The Business Leader’s Guide

to Digital Transformation
in Maintenance
How industrial companies can use maintenance
as a competitive advantage
1
Table of contents

01
Digital transformation in under a minute 3

02
The two sides of digital transformation 4

03
What is digital transformation? 5

04
Why is digital transformation essential for industrial companies 7

05
Why maintenance should be at the epicenter of digital transformation 9

06
What digital transformation looks like in maintenance 11

07
A nine-step roadmap for digital transformation in maintenance 15

08
Four challenges of digital transformation in maintenance and solutions 20

More resources 22

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 01
Digital transformation in under a minute

1
Companies rely on technology to run and be
profitable, as do business units. Maintenance
is no different. Integrating it into your digital
ecosystem can mean big gains.

Human Resources Maintenance

These gains can then be
reinvested in the entire Production Finance Marketing
company.

4 2
This opens the door to achieving tangible Digital transformation is getting the right
results with maintenance. technology in place to solve
your biggest problems.
Fewer costs Waste reduction
Digital Solution
Higher output More data Less risk

3
When maintenance participates in digital
transformation, it can lead to fundamental
improvements.

Productivity Safety

Flexibility Efficiency

3
02
The two sides of digital transformation

History is full of stories about digital transformation gone wrong. A perfect example is
the newspaper industry.

News organizations moved their publications online as millions flocked to the internet.
Then this happened:

NEWS

The number of
More than 2,200 Readership (online
newspapers in the US
newspapers went out and print) shrank
dropped by 25%
of business by 31%
from 2004 to 2021

NEWS

The number of Bankruptcies of massive

newspaper journalists media companies
was cut in half skyrocketed

The move to a digital space went disastrously wrong for newspapers. But why?

Because media companies attempted to operate in a digital world the same way
they operated in an analog world. The same content. The same revenue models.
The same way of thinking.

The mixture of old thinking and new ways of doing business was combustible.
New technology alone couldn’t pull newspapers into a modern world.

Compare that to the stars of digital transformation, like Uber or Netflix. They
transformed industries by thinking differently and using technology to support that
seismic shift. Uber kickstarted the gig economy and put power in the hands of riders.
Netflix built a media empire using a subscription model and original content.

This ebook will help you follow the paths laid out by the likes of Netflix and Uber.
It guides leaders of industrial businesses through the ins and outs of digital
transformation, starting with maintenance. You’ll learn what digital transformation
is, why maintenance should be at the heart of it, and how to build a plan for digital
transformation at your company.

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03
What is digital transformation?

Digital transformation is the process of adopting technology to drive and support

new ways of thinking, doing, and achieving.

• Thinking: High-level strategies that guide the way a business operates long-
term, like business models, positioning, and organizational structure

• Doing: Tactical strategies that guide the way a business operates day-to-day,
like processes, policies, and budgets

• Achieving: The way a business measures and tracks goals and progress

“
toward goals

Clearly, the thing that’s transforming is not the technology —

the technology is transforming you.
- Jeanne W. Ross, MIT Sloan’s Center for Information Systems Research

It’s also just as important to define what digital transformation is not.

• It’s not just about technology. It’s about the people and processes you need to
be successful, and how to equip them with the right systems.

• It’s not a single piece of software or technology. It’s a constant process of

assessing, building, optimizing, and scaling your business’s digital toolset.

• It’s not the same for everyone. Each business starts its digital transformation
journey from a different place. This difference determines the technology you
adopt, how quickly you adopt it, and what you do with it.

• It’s not a project that ends. Digital transformation embeds technology in every
part of your company, so it’s always growing and changing with your business.

• It’s not confined to one department or level. Digital transformation includes

every part of your business and is actively embraced by every level of the

“
organization, starting at the top.

Think of digital transformation less as a technology project to be finished than as

a state of perpetual agility, always ready to evolve for whatever customers want
next, and you’ll be pointed down the right path.
- Amit Zavery, VP and Head of Platform, Google Cloud

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A short case study:
What digital transformation looks
like in manufacturing

The goal
California-based fruit producer Prima Frutta wanted to transform
their operation into a model of speed and efficiency.1

The process
The company prioritized automated data collection and availability
across the business. This data would be used to cut the time it took to
identify trends (both good and bad) and make decisions based
on them.

