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Accelerate Digital Transformation With a Digital Factory

Create successful stand-alone centers of excellence for a digital world.

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Contributors

  • Steven Hertzberg, Co-Founder, Grey Swan Digital
  • Chris Potts, Mentor, Facilitator and Speaker – Enterprise Investment, Dominic Barrow; Author of FruITion, RecrEAtion, and DefrICtion
  • Janka Krings-Klebe, Managing Partner, co-shift GmbH, Acting Chair of the Digital Transformation Committee of the Chamber of Industry and Commerce at IHK Stuttgart
  • Jörg Schreiner, Managing Partner, co-shift GmbH
  • Luke Nangle, Global Account Manager, Steelcase
  • Joakim Sundén, Consultant, Speaker, Coach, Teacher at Crisp, ex-Spotify, Author of Kanban in Action
  • 11 anonymous contributors

Your Challenge

  • Organizational challenges are hampering digital transformation (DX) initiatives.
  • The organization’s existing digital factory is failing to deliver value.
  • Designing a successful digital factory is a difficult process.

Our Advice

Critical Insight

To remain competitive, enterprises must deliver products and services like a startup or a digital native enterprise. This requires enterprises to:

  • Understand how digital native enterprises are designed.
  • Understand the foundations of good design: purpose, organizational support, and leadership.
  • Understand the design of the operating model: structure and organization, management practices, culture, environment, teams, technology platforms, and meaningful metrics and KPIs.

Impact and Result

Organizations that implement this project will draw benefits in the following aspects:

  • Gain awareness and understanding of various aspects that hamper DX.
  • Set the right foundations by having clarity of purpose, alignment on organizational support, and the right leadership in place.
  • Design an optimal operating model by setting up the right organizational structures, management practices, lean and optimal governance, agile teams, and an environment that promotes productivity and wellbeing.
  • Finally, set the right measures and KPIs.

Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to understand the importance of a well-designed digital factory.

1. Build the case

Collect data and stats that will help build a narrative for digital factory.

2. Lay the foundation

Discuss purpose, mission, organizational support, and leadership.

3. Design the operating model

Discuss organizational structure, management, culture, teams, environment, technology, and KPIs.

Guided Implementations

This guided implementation is a five call advisory process.

Guided Implementation #1 - Build the case

Call #1 - Scope requirements, objectives, and your specific challenges.

Guided Implementation #2 - Lay the foundation

Call #1 - Assess current maturity.
Call #2 - Discuss the foundations of establishing a digital factory.

Guided Implementation #3 - Design the operating model

Call #1 - Discuss the design of a digital factory operating model.
Call #2 - Formalize the approach to designing the digital factory and identify the challenges.

Onsite Workshop

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Onsite workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost onsite delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Build the case

The Purpose

  • Understand and gather data and stats for factors impacting digital transformation.
  • Develop a narrative for the digital factory.

Key Benefits Achieved

  • Identification of key pain points and data collected
  • Narrative to support the digital factory

Activities

Outputs

1.1

Understand the importance and urgency of digital transformation (DX).

  • Identification of factors that hamper DX
1.2

Collect data and stats on the progress of DX initiatives.

  • Data and stats on progress of DX
1.3

Identify the factors that hamper DX and tie them to data/stats.

  • Narrative for the digital factory
1.4

Build the narrative for the digital factory (DF) using the data/stats.

Module 2: Lay the foundation

The Purpose

  • Discuss the factors that impact the success of establishing a digital factory.

Key Benefits Achieved

  • A solid understanding and awareness that successful digital factories have clarity of purpose, organizational support, and sound leadership.

Activities

Outputs

2.1

Discuss

  • DF purpose and mission statements
2.2

Discuss what organizational support the digital factory will require and align and commit to it.

  • Alignment and commitment on organizational support
2.3

Discuss reference models to understand the dynamics and the strategic investment.

  • Understanding of competitive dynamics and investment spread
2.4

Discuss leadership for the digital age.

  • Develop the profile of a digital leader

Module 3: Design the operating model (part 1)

The Purpose

  • Understand the fundamentals of the operating model.
  • Understand the gaps and formulate the strategies.

Key Benefits Achieved

  • Design of structure and organization
  • Design of culture aligned with organizational goals
  • Management practices aligned with the goals of the digital factory

Activities

Outputs

3.1

Discuss structure and organization and associated organizational pathologies, with focus on hierarchy and silos, size and complexity, and project-centered mindset.

  • Organizational design in the context of identified pathologies
3.2

Discuss the importance of culture and its impact on productivity and what shifts will be required.

  • Cultural design for the DF
3.3

Discuss management for the digital factory, with focus on governance, rewards and compensation, and talent management.

  • Management practices and governance for the digital factory
  • Roles/responsibilities for governance

Module 4: Design the operating model (part 2)

The Purpose

  • Understand the fundamentals of the operating model.
  • Understand the gaps and formulate the strategies.

Key Benefits Achieved

  • Discuss agile teams and the roles for DF
  • Environment design that supports productivity
  • Understanding of existing and new platforms

Activities

Outputs

4.1

Discuss teams and various roles for the DF.

  • Roles for DF teams
4.2

Discuss the impact of the environment on productivity and satisfaction and discuss design factors.

  • Environment design factors
4.3

Discuss technology and tools, focusing on existing and future platforms, platform components, and organization.

  • Platforms and technology components
4.4

Discuss design of meaningful metrics and KPIs.

  • Meaningful metrics and KPIs
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