Digitalising your company: step by step and with the right support.
At ABN AMRO MeesPierson Belgium we are highly committed to supporting entrepreneurs. Especially in times like these, when they are having to adapt their business to a world in transition. We spoke to David Kemps, Sector Banker for Industry at ABN AMRO and panel member for our second edition of Tomorrow Talks, and asked him what we can do to help our customers navigate their digital transition, too.
David, based on your expertise as a sector banker for industry, how far along are our companies in terms of their digitalisation?
Compared to other countries, Belgium and the Netherlands aren’t doing too badly. We are actually among the top 5 countries in Europe. So overall, our companies are doing well. However, there is still a lot of variation between sectors. Manufacturing in Belgium and the Netherlands currently scores below average in terms of digitalisation. If you look at other sectors, you can see that the level of digitalisation is far higher. The ICT sector is of course highly digitalised, as is the energy sector. But even wholesalers and retailers are doing better than manufacturers. This might seem a little odd, given that when we think about digitalisation we often picture robots. However, creating a webshop is also an important form of digitalisation. As for the sectors that aren’t doing so well, there's construction and also hospitality.
Is the digital transition really gaining speed?
Definitely. Unsurprisingly it started gaining momentum in 2020 when COVID-19 was causing industry a whole host of problems. The factories were empty, machines couldn’t be delivered or installed on site...all this resulted in long delays in revenue or even millions of euros in losses. Although there were already a lot of digital innovations appearing prior to 2020, they only started really gaining a foothold from then on. Take, for example, remote installation of a machine using augmented reality glasses. This allows technicians to install machines in workshops without having to fly all over the world, saving huge amounts of money while allowing the factories to carry on operating. This represents an enormous efficiency gain as well as generating huge time and cost savings.
What misconceptions do you come across when companies are thinking about digitalising?
Digitalisation is a catch-all term. In industry, people tend to automatically turn to technology: they instantly start thinking about automation and robots. But digitalisation goes much further than that. In fact, you need to thoroughly examine all of your business processes and gradually optimise them using digital technology. Do you send out quotes electronically and can your customers sign these quotes electronically? Are large orders automatically sent to your suppliers in bulk? Is a project automatically sent to planning when all of the components have been delivered? These days there is so much you can do, you just need to know what’s possible and have the right systems in place. A solid enterprise resource planning system, or ERP, is a must-have in this regard. These systems provide invaluable insights that you will need in order to continue optimising your business and make forecasts for the future. It might sound cliché, but information really is power.
What other areas are affected by digitalisation?
Another area where digitalisation can offer solutions is human resources, or rather the lack thereof. Whenever I meet with business owners these days, I often hear them say that the market is there, the machines are there, but they don’t have enough staff to grow. Process automation is an obvious solution here.
Do you sense a certain amount of reticence among companies when it comes to digitalisation due to the risks associated with sharing data?
Absolutely. If you decide to digitalise then you always have to ensure that your cybersecurity is top notch. Anyone working with data in a digital environment will inevitably run a certain amount of risk. The trick is to call upon the help of experts who know best how it all works. Fortunately, at ABN AMRO we are able to provide optimal support to our customers on that front too.
Do you have one final tip for companies ‘in transition’?
Transitions are never easy. They cost time and effort and often a lot of money too. So try not to do everything at once. You don't have to overhaul your entire business model right away. For example, you can start by looking at where your machines are and who maintains them. Perhaps you could set up a maintenance contract for them. Or even install sensors on the new production machines that will give you more information about the state of the machine so that you can carry out preventive maintenance. By introducing small changes step by step, and by getting the right expertise on board, you’ll get there in the end!
Want to know more about how we can support you and your business? Find out more about our approach for entrepreneurs.
