Quality and Digital Transformation: A Necessary Partnership

Digital transformation is the use of digital technologies to improve customer experiences, make operations more efficient, and create new business opportunities. It is more than just implementing advanced or disruptive technology; it's about prioritizing technology based on strategic objectives. A successful digital transformation requires the integration of technology, data, processes, and a cultural change within the organization. Key Elements of Digital Transformation Technology: Technology is a fundamental enabler that can accelerate transformation. However, focusing solely on the technological component can lead to failure. It's crucial to select and use technology that aligns with strategic objectives to achieve desired results. Data: The intensive use of data is where significant value starts to be generated in digital transformation. Processes: Digital transformation involves improving business processes to carry out company objectives efficiently. Organizational Culture: A cultural change within the organization is a relevant component of digital transformation. The State of Digital Transformation Digital transformation has been happening for a long time, but the current accessibility and integration of technologies are unprecedented. It is a continuous, iterative process, not a project with a defined beginning and end. Some companies have successfully implemented digital transformation in certain business units and are seeing economic benefits. However, the process is still ongoing, and there are many opportunities to capitalize on. The goal is to continuously achieve short, medium, and long-term objectives and integrate a new, more open and flexible way of operating into the company's ecosystem.

💡 Beyond Technology: What Does “True Digital Transformation” Really Mean? In many manufacturing companies, digital transformation is still seen as a matter of tools: 🖥️ a new software to monitor production, 📊 a dashboard to visualize KPIs, 📂 a system to store and share documents. But the reality is, technology alone doesn’t transform anything. What truly makes the difference is the ability to connect people, processes, and data in a way that generates clarity, not complexity. For example: ❓Are your teams really gaining time from digitalization, or just facing more screens? ❓Do your data flows lead to better decisions, or are they just piling up? ❓Does your technology help everyone work more autonomously, or only add extra steps? Digital transformation should be measured not in new software deployed, but in hours saved, decisions improved, and customers impressed adn satisfied by the quality of execution. 👉 What’s the most tangible improvement you’d like to see from digitalization?

#Digitaltransformation can enter a business gradually through manageable processes or completely disrupt the existing business model and organization. While the latter approach requires greater effort and investment, it can lead to significant improvements. Key benefits of digital transformation include: - Agility, responsiveness, and resilience - Increased efficiency and productivity - Exploration of new markets - Improved relationships with loyal and potential customers - Development of new business models and perspectives In manufacturing, digital transformation can deliver substantial business value through several key benefits: 1. Lower Costs – Automate processes, reduce waste, and minimize downtime with smart technology. 2. Higher Efficiency – Utilize real-time data to optimize production and accelerate decision-making. 3. Better Quality – Implement sensors and AI to detect defects early, enhancing product consistency. 4. Faster Time-to-Market – Leverage agile systems to design, test, and launch products more quickly. 5. Improved Customer Satisfaction – Meet customer demands through customization and quicker delivery. 6. Predictive Maintenance – Prevent costly breakdowns by addressing machine issues before they occur. 7. Data-Driven Decisions – Use analytics to identify trends, forecast demand, and plan more effectively. 8. Empowered Employees – Knowledgeable staff contribute to improved outcomes. 9. Enhanced Flow – Streamline manufacturing processes for better operational flow. 10. Increased Operating Margin – Focus on profitability and performance metrics. The bottom line is clear: do more, waste less, respond faster, and ultimately, increase profits.

