and CSRD indicators can be found in the various ERP, CRM, PLM, and ALM systems. Industries that use modern management tools will greatly strengthen their procedures for collecting and consolidating this data.
Skills
Lastly, I am convinced that industry also needs to focus on another ROI critical to their development – skills. In other words, the ability to attract employee profiles and skills that will generate value for the organization.
The key to recruiting this new generation of employees is to provide them with a working environment featuring modern tools that make their lives easier and allow them to focus on high-value-added tasks rather than repetitive, time-consuming ones.
In this line of thinking, the digitalization of the production chain is destined to improve operating methods, with engineers and operators who can quickly access product data (CAD, instructions, drawings, etc.), control technical modification processes, and collaborate easily between departments (design, production, quality, etc.).
