The Boston Consulting Group (Munich, Germany):

R. Schuster, Director,

The Boston Consulting Group (Düsseldorf, Germany):

N. Voigt, Partner, e-mail: nicole.voigt@bcg.com

The Boston Consulting Group (London, UK):
G. Nath, Partner,
N. Louw, Project leader

Digital technologies are changing the world – and dramatically improving the way that organizations operate. Companies that embrace digital can create new business models, develop innovative products and services, and transform their value chains. There is tremendous value-creation potential, especially for industrial companies such as steel and metals manufacturers. Based on our experience, we have identified a number of key success factors to help metals companies implement digital: lead from the business side, rather than the technology side; obtain top level buy-in from day one; aim to generate value quickly; immerse the organization in the digital world; enable agile decision making. In the past, metals producers could succeed based solely on operational excellence. Today, that is no longer possible, and companies will rise and fall based on how they handle – and capitalize on – the data. Many metals manufacturers have only taken the initial steps to transform their value chains through digital. Although that means a longer path ahead, it also means a bigger potential advantage for first movers. Companies that recognize the opportunity from digital and take deliberate moves to capitalize on it will give themselves a sustainable advantage. Those that don’t risk falling behind.