DIGITAL MATURITY

A truly digitalized business embraces agile working patterns and increases reach while maximizing
returns across assets and operations. To achieve this level of agility, you need to examine current
processes across your entire value chain.

For instance, ask yourself: How can you think differently and take full advantage of the power and
scale of cloud computing, the industrial Internet of Things (IIoT), edge, artificial intelligence, and
virtual, mixed and augmented reality – otherwise known as extended reality (XR)?

In turn, taking advantage of these digital accelerators involves asking even more questions, like:

• Can analog processes be digitalized?

• Can you capture engineering and asset information across your asset’s lifecycle and use it
to improve execution in operations and performance?

• Can your team collaborate using the cloud?

• What does it mean to introduce edge-to-enterprise multi-experience capabilities in your

remote factory, using AI-enhanced HMI-SCADA capabilities?

And the questions don’t end there. Industries are facing a workforce evolution. While millennials
might be less experienced than the boomers they are replacing, these digital natives are moving
into senior industry roles. Experienced teams aim to pass on their knowledge and expertise before
they leave the workforce – which means that leadership is seeking answers for how to systematize
the knowledge leaving their businesses while simultaneously introducing new ways to collaborate.

Seeking answers to all these questions is challenging but important, not only because it rewrites
old industrial operating models, but also because it prompts organizations to rethink their
approaches to profitability. That, in turn, impacts ROI.

Digital transformation is the process of building a comprehensive digital value chain that drives
closed-loop operational excellence and unique customer experiences throughout the enterprise,
effectively closing the gap between information technology (IT) and operations technology (OT).

The World Economic Forum (WEF) estimates that digital transformation has created as much as
$400 BN in additional value in the past 20 years. Decreased energy costs, reduced waste, and
efficient increases in output are just some of the sustainable benefits an end-to-end digital
transformation strategy can yield.

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EMBRACING A AWORLD OF CONSTANT CHANGE

In a survey conducted with 1,240 decision-makers in ten countries in EMEA, North America and
APAC across nine industry verticals, the key investment drivers for digital transformation are:

1. Making sense of data utilizing artificial intelligence and real-time data visualization (75%)

2. Fostering collaboration through Advanced Process and Engineering Design (74%)

3. Stepping up cybersecurity and safety capabilities (71%)

To meet the challenge of maintaining a competitive edge, companies must improve profitability
and maximize return on capital across the asset and operations value chains. This encompasses
everything from how an asset is designed and engineered to how it is operated and maintained to
ensure optimum performance and uptime, efficiency, and safety.

OPTIMIZE PERFORMANCE IN INDUSTRIAL MANUFACTURING

Within manufacturing, digital-industrial technologies can streamline design, production, and

performance, helping companies bring products to market faster at progressively lower costs. By
converging previously inaccessible data streams, increasing live-visibility, and enabling clear
analysis of your operations, you open up the opportunity to drive actionable insights based on
better information.

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The benefits of optimized performance

• Reduce time, cost and complexity of capital projects

• Improve situational awareness throughout the enterprise
• Minimize unscheduled downtime
• Lower energy consumption
• Improve regulatory compliance and safety
• Improve process efficiency and logistics
• Tighten maintenance planning
• Reduce waste
• Integrate supply chain logistics with customers/partner operations
• Increase overall equipment effectiveness (OEE)

Creating a seamless and continual stream of process and production data that integrates with your
historical operations information is an integral step to achieving these benefits. However, this data
stream must then be contextualized into new insights on your overall enterprise.

Data may already exist within the enterprise, stored in historian software or 3D models of plants
and assets, or in disconnected spreadsheets and systems. New digital tools can mine your existing
data sources, combining them with real-time operational data to generate improved insights on
how to maximize value creation across asset and operations lifecycles.

This process doesn’t exist in isolation. Every minute of engineering, operations, and performance
can now be refined and improved, using digital metrics and artificial intelligence to ensure that
you stay ahead of the pack. The cycle continuously reveals actionable insights that digitally
transformed enterprises depend on to maximize efficiencies across all aspects of the business.

