Digital transformation: 3 questions that decision-makers in systems engineering should regularly ask themselves
A few weeks ago, I discussed the Importance of digital transformation for the discipline of systems engineering. The bottom line was that modeling is an enabler for the digital transformation of development. But that's not the end of the story, because modeling is not new in itself. This article deals with three questions that decision-makers in systems engineering should answer regularly in order to remain viable.
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Models in product development
In the previous article on digital transformation, modeling was listed as an important enabler. Only models allow artifacts to be interlinked effectively. Only with a clean requirements model can it be determined with reasonable effort how a change to a requirement will affect development. And this brings us to an important point: modeling must not be an end in itself (and digital transformation more than just a buzzword). I have already compiled a list on this topic: 18 things you can do with system models. Many of the things listed there can support the digital transformation.
But that alone is not enough to remain competitive. At decision-maker level, we should therefore ask ourselves a few fundamental questions in order to face the challenges ahead. This also includes this Forbes article on digital transformation worth reading.
Questions on the greenfield site
The first thing we need to do is get rid of the status quo, because it restricts us far too much. So the first question would be:
This is a deliberately open question about development, without restricting it to a tool, method or similar. The keywords are "effective" and "value-adding."
The answer to this question can go in many different directions: How do I handle changes better? How can I reuse components? Both my own and those from suppliers? Or open source? How can I decouple the individual parts of the components from each other and at the same time have confidence in the quality of the integrated system?
This question is important because it allows us to think strategically.
From data and information to metrics and trends
Unfortunately, we rarely have the luxury of approaching our development processes so freely. Therefore, the following question should be asked regularly, at short intervals:
One of the central ideas of digital transformation is access to (digital) data. However, data only becomes information when it is analyzed. As new data is constantly being collected, it should also be continuously analyzed for its benefits. If such benefits are identified, then they should also be used: Metrics must be derived from the data; these enable trends to be created. Based on this, improvements can then be sought and prioritized.
Again, a practical example. The number of changes per requirement per time makes it possible to measure the volatility of requirements. This could indicate requirements that harbor risks. A metric for the volatility of requirements can be introduced so that risky requirements can be proactively mitigated. Finally, it could be analyzed whether this reduces the effort required for post-processing, for which a metric must also be found.
The reader may have already guessed that this technique can be implemented in a wonderfully agile way and should run in parallel to normal development. A backlog of data-driven ideas can be worked through continuously. Some will not survive, but that is part of the process.
The bridge to the business model
Especially today, we cannot afford to ignore the business objectives in systems engineering. This usually means: "Better products faster." I have deliberately left costs out of the equation. Costs are of course an important part of the equation, but innovative companies are generally more concerned with customer value and return on investment than directly with costs. But of course costs have an impact on both.
Innovative companies focus more on customer value and ROI, and less on costs [tweetthis]Innovative companies focus more on customer value and ROI, and less on costs[/tweetthis]
The customer perspective is particularly important here, as the digital transformation suddenly makes it possible to generate the same value for the customer in a completely different way. Here is another concrete example: Daimler and BMW have Car2Go, or DriveNow built. The customer benefit "transportation" is generated according to a completely new model. The traditional car generates value for the owner, but stands around unused for 90% of the time. The "car on demand" model increases the duration of use of the vehicle and thus drastically reduces the costs compared to owning the car (of course, this calculation does not work for all user profiles - but that is not the point here). And that brings us to the third question that decision-makers in systems engineering need to ask themselves:
Conclusion
These three questions about digital transformation are easy to ask. The challenge is to translate these rather high-level questions into concrete measures that, taken together, will keep the company viable. Otherwise we will be overrun by the competition - brave new world!
Photo by rawpixel.com on Unsplash
