What is your MIDAS?
“Today 83% of Indian manufacturing industry lies in the ‘Business Digitization’ phase, and is yet to reach the ‘Tipping point’ for ‘Digital Transformation’ – which only commences after the Process Digitalization stage ”– CII-GS Lab Report
The Indian manufacturing industry is gearing up to increase its digital footprint to achieve higher efficiency & increased throughput. As of today the organizations are coping up with low data and process digitization – thus limiting their usage of digital technology to drive operational excellence. Organizations today are more ‘reactive’ towards Data-Driven decision making against being ‘proactive’.
Our study shows that a handful of organizations today are leading the data revolution by digitally transforming themselves – to so-called ‘Digital Leaders’ to achieve higher efficiency and throughput, quantifiably outperforming their counterparts who are taking a wait-and-watch approach –the so-called ‘Digital Laggards’ (and may even become obsolete) in this rapidly digitalizing world. Higher organizational behavior has helped ‘Digital Leaders’ take a proactive approach towards ‘Data-Driven’ decision making which has helped them achieve data monetization. GS Lab explores what sets apart the laggards from the leaders & coins the methodology, MIDAS, which will help organizations measure ‘Digital Maturity’ & assess their position in the transition.
The ‘Digital Journey’ & its ‘Tipping Point’
‘The tipping point is the critical point in an evolving situation that leads to a new and irreversible development’- TechTarget
The digital journey of an organization can be classified into 4 major stages- Data Digitization, Process Digitization, Digital Optimization & Digital Transformation. To understand the aspects of the ‘Digital Journey’ in depth, read our blog ‘Where do you stand in your Digital Journey’
Our findings showcase that, a sizable portion of the industry is mistaking ‘process digitization’ as ‘digital transformation’. Every organization flowing across the ‘data-driven’ tide is moving towards the ‘Tipping Point’ for Data monetization, but struggling to cross the ‘Tipping Point’ because-
- Data exists but not in usable state to derive insights and help business decision
- System integration of existing disparate systems with varying complexity and technology to the new age systems
GS Lab has designed and developed a systematic methodology for Manufacturing Industry to assess their Readiness score in the Digital journey. This methodology called MIDAS (Manufacturing Industry Digital Advancement Score) maps various enablers of digital journey represented by a five-sided Transformation Polygon. The MIDAS is collective measure of scores along 5 axes (key factors): Organizational Behaviour, Data Digitization, Process Digitalization, Digital Optimization, and Digital Transformation.
Using this methodology businesses can benchmark themselves to determine where they stand in the digital transformation journey.
GS Lab Methodology to assess Manufacturing Industry Digital Advancement Score
5 Key Criteria –
- Organizational Behavior
- Data Digitization:
- Process Digitization
- Digital Optimization
- Digital Transformation
Digitization Absence Trap is the Pre-Industry-3.0 state, an extremely low or no digitization state of an organization
Digitalization Escape Orbit depicts an organization that is now on the outer bounds for Industry 3.0, every business should aim for reaching this orbit as fast as they can.
Digitalization Differentiator Zone, or ‘Industry 4.0’ is the zone every organization should aim to hurl itself into. This zone is like an open universe where the organization can keep traveling into farther Digitalization orbits!
Stage wise evolution of a manufacturing industry from “Little Data Digitation” to “Digital Differentiator Zone”
Has MIDAS intrigued you to take the test & find out your Digital Maturity Score? Download & explore the extensive research conducted by CII-GS Lab on ‘ Data Driven Manufacturing- Driving Value by Capitalizing on Data‘ to gain a deeper understanding of MIDAS & where your organization stands in the Digital Journey today!