At the “Y-NOW 2020: DX Solutions for Tomorrow” event, which took place November 10-12, speakers presented on all aspects of digital transformation. A series of panel discussions provided considerable guidance to participants who are contemplating the digital transformation journey or seeking best practices for their next steps.

Planning for Digital Transformation and Keeping it on Track to Deliver Optimal Outcomes

The journey starts with a digital roadmap. Peter Reynolds, Principal Research Analyst with ARC Advisory Group, began by asking a panel of digital transformation experts to define a digital roadmap.

Lívia Tizzo, Digital Innovation Lead at Braskem, stated that “the digital roadmap is a business strategic plan to bring change to the company. It is all-encompassing in the organization, beyond technology, IT and OT.”

Andy Howell, CEO of KBC (A Yokogawa Company), added, “it requires an assessment of all company processes, from top to bottom and back again, particularly noting which are automated and which are manual. It is very important for business objectives and the customer experience, rather than the technology, to be the drivers. It is also not a matter of simply taking existing processes and automating or digitalizing them.”

Digital transformation presents the opportunity to address organization capacity limitations and work processes. Andy stated that there are three keys to success. “First, look at what is absolutely foundational, critical. Second is to face the fact that there is no point in digitalizing something that is broken and needs fixing. Transformational change management is a critical part of the DX project. What are you keeping, what are you getting rid of? The third is how to accelerate change. This addresses the human aspect. The team must obtain buy-in from the stakeholders, those who are the prospective users of the new business processes and technology.”

David Parsons, Director, Refinery Models for Valero, said that the organization must think outside the box when it comes to the traditional things people have done. Nick Kenaston, Technical Team Leader – Oils Planning, at Chevron, added that it requires a change in culture, a growth mindset. “Come to work every day and learn something new. Bring new perspectives to the team, exploit diversity in backgrounds. Learn from one another.”

In bringing change, there is always considerable inertia to overcome. A common reminder in the digital transformation world is a quote from Niccolò Machiavelli, The Prince: “...there is no more delicate matter to take in hand, nor more dangerous to conduct, nor more doubtful in its success, than to set up as the leader in the introduction of changes. For he who innovates will have for his enemies all those who are well off under the existing order of things, and only lukewarm supporters in those who might be better off under the new.”

Lívia’s experience is that “it is critical to incentivize leaders and deploy common and measurable objectives for all managers across the organization.” Andy agreed, adding that the organization should not only tie leaders’ compensation to those objectives but also “be agile, allow change, and be obsessed about the bits that fail. Don’t hide them. Get them working, use them as lessons without throwing participants under the bus.”

Lívia further stated that unless the company adds new positions at the management or board levels with change agents enabled, progress will be limited. According to Andy, the organization needs a Digital Change Agent to guide the planning and set milestones. This applies throughout the organization. “Experience what is going on at all levels. Some CEOs in our industry have, in fact, gone undercover in disguise to see for themselves! Empower people and input from those parts of the organization. That takes C-level accountability but requires change agents throughout.” 

To learn more about the digital roadmap to new business processes, download our eBook about digital transformation in the process industry.