Three key steps for CFOs in the AI era
CFOs in the AI era: design data-models and workflows that maximize value, redefine productivity, and establish transparent AI governance....
by Didier Bonnet Published May 22, 2025 in Brain Circuits • 3 min read
The first step is to shift the mindset from digital transformation to digital integration. This means understanding data interfaces that define the design, build, certification, and maintenance of equipment, and knowing which digitally connected interfaces will have the most impactful cost/benefit business case.
Focus on building a single source of data that encompasses every stage of the product life cycle. This means defining the data sources for everything that will be digitally integrated (bearing in mind that not everything needs to be integrated).
‘X before you X’ modelling consists of using data to enable designing before you design, building before you build, testing before you test, flying before you fly (or equivalent), and maintaining before you maintain; simulating a task before doing it. This is at the core of industrial digital transformation and de-risking production in complex systems.
Eradicating silos is one of the biggest hurdles in any digital transformation effort; especially in an industry like aerospace, where manufacturing engineers hold key knowledge about how things are built but are often undervalued compared to more specialized roles. The solution is to encourage the ‘builders’ to engage with the entire system, empowering manufacturing engineers to become the crucial link connecting design, logistics, finance, and other functions.
When it comes to leading large, complex projects, demonstrating the tangible benefits of digital integration is essential. This requires a combination of near-term metrics that show you’re making intermediate progress and hitting milestones on your journey while keeping track of longer-term goals. By tracking improvements in quality, cost, and schedule at every stage, companies can make a compelling case to stakeholders and justify ongoing investment in digital initiatives.
Manufacturing modern equipment often involves complex supply chains and relationships. You need to understand how every stakeholder, both inside and outside the company, connects and interacts, and manage these complex relationships in a structured way.
Breaking through the organizational resistance that comes with change requires strong, committed leadership from the top. This means having the courage to say, “We are going to think differently, and we are going to do things differently”.
In long-cycle industries, the focus should be on building a digital thread across every stage of the product life cycle to enable comprehensive simulation and modelling for better predictive analysis of the product value chain.
Professor of Strategy and Digital Transformation
Didier Bonnet is Professor of Strategy and Digital Transformation at IMD and co-director of the Digital Transformation in Practice (DTIP) and Digital Transformation for Boards (DTB) programs. He also teaches strategy and digital transformation across several other open programs. For the past decade, Bonnet has led a joint research program with the MIT Initiative on the Digital Economy (IDE) at the MIT Sloan School of Management, exploring the impact of digital technologies on business models and society. He brings more than 30 years of experience in strategy development and business transformation, working with a wide range of global organizations.
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