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Digitala Stambanan Produktion – Digitalization workshop at ShiftLabs

Last Thursday, a well-received workshop based on the Travel Guide’s (Reseguidens) content was conducted for several companies at ShiftLabs, MITC in Eskilstuna.

Last Thursday, Digitala Stambanan conducted a well-received digitalization workshop at ShiftLabs, Mälardalen Industrial Technology Center (MITC) in Eskilstuna, led by Martin Friis and Magnus Mörstam. During the day, participants were introduced to the Travel Guide (Reseguiden), a methodology developed within the Digitala Stambanan project to facilitate industrial digital transformation.

The Travel Guide offers a structured approach to supporting companies through five steps: Anchor, Current State, Opportunities & Vision, Challenges, and Prioritize and Create an action plan. Combining theory with practice, participants assessed their digital maturity, considered opportunities, and reflected on challenges, eventually prioritizing and breaking down ideas into concrete activities. We thank MITC for hosting and planning similar events in the fall to share knowledge and insights from the Digitala Stambanan project.

Digitala Stambanan strengthens the Swedish industry through digitalization of value chains. The project is a collaborative project financed by Vinnova and participating companies. The work is now underway in two tracks through the strategic innovation programs PiiA (Processindustriell IT & Automation), which drives the Digitala Stambanan IndTech project, and Produktion2030, which runs the Digitala Stambanan Produktion project.

Digitala Stambanan Produktion – Improving the RCA process through platform thinking – a demonstrator from WP 2

In the project Digital Stambanan, we are developing demonstrators of this kind to test functionality and share knowledge and experiences from the project with other companies and organizations.

In work package 2 (WP2), we develop a demonstrator for a quality traceability demonstrator focused on improving the Root Cause Analysis (RCA) process from a supply chain level. Our demonstrator consists of a data lake with a dashboard to facilitate data transference and storage from the shop floor to quality teams. The technical solution integrates an IoT platform with a cloud computing platform to make data collection and storage more efficient.

Root Cause Analysis in the manufacturing industry

Root Cause Analysis (RCA) is a tool for identifying and addressing the causes of system or product quality disturbances, supporting the industry in coming across the journey to achieve resilient and sustainable systems [1]. Within the Digitala Stambanan Project [2], we assessed the main characteristics of the RCA process in a supply chain composed of three companies. The RCA is a valuable tool; however, it is a costly process that requires a lot of resources and time. It is usually said that it is hard to get data in place to perform the analysis, which is why the RCA process is constrained.

In other words, scaling up RCA practices remains challenging due to the complexity of manufacturing ecosystems and the need for more efficient knowledge transfer. Inside Work Package 2, we addressed this issue by mapping the pipeline process to track information from one company to another, as shown in Figure 1. Considering this pipeline and the maturity level of our supply chain, a transition to a platform approach could help the quality teams access data more efficiently.

Figure 1 The process for quality information between companies in a value chain.

Collaborative Platforms to support RCA

The adoption of platform thinking within this context promises a paradigm shift, facilitating rapid data exchange among diverse users and increasing the digitalization level of supply chains [3]. This approach significantly reduces the need for extensive interactions, enhancing the efficiency of RCA practices through data sharing and interoperability [4]. We propose that integrating the IoT and Cloud-computing platforms to achieve a unified Data Lake of traceable information can reduce resource allocation for data retrieval and enhance overall process efficiency.

Figure 2 Platforms as support for RCA in a value chain.

Implementation Roadmap and proof of concept

As the design of new business models starts with point solutions [5], a strategic roadmap is essential for successfully implementing platform solutions within the supply chain. This involves understanding partner dynamics and IT infrastructure and defining knowledge requirements for enabling desired interactions. Here, we follow a roadmap consisting of a digital maturity assessment, stakeholder analysis, definition of performance metrics, implementation, and empirical validation. The first results of this approach are meant to help with data visualization and dashboard to generate insights for quality teams performing RCA at a supply chain level. However, as further implications, this strategy enables ML/AI algorithms to be trained and big data analytics.

Figure 3 Roadmap for the demonstrator.

