The gap between strategic intent and practical execution

The future of work in heavy asset industries isn't just about new technologies; it's about a fundamental shift in how we operate, make decisions, and empower our workforce.

Recent research from Forrester Consulting, commissioned by Kongsberg Digital, reveals that while many organisations in sectors like manufacturing, oil and gas, and energy are embracing digitalisation, a significant gap remains between strategic intent and practical execution.

Analyst Paul Miller presented the study during our webinar on September 15. In this article, we'll highlight key insights, providing a roadmap for decision-makers to navigate this important transition.

Navigating the digital transformation in heavy asset industries is a complex challenge, not a simple switch.

The digital aspiration versus operational reality

The study, which surveyed 435 senior decision-makers, found a strong consensus on the importance of digital systems. Over 90% of respondents consider investing in digital systems a high or critical priority. This aspiration is understandable: real-time data access, for instance, is seen by 91% as a key to a more efficient workforce. However, the reality on the ground tells a different story:

Data access: Only one-third of organisations report that their employees have easy access to the data they need.

Asset visibility: Less than half (43%) of operations and maintenance teams have full visibility into all their assets and their current operational status.

This significant aspiration gap is a major hurdle. Organisations know what they need, but they're struggling to get there. The data confirms what many in the industry already know: the vision for a digitally-enabled future is clear, but the path to get there is fraught with obstacles.

Key challenges on the road to digitalisation

The research highlights several pervasive challenges hindering digitalisation efforts, which can be grouped into two main categories: technological and human.

Technological and data challenges:

• Disparate Systems: Two-thirds (68%) of respondents cited too many disparate systems as a major challenge.
• Data Quality: 83% reported data quality issues, where sensor data doesn't accurately reflect the real world.
• Legacy Integration: 82% found it difficult to integrate legacy systems with new technologies.

Workforce and skills challenges:

• Talent Shortage: 77% identified a shortage of skilled talent as a significant barrier. This includes both attracting new talent (75% reported this challenge) and upskilling the existing workforce (69% noted a lack of specialised industry knowledge).
• Ageing Workforce: A critical concern for 60% of respondents is the ageing workforce nearing retirement, which threatens the loss of institutional knowledge.
• Organisational Silos: Over two-thirds (68%) of organisations struggle with internal processes and silos that prevent collaboration and efficient data flow.

These interconnected challenges mean that simply acquiring new software isn't enough. Organisations must address their foundational data infrastructure and invest in their people to see real value.

The power of scaling: from pilot to production

The study provides compelling evidence that the benefits of digitalisation become far more significant when technologies are implemented at scale rather than remaining in pilot or proof-of-concept stages. For every benefit category measured, organisations using technologies like digital twins and digital industrial platforms at scale reported more than double the benefits compared to those in the pilot phase.

For example, when looking at the transformational benefit in lowering IT costs, only 15% of those in the pilot phase reported a transformational benefit, but that number jumped to 30% for those who have scaled their implementation. A similar trend was observed in production output, which rose from 19% to 37% in organisations that scaled their projects.

This suggests a clear message for decision-makers: don't get stuck in pilot purgatory. The real value lies in a strategic commitment to scale, which unlocks significant returns across the business.

The Technology-Enabled Workforce

The ultimate goal of digitalisation isn't to replace people, but to empower them. The study shows that technology is seen as a key enabler for augmenting human capability, giving the workforce "superpowers" to work more efficiently, safely, and effectively. This is reflected in the strong benefits reported in workforce and talent management:

• Productivity and efficiency: 80% saw increased employee productivity, and 76% noted improved workforce efficiency.
• Safety and experience: 73% saw improved workforce safety, and 76% reported an improved employee experience.
• Talent management: 71% experienced improved employee retention, and 69% found that advanced technologies helped attract new talent.

To achieve this, organisations are prioritising several key areas:

• Upgrading Technology: Investing in better tools to reduce silos and barriers.
• Continuous Learning: Building processes for continuous learning and skill development.
• Workforce Reskilling: Proactively training employees for new challenges.
• Strategic Planning: Anticipating future challenges and the tools needed to meet them.
• Digital Collaboration: Using platforms to break down internal silos.

The study's insights are clear: the path to the future of work for heavy asset industries requires a two-pronged strategy.

Organisations must not only invest in the right technologies but also cultivate a culture and workforce prepared to leverage them effectively. The challenges are real, but the potential for growth, efficiency, and sustainability is immense for those who are ready to make the leap from aspiration to scaled action.