What is digital transformation?

Digital transformation in the process industry is commonly defined as the strategic integration of digital technologies into all aspects of operations to fundamentally improve efficiency, reliability, and value creation. It is not merely about digitizing existing processes but about leveraging data, connectivity, and advanced analytics to enable smarter decision-making and optimized performance across the entire value chain.

Finding a simple answer to what digital transformation means can be challenging because its scope varies depending on the business context. For our purposes, we define it as follows:

Consider a practical example: Traditionally, checking a field device requires physically going into the plant and connecting a field communicator to diagnose its status. With digital technologies such as health monitoring systems, this information becomes instantly available on your handheld device. Furthermore, by connecting the field to a cloud-based IIoT ecosystem, diagnostics and other data can be transmitted to you remotely - eliminating the need for on-site visits. This shift not only saves time and resources but also enables proactive maintenance and improved asset reliability.

In the context of the process industry, these terms are often used interchangeably, but they represent distinct concepts:

Digitization

• Definition: The conversion of analog information into digital form. This involves transforming non-digital material - such as text, sound, or signals - into binary code. For example, converting an analog sensor signal into a digital signal using standard communication protocols.
• Purpose: Enables data to be stored, processed, and transmitted electronically.

Digitalization

• Definition: The application of digital technologies to improve existing processes, workflows, or business models. It focuses on using real-time data and connectivity to enhance operational efficiency and deliver value to end users.
• Example: Implementing predictive maintenance tools that leverage sensor data to reduce downtime.

Digital Transformation

• Definition: A holistic, strategic approach that integrates digital technologies across the entire organization to fundamentally change how it operates and delivers value. In the process industry, this often involves cloud-based solutions, advanced analytics, and subscription-based services (Solution-as-a-Service) to enable smarter decision-making and optimized performance.
• Goal: Drive innovation, agility, and long-term competitiveness rather than incremental improvements.

Getting started with digital transformation does not require a complete overhaul of your existing systems. In fact, one of the greatest advantages of digital solutions is their scalability. Rather than replacing your entire infrastructure, the recommended approach is to start small and expand gradually.

If you already have established processes, identify a single area where digitalization can deliver immediate value - such as asset monitoring or data visualization. From there, build a foundation that can grow over time. This incremental approach minimizes risk, reduces disruption, and ensures measurable benefits at each stage.

For example, a digital service like Netilion enables you to begin with a limited scope and scale as needed. The Netilion digital services offer a free version which you can try out by connecting it with a couple of field devices. You can directly gain insights into asset health and performance. Once you experience the benefits, you can e.g. transition from an offline setup to a fully connected environment. The use of additional edge devices enables a comprehensive cloud-based equipment database for advanced analytics and optimization.

Netilion’s digital services deliver a scalable and modular approach to digital transformation, enabling plants to connect assets, centralize information, and gain actionable insights. They help improve process transparency, asset health monitoring, and data accessibility, while supporting quasi real-time performance tracking and inventory management. By integrating cloud-based solutions with existing infrastructure, these services reduce manual effort, optimize maintenance strategies, and enhance decision-making through accurate, up-to-date information. Additionally, their interoperability ensures seamless integration with other systems, creating a connected ecosystem that drives efficiency, reliability, and long-term operational excellence.

Learn more about how Netilion can transform your operations here or contact us to discuss your digital transformation journey.