Observed benefits of the solution

The platform-based approach, mainly through IoT and cloud-based platforms, can improve the RCA process by facilitating data exchange and reducing the number of steps to perform tasks. This approach enhances the collection and integration of data across the supply chain, facilitating rapid RCA of disturbances and quality issues. Leveraging IoT enables real-time data acquisition and connectivity among devices, while cloud platforms offer a scalable environment to host a traceability data lake, ensuring efficient data management and accessibility. Together, they enable advanced analytics and AI-driven insights for proactive quality control and live monitoring, significantly improving operational efficiency and traceability.

Figure 4 Comparison of number of interactions between ICT systems based on silos vs. platforms.

With the transition to a platform strategy, we are addressing the traditional barriers that limit efficient data sharing and analysis within the industry. We aim to democratize access to valuable information, creating more resilient and self-improving production systems. The demonstrator we are developing within Digitala Stambanan is just the beginning of this journey.

Paulo Victor Lopes – WP-leader, Chalmers University.

Sofia Encinales – Volvo Group.

Digitala Stambanan Produktion –Collaboration as a Success Factor

As the boundaries between technology, industry, and academic research blur, an environment that fosters creativity and innovation emerges. The Digital Backbone Production initiative is an example of this successful symbiosis, where a neutral pre-commercial platform has been created to discuss challenges and solutions, build trust, and learn from each other. Here, we share the significant lessons and perspectives that have emerged from this collaborative project.

Our interviews with participating manufacturing companies and technology providers reveal several common denominators about the value of cooperation:
Benefits from the perspective of industrial companies:

Refined research focus: Through the project, companies have deepened their understanding of internal development needs, leading to more targeted business development.

Broader access to expertise: Opening doors to actors with different knowledge and expertise outside the company’s framework has created new opportunities for innovation and growth.

External perspective: Participating in the project has counteracted “home blindness” and introduced new approaches to business, improving both product and process development.

Research anchoring: Close collaboration with research has highlighted industry-specific challenges, which have improved both academic relevance and business strategies.

Benefits from the perspective of technology providers:

Building credibility and trust: Collaboration has strengthened relationships and built trust between different actors. Collaborating with academia also creates credibility with existing and potential new customers.

Efficient environmental scanning: The project’s working method has streamlined the flow of information between academia and industry, where participating parties have gained the researchers’ perspective on current issues, which has been of great value in remaining relevant in an ever-changing world.

New knowledge and perspectives: By bringing together many different competencies from various quarters, technology partners have gained access to new perspectives and knowledge that would otherwise have been almost impossible to acquire simultaneously. This has benefited both product development and staff skills development.

Narrowing the gap: The project has contributed to a closer relationship between industry and academia, benefiting both. It has enabled theoretical knowledge to be more quickly translated into practical application. It has also meant that researchers have more easily gained insights into the everyday situation of the industry.

We also asked our project partners what advice they would give to other companies and organizations that can participate in similar collaborative projects.
If you are considering participating in a collaborative project, think about this:

Invest with conviction: Commitment in time, energy, and perhaps even financial resources is essential to extract as much value as possible.

Networking as a catalyst: The collaboration offers unique opportunities for new contacts and perspectives. Take advantage of the networking opportunities and secure different perspectives on things.

Valuable insights: Participating companies gain access to a unique collection of people in the same place, which can provide insights that might be difficult to reach on their own. Also, remember that you are an essential piece of the puzzle where your contribution is vital for the rest.

Be prestige: An invitation to openness and a willingness to share successes and failures.

Engage and evaluate: A call to fully engage and evaluate the collaboration’s effect.

Both industrial companies and technology partners see collaboration as a powerful way to create competitiveness for the future. By sharing these insights and experiences, we hope to inspire more to participate in similar collaborative projects in the future.

Ralf Ragnarsson

Head of business

Nitator

We did not have a clear vision of what we could achieve when we joined the DSP project, but we can state that we have raised the level of digitalization at Nitator by several steps, which has exceeded our expectations. We have conducted activities that have laid the foundation for our digital strategy and established a network within digitalization that we would only have managed with the project! At Nitator, we usually say yes to projects where we see great potential for improvement and an opportunity to be involved early, to create the best conditions to establish new ways of working in an environment where the demands quickly change.

