Tesla earns top spot in first industrial digital transformation report

ARC Advisory Group, a technology and research firm founded in 1986, recently released its first special report on the Top 25 Industrial Digital Transformation. The report analyzes companies across multiple industries and ranks them based on their ability to integrate digital technologies into all areas of their business. Tesla took the top spot in the inaugural ARC list.

According to the ARC report, companies that do well in integrating digital technologies are fundamentally changing the way they operate and deliver value to their customers. Marianne D’Aquila, Research Director at ARC, noted that companies that lead digital transformations typically gain a competitive edge in their respective industries.

Credit: ARC Advisory Group

“Digital transformation leaders from many different industries share common traits and visions, helping them overcome complex challenges to innovate and stay agile. Industry innovation continues to accelerate and leading companies have their transformation initiatives well underway. For those who succeed, the result is competitive advantage, even during the toughest economic times. the director of research Noted.

ARC developed a fairly rigorous process to identify and rank companies in its first Top 25 Industrial Digital Transformation report. The ranking covered three main components of a company: financial indicators, transformation indicators and collective intelligence. Financial metrics were analyzed by studying a company’s publicly available financial data, transformation metrics were scored based on software and environmental, social, and governance (ESG) data, and collective intelligence was was based on selection and ranking by ARC’s own analysts.

As ARC noted in its report, the companies that made its Top 25 were from a variety of industries. “They share a common thread: leveraging digital technologies to transform business capabilities and outcomes, giving them a competitive edge in challenging global circumstances. While some refocused their digital transformation efforts during the pandemic, all had some level of pre-preparedness and have their eyes set on the future. For them, digital transformation is not an option, it is a necessity to survive and thrive,” reads the report.

Credit: ARC Advisory Group

ARC Advisory Group outlines the reasons why Tesla was chosen as the number one company for its first Digital Transformation Top 25 in the following section:

“Some would argue that Tesla started out as a transformative company rather than one that has recently transformed, given that its intention was to disrupt the automotive industry. The company’s growth has been fueled by several bold digital strategies Founded in 2003, the company’s message from day one was not that an electric car could be good, but that it could be better.

“Tesla’s fundamental philosophy, internally and externally, is to change the perception. Before Tesla, the market perception of electric vehicles was a slow, ugly car with little range. Tesla changed that perception to one of be a sleek high performance and accelerated mode of transformation. This same strategy is used within the organization to gain buy-in for digital initiatives and processes. For example, when Tesla sets out to automate its internal processes, they try to better build it from the start rather than start a clumsy project and hope to improve on revision 4 or 5. This focus is fundamental in determining which KPIs the business values, as many of them are very different from managed metrics by manufacturers who rely on traditional visions of success.”

Credit: Tesla Inc.

The advisory group also highlighted Tesla’s approach to vehicles, which views cars more like computers on wheels than complex machines that get people from point A to point B. This strategy, according to the ARC, has allowed the company to deliver more value to its customers, making Tesla a distinct automaker whose products are almost unmistakable to their competitors.

“By showing value up front and getting internal stakeholders to support initiatives, resistance from internal employees is minimized. In the eyes of ARC, this is an example of a company that is comfortable with digital transformation and adapts more easily and quickly to business challenges. Tesla’s digital connectivity has enabled the company to deliver more value to consumers. Their business model is based on the principle that vehicles are more like interactive computers on wheels, leading to the creation of an intelligent data platform and a connected ecosystem, allowing Tesla to learn and serve its customers.

“In the third quarter of 2021, Tesla publicly stated that it plans to increase manufacturing capacity as quickly as possible. Over a multi-year horizon, Tesla expects to achieve 50% average annual growth in vehicle deliveries. Growth will depend on Tesla’s equipment capacity, operational efficiency, and supply chain capacity and stability.”

A copy of the ARC Advisory Group’s inaugural report on the Top 25 Industrial Digital Transformations can be requested here.

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Tesla earns top spot in first industrial digital transformation report

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