Caterpillar Views Innovation as a Tool to Improve Business and Customer Engagement

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ARC has been tracking the digital transformation initiatives of companies by conducting surveys and analyses for the last 5-7 years. All this information has been collated and the Top 25 global industrial digital transformation leaders, across multiple industries and geographies, have been identified. ARC’s Industrial Digital Transformation Top 25 report highlights companies that are successfully integrating digital technology into all areas of business, fundamentally changing the way they operate and deliver value to their customers. As Caterpillar views innovation as a tool to improve business and customer engagement, it features in the Top 25.

The tidal wave of digital transformation has restructured global industrial operations. In a pandemic-affected world, digital transformation has moved beyond the “nice to have” boardroom jargon to a “must-have” imperative. Organizations were forced to adapt with agility and flexibility to this new normal and accelerate industrial innovation. Established practices and business models were disrupted and destroyed, but destruction led to reconstruction and new ways to resolve challenges.

Defining “digital transformation” is complex as it encompasses the gamut from technologies, processes, and collaboration across teams and geographies. ARC Advisory Group defines digital transformation as: “The integration of digital technology into all areas of business, fundamentally changing the way companies operate and deliver value to customers. The organization is typically charged to innovate and improve across multiple dimensions such as digital/disruptive technologies, culture and leadership, operational agility, workforce engagement, customer experience, environmental, social and governance, and competitive performance.”

This is the seventeenth in a series of blogs on the leaders in the digital transformation space.

Caterpillar views innovation as a tool to improve business and how customers engage with Caterpillar and their dealers. The strategy is viewed in layers. The first is connectivity. The second is a digital platform that ingests and transforms data using advanced analytics. The third includes applications to make interacting with customers easier. The company touts several groundbreaking innovations, one of which is their several years of data collection being used to develop proprietary machine learning models that predict unplanned downtime for machines and rebuild schedules for main components. The company looks at its digital transformation as a journey comprised of five key steps: Drive digital transformation from the top; define digital vision; develop a digital strategy; create a digital roadmap; and build a digital organization structure.

Going Forward

The prevailing philosophy behind digital transformation has been that this transformation naturally translates to success. ARC will continue its research in all areas related to digital transformation to learn more about what is working – and what isn’t – as companies pursue their unique digital transformation activities. The Industrial Digital Transformation Top 25 report will be published annually. With this being the first issue, your feedback is very important to investigate new approaches and measures to adjust our methodology, identify successful digital transformation initiatives, and help the industry as a whole digitally transform. To download the final report, please click here.

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