How to digitally transform at warp speed

For 175 years, Siemens has been on the forefront of disruptive technology, from developing the first electric train to helping to usher in the modern electrical grid. These days, companies across the global economy rely on Siemens’s technology know. The company provides specialized software to pharmaceutical companies to help speed up the drug development process, technology platforms for manufacturers looking to build more efficient and reliable production processes, and more.

Siemens’s latest innovation aims to carry on its disruptive tradition. Siemens Xcelerator is an open digital business platform that is comprised of three elements: a curated range of software, IoT-enabled hardware, and digital services from both Siemens and third-party firms; a growing ecosystem of more than 4,000 partners, ranging from solution vendors to hyperscalers; and a marketplace to explore, educate, and exchange with a community of collaborators, developers, and customers. The goal: to give companies more powerful—and integrated—tools to navigate today’s digital transformation faster, more easily, and at scale. “We have a unique opportunity to change by becoming more collaborative and becoming more open,” said Cedrik Neike, CEO of Siemens Digital Industries. “If we do this, each one of you are on a mission to change the world.”

Neike directed this last comment to three fellow panelists during a recent discussion on the value of collaboration to accelerate value creation. The panel was part of a launch event for Siemens Xcelerator, and featured insights from Laura Matz, chief science and technology officer at Merck KGaA; Patrick Verwer, CEO of the U.K.’s largest railway operator, Govia Thameslink; and Trond Skjellerud, CEO of Elvia, Norway’s largest grid operator.

Here are three key takeaways from their discussion.

1. Data is a crucial building block.

Merck’s Laura Matz noted that data plays a critical role in the drug development process. As vaccine development timelines become increasingly compressed, regulatory bodies are seeking more data in real time from clinical trials. What’s more, consumers and suppliers expect more information about the materials used in drug formulations. Being able to collect that data efficiently—and safely—is of paramount importance for Merck. For instance, the company has partnered with Siemens to use digital tracking technology to more effectively provide data around traceability of materials.

“The transparency of the data needs to come all the way from the raw materials that we use to make our drug, into the manufacturing process, and into the finished goods as we get it into patients’ hands,” Matz said. “This is key to the trust that we gain from our partners and from our patients. It’s something we’re really focused on at Merck.”

Meanwhile, U.K. rail provider Govia Thameslink relies on billions of data points that can detect anomalies and help predict maintenance needs throughout its system of trains and rails. “We can know when an asset or an element on a component is about to fail, so we can actually fix it before it starts failing,” Verwer said. “And that’s important because we want that to be [finished] while the train is out of operation, not while it’s running and carrying 1,500 passengers.

2. It’s all about ecosystems.

It used to take years to develop a vaccine. But in less than a year, the world had access to several COVID-19 vaccines. Partnerships were one reason behind the rapid development process: Companies linked with other companies, governmental organizations, and nonprofits to help speed the rollout of these critical medications. This trend toward collaboration is one that Matz believes will usher in seismic changes in the drug development process. She noted that Merck is banding together with other companies to participate in these kinds of “pre-competitive” projects. “All of the learnings from COVID have really resonated within the healthcare industry,” she said.

Siemens’s Neike believes this collaborative approach can stretch beyond industries. For instance, how Govia Thameslink’s solves problems on its rail network might also benefit Merck’s drug development process and help Elvia deliver more reliable energy to its customers. How? By seeing how one company’s use of software is helping to solve problems, companies in other industries may be able to learn how better to solve their own problems. It’s this kind of open ecosystem that Siemens Xcelerator will help to create. “What if you come up with the cure for cancer?” Neike asked. “How will we take this technology and scale it out to the world?”

3. People still matter.

Digital transformations can have hugely positive impacts on companies. But leaders shouldn’t forget about their employees who not only have to usher in that transformation, but also need to embrace the seismic shifts in their jobs that can accompany these changes.

Take Elvia, which during the past three years has been in the midst of a massive digital transformation to fundamentally change the infrastructure of its electric grid. CEO Skjellerud noted that getting its employees to accept this has been important to the success of this transformation. “To get buy-in from people, you have to involve them,” he said. “You can’t just present that this is the new workday, or the new system, or the new process. You have to involve them during the project. People are the key.”