𝗧𝗵𝗲 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝗼𝗳 𝗦𝗲𝗿𝘃𝗶𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻: 𝗕𝗲𝘆𝗼𝗻𝗱 𝗠𝗮𝗰𝗵𝗶𝗻𝗲𝘀, 𝗧𝗼𝘄𝗮𝗿𝗱 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 𝗥𝗲𝗶𝗻𝘃𝗲𝗻𝘁𝗶𝗼𝗻 Servitization is no longer a “service strategy.” It has become the operating philosophy of modern manufacturing, and it continues to evolve. What once meant offering maintenance contracts or spare parts has now grown into a full-scale transformation of how value is created, delivered, and captured in industry. The forces driving this evolution are clear: • Shrinking margins and commoditization of physical products • Global competition and volatile supply chains • Digital intelligence and asset connectivity enabling real-time optimization Customers demanding outcomes—not equipment Servitization itself is climbing through distinct maturity levels: 𝗔𝗱𝗱-𝗢𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 → Break-fix support, manuals, spare parts 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗶𝗮𝘁𝗲𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 → Predictive maintenance, tailored packages 𝗖𝗼𝗿𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗠𝗼𝗱𝗲𝗹 → Outcome-based contracts, pay-per-use 𝗘𝗰𝗼𝘀𝘆𝘀𝘁𝗲𝗺 𝗢𝗿𝗰𝗵𝗲𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 → Platforms, partnerships, and co-created value The leaders aren’t asking, “How do we sell more machines?” They’re asking: “How do we guarantee uptime, monetize outcomes, and continuously innovate through data?” 𝗖𝗹𝗶𝗺𝗯𝗶𝗻𝗴 𝘁𝗵𝗲 𝗦𝗲𝗿𝘃𝗶𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗟𝗮𝗱𝗱𝗲𝗿: 𝗙𝗿𝗼𝗺 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝘀 𝘁𝗼 𝗣𝗿𝗼𝗺𝗶𝘀𝗲𝘀 𝗣𝗿𝗮𝗴𝗺𝗮𝘁𝗶𝗰 𝘀𝘁𝗲𝗽𝘀 𝘁𝗼 𝗺𝗼𝘃𝗲 𝘂𝗽 𝘁𝗵𝗲 𝗹𝗮𝗱𝗱𝗲𝗿: Build customer connections with personalized equipment info, reminders, and incentives. Collect & integrate asset data (sensors, maintenance records, feedback). Analyze data for insights, patterns, and service opportunities. Enable predictive maintenance to reduce downtime. Customize offerings to unique customer needs. Establish KPIs to support performance-based contracts. Continuously improve product design and serviceability. Close the loop with customer feedback.  𝗧𝗵𝗲 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀? Recurring, resilient revenue streams Stronger customer relationships & loyalty Competitive differentiation Cost efficiency through predictive maintenance Innovation fueled by real-world asset data 𝗧𝗵𝗲 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗮𝗿𝗲 𝗿𝗲𝗮𝗹: cultural shifts, cross-functional integration, new skill demands, cybersecurity, and customer adoption barriers. But with the right strategy, these hurdles become catalysts for reinvention. 𝗠𝗲𝗮𝘀𝘂𝗿𝗶𝗻𝗴 𝘀𝘂𝗰𝗰𝗲𝘀𝘀 𝗴𝗼𝗲𝘀 𝗯𝗲𝘆𝗼𝗻𝗱 𝗿𝗲𝘃𝗲𝗻𝘂𝗲—think CLTV uplift, uptime delivered, NPS improvements, and reduced lifecycle costs. ROI here is not just financial; it’s also trust, brand equity, and innovation velocity. Servitization is about redefining manufacturing for the digital-industrial era. The winners will be those who don’t just sell machines, but sell certainty, efficiency, and transformation.

The Value of Harmonizing and Automating Business Processes 1. Cost Savings and Efficiency Gains Process harmonization—the alignment and standardization of workflows across departments and geographies—can lead to significant cost savings, often in the range of 10% to 30% of operational expenses [1]. By eliminating duplication, reducing waste, and streamlining communication, companies can enhance their procurement leverage, decrease cycle times, and lower administrative overhead [1]. 2. Automation as a Growth Lever Automation doesn’t just cut costs—it creates capacity for growth, enhances resilience, and improves customer experience [2]. According to Bain & Company, companies that strategically deploy automation across functions report faster time-to-market, higher quality outputs, and greater scalability [2]. 3. Business Impact Metrics A Harvard Business Review study found that companies prioritizing automation saw: 20–25% improvement in operational efficiency 15–20% reduction in error rates Up to 40% faster execution of repetitive tasks [3] 4. Strategic Benefits of Harmonization Harmonized processes enable better data integration, easier compliance, and more agile decision-making. Organizations with harmonized systems are better positioned to implement automation technologies effectively, amplifying their return on investment [1]. References [1] Process harmonization: Harmonizing Processes to Unlock Cost Synergy [2] Beyond Cost Savings: Reinventing Business through Automation [3] How Automation Drives Business Growth and Efficiency #CleaningValidation #SwabBot

Digital transformation is a powerful tool, driven as much by the need to grow efficiently as by rapid tech advancement. But every upgrade brings challenges which, if mishandled, slow the organization down instead of speeding it forward. I’ve seen it too often: businesses rush into trends like GenAI, LLMs, Automation, only to find that the promised transformation feels like a rabbit hole. Saviour becomes a Tormentor. One B2C company deployed an AI chatbot hoping to improve customer service. But they skipped proper integration with CRM and didn’t plan for adequate maturity training. They assumed magic would happen on launch day. What followed: duplicated data, poor customer responses, long wait times, and frustration across teams. The tech created more problems than it solved—because long term planning from "deploy to mature" was missing. Tech should solve problems, not create new ones. It becomes a risk when driven by hope rather than planning. Red Flags to Watch Out For: - 𝗟𝗮𝗰𝗸 𝗼𝗳 𝗦𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗕𝘂𝘆-𝗶𝗻 Digital transformation has to be business forward, technology backwards. If key stakeholders aren’t aligned, the project fails. In this case, customer service hadn’t done enough mock runs. It took us at Airo to showcase performance dashboards: from 16% resolution on Day 1 to 44% by Day 28, later reaching 86% accuracy with consistent interaction. That shifted mindsets. - 𝗢𝘃𝗲𝗿𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 & 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 New systems mean new workflows. Without testing and training, even sophisticated tech underperforms. At Airo, we ensured limited rollouts, maintenance windows, and human handovers. A command center supervised interactions to step in where needed. - 𝗜𝗴𝗻𝗼𝗿𝗶𝗻𝗴 𝗟𝗼𝗻𝗴-𝗧𝗲𝗿𝗺 𝗖𝗼𝘀𝘁𝘀 Don’t focus only on initial rollout ROI. Budget for upkeep and improvement. In this case, a 12-month maturity plan was the biggest factor in long-term success. Tech should always be an enabler, not a roadblock. Before diving in, ask: Does this truly drive value, or are we just chasing a jazzy trend?

