Digitalization Drives Change in Industry: Why Now?

Factors:

1. Technology Democratization:

In recent years, technologies have become increasingly democratized, making them more accessible and applicable than ever before. Components forming the infrastructure of digital transformation, such as sensors and processors, have become smaller and cheaper over the years. While sensor costs have halved compared to five years ago, cloud infrastructure costs have decreased to one-twentieth, and computer processor costs have dropped to one-fiftieth.

2. Data Explosion:

With the advancement of internet and sensor technologies, more data is being produced than ever before. In fact, 90% of the data we have today has been generated in the last two years alone. While the cost of storing this data continues to decline, the processing power for data analysis is increasing.

3. Widespread Adoption of Digital Transformation:

The democratization of technologies in recent years has led to the widespread adoption of digital transformation technologies by companies. The integrated operation of 11 digital technologies enabling digital transformation in the industry forms the foundation of the factories and value chains of the future.

These factors highlight the critical reasons behind the current surge in digital transformation within the industry.

Sanayide Dijital Dönüşüm Teknolojileri

Technologies Driving Digital Transformation in Industry

1. Internet of Things (IoT): IoT enables the connection of devices and systems, facilitating real-time data collection and analysis, which improves efficiency and decision-making.

2. Big Data and Analytics: The ability to process and analyze vast amounts of data helps companies uncover insights, optimize operations, and predict trends.

3. Artificial Intelligence (AI) and Machine Learning (ML): AI and ML algorithms enhance predictive maintenance, quality control, and supply chain management by learning from historical data and improving over time.

4. Cloud Computing: Cloud platforms provide scalable infrastructure and services, reducing costs and increasing flexibility for data storage, processing, and collaboration.

5. Advanced Robotics: Robotics technology automates repetitive tasks, improves precision, and enhances safety in manufacturing processes.

6. Augmented Reality (AR) and Virtual Reality (VR): AR and VR technologies offer immersive training experiences, remote maintenance support, and enhanced design and prototyping capabilities.

7. Cybersecurity: With increased connectivity, robust cybersecurity measures are essential to protect sensitive data and systems from cyber threats.

8. Additive Manufacturing (3D Printing): 3D printing allows for rapid prototyping, customized production, and reduces waste by enabling precise manufacturing.

9. Digital Twins: Digital twins create virtual replicas of physical systems, enabling real-time monitoring, simulation, and optimization.

10. Blockchain: Blockchain technology ensures transparency and security in supply chain transactions and data integrity.

11. Edge Computing: Edge computing processes data closer to the source, reducing latency and improving response times for critical applications.

These technologies collectively enable the digital transformation of industries, driving efficiency, innovation, and competitiveness.

Current Situation and Competencies of Turkey

To enable high value-added production through technological transformation, it is crucial to integrate digital technologies into the production ecosystem and the entire value chain, as well as to produce these technologies within Turkey. Therefore, assessing the competency levels of technology producers and users in Turkey, identifying their shortcomings, and determining areas of focus are of great importance in analyzing the current situation. To serve this purpose, a comprehensive study was conducted within the framework of this report, involving technology user and supplier companies.

To measure the competency of digital transformation in the industry in Turkey, two fundamental aspects are considered:

• The current state of industrial companies needing digital transformation.

• The current state of the ecosystem of technology suppliers that will enable the transformation.

When analyzing industrial companies that need digital transformation, five main points are considered:

1. Awareness Level of Companies:

2. How aware companies are of digital transformation and its benefits.

3. Benefit Expectations of Companies:

4. What benefits companies expect from digital transformation.

5. Prerequisites for Transformation:

6. The infrastructure for digital transformation in the industry.

7. Principles of excellence in production.

8. Levels of technology usage.

9. Implementation Rates of Value-Creating Applications:

10. How often and effectively companies are implementing applications aimed at creating value.

11. Challenges Faced in the Journey of Digital Transformation in the Industry:

12. Identifying and understanding the obstacles companies encounter in their digital transformation efforts.

When analyzing the current state of technology supplier companies, two main aspects are considered:

1. Technology Supplier Ecosystem:

2. The depth of local technology suppliers.

3. The export rates of local technology supplier companies.

4. Challenges Faced by Technology Providers and Solution Producers:

5. Understanding the obstacles technology providers and solution producers face in the current market environment.

These analyses help provide a comprehensive view of Turkey's capabilities and readiness in terms of industrial digital transformation.

Performance Management

For companies to identify necessary improvements, it is crucial to measure the performance of all production stages from start to finish. Performance measurements should be conducted not only for production equipment but also for employees. Continuously and in real-time monitoring the performance of integrated and interconnected production systems facilitates the identification of areas for improvement, thereby promoting continuous development.

Employee Engagement

One of the primary actions required to achieve transformation is the transformation of the existing human resources. Digital technologies not only enhance production processes and enable real-time monitoring but also facilitate more efficient participation of employees in these processes. Application areas under the Employee Engagement heading make machine-human operations more efficient. Additionally, virtual training applications can shorten the onboarding times of employees.

By focusing on these aspects, companies can ensure both their machinery and workforce are operating at optimal efficiency, driving continuous improvement and better overall performance.

fahrisengul.com

Sources:

Tüsiad , BCG (Boston Consulting Group )  , Türkiye’nin Sanayide Dijital Dönüşüm Yetkinliği

Türkiye’nin 4. Sanayi Devrimi / Aralık 2017 Yayın No: TÜSİAD-T/2017,12 – 589 /w w w . t u s i a d . o r g