What Manufacturers Need to Know ABOUT DIGITAL TRANSFORMATION IN 2019

Table of Contents

What Manufacturers Need to Know About Digital Transformation in 2019

INTRODUCTION

Today’s manufacturers are dealing with more demands than ever. The digitalization of the marketplace has accelerated the demands of customers, compelling successful organizations to adapt quickly. And because anticipating and meeting customer demands are now central to steady growth, executives must lead and navigate the digital transformation process wisely.

It’s a challenge for enterprise organizations across industries. From general change management to imprecise execution, digital transformation can present a host of potential pitfalls. But one of the most daunting tasks is leveraging customer data to improve the customer experience. Henry Tiersky, CEO and founder of FROM, The Digital Transformation Agency, calls customer data “the root of digital success.” Tiersky also identi-fies siloed, disconnected systems as a top challenge for enter-prise digital transformation.

TABLE OF CONTENTS

[customer data is] the root of digital success.

HENRY TIERSKY, CEO of FROM

INTRODUCTION ................................ 02

CHAPTER 1 .......................................... 05 Why Collaboration is Key to Digital Transformation

CHAPTER 2 ...........................................07 How Enterprise Manufacturers Can Focus on the Customer and Improve Revenue

CHAPTER 3 ...........................................10 Gaining a Competitive Advantage through Digital Transformation

CHAPTER 4 ...........................................13 How Smarter Integration Improves Enterprise Performance

ABOUT enosix ....................................12

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The concept of digital transformation isn’t a new one, but it’s become a more urgent business driver in recent years. It’s the use of technology to profoundly change all areas of a business. Digital transformation also introduces a culture that values in-novation and experimentation, and challenges the status quo.

Ensuring these new technologies are introduced is a top priority for enterprises. According to business consulting firm Grand View Research, revenue for providers of digital transfor-mation software and services in the U.S. will reach $490 billion by 2025. That’s a significant jump from 2019’s estimate of $190 billion. For IT teams, it’s a signal that digital transformation is a critical business goal. And for CIOs, it’s a warning: digital trans-formation must start now.

As the speed of business accelerates, organizations must do more to offer better experiences across the customer lifecycle: improve the buying process, quickly and accurately respond to customer inquiries, and build and deliver high-quality goods. It’s up to the CIO to select technology that enables those goals, and ultimately, leverage digital transformation to power an organization’s key business drivers.

2019 20252019 2025

$490BILLION

$190BILLION

$490BILLION

$190BILLION

REVENUE FOR PROVIDERS OF DIGITAL TRANSFORMATION SOFTWARE

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03What Manufacturers Need to Know About Digital Transformation in 2019

What Manufacturers Need to Know About Digital Transformation in 2019

And as the role of CIO evolves from delivery executive to business executive, they must develop strategies that guide decisions organization-wide. A survey conducted by Gartner revealed that 84 percent of CIOs at top-performing organiza-tions have responsibility for areas outside of traditional IT. That means the decisions a CIO makes can have a significant and lasting impact on a company’s future.

Manufacturing IT executives must lead initiatives that enable digital transformation, future-proof business by centering around the customer, gain an edge on competi-tion through speed, and work smarter—not harder—by inte-grating systems. Executives who prioritize these four areas have the power to revolutionize how their organizations do business.

at top-performing organizations have responsibility for areas outside

of traditional IT

84% of CIOs

ENABLE DIGITAL TRANSFORMATION

GAIN EDGE THROUGH SPEED

FUTURE-PROOF BUSINESS

INTEGRATING SYSTEMS

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04

In manufacturing organizations, IT teams are tasked with the challenge of implementing modern systems and processes to improve how an entire organization operates. That requires IT leaders to consider how their choices impact each depart-ment’s ability to meet their goals.

IT teams are traditionally responsible for initiating, imple-menting, and maintaining the digital transformation process. According to Altimeter’s 2018-2019 The State of Digital Transformation, most transformation efforts focus on modern-izing customer touchpoints (54 percent) and enabling infra-structure (45 percent). These statistics reveal how important cross-team collaboration is to successful digital transformation. They also reveal that IT isn’t alone in its struggle to achieve digital transformation—it’s a process that affects each team in different ways.