Digitala Stambanan Produktion – Digital platform for increased delivery assurance – a demonstrator from WP 1

In the project Digital Stambanan, we are developing demonstrators of this kind to test functionality and share knowledge and experiences from the project with other companies and organizations.

The project is divided into different work packages. In the first work package (WP1), we are working with a value chain in the steel industry where steel from SSAB, together with C-parts (such as screws and nuts) from Bufab, is delivered to Nitator. Nitator processes, welds, paints, and assembles products for the automotive industry. The focus of WP1 is on logistics flows, the ability to meet customer deadlines, and the traceability of products and materials in the value chain. Various demonstrators are being created in the project to demonstrate the functionality of the developed techni. Together in WP1, four focus areas for data sharing in the value chain have been selected:

Product data
Delivery assurance
Understanding customer requirements
Visualization of climate impact

Of these areas, two different demonstrators have begun development. One aims to demonstrate the possibilities of digital platforms for increased sustainability and the other for delivery assurance. Two of the technology providers in the project are providing solutions for developing these demonstrators. The sustainability demonstrator is built on ChainTraced’s digital product passport platform, which provides traceability throughout a value chain. Rockwell Automation’s visualization platform FTOptix, an interface-based traceability solution, is used for the delivery assurance demonstrator.

As a part of a value chain, you are often dependent on someone else to plan and carry out your part of value creation. Being able to know as much as possible about when things are expected to be delivered creates conditions for planning and optimizing your own work. In the project Digitala Stambanan, a first version of a demonstrator is now being created to visualize and forecast when different deliveries will occur in a value chain, something we call delivery assurance.

The ‘delivery assurance’ demonstrator has been planned to be carried out in three stages. In the first stage, data will be extracted from ChainTraced onto FTOptix platform (Figure 1) to provide easy-to-understand data visualization that will provide insights and a proactive way of working for operators. FT Optix and APIs will be used in the form of Sankey Graphs (for sustainability-related efforts) or dashboards (to visualize production data). In stage 2, a wider perspective of the value chain will be considered where we will combine the insights from stage 1 to a DataOps platform for shared views. IT/OT and engineering functions will have simplified access to complex and large amounts of industrial data that is generated and managed across production systems. This makes data available, meaningful, and useful, enabling manufacturing organizations to get value more effectively and efficiently. Stage 3 will include MES and QMS functionalities. Stages 2 and 3 have not yet been planned in detail and requires further discussions around scope after stage 1 of the demo development is completed.

Opportunities of using of digital platforms for delivery assurance

There are several advantages to visualizing and sharing delivery data in a value chain:

It enables collaboration for each stakeholder in the value chain, anywhere within and outside the company and in the value chain. The platform keeps track of tasks performed and increases traceability and process efficiency.
Through various operator interfaces, data is collected in one place, creating a data source for machine learning and AI used to create the delivery forecast.
The platform helps create transparency in the value chain as the product’s journey is visualized.
Operators in the value chain can update the product status if something unexpected happens in the manufacturing process.

Figure 1 FTOptix HMI Visualization Platform (Source: Rockwell).

Challenges

The main challenges in developing this demonstrator have been understanding what stakeholders in the value chain want to visualize in their perspectives and how the extracted data from the value chain can be stored in the cloud. The data from various parties in the value chain will be saved in the cloud (Microsoft Azure) along with an installation for IoT connections. The data from the various parties of the value chain will be saved in the cloud (Microsoft Azure) together with an installation for IoT connections.

Arpita Chari – WP-leader, Chalmers University.

Our quest to improve supply security through digitalization has led us through challenging but enriching innovative discussions. Working with this platform has strengthened our technical capabilities and ability to accurately and efficiently anticipate and fulfill customer needs. In addition, the platform will visualize the CO2 data that ChainTraced collected for the first demonstrator.

Digitala Stambanan Produktion – Clarissa defended her doctoral thesis successfully!

The Digitala Stambanan Production project involves several talented doctoral students from the Division of Production Systems at Chalmers. This team belongs to the Department Industrial and Material Sciences. We can now tell that one of them, Clarissa Alejandra González Chávez has successfully defended her thesis this week. The title of the thesis is “Sustainability-as-a-Service: Advancing digital servitization for industrial sustainability.”