𝗧𝗵𝗲 𝗡𝗲𝘄 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗳𝗼𝗿 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝘁 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗼𝗻 Businesses today need more than just automation; they need systems that understand, adapt, and evolve. 𝗪𝗶𝘁𝗵 𝗖𝗵𝗮𝘁𝗚𝗣𝗧-𝟱, 𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝘀 𝗰𝗮𝗻: ☑️ Turn complex processes into seamless operations ☑️Transform data into actionable insights ☑️Deliver customer interactions that feel truly human 𝗧𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗶𝘀𝗻’𝘁 𝗮𝗯𝗼𝘂𝘁 𝗿𝗲𝗽𝗹𝗮𝗰𝗶𝗻𝗴 𝗽𝗲𝗼𝗽𝗹𝗲; 𝗶𝘁’𝘀 𝗮𝗯𝗼𝘂𝘁 𝗲𝗺𝗽𝗼𝘄𝗲𝗿𝗶𝗻𝗴 𝘁𝗵𝗲𝗺 𝘄𝗶𝘁𝗵 𝗶𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝘁𝗵𝗮𝘁 𝘄𝗼𝗿𝗸𝘀 𝘀𝗺𝗮𝗿𝘁𝗲𝗿, 𝗻𝗼𝘁 𝗵𝗮𝗿𝗱𝗲𝗿.

🛸The Future of Workflow Automation: Not “If” but “When” Think about this: A logistics company once needed 10 people to track shipments, update clients, and manually handle paperwork. With workflow automation, the same tasks are now completed by 2 people supported by intelligent systems that send instant updates, auto-generate reports, and flag issues before they even happen. That’s not science fiction—it’s happening today. 🔹 Why this matters: Automation isn’t just about saving time; it’s about creating a future where humans focus on strategy, creativity, and decision-making, while repetitive work is handled by intelligent systems. In the next 5 years, we’ll see: ✅ Businesses cutting operational delays by 70–80% ✅ AI-driven tools making customer experiences seamless (think self-healing support systems) ✅ Teams shifting from “task-doers” to “problem-solvers” ✅ Industries like finance, healthcare, logistics, and marketing being redefined completely Companies that adapt will operate faster, leaner, and smarter than ever before. Those who don’t? They risk being left behind. Automation is no longer an upgrade—it’s the operating system of the future. 💡 Question for you: Where do you see the biggest opportunity for automation in your industry?

I’ve seen many digital transformation initiatives, and one thing keeps standing out: if it’s not applied across the entire process, it creates more cost than value. Too often, we add digital layers on top of outdated manual steps. The result? More investment, but with the same inefficiencies or even worse. Take a simple example: some government services where applications are submitted online, and results are delivered digitally. But if you go to follow up in person, employees are still searching through archived paper files — sometimes even lost ones. That’s not transformation. That’s digitizing the first and last touchpoints, while the operations in between remain unchanged. True digital transformation means rethinking processes end to end. That’s where cost savings, efficiency, and real impact happen. I’m sure you have seen examples where digital transformation looked good on the surface but failed to deliver real change! #digital_transformation

Here’s a scary 😱 thought. Digital systems are killing customer service and taking the soul out of business. How many times have you: - been forced to scroll digital menys designed to keep you from talking to a smiling and laughing human being. - been looped around endlessly by chatbots - received «do not reply» emails and found no phone number to contact when all you want is to have a human conversation. Digital tools were meant to make things faster and more efficient. Instead, they create distance between customers and their need. Instead of solving problems, they add friction. This is waste in its purest form ❌ Customers waiting. ❌ Customers repeating information. ❌ Customers forced through processes that don’t solve their problem Why? Because finance doesnt care. When the business is the product. Customers don’t matter. So what can you do about it? 1. go to gemba. Listen to your customers. Legend has it that Jeff Bezos spent a day every quarter answering phone calls in customer service. 2. understand how customers use your service or product in their context. 3. Find the point of cause for customer issues and take appropriate countermeasures. If your “digital transformation” makes it harder for customers to get help, use your service or your product. it’s not transformation — it’s waste. Think differently, Think lean. Start with the customer, not the financial statement when judging performance #leanisawesome