How many industrial companies won’t survive a jump into digital future?

Ola Rollen, CEO of Hexagon started his HxGN LIVE keynote from a heartbreaking video. Greenland’s barnacle goslings undergo one of the most harrowing rites of passage of any creature on the planet. In order to reach the nourishing grassy plains below, the goslings must make a leap of faith and drop over 400ft from nests perched on towering cliff tops. Watch the video:

The point was made clear – in the coming forth industrial revolution, not all companies will make it. Many existing businesses are stepping into a digital business exactly like a small gosling jumping 400ft from the cliff. Gosling survival rate can be actually better than many large businesses.

Existing businesses need to decide between optimizing status quo or taking a leap for change.

The leading factor to new business reality is data. We produce lot of data.

How to survive in such situation? To figure out the strategy to shield from a massive amount of data and to create a mechanisms for data-driven decision making.

Not all companies will survive…

And the reason is simple – existing skills and technologies are obsolete in a new business environment.

So, what can you do today? The answer is simple and complex at the same time. First, to learn how to live in a new digital reality. Learn how to capture and process data. Learn how to analyze data and produce actionable information. It is a new type of skills manufacturing companies need to acquire. Last, but not least. Stop following instincts and start following data.

What is my conclusion? Industrial companies are going to take a leap jump to survival in a new digital environment. It requires preparations, skills and new technologies. Without that, chances to survive are low. And we will see lot of causalities. If you’re running manufacturing company, industrial business or even consulting, the goal should be to find new tools that can help you. Old legacy systems developed 20 years won’t help you to survive. Just my thoughts…

Best, Oleg

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Disclaimer: I’m co-founder and CEO of OpenBOM developing cloud based bill of materials and inventory management tool for manufacturing companies, hardware startups and supply chain. My opinion can be unintentionally biased.

Disclaimer 2: Hexagon paid for my trip to Las Vegas and some meals, but didn’t influence my opinion and the content of my writing.