Business Transformation News Blockv2Digital disruption and business model innovation are forcing enterprise companies across industries to transform their businesses to improve competitive standing. Thanks to emerging competitive threats, companies can no longer rely on traditional business practices to retain customers and market share. A study by INNOSIGHT predicts that 75% of the S&P 500 will be replaced by 2027.

In short, companies need to find new ways to deliver value to customers to drive sustainable growth.

In the aviation industry, competition is fierce. As aircraft makers look for new ways to bring innovation to design while improving fuel conservation aimed at helping airlines to reduce their operating costs, manufacturers are increasingly relying on data and digitization to help drive new business breakthroughs.    

One of the leaders behind the digital data transformation in the aviation industry is Ted Colbert, CIO & SVP, Information & Analytics at The Boeing Company. Colbert is an HMG Strategy 2016 Transformational CIO Leadership Award winner, having been recognized along with other top-performing CIOs and technology executives for excelling in leadership, innovation, transformation, industry give-back, management of extreme growth, and legacy leadership.

Colbert is leading Boeing’s business transformation efforts by utilizing the flow of digital data throughout the lifecycle of the company’s products. The data-driven approach is enabling the aviation company to improve its products and glean insights from design and manufacturing to help its customers run their businesses more effectively, as described by CIO.com.

Where there were roughly 100 sensors installed in the nose cone of a Boeing aircraft built in the 1960s, there are now thousands of sensors spread across each plane that gather vital data that can be used in design and manufacturing and shared with customers. For instance, the data can be used to predict part failure, determine when maintenance needs to be scheduled on an aircraft, and optimize crew scheduling.

Another long-established company that’s succeeding with its digital transformation efforts is GE. The multinational conglomerate is investing heavily in Internet of Things (IoT) technologies to help create new products, improve services, and generate efficiency gains in the industries where GE is active - such as energy, healthcare, and transportation.

In 2011, the company created a software center in San Ramon, CA where one of the top projects is to build an operating system for factories and industrial equipment, according to The New York Times. GE CEO Jeffrey R. Immelt calls the project central to the company’s goal of becoming a “top 10 software company” by 2020.

To help GE execute on this vision, CIO Jim Fowler is focused on putting together teams with the types of cutting-edge skill sets needed for the company to succeed in the new economy.

“CIOs need to look at creating teams with the talent for building complex models and algorithms for machine learning, augmented reality, and artificial intelligence,” said Fowler in an HMG Strategy Transformational CIO blog post. “Those are some of the areas where we’ll be competing intensely over the next decade.”

In today’s highly-competitive business landscape, CIOs also need to forge strong connections with business leaders and technology partners to brainstorm and identify new opportunities for driving digital transformation. This includes understanding the key business objectives that organizational leaders are striving to accomplish and to distinguish ways in which digitization can be used to create business value and move the enterprise forward.

Meanwhile, the CIO can also leverage his or her relationships with key technology partners to discover how clients in other industries are harnessing digitization along with the lessons that can potentially be applied to the company’s business strategies.

Key Takeaways

  • Companies can no longer rely on traditional business practices to retain customers and market share.
  • Ted Colbert, CIO & SVP, Information & Analytics at The Boeing Company, is leading the company’s business transformation efforts by utilizing the flow of digital data throughout the lifecycle of the company’s products. The data-driven approach is enabling the aviation giant to improve its products and to glean insights from design and manufacturing to help its customers run their businesses more effectively.
  • CIOs also need to forge strong connections with business leaders and technology partners to brainstorm and identify new opportunities for driving digital transformation. This includes understanding the key business objectives that organizational leaders are striving to accomplish and to distinguish ways in which digitization can be used to create business value and move the enterprise forward.