Durham University Business School MBA student, Pritish Das, has conducted a research project for the NEAA, exploring digital transformation strategies within the Northeast automotive sector.
The research was used to develop a digital roadmap, guiding NEAA members on their digital transformation journey.
The study focussed on two key research questions: the comparative benefits and drawbacks of adopting tried-and-tested digital strategies versus pursuing continuous digital evolution, and the challenges and opportunities companies face during automation.
The research combined in-depth interviews with key stakeholders and a literature review to examine themes such as the importance of starting small and scaling gradually, cost management, balancing off-the-shelf and customised solutions, integration challenges with legacy systems, skill development, data-driven decision-making, and change management.
The automotive sector in North East England is at a crossroads, facing the dual pressures of technological advancement and global competition. For companies in this region, the decision between adopting a tried-and-tested digital strategy and pursuing digital evolution is critical.
The study provided important insights into the digital transformation journeys of various companies in the North East. The findings from the research indicated that tried-and-tested digital strategies, such as the Digital Transformation Framework (DTF) and Digital Maturity Models (DMM), helped companies in the early stages of digitalisation achieve quick wins, but more mature companies benefit from digital evolution and continuous innovation.
One of the most critical challenges identified in the findings was the shortage of digital skills within the workforce. This is further supported by the findings from the North East Local Skills Improvement Plan, which identified six high level priorities, of which providing essential digital skills at the appropriate level was one.
Pritish identified the following key recommendations:
- Companies should start with small, scalable projects, as an effective way to ease into digital transformation, particularly for SMEs with limited resources. This might include high-impact areas, such as energy management or specific production inefficiencies, which can deliver quick wins.
- Companies should adopt a hybrid approach that leverages off-the-shelf solutions for core systems while customising only where necessary for competitive advantage. This balance allows businesses to control costs while ensuring flexibility where it matters.
- Companies should prioritise digital systems that are modular and designed for future integration.
- Companies should establish continuous learning programs that focus on digital literacy, data analytics, and the practical use of emerging technologies.
- Companies should invest in robust data infrastructure that ensures data is collected, stored, and analysed effectively across all systems.
- Change management should be integrated into the digital strategy from the very beginning. This involves clear and transparent communication from leadership, regular training for employees at all levels, and the creation of a culture that encourages experimentation and innovation.
- Companies should ensure that their digital initiatives are closely aligned with their long-term strategic goals. Digital projects should be evaluated not only on their immediate ROI but also on their potential to contribute to the company’s competitiveness and resilience over time.
Pritish Das said: “By fully embracing digitalisation and automation, the North East has the potential to unlock unparalleled growth, establishing itself as a leader in innovation, resilience, and excellence within the UK automotive sector and on the global stage.”