CHAPTER 1

Why Collaboration is Key to Digital Transformation

IT TEAM’S TRANSFORMATION EFFORTS

QUESTIONS THAT IT TEAMS SHOULD ANSWER WITH HELP FROM OTHER DEPARTMENTS INCLUDE:

SOLUTION: SEARCH FOR TECHNOLOGY THAT PROVIDES A BETTER WAY FOR BUSINESS TEAMS TO ACHIEVE THEIR GOALS.

Think first of how technologies will impact a company’s ability to serve its customers. Because revenue is often the most important metric for executive teams, IT leadership must prioritize:

• Evaluation of current technologies to maximize value, efficiency, and scalability.

• Moving from legacy systems to cloud-based systems that enable flexibility. Companies that aren’t in the cloud can find themselves years behind their competition.

• Implementation of a CRM system that centralizes data and empowers customer-facing team members.

• Integration between critical systems, like ERP and CRM, to provide sales teams with a detailed view of customers in one system.

The good news for IT teams is that while they must lead digital transformation and the selection of technology to support it, they don’t have to navigate it alone. Soliciting and gaining buy-in early from teams across an organization will ensure investments pay off. And, as we’ll see in the next chapter, involving customer-facing teams like sales and service can point toward which challenges to handle first.

How will IT choose, prioritize, and implement new technologies?

Which teams should be integrally involved in evaluating technologies?

What kind of ramp time will other teams, like sales, need to implement and adopt new technologies?

How do IT teams modernize legacy systems and deliver better results with fewer resources?

Who will measure the impact of the digital transformation process?

IT has to answer each of these questions while also ensuring every team across their organi-zation can continue meeting their goals during the digital transformation process.

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06What Manufacturers Need to Know About Digital Transformation in 2019

CHAPTER 2

How Enterprise Manufacturers Can Focus on the Customer and Improve Revenue

With the industry-agnostic shift from a traditional sales funnel to the buyer’s journey, every company must become more customer-centric. That presents IT with another challenge: building processes that facilitate sales enablement. An IndustryWeek report cites strengthening customer relation-ships as a top five operational challenge for manufacturers, which stresses the importance of digital transformation.

SOLUTION: CENTRALIZE CUSTOMER DATA ACROSS MULTIPLE SOURCES INTO ONE SYSTEM OF CUSTOMER ENGAGEMENT, LIKE A CUSTOMER RELATIONSHIP MANAGEMENT (CRM) SYSTEM.

Technology that enables sales and service teams to serve customers is critical. The right CRM serves as a single source of truth, not just for customer relationship information, but for all of the dynamic data a company collects.

In TechRepublic’s ebook Digital transformation: An IT pro’s guide, 44 percent see digital transformation as the best way to understand customer needs through data collection and analysis. The ability to access dynamic customer data for sales and service teams can give companies an edge over compe-tition, uncover hints on how customers navigate the buyer’s journey, and even shorten the sales cycle.

Centralizing data makes it easier for sales teams to respond to projects and gives them the information they need to deliver on customer expectations. It’s an edge that doesn’t just create a better customer experience--it also helps companies stay flexible enough to respond to the changing demands of the market.

That flexibility can be a valuable advantage for manufac-turers in particularly competitive spaces. Apparel manufac-turer Carhartt has been an industry leader for more than a century, and its customer base spans the globe. With both brick-and-mortar and ecommerce buyers, Carhartt relies on an omni-channel view of its customers in a single system. Implementing Salesforce as its CRM was an important step toward creating a dynamic customer repository.

44 percent see digital transformation as the best way to understand customer needs through data

collection and analysis. TECHREPUBLIC

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08What Manufacturers Need to Know About Digital Transformation in 2019

What Manufacturers Need to Know About Digital Transformation in 2019

However, before Carhartt could implement a CRM solution, the company had to consider the data it currently stored in SAP®, its enterprise resource planning (ERP) platform of choice. In order for Salesforce to be useful and store the most accurate, up-to-date information, the company needed to include inte-gration between the systems in the scope of its CRM project. Carhartt turned to enosix to unlock data and business process from SAP, make it accessible from Salesforce, and to do so quickly. With SAP Customer 360 by enosix, Carhartt accel-erated its integration implementation plan by nine months. That time savings enabled the company’s IT team to focus on other digital transformation projects that they would not have had the time to do if they were busy building and mapping integrations.