Balancing production against operational efficiency has always been crucial to maximizing return.
But now digital-industrial solutions that extend beyond engineering design into operations
execution and asset management can help illuminate unseen inefficiencies and reveal new insights,
optimizing the entire value chain and enabling a more sustainable production model.

Industrial markets are facing rapid transformation

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For this amalgamation of knowledge to occur, digital tools and processes need to tap into both
operations technology (OT) and information technology (IT). The best technology establishes a
bridge between the physical world, where value creation takes place through production and
delivery, and the digital world, where enterprise planning and forecasting occur.

Data as an Asset

As part of its SmartGen program to avoid catastrophic failures at power plants, Duke Energy
implemented predictive asset analytics from AVEVA. The technology leverages high fidelity data
from over 30,000 sensors to develop over 10,000 models to catch asset failures long before they
occur. A total of 385 finds over the course of three years has conservatively avoided over $45
million in repair costs.

AVEVA works with customers at the forefront of change.

To support a differentiated workforce for resource optimization you must manage execution and
collaboration across your business.

We work with customers to identify where the value lies within their business and help them
unlock it, enabling the workforce with fully contextual enterprise data across engineering,
operations, and performance.

This practical, implementable methodology provides customers a roadmap with a clear vision on
value and immediate ROI via tested, proven solutions.

THE DIGITALLY EMPOWERED WORKFORCE

Digital technology is changing how you can train and manage your people throughout the asset
and operations lifecycles. New tools are also improving knowledge transfer and increasing
situational awareness among your global team. Through immersive virtual reality (VR)
experiences, operators can now learn how to safely and effectively operate facilities or perform
maintenance on an asset. When you couple these technologies with Digital Twin approaches,
operators and plant personnel can visualize processes and assets in real-time, live from the plant
floor, or when cloud-enabled, anywhere there is a secure network connection. Such technologies
provide a realistic virtual learning environment that can prepare your teams to act appropriately in
any given situation. In this environment, knowledge transfer of best practices and standard
operating procedures flows naturally between new and experienced operators, which can help to
reduce costly maintenance errors. This step-change in operational processes is also accelerating
new insights on enterprise operations and improving knowledge transfer between new and
experienced operators.

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Such technologies provide a realistic virtual learning environment that can prepare your teams to
act appropriately in any given situation. In this environment, knowledge transfer of best practices
and standard operating procedures flows naturally between new and experienced operators, which
can help to reduce costly maintenance errors. This step-change in operational processes is also
accelerating new insights on enterprise operations and improving knowledge transfer between new
and experienced operators.

THE CUSTOMER FOCUSED COMPETITIVE EDGE

Almost every industry has been forced to pivot in recent years, shifting from business-as-usual to
an intense focus on delivering unique and exceptional customer experiences through digital
technology.

For instance, in less than a decade the cable television industry was shattered by agile new
businesses that embraced an online distribution model, giving customers on-demand access to an
endless array of video content. As existing analog providers scrambled to obtain the necessary
technologies to maintain market share, digital content providers continued to innovate.

Printed media, magazines, newspapers, and books have been similarly pushed to the margins by
digital content that compressed turnaround times, distributing content to mobile devices and
through social media with urgency.

What is the single driver of this change? Customer experience. By better forecasting customer
need and further streamlining purchasing, digital challengers offered an enhanced customer
experience, enabled through transformed business models.

Likewise, industry needs to consider customer experience carefully. Changing customer needs,
volatile market conditions, and global competition present unique challenges and can stand in the
way of growth. Companies need to improve collaboration, operations, and efficiency metrics by
creating the roadmap to efficiently navigate the digital modernization process.

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Harnessing digital technology within your enterprise is crucial to adequately respond to these
considerations while creating new opportunities for innovation. But the traditional ad-hoc
approach to digital modernization leaves organizations struggling to keep up. It takes a cohesive
vision and technical leadership to help companies break down traditional information silos,
improve collaboration, and reveals new ways of working within their organizations.

