Digital Transformation

What is Digital Transformation

Digital transformation is revolutionizing how businesses create value and interact with their customers. Digital transformation combines automation, smart technology, and analytics to pave the way for what many call the Connected Enterprise. In this interconnected system, physical machines, data, and people can communicate in real-time.


The 3rd Industrial Revolution sparked a fusion of technologies, changing the game between the physical and digital worlds. While older versions of computers, PLCs, software, and communications may not be capable of reaping the benefits of digital transformation, modern versions of these technologies can unlock endless possibilities. Much like how the Internet allows us to share information and make better business decisions, digital transformation enables machines and systems to communicate and make decisions with minimal human intervention.

Digital Transformation Benefits

Digital Twin Technology

A digital twin is a virtual replica of a physical asset, product, or process that allows real-time monitoring and analysis of the physical asset, product, or process performance. A digital twin is created by collecting data from sensors and other sources, such as simulation models, and then using that data to build a digital replica of the physical asset, product, or process. A digital twin can be used to simulate the production process, identify problems before they occur, and predict future outcomes. Based on this information, companies can proactively prevent production stoppages.

Empowering the Workforce

One fundamental way digital transformation technologies can empower the workforce is through advanced technologies such as Augmented Reality (AR) and Virtual Reality (VR). These technologies can provide workers with real-time information, guidance, and assistance to help them perform their tasks more effectively. For example, workers in manufacturing can use AR to overlay digital information, such as assembly instructions, onto the physical components they are working on, reducing the chances of errors and increasing efficiency.

Driving Sustainability

Companies adopt sustainability strategies to increase efficiency, add brand value and meet consumer demands, have a competitive advantage, and attract talent. Again improving production efficiency through the use of automation and robotics can reduce waste by automating repetitive and routine tasks, improving the accuracy of production processes, and reducing the need for human labor. Additionally, using advanced analytics and machine learning can help organizations identify inefficiencies in their production processes and optimize production schedules to minimize waste and improve overall efficiency. IoT, big data, and advanced analytics can help optimize energy consumption by monitoring and controlling energy usage in real-time, identifying areas for improvement, and identifying potential energy savings.

Additionally, Industry 4.0 technologies such as automation, robotics, and AI can be used to develop more sustainable manufacturing processes and production systems. Digital Transformation technologies can also support the circular economy. It can help track products throughout their life cycle, from sourcing raw materials to disposal, thus allowing organizations to identify areas where they can reduce waste, increase recycling, and use more sustainable materials. In addition, these technologies can help organizations to reduce their carbon footprint by optimizing transportation, logistics, and supply chain management. Advanced analytics and IoT can optimize the distribution of goods and services, reducing the need for transportation and thus reducing the emissions associated with transportation.

With digital transformation comes a lot of data. One key way of accelerating transformation is enabling organizations to collect and analyze large amounts of data in real-time. Using smart devices with greater capabilities than were available 5 to 10 years ago can provide information and have connectivity options that will allow faster access to that data. Modern controller systems have the ability for AI at the local level and the communication networks to surface that data to other systems for sharing and additional analysis. All this data can improve decision-making, optimize production processes, and drive innovation. But these technologies and others like Cloud computing, edge computing, and 5G networks can create more flexible, responsive, and distributed production systems, allowing organizations to adapt to changes in demand and respond quickly to new opportunities.

Managing Risk

Cyber Attacks

One of the main risks associated with Digital Transformation is the threat of cyber attacks. As more and more systems and devices are connected to the Internet and each other, the number of potential entry points for cyber-attacks increases. These attacks can include everything from traditional cyber threats, such as hacking and phishing, to new threats, such as IoT botnets and ransomware. Organizations need to implement robust cybersecurity measures, such as firewalls, intrusion detection and prevention systems, and regular security training for employees to manage this risk.


Obsolescence and Downtime

Because of the supply chain crisis our industry has faced for the past couple of years and continues to face today, hardware is moving through the product lifecycle much faster than ever. Because of supply constraints, older technologies are quickly moving through their lifecycles. It is essential to know the current technology state at the manufacturing site. An installed base evaluation is a good way to handle the risk and evaluate the current technology state.

A digital transformation can bring significant changes to the way we live and work. Individuals, businesses, and governments need to be aware of benefits and risks.

Key Points to Remember

It's not a one-time event nor a destination but rather a continuous process of adaptation and innovation.

Organizations must have a clear strategy and plan to fully leverage these technologies and continuously evaluate and adjust their strategy as new technologies and trends emerge.


We need to stop thinking of assets as isolated pieces of equipment but as components of an overall system that extends beyond the plant walls.

It requires a significant investment, both in terms of technology and human resources. As such, it's essential for organizations to carefully evaluate the costs and benefits of implementing these technologies and to ensure that they have the necessary expertise and support to make the most of them. And that is where ES&E and our partners are here to help.


How do we help?

ES&E has dedicated a resource - a Digital Transformation Specialist for Manufacturing that assists customers in understanding where they are in their digital transformation and determining their next step or starting point. Digital transformation isn't done with a single product or provider; allow us to introduce you to our partner network and realize what's possible.


The best part? The initial evaluation is free and includes interviews with key organizational stakeholders. Our team will discuss your current strategy and challenges and work together to highlight gaps and areas of concern. Our experiences with similar customers help those on the journey avoid the pitfalls and pilot purgatory that have challenged many manufacturers.


Please contact us today to schedule an evaluation, and we will begin preparing a plan to get your company industry 4.0 ready.