In addition, Carhartt recognizes an increased efficiency across its sales team. “Having everything within Salesforce has made the process of assisting customers much easier on our associ-ates,” said Ryan Needham, Operations Performance Manager at Carhartt. “After implementing enosix, we experienced an increase in efficiency by reducing the amount of time spent switching between screens.” That time adds up—and it combines to improve customer experiences.

Centralizing data isn’t just important to sales, but to the entire organization. The next chapter illustrates how smart integra-tions can enhance an entire company’s performance.

After implementing enosix, we experienced an increase in efficiency by reducing the amount of time spent

switching between screens. RYAN NEEDHAM

Operations Performance Manager | Carhartt

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Navigating a digital transformation without losing momentum is a challenge for nearly every manufacturer. But choosing solutions that help an entire organization gain a competitive advantage is equally important. As the applications for new technologies increasingly impact multiple parts of a business, speed is one of the most impactful levers of a successful digital transformation.

It all begins with the right approach to digital transformation as a change agent. A survey performed by global accounting firm Grant Thornton found that 69 percent of CFOs and senior financial executives are planning to increase their invest-ment in technologies that speed business change.

And with 41 percent of those survey respondents citing overtaking competition as a core goal of digital transforma-tion, IT must serve as the catalyst for that action.

CHAPTER 3

When Speed Matters: Gaining a Competitive Advantage through Digital Transformation

41%

69%

Because digital transformation is now an overall business priority instead of a simple project, it’s speed that will set winners apart from their competitors. A recent article by McKinsey suggests that the company that gets to the customer first is the company that wins.

“In the new world,” said Klaus Schwab, executive chairman of the World Economic Forum, “it is not the big fish which eats the small fish, it’s the fast fish which eats the slow fish.” A success-ful enterprise can no longer rely on size to hold off competi-tors: now, agility is what sets winning companies apart from the competition.

“…it is not the big fish which eats the small fish, it’s the fast fish which eats the slow fish.”

KLAUS SCHWAB, World Economic Forum

THEN NOW

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What Manufacturers Need to Know About Digital Transformation in 2019

To accelerate the digital transformation process, IT leaders must ask themselves the following questions:

How will new technology help a company meet customer needs faster? Does it increase team efficiency, or enable easier access to data?

How can IT teams choose solutions with frictionless implementation and ramp times?

How do these new solutions remove barriers or blockers for teams, and free up time to be more strategic?

SOLUTION: IDENTIFY YOUR ORGANIZATION’S MOST IMPORTANT BUSINESS DRIVERS AND CHOOSE TECHNOLOGY THAT ACCELERATES THEM.

This gives IT leadership a high-level view of which technologies can make the most strategic impact and improve overall speed.

It’s much easier said than done, however. Manufacturers that employ ERP and CRM systems often struggle with the effects of siloed data across disparate systems, which can slow down the sales and delivery processes. It’s a sign that IT leaders may be missing an essential element of digital transformation: systems and business process integration.

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CHAPTER 4

How Smarter Integration Improves Enterprise Performance

Forrester identified 2015 as the inflection point when companies that harnessed digital technology would gain an advantage over their competition. But nearly five years later, enterprise IT teams still struggle to move their organizations toward and through digital transformation.

It all begins with how organizations evaluate and select solutions to help them deliver on the business’ needs. Those decisions have the power to either turbocharge a company’s momentum, or slow growth and affect customer experience. How can IT leaders future-proof their investments, and get the most value from them over time?

SOLUTION: CHOOSE FLEXIBLE, SCALABLE INTEGRATION SOLUTIONS TO AUTOMATE PROCESSES AND POWER YOUR DIGITAL TRANSFORMATION.

Without scalable solutions to enable integration across disparate systems, companies run the risk of slowing down instead of accelerating processes. Integrating CRM and ERP offers key advantages, including improved quote and order management, reduced IT overhead, and the elimination of duplicate data entry (and its potential for introduction of errors and inaccuracies). However, it’s your approach to integration that can make or break the scalability of your solution.