The technology
Prima Frutta installed production systems and industrial controls
that automatically collected, sorted, and pushed second-by-second
updates to the company’s 900 employees. This allowed the business
to collect accurate, actionable data without the day-to-day disruption
of getting it manually. It also helped employees uncover ways to better
maintain and run equipment so it could produce more.

The result
A year after implementing this change, Prima Frutta increased
production by 50% and became the largest cherry producer
in the world without a single new hire.

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04
Why digital transformation is essential
for industrial companies

The everyday problems your company faces are stalling growth. The technology you
use today is part of what’s holding you back. No matter how well these old systems have
worked in the past, they can’t evolve with your business. That’s why finding the right
technology is essential for shedding your biggest pains and growing your business.

Here are some of the biggest pains that industrial companies face today and how
digital transformation can help businesses face them:

1. Rising costs
Nearly 90% of companies said the cost of doing business has increased substantially in
the last year, according to a Federal Reserve survey of 1,104 CFOs. These results came as
manufacturing costs increased at the sharpest rate seen in a decade.

One way to cope with rising costs is to eliminate waste across your business. Outdated
technology is at the root of many broken processes that cause inefficiency, scrap, and
underperforming assets. Finding and connecting digital solutions is one way to fix these
processes and limit the impact of rising costs.

For example, one mining company put new technology in place to compare production
data and understand the best operating context for its assets. It was able to discover the
environment that produced the best yield, which boosted profit by $10 million annually.

2. Supply chain disruptions and uncertainty

Over 35% of manufacturers say they’re facing supply chain disruptions according to
a survey by the National Association of Manufacturers. These issues are having a huge
impact on the bottom line, with 55% of CFOs reporting lost or delayed sales.

A chaotic supply chain often can’t be anticipated or controlled. But creating

predictability and flexibility within your operation can limit risk. Digital tools can help you
create repeatable processes, automate data collection, forecast resourcing needs, and
store information in one place. You’ll always know what you need, what you don’t, and
where to find these details.

One global CPG company introduced a system to get real-time visibility into its supply
chain. The system analyzes the equivalent of 100,000 Excel spreadsheets a day, allowing
the company to see where its supply chain works well, where it doesn’t, and what to
do about it. The company increased on-time, in-full service levels to 95% in just three
months with this solution.

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3. Increased competition
Manufacturing accounted for 70% of research and development spending in the
US in 2020. It’s clear manufacturers are investing in ways to one-up competitors.
Industry CEOs ranked talent, cost, and workforce productivity as three main areas of
competition in a global Deloitte survey.

Technology has the potential to be a game-changer in this race to the top. It allows
manufacturers to collect accurate data faster and make it more accessible. Decisions
can be made quicker and with confidence, so companies can take advantage of
opportunities or limit risk. Having one source of truth is also the most effective way to
standardize processes and repeat them across the business.

Investments in technology, specifically predictive analytics, are helping manufacturers

strengthen their customer base. Companies that use these digital tools for production
have improved the customer experience by 60%, according to this 2019 Deloitte survey.

4. An expanding skills gap and labor shortage

If it seems hard to get and retain labor now, we have bad news—it’s about to get
worse. There will be 2.1 million manufacturing jobs unfilled by 2030, according to
a report by The Manufacturing Institute. Losing this expertise, and the cost of getting

“
it back, could impact a company’s efficiency and productivity for years to come.

Old-school, hands-on, mechanical skills are dying. We’re going to see a massive
exit of skilled maintenance workers, and not enough companies have thought about
what’s needed to fill that gap. - Stuart Fergusson, Director of Solutions Engineering, Fiix

Technology is not a silver bullet for the skills gap and labor shortage. But it can reduce
the sting. Digital tools collect information and standardize tasks so knowledge can be
shared and passed down. It also empowers workers by allowing them to do jobs and
make decisions with less risk and a greater understanding of the impact. The result is
higher retention of both information and talent.

5. Growing security concerns

Data loss and cyber attacks spiked between 2020 and 2021. Alarmingly, 80% of
companies lack confidence in their cybersecurity systems. With the average data
breach costing $3.86 million, it’s critical for manufacturers to be protected.

