Digital Transformation

Realizing A Prosperous Society Through Digital Transformation

Companies and countries today are striving to achieve a prosperous future and sustainable operations through initiatives, such as autonomous operations, reductions in energy consumption and greenhouse gas emissions, resource conservation, and the safe production of quality products. 

More than ever, market forces and new technologies are bringing unprecedented opportunities to the business environment. Capturing these opportunities depend on the capacity to transform operations and align the people, process, and technology aspects of an organization.  

What is digital transformation?

While digital transformation (DX) means different things to different people, it has become a mantra for enterprises looking to earn relevance and establish themselves as leaders in the digital economy. Digital transformation is a concept that Erik Stolterman, a professor at Umeå University in Sweden, first came up with in 2004. In simple terms, "penetration of IT improves people's welfare on all fronts".

According to Yokogawa, digital transformation is the novel use of digital technology to accelerate business strategy. It is about the application of digital technologies to empower people, optimize process and automate systems of the organization to radically reorient its business performance. DX is often viewed as a program with prioritized digital initiatives oriented around business processes.

The value of digital transformation

The pace of digital transformation has drastically accelerated in recent years, and this has the potential to significantly change how companies do business. Per a report from International Data Corporation (IDC), a provider of business intelligence, “Worldwide, digital transformation could be worth $18 trillion in additional business value.”

In manufacturing industries, major potential benefits of digital transformation are increased profitability, reduced costs and higher productivity. According to research conducted by McKinsey & Co., the estimated effects are as follows:

Sized Applications Annually Low Estimate
($ Billion)
Annually High Estimate
($ Billion)
Potential Value Gain
Operations Optimization 633 1766 5-12% cost reduction
Predictive Maintenance 240 627 10-40% cost savings
Health and Safety 65 226 10-25% savings
Human Productivity 69 160 10% productivity improvement
3-5% productivity gain

Potential Economic Impact Per Year in 2025 (Reference: McKinsey & Co.)

Digital transformation can thus bring great benefits to any organization.

What are Yokogawa’s digital transformation solutions?

There is no one single application or technology that enables digital transformation. Digital Transformation is about reorienting your business strategy through the judicious application of digital technologies in all operational areas. It can be realized by integrating a wide variety of applications and technologies in line with a company’s aims. We offer an optimal portfolio of solutions and services to meet our customers’ needs.

IIoT is one of key technologies in digital transformation. For more information about Yokogawa’s IIoT solutions for the industrial automation, please click here.

The value of digital transformation in process manufacturing is realized as smart manufacturing, intelligent decision making, and operational excellence. By combining an understanding of our customers’ businesses, automation, and operational technologies, cultivated over decades, with the latest digital technologies, Yokogawa supports your DX journey toward sustainable, smart, and autonomous operations.


Related Information

Digital Transformation Accelerated by Co-innovation

Links to external websites
    ►Digital Transformation Is Happening
    ►The fourth industrial revolution will be digitalized
    ►The IIoT: Instigator of teamwork

A digital twin is the key to effective decision making, providing deeper analytics technology and strategies to maximize profitability.

Media Publication

Assets and operations will have human-like learning and adaptive capabilities, allowing responses without operator interaction to situations within a secure, bounded domain.


Yokogawa has a long history of co-innovation in process control and safety.  Combined with recent strategic know-how and IP-rich acquisitions, the company can now apply its deep domain expertise to create a differentiated offering in the industrial automation space. From analog or manual data being digitized to the complete digitalization and improvement of work process, with recently-acquired KBC, Yokogawa is helping industrial organizations transform their businesses to help meet both current and future challenges.



    Digital Twin: The Yokogawa Difference While most digital twins today emulate individual assets or devices, the Yokogawa/KBC thought process is far more extensive. In this Eugene Spiropoulos focuses on the powerful, context-driven digital twin concept, which encompasses multiple digital twins emulating not only devices but also systems, processes and human behavior. Benefits extend across the value chain throughout the entire enterprise.



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