Digital Transformation in a Zero Capital Environment
As the global economy continues to face a downward trend and sends shock-waves across industrial sectors, business leaders must be ready to make clear, strategic decisions that will prepare their operations for a future of economic uncertainties. A decisive pivot is required from critical industries to adjust to the hard realities and business challenges of this pandemic-driven downturn.
Even thinking about investment might seem counter-intuitive during times of financial instability. When the economy goes south, many process-intensive industries hold back on their investment strategy in an effort to conserve cash. But this may be the wrong response. It is possible to use the downturn to build for the future with investments that are flexible, focused, and based on a highly leverage-able asset: operational data.
The right response is to use the downturn to build for the future with flexible, focused investments in digital transformation that meet three criteria:
1. Rapid Time to Value
Many industries and organizations have entered an economic environment where “zero capital” has become a central constraint. This environment requires shifting to investments that deliver concrete returns in the shortest possible time. Speed of response and maniacal focus on the right outcome is critical because there is a risk of running out of cash. Although many projects must deliver quick returns, leaders must also focus on long-term business goals that help to recession-proof their business.
2. Broad Scope of Investment
During a crisis, a project that affects only a small part of cash flow is a distraction; it does not have the leverage needed to make a difference. But projects that favor foundational and highly leverageable data should be prioritized over projects that are narrow in scope and difficult to get off the ground. In a downturn, adopting a complex vibration monitoring solution for one piece of equipment in one facility is not a smart move. Instead, implement on a broader scale, such as analysis of operating conditions against design recommendations for all equipment in multiple facilities.
3. Focus on Optimizing Existing Assets
For industrial operations, downturn investment strategies typically do not include existing equipment. Rather than modernizing hard-working industrial assets, companies should find ways to squeeze more efficiency out of existing assets and operations. It's not about buying new pumps. It's about making the old ones work better by upgrading the “brain” of operations using operational data that drives continuous operational intelligence.
Investing in data-driven operational intelligence meets these three criteria. By harnessing the power of data with the PI System, you can slash maintenance costs, boost energy efficiency and asset health, minimize shutdowns, and predict problems before they occur. Digital transformation won't stave off the negative impact of the industrial disruption, but it will help you weather the storm and prepare your business for what's next after the crisis.
For 40 years, OSIsoft has delivered a real-time data infrastructure that gathers operations intelligence at any scale and transforms it into actionable insights that directly impact the bottom line of industrial businesses - ranging from oil and gas, pharmaceuticals, power, metals and mining, transportation, and others.
Join Dr. J. Patrick Kennedy, OSIsoft Founder and CEO, for a special webinar (May 28 @ 8:30am PT), to find out how organizations can take advantage of digital transformation technologies during economic uncertainty.
In this webinar, you will learn:
- How data solutions in a zero-capital environment can drive revenue growth and cut costs.
- Why it's still possible to address growth and productivity by adopting a real-time operational intelligence solution that can have a dramatic impact on the entire supply chain.
- How businesses from any industry can take advantage of the scale of cloud computing affords, the rapid decisions AI can make, and the automation and efficiencies that IIoT delivers.