🌿 Clarissa’s research is essential in redefining how we approach industrial sustainability by delivering value through services instead of tangible products. Her thesis, a comprehensive study based on six different studies across various industries, addresses integrating sustainability at the core of digitally enabled services. Her research shows how digital servitization can benefit from economic, environmental, and social sustainability drivers.

💡 Key highlights:

The thesis proposes the concept of “Sustainability-as-a-Service”, promoting the idea of sustainability as a primary source of value in business models.
Clarissa identified and addressed various challenges in adopting digital service models, including economic, technical, organizational, and contextual barriers.
The research resulted in proposed frameworks for Sustainability-as-a-Service, which are empirically evaluated and offer both theoretical and practical insights.

Clarissa González

Work package manager

Digitala Stambanan Production

👏 This work isn’t only academically significant; it has real-world implications and helps industrial practitioners move towards more sustainable methods where value is not solely tied to tangible assets. We congratulate Clarissa on her fantastic achievement and thank her for contributing to a more sustainable future within the industry!

Digitala Stambanan Produktion – Digital platform for increased sustainability – a demonstrator from WP 1

In the project Digital Stambanan, we are developing demonstrators of this kind to test functionality and share knowledge and experiences from the project with other companies and organizations.

Product data
Delivery assurance
Understanding customer requirements
Visualization of climate impact

Of these areas, two different demonstrators have begun development. One aims to demonstrate the possibilities of digital platforms for increased sustainability and the other for delivery assurance. Two of the technology providers in the project are providing solutions for developing these demonstrators. The sustainability demonstrator is built on ChainTraced’s digital product passport platform, which provides traceability throughout a value chain. Rockwell Automation’s visualization platform FTOptix, an interface-based traceability solution, is used for the delivery assurance demonstrator.

Opportunities with the use of digital platforms for sustainability

ChainTraced’s platform assists in visualizing the entire value chain’s carbon footprint, including emissions for Scope 1, 2, and 3 (Figure 1). In this way, all companies in the value chain can calculate and share their greenhouse gas emission data to promote sustainable business models. The ‘Traceback view’ in ChainTraced’s platform contains a tree structure with details of the final product, including data for all components and the total carbon footprint (Figure 2). The value created by this solution is that the final product bears a stamp with traceability from the entire manufacturing chain. Each participant in the value chain can then obtain information about producing environmentally friendly steel (i.e., steel with a low carbon footprint) and steel that can contribute to the circular economy (i.e., steel that can be efficiently recycled or managed for waste reduction). The platform also enhances collaboration and visibility in the value chain by identifying where the most significant carbon footprint is generated in the value chain (hotspots).

Figure 1 Scope 1, 2 and emissions (Source: PlanA).

Challenges and upcoming tasks

In the initial version of the demonstrator, historical data with certain assumptions and qualified estimates have been used to establish communication between companies in the value chain. Initially, data has been transmitted in connection with product deliveries and only for one type of material. The CO2 data sent is at the product level and is currently updated twice a year.

In the next phase, more realistic data is desired at the batch level and for different types of materials. To enable each participant in the value chain to provide more realistic batch-level data, more automation is needed in the collection of information and connections between the parties’ internal systems and the demonstrator. This, in turn, poses challenges due to varying levels of digital maturity, as well as privacy and IT security issues.

In future stages, the demonstrator could be developed towards individual-level CO2 traceability. In that case, this would impose even higher demands on the systems’ ability to deliver the detailed information needed. Even more data from the process (OT) needs to be integrated with data from the business systems (IT) and other surrounding systems. Products and components need to be physically marked to be identified. This places higher demands on the logistics for physical and digital traceability throughout the entire value chain.

Figure 2 Traceability tree generated from data collected from various actors in the value chain. The green bars represent the contribution to the total carbon footprint (Source: ChainTraced).

Arpita Chari – WP-leader, Chalmers University.

The members of our work package have dedicated their efforts to transforming complex supply chain data into clear visualizations where carbon footprint and product status can be viewed. With imperatives from EU’s Green Deal and customer requirements for green steel (introduction of the EU’s Corporate Sustainability Reporting Directive (CSRD)), this effort has never been more relevant than now. By engaging in the tasks being carried out in this work package – especially with regards to digital platform implementation – our partners enhance their sustainability credentials by highlighting key areas or hotspots in the value chain. This not only fosters transparency and accountability but also aligns with the latest regulations. We aim to inspire other companies on similar transformation journeys, not just to meet these new regulatory requirements but to promote a sustainable future where manufacturing plays a huge role.