Outdated systems are like a welcome sign to cybercriminals. Unfortunately, many

manufacturers rely on legacy systems to store data. One of the best ways to build
secure data infrastructure is to upgrade to cloud-based software. Only 22% of
reported breaches in 2019 involved cloud software compared to 71% for on-premise
systems. The cloud owes its vault-like security to is its ability to be updated frequently
so it can combat evolving threats.

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05
Why maintenance should be at the
epicenter of digital transformation

Digital transformation requires an investment of time, money, and social capital.

So why spend it on maintenance?

Every industrial business relies on the health and performance of its assets.
If they stop, the business stops. If they’re reliable, the business becomes reliable.
The maintenance team enables assets to perform at their best, and digital

“
transformation enables that team with technology.

Companies are starting to realize that maintenance plays a role in the ultimate
user experience for the customer. -Kevin Permenter, Research Manager, IDC

A company’s digital ecosystem is incomplete if it fails to integrate maintenance and leaders

will lack the visibility needed to make better decisions. You can map the benefits between
investing in digitizing maintenance and company-wide growth in three key areas:

Lower risk and increased flexibility

A solid maintenance program is essential for adapting to sudden shifts in everything
from consumer habits to supply chains. That all starts with having predictable output
and fewer disruptions. A proactive maintenance program allows you to forecast
maintenance costs, asset productivity, and capital expenditures with confidence.
You can ditch surprise losses from unplanned downtime and stop using guesswork
to patch the gaps in your data.

Over 50 billion is lost by manufacturers annually due to unplanned downtime2

Fewer costs and more productivity

A strong maintenance program can increase profit and lower costs across the company.
The best programs predict when maintenance is needed on an asset to keep costs as
low as possible and production as high as possible. Maintenance is also key to extending
the life of equipment so you can limit large capital expenditures. Not only do assets run
better, but they run for longer. Maintenance data is also key to allocating resources and
budget effectively.

63% of manufacturers improved overall equipment effectiveness after adopting

preventive maintenance (2017 survey by Plant Engineering survey)

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“
If you want to be making more, you need to get rid of downtime or you
need to increase capacity. But buying a new line is a lot more expensive
than running the one you have 15% better. Where are you getting that
15%? Maintenance. Do good maintenance.
-Stuart Fergusson, Director of Solutions Engineering, Fiix

Greater efficiency and higher quality outcomes

A proactive maintenance program improves asset efficiency, so equipment can produce
higher-quality products at a faster rate. Maintenance processes also dictate the productivity
of your workforce on the shop floor. Everything from parts availability to health and safety tie
back to maintenance. If maintenance is standardized and streamlined, equipment will have
higher levels of availability and produce less waste, while exposing workers to less risk.

Preventive maintenance programs help cut manufacturing costs over 18%3

Maintenance inputs Business outputs

Preventive maintenance to Increased production capacity

catch early asset failure and lower production costs

Standardized workflows to Fewer capital expenditures and

cut down on work delays more predictable operations
Asset health,
performance,
and longevity
Resource forecasting and More data to boost
purchasing to keep risk low competitive advantages

Health and safety audits to Higher on-time delivery rates and

meet compliance standards stronger customer relationships

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 06
What digital transformation looks like
in maintenance

There’s no one path to digital maintenance maturity. But the most common route for
evolving a maintenance program and integrating it into a digital ecosystem comes in
these five stages:

05 Prescriptive Maintenance

Big Data
04 Predictive Maintenance
Operational to Strategic

Little Data 03 Condition-based Maintenance

02 Preventive Maintenance: Based on Time or Usage

01 Reactive Maintenance: Run to Failure

Single Systems to Integrated Systems

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Stage of maintenance maturity What the program looks like What the technology looks like

• Maintenance is done only • Maintenance operates on

when failure occurs a single, basic system or
no system
Reactive maintenance • Maintenance has very
• Systems are not integrated
little to no strategic value

• Maintenance operates on a
• Maintenance is planned
single comprehensive system
on time or asset usage (ie. (ie. a CMMS)
every two weeks)
Preventive maintenance • The system is used for work
• Maintenance is a service management and scheduling
for production
• Systems are not integrated