Having a comprehensive digital transformation plan and possessing the ability to successfully
navigate cultural change are two of the most significant factors driving success for the world’s
leading companies. To drive a better customer experience, connect your people, processes, and
assets to drive insights that:

• Create optimization opportunities across the business

• Enable your teams to adapt and manage change

• Deliver outstanding and differentiated customer experiences.

• Build an environment that attracts and develops top talent.

KEY TECHNOLOGY INVESTMENT PILLARS

It is clear that investing in new technologies will be imperative for digitally transforming
companies. But making the right technology investment requires careful analysis.

It’s important to note that modernizing your digital estate doesn’t have to mean a wholesale “rip-
and-replace” of existing industrial software. By adopting new hybrid-cloud architectures, you can
augment existing investments with new technologies as, and where, it makes sense.

To design a digital architecture that fits your business and ensures optimal return on investment, it
helps to think in terms of four key technology “pillars,” as laid out below.

1. Returns Delivery Across Your Enterprise

Modern digital platforms need to deliver returns across your enterprise. Technology investments
must enable the digital integration of engineering, operations, and performance to create a 360-
degree view, from the shop floor to the top floor.

2. Open and System-Agnostic

Interoperability and cross-platform support accelerate a path towards continuous process
improvement. Rapidly sharing big data and insights across multiple platforms, including cloud,
mobile, and extended reality, requires system-agnostic technology that augments your existing
investments rather than replacing them. An open, system-agnostic approach to digital
transformation drives long-term value and lower total cost of ownership (TCO).

3. Digital Ecosystems
A multidisciplinary ecosystem of technology partners should back technology investments.
Ecosystems should include design, development, delivery, maintenance, and support of industry-

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specific solutions on a global scale. Your ecosystem partners in this enterprise may consist of
software developers, technical distributors, system integrators, OEM providers, and technology
partners, all focused on extending value and driving innovation across your business.

4. Technical and Commercial Flexibility

Adapting to unforeseen events becomes automatic when you use flexible technology
implementations and commercial models. The most up-to-date platforms help your teams choose
the right mix of deployment options, including on-premises, cloud, and hybrid rollouts.Agility in
procurement allows your team to test possibilities through perpetual licensing or subscription-
based options that move dynamic costs from your balance sheet (CapEx) to your profit and loss
(OpEx) and enable you to benefit from the latest software advances as they happen,
automatically.Solutions for implementing technology with an as-needed, staged approach help
your enterprise reduce upfront costs and decrease the time-to-value of modern technology
investments, thereby accelerating your progress toward increased profitability.

HOW TO GET STARTED

Ultimately, your decision to pursue a digital transformation strategy comes down to asking
yourself one question: How can this benefit my business?

The answer lies beyond investing in new technologies or gathering even more data. Digital
transformation is about innovating your business strategy, improving operations, and uncovering
unprecedented new opportunities for both efficiency and productivity.

By increasing efficiency, modern digital tools that support data-driven processes across
engineering, operations, and performance enable you to embrace digital improvements. They
allow access to Greenfield applications and encourage you to adapt and embrace the full potential
of digital tools in brownfield applications as well.

Your path to digitalization might be simpler than you think. Digital transformation doesn’t
necessarily require substantial upfront investments. A Digital Maturity Assessment can help your
team analyze your current asset inventory and business operations and chart your best overall
digital strategy.

Then, initiating digital technology pilot projects, like predictive analytics or XR, can help your
enterprise understand where to make the best technology investments to improve profitability and
maximize return on capital.

This change doesn’t happen overnight. You are beginning an ongoing journey towards continuous
process improvement and efficiency, founded on ever-closer collaboration between your people,
processes, and assets. Over time, this positive momentum will build, enabling your teams to bridge
the operations technology and information technology gap.

To maintain or improve your competitive level and market position, you need a transformative,
digital, strategic path. Start small in your strategy and adoption. But start now.

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