While it’s clear that the centralization of data in a single source helps companies “access relevant data, facilitate quicker, more collaborative communication” (via Forbes) it’s also important to envision what the ideal end state is for your customer-facing employees. While it’s good to be able to access all data in one system, it’s better to leverage both the data and the business processes behind the data in one system. For manufacturers that have many years of dynamic data and business processes stored in SAP, this can sound like an overwhelming project. And unfortunately, traditional middleware and ETL (Extract, Transform, Load) tools only effectively address moving data from point to point and often fail when it comes to automating critical business processes.

CONSIDER:

• Does our integration solution replicate or require dual maintenance of our data? How much time will the maintenance of data in two systems add to our teams’ workload? How will dual maintenance affect the accuracy of data?

• Will users need to be able to create quotes or place orders from Salesforce that are executed in SAP?

• When we expand on our integration solution (for example, when expanding the use of Salesforce to other areas of the business), will our custom and manual mapping efforts scale?

By focusing on the ideal end state and selecting integration technology that enables business process automation, you can avoid wasting resources on projects that simply won’t scale.

the centralization of data in a single source helps companies “access relevant data, facilitate

quicker, more collaborative communication”

FORBES

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What Manufacturers Need to Know About Digital Transformation in 2019

DELIVER DIGITAL TRANSFORMATION SUCCESS.

Manufacturing IT executives are charged with leading their entire organizations through the digital transformation process. And successful IT leaders know that digital transformation doesn’t end—in fact, regular evaluation of both solutions and processes can reveal opportuni-ties for optimization and improvement.

Collaborate across teams. Technology that increases efficiencies, boosts productivity, and uncovers customer data provides opportunities for employee-facing teams to continuously deliver value to the business.

Focus on the customer. Centralizing customer data across disparate systems enables sales and service teams to build a better customer experience and boost revenue. Satisfied customers are loyal customers.

Gain an edge on competition through speed. Manufacturers are moving towards digital transformation quickly, and it If you want to beat the competition, you must work with speed. Use your company’s goals as a roadmap to select which processes need to be accelerated first, and prioritize the technology that supports it.

Choose flexible technology that scales across the business. Just as speed can impact a company’s ability to compete, so can flexibility. Look for technology solutions that eliminate the need for additional work and resources, like dual data maintenance, and can adapt to new areas across the business.

Manufacturing enterprises must overcome new and accelerating challenges to stay ahead of their competition. But digital transformation—when done right—gives IT execs the tools they need to grow, innovate, and effect lasting change.

EXECUTIVES WHO PRIORITIZE THESE FOUR AREAS HAVE THE POWER TO REVOLUTIONIZE HOW THEIR ORGANIZATIONS DO BUSINESS:

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About enosix

The traditional manufacturing business model is changing, and its increasingly important for CIOs and IT executives to evaluate how each technology invest-ment can propel the company to reach its digital transformation goals.

When manufacturers have invested significant dollars into SAP ERP and Salesforce, integration between the systems is critical for gaining adoption of Salesforce, increasing efficiency of internal processes, and ultimately, empower-ing users to create a better experience for customers.

enosix was founded by former SAP executives who were frustrated by the status quo and knew there had to be a better way to enable integration between systems. Our technology provides manufacturers with pre-built integration components native to, and certified on, SAP and Salesforce. We’ve pre-defined common integration scenarios specific to the manufacturing industry, including:

• Viewing SAP sales document history (orders, quotes, invoices, and deliveries)

• The use of customer-specific pricing conditions, including Variant Configuration

• Executing SAP transactions like Sales Order creation from Salesforce

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enosix.com

enosix automatically translates anything configured in SAP ABAP, including SAP custom fields, transactions, or custom modules, to the Salesforce APEX language. In addition, enosix provides Salesforce native components to visualize the SAP data and create SAP transactions, within Salesforce in real-time. Whether you need to visualize or sync the data for reporting, enosix provides a forward-thinking and cost- effective approach to integration.

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What Manufacturers Need to Know About Digital Transformation in 2019