• Maintenance operates on a
• Maintenance is planned single system
on asset condition (ie. • The system is used to trigger
vibration) and optimize workflows and
Condition-based purchasing, and track basic
maintenance • Maintenance is a strategic data
pillar to boost asset
• Maintenance system may be
performance
integrated with production
systems (ie. MES software)

• Maintenance operates on a
• Maintenance is planned on single system with AI and/or
machine learning capabilities
data-based forecasts
• The system is used to optimize
• Maintenance is a strategic resource management using
Predictive maintenance pillar to improve productivity models, trends, and reports
and reduce operational risk
• Maintenance is fully integrated
with production and business
systems (ie. ERP software)

• Maintenance operates on a single

• Maintenance is prescribed system with AI and/or machine
based on advanced learning capabilities
forecasting models • The system is used to automate
workflows, purchasing, and
• Maintenance is a strategic decision-making through
Prescriptive maintenance
pillar to improve operational advanced data analytics
reliability and inform long-
• Maintenance is fully integrated
term initiatives with the company-wide digital
ecosystem

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A short case study:
What digital transformation in
maintenance looks like

The company
Perth County Ingredients, a global supplier of dried egg products
located in Ontario, Canada.

Where they started

All of the company’s maintenance work was reactive. The team also
had little insight into the performance of its people or equipment.
This led to lots of wasted time and money on everything from after-
hours call-ins, to emergency parts purchases, and more.

The first step forward

The company implemented a building automation system (BAS)
and a computerized maintenance management system (CMMS) at
one site over a three-year span. The CMMS was used to organize
assets, create preventive maintenance schedules, collect data, and
create reports

The results
This initial step in the company’s digital transformation journey led
to a 54% drop in reactive maintenance and a 47% reduction in after-
hours call-ins. This translated to lower maintenance costs and less
unplanned downtime.

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The next step forward
The company implemented the same maintenance software at seven
other facilities. The CMMS was used to automate maintenance
operations from one location. But maintenance was still being
scheduled on time-based triggers. This created unnecessary
downtime and cost the company production time and money.

The company integrated its CMMS and production systems.

This allowed it to automatically collect real-time data from
equipment and schedule maintenance based on asset condition.

The results
The maintenance team cut costs by $40,000 in just nine months by
decreasing breakdowns and cutting unnecessary jobs from its to-do list.
This was a 300% return on the original investment. It’s also helped the
company harness maintenance data to make smarter CapEx decisions.

Before digital transformation

PCI's Data is Data is Data is Data is Data is Maint.

equipment collected sorted arranged shared actioned schedule

After the first digital transformation project

PCI's Data is Data is Data is Data is Data is Maint.

equipment collected sorted arranged shared actioned schedule

After the second digital transformation project

PCI's Data is Data is Data is Data is Data is Maint.

equipment collected sorted arranged shared actioned schedule
Collected from Sorted into basic Arranged by Shared with Actioned by
equipment categories, like values, like different systems, triggering action,
production cycles weekly output or like a CMMS like automatically
or temperature high temperature creating a work order
for an overheated
component

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07
A nine-step roadmap for digital transformation
in maintenance

The nine steps below are the building blocks for digitally transforming your maintenance
operations. They offer a framework for directing your time, money, and resources so that
investment pays off in the short and long-term.

1. Determine goals
More than 44% of projects fail due to a lack of alignment between business and
project objectives. That’s why everything begins with connecting your business
targets to your maintenance maturity efforts. There are four steps in this process:

Establish high-level Identify business Determine the impact Set goals for maintenance
business goals strategies of maintenance
Example: Increase quantity
Example: Increase Example: Maintenance and quality of maintenance
Example: Reduce risk
standardization and data and standardization data, standardize
and create predictability
data accessibility of maintenance processes maintenance processes

2. Assess current and end state

The maintenance technology you choose depends on what’s needed to bridge the
gap between your current state and your maintenance goals.

It’s essential to talk with maintenance and operations leaders at this stage to
understand where they see potential for maintenance to impact business goals
and how to best create that impact.