Digitala Stambanan Produktion – Digital ecosystems – an increasingly important concept

In previous chronicles, we have touched upon both digital value chains, and digital plattforms platforms , as well as the difference between them. A third and closely related concept is digital ecosystems, which we intend to delve into today.

So, what is a digital ecosystem?

Martin Friis

Work package manager

Digitala Stambanan Production

In brief, we could explain it by saying that it is a dynamic network of actors and technologies that collaborate and interact digitally to create value and enable innovation.

Magnus Mörstam

Work package manager

Digitala Stambanan Production

A digital ecosystem requires one or more digital platforms as a technical foundation or infrastructure that facilitates interaction, transactions, and/or the exchange of information between users and actors. This can be a website, an app, a cloud platform, or a software platform. A digital platform typically offers various functions, tools, and services that users can benefit from.

A digital ecosystem is a broader concept that not only includes the digital platform but also all the actors involved in the interaction and collaboration on the platform. A digital ecosystem may consist of companies, organizations, users, and other stakeholders who interact and exchange value using the digital platform as a hub.

In other words, we can say that the digital platform is the technology or tool used to enable interaction and transactions, while the digital ecosystem is a broader concept that also encompasses the actors and interactions occurring on that platform.

To provide an example: Facebook can be regarded as a digital platform where users can create accounts, share posts, comment, and interact with each other. However, the digital ecosystem for Facebook also includes companies advertising on the platform, developers building apps for Facebook, users sharing content, and so forth.

In the previous chronicle, we described the difference between digital value chains and digital platforms. We explained digital value chains as the overall process of creating and delivering products or services by digitally integrating various activities and actors. This means that a company can collaborate with its suppliers to ensure a smooth supply chain and high-quality input materials. It can also involve interacting with customers to understand their needs, delivering value through products or services, and managing post-sales activities such as support and feedback. Despite multiple actors being involved, the focus is still on optimizing and coordinating interactions to deliver value to customers, and this can occur within the framework of a single organization.

On the other hand, a digital ecosystem extends beyond a single organization’s value chain and includes multiple independent actors and platforms. It is a dynamic structure where different actors collaborate and create value through exchange, cooperation, and interaction. A digital ecosystem may include several companies, organizations, users, technology providers, and other stakeholders who collaborate and exchange value through a central platform or network. It is a broader perspective that is not limited to the operations of a single organization, and where multiple parties can benefit from the collaboration and synergies that arise within the ecosystem.

It is important for companies to understand the significance of digital ecosystems for several reasons:

Business Opportunities: By understanding digital ecosystems, companies can identify and capitalize on new business opportunities. By participating in existing digital ecosystems or building their own, companies can reach a broader audience, expand their customer base, and create new revenue streams through collaboration, partnerships, and integration with other actors within the ecosystem.
Access to Resources and Expertise: Being part of a digital ecosystem grants companies access to a broader pool of resources and expertise. This may include access to technology, data, infrastructure, knowledge, and skills available through collaborations and partnerships with other actors within the ecosystem. This can help companies streamline their operations and drive innovation.
Innovation and Faster Market Entry: Digital ecosystems foster innovation by enabling collaboration and the exchange of ideas among different actors. By being part of an ecosystem, companies can benefit from innovative solutions and quickly adapt to changing market conditions. It can also help accelerate the market entry of new products and services by leveraging existing infrastructure and customer base within the ecosystem.
Competitive Advantages and Differentiation: By understanding and actively participating in digital ecosystems, companies can create competitive advantages and differentiate themselves from their competitors. By offering unique solutions and creating synergies with other actors within the ecosystem, companies can create value propositions that are difficult to replicate. This can help strengthen their position in the market and build long-term competitiveness.
Customer-Centric Strategy and Customer Experience: Being part of a digital ecosystem allows companies to improve the customer experience and provide added value to their customers. By collaborating with other actors within the ecosystem, companies can offer integrated solutions, customized offerings, and create a seamless experience for their customers. This can increase customer loyalty and differentiate the company from its competitors

By actively participating in and benefiting from digital ecosystems, companies can strengthen their competitiveness and position themselves well in the digital era. It’s about understanding their role and position in a larger context. What can we contribute? What do we have that could be valuable to others? While it’s easy for us to write, it may be more challenging for a company to practically implement. For those interested, we recommend a methodology for mapping ecosystems developed by, among others, Fredrik Svahn at the University of Gothenburg (GU).

