SOCOMEC Group (SOCOMEC) is an Italian-French independent industrial manufacturer that specialises in the development and manufacturing of back-up power solutions. Specifically, it produces uninterruptible power supply (UPS) systems, as well as other solutions for the control, safety, and energy performance of low voltage electrical networks (Bloomberg, 2017).
SOCOMEC differentiates itself from its competitors by offering highly innovative and high-quality products. Because of changing market trends SOCOMEC faces new challenges in competing against low-cost competitors and expanding its market size. The company only recently started emphasizing the need to create a comprehensive digital transformation approach. So far, they do not have a digital strategy but implement several digital activities that are not aligned to an overarching plan.
SOCOMEC operates with 27 subsidiaries and a broad distributor network in 70 countries (SOCOMEC, 2016). Thus, a harmonized digital strategy and implementation plan is needed to execute a company-wide digital transformation and ultimately fulfill SOCOMEC’s strategic objectives of sustainable growth, expanding in launching new product areas (such as smart energy meter) and achieve customer satisfaction in preferred segments.
The proposed digital strategy focuses on transforming SOCOMEC to a digital factory by digitizing the whole value chain. Our proposed solution is to connect the existing system landscape and introduce a state-of-the art Central Data Warehouse & BI system. The solution centralizes and coordinates various data flows, extracts information from integrated tools and systems of the organization and allows for real time analysis and visualisation of data. Thus, it accelerates and improves decision-making based on valuable data insights. The solution fits with SOCOMEC’s goals and business model and is aligned with its company strategy. When carrying out the transformation plan, SOCOMEC has to ensure top management commitment, involvement of representatives of all subsidiaries, ensure proper training of employees in terms of culture change and implemented digital systems. Management should keep in mind the underlying risks and challenges of this complex transformation project and mitigate risks.
Most importantly, our managerial recommendations are:
- Formulate an overarching digital strategy in cooperation with subsidiaries.
- Top management support and strong governance is essential in the success of this transformation.
- Conduct an extensive research on available Central Data Warehouse & BI solution providers
- Integrate company data in Central Data Warehouse in combination with BI system.
- Training for employees
- Increase the implementation speed of digital projects
- Facilitate Culture Change
- Continuously monitor risks and possible mitigation strategies.
- Be aware that there are no quick paybacks but regard this as a strategic investment
- Make processes throughout the company transparent and aim to digitise the whole value chain
References Blogpost:
Bloomberg L.P. (2017). Company Overview of SOCOMEC Group S.A. Retrieved October 20, 2017, from Bloomberg: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=7910361
SOCOMEC Group. (2016). SOCOMEC Group. Your Energy, Our Expertise. General Presentation
