Differentiate with digital

Bosch Software Innovation Offers Lessons For Digital Transformation

Dan Bieler
Principal Analyst
August 3, 2016

Traditional manufacturing businesses must rework the structure and culture of their organization to address rapidly changing client expectations. Bosch is a fascinating example of how a traditional manufacturing firm can successfully transition into a leading digital business. Our discussions with Bosch highlight that:

  • The shift from selling products to outcomes-as-a-service requires business model change. In order to sell business outcomes, Bosch combines business process expertise with technical know-how and an outside-in approach.
  • Digital transformation depends on successful cultural transformation. Bosch’s digital transformation is based on a fundamental cultural transformation that takes every Bosch employee and customer along.
  • Bosch’s software engineering division acts as a catalyst for digital transformation. Bosch believes in a central coordinating role for its software engineering division as part of the digital transformation process.

My report, Bosch Software Innovation Drives The Digital Transformation For Bosch And Its Clients helps businesses prepare for the changing working relationship with suppliers in the supply chain concerning internet-of-things (IoT) opportunities. Readers will find valuable insights into leveraging a separate software engineering business unit in order to: a) build one open technology platform to ensure IoT interoperability; b) treat privacy and data protection as differentiators in the IoT context; c) partner with a big data expert rather than doing IoT big data all alone; and d) develop digital DNA for every one of your employees.

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