In general, we propose the following steps to gain a deeper understanding of the various actors, their relationships, value flows, and the overall dynamics of an ecosystem:

Identify Actors: First and foremost, you need to identify the different actors involved in the digital ecosystem. This can include companies, organizations, users, suppliers, and other relevant stakeholders.
Analyze Actors’ Roles and Relationships: The next step is to analyze and understand the roles and relationships of actors within the ecosystem. This involves identifying who collaborates, competes, or influences each other, as well as the type of value exchange and interaction that occurs between them.
Map Platforms and Technologies: Identify the various digital platforms and technologies used within the ecosystem. This can include central platforms that act as the hub for interaction and collaboration between actors. It may also include technologies used to enable data exchange, communication, and collaboration.
Evaluate Value Flows: Analyze and evaluate value flows within the ecosystem. This involves understanding how value is created, transferred, and exchanged between different actors. It can be through products, services, data exchange, partnerships, or other forms of value-creating activities.
Assess Ecosystem Dynamics and Sustainability: Evaluate the dynamics and sustainability of the ecosystem by looking at factors such as growth, competition, collaboration, innovation, and survival. This involves analyzing how actors influence each other and how the ecosystem can adapt to changes and evolve over time.
Analyze External Factors: Consider external factors that may affect the ecosystem, such as regulations, technology trends, market changes, or consumer behaviors. This can provide a comprehensive picture of the ecosystem’s environment and the challenges and opportunities that may impact its success

This can help identify opportunities, challenges, and strategies to take advantage of or participate in the ecosystem successfully.

Good luck!

Digitala Stambanan Produktion – What is the difference between digital value chains and digital platforms?

Digital value chains and digital platforms are frequently used in the Digitala Stambanan project. What do they mean, how do they differ, and most importantly, what can Swedish industrial companies gain from using and learning more about them? Read our previous columns on Digital value chains here and Digital platforms here.

Martin Friis

Work package manager

Digitala Stambanan Production

A digital value chain refers to the overall process of creating and delivering products or services by digitally integrating various activities and actors. This encompasses everything from development, design, manufacturing, distribution, and customer service. Within the digital value chain, technology and digitization can streamline and automate various steps in the process, from automated production to data-driven services in the aftermarket.

Magnus Mörstam

Work package manager

Digitala Stambanan Production

A digital platform is a technical infrastructure for integrating data from various sources, enabling interaction, collaboration, and exchanging services, data, or products between users and actors. A digital platform is a “meeting place” where users can interact and create value.

For it to function, there are some vital components and features of digital platforms, as illustrated in figure below:

Producers create value for consumers. In return, producers receive some form of compensation, which doesn’t necessarily have to be monetary but could be recognition, acknowledgment, higher status, or the like. Producers’ access to the platform is controlled by access management.

Consumers are also governed through consumption filters, which grant them regulated access to the value created on the platform. The digital platform owner can understand how different actors behave through the analysis of user data and then manage, or orchestrate, the actors to create different conditions for the platform’s users.

The digital platform offers functions and services for transactions, collaboration, information sharing, and data analysis to various actors.

Fundamentally, the difference between digital value chains and digital platforms is that a digital value chain focuses on the entire process of creating and delivering products or services. In contrast, a digital platform is a technical infrastructure enabling interaction, collaboration, and exchange within this process. A digital platform can be a part of the digital value chain by facilitating and improving various steps and activities within the value chain.

