Several businesses see digital transformation and the promises of Industry 4.0 as ways to improve their level of operational excellence. Did you know that operational excellence is also one of the key steps towards a successful digital transformation?

Seize the opportunities

For several years now, news has spread about the opportunities offered by digitization to improve an organization’s efficiency and effectiveness.

First, while computerization served to automate low value-added activities in an operational, administrative or manufacturing process, digitization pushes this concept even farther.

For example, with the digitization of processes and the inclusion of computer systems, today’s businesses generate colossal quantities of data. The data collected are often used for monitoring purposes, i.e. in scorecards or operational and financial reports.

Improve the overall effectiveness and efficiency

In the manufacturing field for example, innovative solutions born from artificial intelligence and advanced analytics can now help unlock the predictive potential of these data, accelerate decision-making when non-compliance or failures are detected, and as such, improve the overall effectiveness and efficiency of the production chain.

Even client experience improvement initiatives via digitization opportunities can result in unexpected efficiency gains. For example, processing client data using advanced analytics provides an unequalled level of understanding of clients.

In addition to improving the experience of these clients through greater tailoring of services, a better understanding of your clients provides sharper focus on investments and employee and manager work on current projects and activities that have true value for the client, and improves your efficiency at the same time.

Lastly, discovering trends in demand fluctuations allows businesses improve operational planning and reconcile sales with operations (break down the silos!) to enable the business to produce a good or deliver a service just in time and with the required quality.

The fact that all of this happens, more often than not, on the factory floor or at any other point where the company’s activities are carried out, is directly in line with the philosophy behind operational excellence, which sees “operators” as the main levers for the continuous improvement of a business.

The challenges of 4.0 and operational excellence solutions

Beyond the opportunities, the promises of Industry 4.0 also involve real challenges for businesses.

Management methods

The notion behind Industry 4.0 will force business culture to go from a hierarchical structure to one of accountability and move towards a learning culture. Furthermore, the increased sharing of data among a business’s divisions will result in changes in behaviour and paradigms. Silos will be removed, managers from different business units will no longer keep information from each other.

Labour

Corporate digitization will require implementing training programs to update the staff’s skills based on the company’s, clients’ or business partners’ new needs.

Investing in labour training is key since employees will have to deal with the digitization, connected devices and algorithms. With the support of these components, businesses will take operational decisions at an unparallelled level and pace.

Business models

Industry 4.0 offers the possibility of transforming all products into a single service platform.

Aligning the business strategy and vision

To ensure the longevity of the short-term gains of Industry 4.0 (e.g. automating a process or procedure), the company will have to ensure that its actions align with its business strategy and global vision.

Operational excellence, with its close management bases, already commits the business, its employees and first-line managers to a culture of accountability and sharing and ultimately, the decentralization and acceleration of decision-making (with a minimum of guides or parameters).

It makes it possible to settle inefficiencies before scaling them by automating part of your activities.

The world is changing; your challenges will too. Make sure you maintain your operational excellence. Get ready to act. Our experts can help.

Now more than ever, technology can help you put your clients at the heart of your actions. So, offer them the unique experience they’re looking for.

In this digital age, some of yesterday’s practices have not been valid for some time. Nevertheless, one thing remains: there are still clients to listen to, understand, serve and that a business would like to foster unforgettable and positive interactions with that go beyond the everyday transaction.

The client experience: win-win for all

Today, business models are being transformed or created, product or service offerings are more modern and the delivery of the client experience is going digital. In this digital whirlwind, the client experience can still be defined as the result of all the interactions a client can have with a brand or business, what they perceived and especially, how they felt!

Basically, how your business can generate more perceived value for its clients who, in turn, through their loyalty or references, will generate more revenue, will help increase your profitability and enhance your brand image.

Digital opportunities

Process digitization and the use of powerful computer systems open the door to perfect opportunities for enhancing the client experience. Here are three examples.

1. Increasing knowledge of clients for a more in-depth experience

Let’s be honest here. How well do you truly know your clients? What are they looking for? Which positive emotions contribute the most to their experience? What creates value for your business?

Currently, advanced analytical methods and tools can be used to conduct more critical analyses of the structured and unstructured client data available (satisfaction surveys, record of complaints, feedback or comments on a blog, history of transactions with the business, etc.).

These analyses make it possible to see clients from a different angle and obtain an unparalleled level of understanding of their needs and expectations and the emotions they need to feel to create long-lasting relationships, knowing that the emotional impact is the most important vector of the decision to purchase.

Furthermore, sharing these new client data analyses throughout the company is a great motivator for breaking the internal organizational silos that often hamper a totally integrated, smooth client experience.

Updated on June 27, 2022

For many companies, financing is perceived as an obstacle to digital transformation, which is essential to their survival.

Technological innovation covers many aspects of a company’s operations. Now more than ever, it must be included in an organization’s strategy to ensure its sustainability and competitiveness. You can invest in your transformation in a gradual and targeted manner based on your specific needs.

In order to determine which financing sources apply to your business, you must first define its needs, as well as your financial structure.

Subsidized an audit 4.0 program

You must prioritize your needs and consider a reasonable schedule to carry out the different implementation phases for these technological innovations.

First of all, you should know that the ESSOR program of the Ministère de l’Économie et de l’Innovation (MEI) offers financial assistance to organizations in all sectors of activity to establish a diagnosis and digital plan with the help of an accredited auditor.

This step will be crucial in determining your specific needs based on your current level of technological advancement.

Several financial assistance programs available

Depending on the investment needs identified (equipment, technology, salaries, process optimization) and your situation, you may be eligible for financial assistance offered by governments or institutions.

Here are a few resources:

• Investissement Québec (venture capital and investment funds, refundable tax credit financing, term loans, Compétivert program);
• Financial assistance for the purchase or modernization of equipment;
• Financial assistance for research and innovation;
• Canada Economic Development Program;
• Banks and Desjardins caisses (term loan on acquired equipment);
• Business Development Bank of Canada and Roynat (term loan on acquired equipment).

Also, find out about programs that target your industry, such as the Dairy Processing Investment Fund, as well as programs specific to your region.

Tax credits and tax measures

You should also know that several tax measures are available to help you finance your technological innovation projects. Make sure you take advantage of all of the measures to which you are entitled.

Loans

If the company anticipates strong growth thanks to this upgrade towards Industry 4.0, it may consider additional financing, i.e., a loan that would be repaid according to the self-generated funds, referred to by different terms.

Unsecured bond (debenture)

This fixed income investment is generally not secured by specific assets but rather by the issuer’s credit score.

Senior debt

This is a loan secured by assets that gives the lender a priority right to repayment over other creditors if, for example, the company defaults, or over the company’s profits.

Royalty loan

A loan with a periodic repayment.

Cash flow loan

A loan based on the expected cash flow of the project being financed.

Do you have questions about the best ways to finance your innovation project? Our experts can help you.