Sharing is Caring! Thanks!

The problem : “How an industrial gas leader can thrive transforming the industry by focusing on digitalizing all relevant business processes? Which processes can be digitalized? And which are the easiest to implement with the biggest effect on sales increase and cost reduction?

To address the problem of how an industrial gas leader can thrive by transforming the industry through digitalization, we can apply a systematic approach.
Here’s a step-by-step breakdown of the problem with an emphasis on identifying processes that can be digitalized, as well as determining which are the easiest to implement for significant effects on sales increase and cost reduction.

Step 1: Define the Problem

What is the Problem? An industrial gas company is seeking ways to thrive in a competitive market by digitalizing relevant business processes.

Background Information: The industrial gas sector is evolving, with increased competition, regulatory pressures, and customer demands for better efficiency and services. Digital transformation can enhance operational efficiency, improve customer service, and enable new business models.

Consequence of the Problem: Failure to adapt to digital trends may result in decreased market share, operational inefficiencies, and inability to meet customer expectations.

Step 2: Break Down the Problem

Identify Components:

  1. Current business processes (e.g., operations, sales, customer service, logistics).
  2. Technology and infrastructure readiness.
  3. Cultural and organizational readiness for digital transformation.

List Symptoms:

  • Inefficiencies in order processing.
  • Limited visibility into supply chain operations.
  • Delayed customer response times.
  • Inaccurate inventory management.

Determine Root Causes:

  • Legacy systems.
  • Lack of integrated data platforms.
  • Insufficient training in digital tools.

Step 3: Ideation / Brainstorming

Generate Ideas for Digitalization:

  1. Sales & CRM: Implement a digital Customer Relationship Management (CRM) system for better customer engagement.
  2. Supply Chain Management: Use IoT and data analytics for real-time tracking and forecasting.
  3. Operational Efficiency: Digitalize maintenance scheduling and predictive maintenance using AI and machine learning.
  4. Order Processing: Automate order processing and invoicing through integrated ERP systems.
  5. Inventory Management: Implement real-time inventory tracking systems.
  6. Employee Training: Use e-learning platforms for workforce training.

Organize Ideas: Group the ideas by business function (Sales, Operations, Logistics).

Step4: Evaluate Solutions

Criteria for Evaluation:

  1. Impact on Sales: Potential to increase sales/revenue.
  2. Cost Reduction: Potential for reducing operational costs.
  3. Ease of Implementation: Time, resources, and technology required for implementation.
  4. ROI: Return on investment in terms of time and money.

Potential Solutions Analysis:

  1. CRM System:
  • Impact on Sales: High
  • Cost Reduction: Moderate (improved customer retention)
  • Ease of Implementation: Medium
  • ROI: High
  1. Automated Order Processing:
  • Impact on Sales: High
  • Cost Reduction: High (reduced processing time)
  • Ease of Implementation: Medium
  • ROI: High
  1. IoT for Supply Chain:
  • Impact on Sales: Medium
  • Cost Reduction: High (better demand forecasting)
  • Ease of Implementation: High (requires IoT setup)
  • ROI: Medium-High
  1. Real-time Inventory Tracking:
  • Impact on Sales: Medium
  • Cost Reduction: High (reduced stockouts/overstocks)
  • Ease of Implementation: Medium
  • ROI: High

Step 5: Develop an Action Plan

Choose Solutions:

  1. Implement a CRM system.
  2. Automate the order processing system.
  3. Implement real-time inventory tracking.

Create an Action Plan:

  • CRM Implementation:
  • Select a vendor.
  • Customize the system.
  • Train sales staff.
  • Order Processing Automation:
  • Assess current workflows.
  • Choose an ERP solution.
  • Run pilot tests and refine.
  • Inventory Tracking:
  • Evaluate current inventory methods.
  • Invest in RFID or barcode systems.
  • Train staff on the new tracking system.

Step 6: Implement the Solution

  • Execution: Initiate the implementation of chosen solutions based on the action plans.
  • Document Progress: Keep track of challenges faced and successes achieved during each implementation phase.

Step 7: Monitor and Evaluate

  • Track Outcomes: Measure sales increase and cost savings achieved from each digitalized process.
  • Measure Success: Set KPIs such as:
  • Sales growth percentage.
  • Reduction in order processing time.
  • Decrease in inventory holding costs.

Step 8: Iterate if Necessary

  • Identify New Problems: Evaluate ongoing processes and identify further areas for digitalization or improvement.

Step9: Share and Document Knowledge

  • Write a Report: Document the results and lessons learned from the digital transformation process, and share them across the organization.

Conclusion

To thrive in the industrial gas sector, focusing on digitalizing sales and operational processes can lead to significant improvements in efficiency and revenue. By starting with a CRM system, automating order processing, and enhancing inventory management, the company can expect to see substantial effects on sales increase and cost reduction while laying the groundwork for future digital innovations.