26th International Association for Management of Technology Conference - IAMOT 2017

The production industry of Upper Austria covers several industrial branches with clear strongholds in materials production, machinery, automation, automotive etc. However, Upper Austria is not only the home of global leading industrial producers, it is more the home of an eco-system with a healthy mix of Small and Medium Enterprises (SME), large Enterprises, producers of goods, producers of services and R&D competencies. Managers in all types, branches and sizes of companies are facing the upcoming digital transformation – an upcoming megatrend. The complexity confronts managers with challenges. In this paper a scalable structural approach for implementing a megatrend in companies (irrespective of size or branch) is introduced and a specific “maturity model” is presented. In the first step it is essential to define a clear - company individual - vision on digitalization. The vision has to focus on the “future market opportunities for the company” and also has to take into account new perspectives from R&D. In strategic workshops (e.g. design thinking, etc.) the company defines clear company targets! It is important that these targets are a) not too many, b) can be measured with clear key performance indicators (KPIs).Targets (KPIs) can address internal processes (e.g. lead time) and/or external ones (e.g. sales volume). In the second step application fields are identified to pursue the vision. Thus if the vision is that digitalization should cut the production lead time in half within 12 months, the production is an application field. The second step also includes the support with specific technological information – like qualification networks. Digitalization is a companywide task and therefore not isolated in a single department or upper management levels. In step two the application field was identified and decision makers are supported to be forerunners but they have to include their surrounding departments and staff (IT, HR, etc.). Step three is also for involving business partners like sub-suppliers, customers etc. A standardized maturity model is customized for this very purpose. It can be seen as a match making between the aims (the vision) and the most promising digitalization measures to reach the aims. The maturity model which is a heart piece of the 5-step approach provides detailed actions recommended in the specific application field. The maturity model is based on three dimensions. Dimensions are subdivided in criteria and sub-criteria and each sub-criterion is equipped with a reference table to facilitate the self-assessment. Output is an action plan that develops the digitalization status quo to the digitalization objective of the company referencing the vision. The maturity model is the enabler to develop the identified application field to a company role model and learn how to manage the new technologies and the new approaches (Management of Technology MoT). Lessons learned are necessary to reduce teething troubles when applying digitalization measures to other departments. Potential for improvement with digitalization is throughout the company, along the value chain and product lifecycle. This described 5-step approach has been tested in 8 companies (different braches and sizes) and brought significant optimization potential. A support software has been developed to provide a guided user interface for self-assessments. The software is combined with a database including the data (anonymously) of all companies to provide a possibility for benchmarking all applicants. A model roll-out is planned in Austria in the near future and trainings for software users are already bookable at BUSINESS UPPER AUSTRIA GmbH.