Goal #1: Increase quantity and quality of maintenance data

Current state End state Strategy

• Manual data collection • Automated data collection • Set up a system to centralize

and automate data collection
• Inaccessible data • Centralized, accessible data
• Automatically generate and
• Infrequent reporting • Consistent reporting cycles share reports on a weekly basis
cycles
• Maintenance metrics • Create a dashboard of shared
• Lack of useful incorporated into decision- metrics for maintenance and
maintenance metrics making operations

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3. Create a project team
It’s time to gather the people who can put your plan into action. This team will drive
change in their functional areas and determine the most effective way to move
from present state to future state. 62%
They also act as critical advocates of the project, a key part of making digital
transformation efforts sustainable. 62% of successful
projects have actively
Ask yourself these five questions to identify your project team: supportive sponsors

• Who is responsible for or has the ability to impact different parts of your strategy?

• What processes and systems will be impacted? Who is responsible for them?

• What skills or knowledge gaps exist in your maintenance organization? Who can
fill those gaps internally?

• How can you compensate for skill or knowledge gaps externally?

• Is everyone who will be affected by these changes represented in some way?

4. Plan for change

The success of digital transformation often hinges on the adoption of new processes
and systems. In fact, 28% of digital initiatives fail because of low adoption from bad
change management.

Here are some change management techniques to help your teams embrace change
from the start and throughout digital transformation:

• Include stakeholders in decisions: This includes everything from surveys to user

testing of new technology. It educates stakeholders about the purpose of the project,
empowers them, and allows you to select the right systems for employees.

• Provide regular updates: Fear often fills the void left by a lack of communication.
Create regular check-ins, whether that’s a quarterly email or an in-person meeting.
Share updates, timelines, progress, goals, new processes, and success stories.

• Minimize disruption: Digital transformation is change and change is painful. Make

the transition to new processes and systems as smooth as possible. That might mean
taking it slow and communicating why disruptions are necessary.

• Provide training and everboarding: Ignorance is not bliss with digital transformation.
It’s anxiety and apathy. Stakeholders should not only be trained on new systems and
processes, but have continual access to resources that help them navigate change.

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 Success rate of change management elements

Element was communicated Element was not communicated

Clear targets for organization’s key 30%

performance indicators 15% 2.0x

Clear communication of timeline for 29%

implementing digital initiatives 16% 1.8x

Key digital initiatives that would be 27%

implemented 16% 1.7x

Goals for use of new digitization-related 27%

tools, technologies, and/or application 16% 1.7x

New processes for how employees work 26%

and collaborate with each other 16% 1.6x

Source: Axiom Groupe

5. Create milestones and measurements

Digital transformation is made up of several big initiatives and smaller, associated projects.
Break your plan into manageable milestones and track progress toward your overall goal.
This allows you to communicate clearly, maintain focus, and accurately assess progress.
It also empowers you to pivot quickly without sinking too many resources in a wrong turn.

Digital transformation roadmap

Phase 1 Phase 2 Phase 3

Project A Project B Project C Project A Project B Project C Project A Project B Project C

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There are three stages to measuring success with digital transformation initiatives:
Adoption, visibility, and optimization.

1. Adoption: Measure how people are using new processes and systems, and if they’re
using them effectively.

2. Visibility: Set up and track inputs and outputs. Make these measurements visible to
ensure they’re accurate and establish baselines.

3. Optimization: Combine data and action to assess the high-level impact of the project.
Identify where metrics could be better and tweak your approach to improve.

Adoption KPIs Visibility KPIs Optimization KPIs

• System adoption • Costs • Impact on reactive work

• Task completion/compliance • Waste • Impact on uptime, throughout,
and output
• Data accuracy • Productivity
• Impact on quality and costs

6. Build a people plan

The first part of executing your digital transformation initiatives is to enable your workforce.
Look at your strategy and identify:

• The skills needed to execute each step and what employees have those skills. If those
skills don’t exist internally, develop them through training or additional hiring.

• The roles and responsibilities for each member of the team. The RACI model is an
effective model to follow. It outlines who is responsible (does the work), accountable (in
charge), consulted (has a say), and informed (kept in the loop) for each step of a project.

Project A C A I R
Project B R I C A

• Who your project champions are. These are the early adopters of a new system
or process, and advocate for the project to their peers.