To benefit from both digital value chains and digital platforms, a company must have a strategic and technological understanding and the ability to correctly implement and use these tools. Some crucial factors for this include:

Digital Competence: The company needs employees with a comprehensive understanding of the opportunities and challenges of digitization and knowledge of the company’s current situation and challenges. The key here is to have enough competence to be a good client. Being an expert is unnecessary, as this expertise can be engaged externally if needed.
Partnerships and Collaboration: Creating partnerships and collaborations is essential to establish digital value chains and use digital platforms. This can involve collaborating with suppliers, customers, or other industry actors to share data and collaborate on innovation and efficiency. Trust and transparency between parties are crucial. Therefore, choose partners you trust.
Adaptability: The company needs to be flexible and adaptable to leverage digital opportunities. This may involve reevaluating existing workflows, processes, organization, and business models to use digital technologies and platforms.
Customer-Centric Approach: Understanding and meeting customer needs and expectations is crucial. The company can create more customized solutions and offer a better customer experience by using digital tools and platforms.
Innovation Focus: Being innovative and exploring new opportunities is essential to benefit from both digital value chains and digital platforms. This can involve experimenting with new technologies, developing new services and products, and being open to change and learning. Dare to try. Experiment on a small scale and evaluate continuously.
Integrated Technology: It’s important to have an integrated technical solution and infrastructure that enables data exchange and collaboration within and outside the organization. This may include systems for ordering and process data, IoT devices, analytical tools, and other relevant technology. For your company to be an effective part of a digital value chain, your internal data management needs to be efficient and exchangeable with the external world

If a company has the right conditions in place to benefit from both digital value chains and digital platforms, they can achieve several advantages and opportunities:

More Efficient and Automated Processes: By digitizing and integrating various steps and activities within the value chain, the company can achieve increased efficiency, faster throughput, and reduced costs. Automation of routine tasks can free up time and resources for more value-added activities.
Stronger Collaboration and Partnerships: Using digital platforms, the company can collaborate and interact with various industry actors. This can lead to synergies, joint innovation, and new business opportunities.
Increased Innovation: By using digital platforms and collaborating with various actors, the company can open new opportunities for innovation. The company can create new services, products, or business models that better meet customer needs by sharing data, knowledge, and resources.
Improved Decision-Making: The company can make more informed and data-driven decisions using analytical tools and data insights. Access to real-time data allows the company to monitor and control its operations more effectively.
Enhanced Customer Experience: The company can create a more personalized and tailored customer experience using digital tools and platforms. The company can understand customer preferences and behaviors by collecting and analyzing data and offering more relevant products, services, and communication.
Greater Market Growth: By connecting to digital platforms and ecosystems, the company can reach a broader market and potentially increase its reach and customer base

Digitala Stambanan Produktion – Digital platforms are essential for the future competitiveness of the Swedish industry, but what are they really?

Within the project “Digitala Stambanan,” we often discuss digital platforms and their importance for the future competitiveness of the Swedish industry. But what exactly is a digital platform? Here, we will attempt to explain what it is and why we see it as an enabler for the competitiveness of the Swedish industry. In our previous column, we discussed digital value chains and their significance for the Swedish industry. Read more about it here.

Martin Friis

Work package manager

Digitala Stambanan Production

Magnus Mörstam

Work package manager

Digitala Stambanan Production

A digital platform is a technological solution that enables the integration of data from various sources, allowing multiple parties to communicate, interact, and exchange data and information to create value.

Looking more generally at digital platforms, they typically have the following characteristic features:

Multisided: Digital platforms often bring together multiple parties with different needs and interests, such as buyers and sellers, service providers and consumers, or content creators and visitors.
Network effects: As more users join a digital platform, the platform’s value increases for all users. This, in turn, attracts more users to join and be part of the ecosystem. This phenomenon is known as network effects, which can create a growth and usage spiral.
Data-driven: Digital platforms generate and rely on large amounts of data to drive and improve their services. They can use data analytics, artificial intelligence, and machine learning to gain insights into user behavior and preferences.
Open and accessible: Many digital platforms are open to anyone with an internet connection and a device, making them accessible to a large and diverse audience.
Scalable: Digital platforms can scale quickly and efficiently, often without the need for significant physical infrastructure or resources.

