Technological advancements are on the rise, and as we gear up for 2025, digital transformation is at the forefront of business evolution. This integration of digital technologies across all facets of industry processes not only optimizes operations but significantly enhances productivity and reduces costs.
Digital transformation, fundamentally distinct from mere digitization, aims at revamping corporate culture and internal processes. It encompasses utilizing data analysis for decision-making, rather than simple data entry. Essentially, it entails applying observability solutions and operational intelligence, as conventional business intelligence models fall short of meeting these demands effectively.
While the digital transformation of the industrial sector has been underway for nearly two decades, progress has been sporadic. By the beginning of 2025, it is projected only 20-22% of Russian industrial firms will have embraced these changes. A surprising statistic, as noted by SBS Consulting, indicates most companies still do not measure the results of such IT implementations. A staggering 52% of these firms do not prioritize digital solutions due to high project costs and the scarcity of skilled personnel.
Yet, the question arises—what are industrial enterprises implementing to begin their digital transformation? Many are adopting safe and effective production management tools, often integrating artificial intelligence. For example, companies are using AI systems for enhanced process management, video analytics, and components of industrial internet of things (IIoT). These advancements bring about data collection capabilities enabling real-time monitoring, optimizing processes, early fault detection, and improving workforce planning.
An illustrative example of such innovation is seen at the Magnitogorsk Iron and Steel Works, where they have successfully put to work machine learning models to manage oxygen supply to blast furnaces, achieving a remarkable 90% accuracy rate. IIoT sensors provide the data required for real-time adjustments and operational insights.
Notably, companies like Rostec have developed digital production systems utilizing IIoT to automate data collection and analysis of industrial equipment performance, with plans to grow their operational IIoT network to 4,000 units by 2026.
While these technologies introduce significant enhancements, challenges do remain. A primary obstacle is the reluctance to change within corporate culture, alongside the prevalent shortage of qualified personnel skilled in the necessary IT and digital technologies. Establishing local digital offices has proven beneficial, adapting solutions to meet business-specific demands effectively.
By the end of 2023, Gartner identified the platform-based approach among the top five trends for the future. This involves constructing centralized digital platforms to integrate various functions and services, streamlining access and analytically mapping out data for informed decision-making. Such platforms can lead to operational cost reductions through automation and improved resource management.
Industries adopting these platforms are witnessing substantial benefits, particularly as the speed of technology adoption increases dramatically—over twofold with the use of the right digital solutions. For example, EuroChem's digital industrial platform has rapidly streamlined operational processes, allowing real-time monitoring and enhancing decision-making capabilities.
Artificial intelligence's integration heralds the dawn of what experts are calling ‘Industry 5.0,’ where operators transition to interact with AI-powered systems. Nevertheless, as of 2023, AI applications within Russian production remain limited, with only 634 organizations adopting such solutions out of over 21,000 producers.
To counter these obstacles, enhancing digital literacy among workers at all levels proves imperative. Training modules aimed at developing IT skills are being rolled out, ensuring employees are equipped for the changes coming their way. For example, EuroChem’s digital faculty enables its workforce to gain necessary IT proficiency and introduces modern solutions and digital mindset training.
Looking forward to 2025, we can anticipate the reinforcement of core trends such as platform-based solutions, extensive AI implementation, automation via robotics, and substantial advancements toward fostering a digital culture within the workforce.
Conclusively, digital transformation is not simply about technology; it hinges on cultural integration, dedicated human resources, and consistent adaptability. Industries willing to invest and evolve are well-positioned to thrive amid inevitable change.