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“Digital transformation is about people”

Digitalization is a key component in shaping the future of transport and infrastructure solutions. Daniele Capasso, Vice President Digital Transformation at Volvo Group, explains why it takes more than just technology to achieve a digital transformation.
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How would you explain the term digital transformation?

“First of all, there is a big difference between digitization, digitalization and digital transformation. Digitization is about creating the preconditions to become digital. Digitalization is about augmenting your environment with digital technologies. It makes your interactions more transparent, leaner, faster and smarter. Digital transformation is when you leverage the full potential of digital technologies and find innovative ways to solve problems.”

Do you have any examples?

“You might think of digitization and digitalization as technology updates. Digitization is like the transition from the land line to the mobile phone. Digitalization includes an augmentation of your environment through a new technology— in this case the mobile phone. But, in essence, you are not changing the way you interact with others: you still pick up the phone to talk to your friends in the same way you did before. Digital transformation on the other hand, is more like the move to social media. A completely new way to interact with others with widespread implications, including new business and operation models. And it’s made possible only by digital technology.”

How is this important for transport and infrastructure?

“Transport and infrastructure industries are moving, evolving and reshaping in the wave of massive technological and societal changes. As industry barriers are blurring, new opportunities are emerging. With the widespread adoption of digital technologies, innovative ways to create and package value are made possible.

In what way?

“I think the fundamental shift in opportunities is switching the focus from optimizing a single step, like a truck transport, to look at the whole flow – solving pain points and leveraging joy points. In ten years, there will be no service or solution that is not digital at its core.”

How is Volvo Group working to incorporate digital technologies?

“The Volvo Group has been on this journey for quite a while now, and we have accomplished a lot already. With more than one million connected customer assets, the Volvo Group is well positioned for digital transformation.”

And how does Volvo Group utilize the data from these connected assets?

“We have many examples of digitalization, where we use digital technologies to provide services that make life easier for our customers and improve their business. Like the uptime and productivity services we are providing to support drivers, operators and fleet owners.”

And when it comes to digital transformation?

“We see amazing opportunities. One example is the load factor optimization service solutions we put in place. They are already showing very interesting results. It is fair to say that digital transformation is way more about people than it is about technology. It’s first when we understand what kind of opportunities digital technology and its widespread adoption open up for us that we can really leverage the full potential. And that comes from having a different mindset— and approach— to define and solve problems and create value.”

 

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