Digital platforms are essential for the industry because they offer a range of benefits that can help companies and value chains improve their productivity, reduce costs, and drive innovation. Here are some examples:

Enhanced data integration: Industrial digital platforms enable data integration from various sources, such as sensors, machines, and systems, to create a unified view of the industrial process. This can provide valuable insights into performance, quality, efficiency, and product traceability enabling companies to optimize their operations accordingly.
Improved collaboration: Industrial digital platforms can help connect various stakeholders across the industrial value chain, such as suppliers, customers, and partners, facilitating collaboration and knowledge sharing. This can enable companies to identify new opportunities, reduce lead times, and improve overall productivity.
Increased flexibility and resilience: Industrial digital platforms can help companies respond faster to changes in demand, supply, and production by enabling real-time monitoring, analysis, and control. This can help companies to increase resilience against unforeseen events, reduce lead times, improve quality, and enhance customer satisfaction.
Better decision-making: Industrial digital platforms can provide companies with valuable insights and predictions that support better decision-making. For example, by analyzing data from sensors and machines, companies can predict when maintenance is required or when a machine is likely to break down, enabling them to take preventive measures and avoid downtime.
Cost reduction: Industrial digital platforms can help companies reduce costs in various ways, such as optimizing energy consumption, reducing waste, and improving efficiency. Using data analytics and machine learning, companies can identify areas where costs can be reduced and make targeted improvements.
Increased traceability and transparency: By collecting and sharing data along the value chain, it becomes possible to track the journey of products from raw materials to end customers. This is particularly important to meet requirements for quality, safety, and sustainability. Traceability can also help reduce the risks of counterfeiting and ensure compliance with regulations and standards. With digital platforms, companies can ensure that their products are of the highest quality and adhere to sustainability and ethical standards, which in turn can build trust among customers and stakeholders.

By harnessing the power of digital technology, industrial companies can transform their operations and remain competitive in an increasingly digital world.

Digital platforms can take many different forms, such as websites, mobile apps, social media platforms, marketplaces, and more. Many well-known digital platforms exist, such as Spotify, Airbnb, Uber, and Facebook. The largest and most famous platforms are often associated with end-users in the form of individuals, but there are also many digital platforms designed for industrial use. These can include:

Production and operational platforms: These focus on optimizing production processes, monitoring machinery, and collecting data to improve productivity and quality. Examples of such platforms include Manufacturing Execution Systems (MES) and Industrial Internet of Things (IIoT) platforms.
Supplier platforms: These platforms facilitate collaboration with suppliers by sharing information about orders, inventory status, and production schedules. This can help reduce lead times and improve the supply chain. Examples of supplier platforms include Electronic Data Interchange (EDI) and Supply Chain Management (SCM) platforms, and company-specific portals for communication between customers and suppliers.
Collaborative platforms: These platforms enable collaboration and knowledge sharing within and between different companies and organizations. They can promote innovation, problem-solving, and joint product development. Examples of collaborative platforms include digital tools for virtual collaboration and project management.
E-commerce platforms: These platforms enable the sale and purchase of materials, components, and products online. They can be integrated with existing systems to streamline procurement and facilitate order management. Examples of e-commerce platforms include industrial B2B marketplaces.
Analytical platforms: These platforms are used to analyze data and generate insights to improve decision-making and efficiency. They can utilize machine learning, artificial intelligence, and big data techniques to identify trends, predict maintenance needs, and optimize processes.

Of course, many more digital platforms are used in the manufacturing industry, and some may specialize in specific sectors or manufacturing processes.

Digital platforms have transformed many industries and enabled new types of businesses and services. They have also created new privacy, security, regulation, and competition challenges. As digital platforms evolve, they will likely play an increasingly important role in the economy and society.

Tips for those who want to develop a digital platform mindset within their companies:

Ensure that your strategy also includes digitalization: Digitization is not a standalone entity but a tool for business development and should, therefore be integrated into the strategy. Defining the vision, goals, and objectives for your digital transformation journey is important. This helps create a shared understanding and direction for all stakeholders in the company.
Foster collaborations: A digital platform mindset requires collaborations both within and outside the organization through partnerships with other companies and organizations. Collaborations can be used to share data, mitigate risks, foster innovation, and expand the customer base.
Invest in skill development: Digital transformation requires investments in staff training and development. This may include educating employees on new technologies and work processes, recruiting new talents, or seeking external expertise.

Good luck!

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