• What training is needed: Figure out what resources will help your team adjust to new
processes and systems. Invest in the ongoing education and enablement of your people
to increase adoption and minimize risk.

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7. Map your processes
Processes are the bridge between strategy and execution. They’re a framework for applying
digital transformation to everyday maintenance operations. Map your current and ideal
processes. Compare the two and note what’s necessary to move closer to your ideal state.

Mapping the process for scheduled maintenance

Current process

Inspections are Work is

Inspections are Work orders are
done manually and Follow-up work is documented with
created using written out and
follow-up work written out pen and paper
time-based OEM assigned at the
is requested with and assigned and filed in a
guidelines beginning of shifts
written work orders binder

Ideal process

Work orders are Inspections are Follow-up work

Work orders are sent Work is documented
based on asset completed and is completed
to a technician’s in a centralized,
condition, triggered follow-up work is and signed off
mobile device via digital system and
by automated requested via a on via a digital
a digital system accessible by search
meter readings digital system signature

8. Choose your systems

It’s finally time for technology to enter the picture. Keep these seven considerations in mind
as you evaluate systems:

Stakeholders: Their input Processes: The features Costs: Different

is essential to choosing of the system should pricing models have
a system with high enable the process pros and cons
adoption rates changes identified
Long-term fit with
your digital ecosystem:
The systems you choose
needs to work together
Security: Don’t let Time to value: Understand Vendor partnership: The and with other systems
maintenance systems how long it takes to set support and expertise implemented in the future
be the weak link in your up, adopt, and recognize from your vendor is a
company’s security value from a system critical ROI

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9. Implement, assess, and evolve
All that’s left to do is execute. As each project progresses, keep tabs on these areas:

• Your success metrics: Look for red flags, investigate their cause, and adjust your
plan accordingly. Don’t forget to celebrate the good numbers too.

• Your milestones: When you hit a milestone in a project or phase, look back and
determine what can be duplicated in future digital transformation projects and
what can be improved.

• System outputs: Understand how new technology affects your business and
its goals. Common outputs include data, standard operating procedures, and
communication channels.

• Next steps: Digital transformation is a constant march forward. As you finish one
phase, look forward to the next one to avoid slipping back or behind.

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Four challenges of digital transformation
in maintenance and solutions

Digital transformation is not without its challenges. But the bumps in the road are easier
to navigate when you can see them coming and plan ahead.

How it can be a roadblock What you can do about it

• A lack of resources and • Identify personnel who

expertise for monitoring, have the required data
evaluating, and acting
on data • Establish systems to store,
Data monitoring organize, and share this
and evaluation • Not having assets knowledge
compatible with systems
that capture data • Use these systems when
transitioning to a digital
solution
• Find technology with open
systems that allow you
to integrate with legacy
equipment
• Implement change slowly
and evolve gradually from
simple to complex data
analysis

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 • New technology and/ • Identify opportunities
or upgrading equipment for short and long-term
can be costly growth in ROI from
Cost and digital transformation in
• Adapting to advanced maintenance
availability of systems requires time,
technology patience and both human • Establish a pilot program to
and financial capital implement and scale digital
transformation with low risk

• Developing a team with • Keep stakeholders informed

the skills and knowledge
to run new systems takes • Get input from stakeholders
time and money and be clear about possible
Expertise, training changes
and workplace • Receiving buy-in from all
culture members of the business • Communicate the benefits
can be challenging of digital transformation
and invest in continuous
training

• Safeguarding access • Create a strategy for

and adopting proactive cybersecurity and build
cybersecurity strategies a plan for implementation
Security requires time, skill, effort,
and financial resources • Use existing security
processes to form a
framework for
maintenance systems
• Assess and understand
potential threats and
safeguards

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More resources
Explore other tools, templates, and resources on digital transformation
in maintenance:

• The Skeptic’s Guide to Cloud Maintenance Software

• A Guide to Getting Started with Maintenance Software Integrations
• The Short Guide to Buying the Right Maintenance Software
• Four big reasons maintenance software implementations fail
• A case study on how to successfully drive digital transformation in maintenance
• A framework for implementing digital transformation in maintenance
• The future of maintenance: A practical guide to Industry 4.0

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