Large scale digital transformation of Supply Chains often fails to deliver the promised benefits.

We have heard of many companies going in for a large scale digital transformation. The benefits promised by the partners are huge, but do the companies end up realising it?

I have discussed it with a whole lot of companies who have opted for such large scale digital transformations with substantial investments. Their overall feedback is not very encouraging. Why is it that such transformations don’t yield the promised benefits?

My discussions and further analysis indicates that in most of the cases, such large scale projects were not required. For example, some companies opted for IOT on their production lines to improve the overall productivity. It was done across all the machines on all production lines. However, the benefits came only from the lines and machines which were bottlenecks.

In my opinion, digital solutions should be targeted to specific bottleneck locations where current non-digital working is inefficient. Such localised applications give us a much better leverage and boost the ROI many times.