ChapterPDF Available

Digitization, Digitalization, and Digital Transformation

Authors:
  • Vrana GmbH - NDE Consulting and Solutions

Abstract

The world of non-destructive evaluation (NDE) has seen digitization since the third revolution. Over the last decade or so, digitalization has also been observed to a point where it is now ready for digital transformation, in sync with the fourth industrial revolution. The intermediary step of digitalization overlaps the third and fourth revolution and can sometimes be confusing. This chapter is aimed at demystifying the stages of informatization, starting with some general life examples, understanding the evolution at the fundamental data set level, which is then used to understand the relevant elements of nondestructive evaluation.
Digitization, Digitalization, and Digital
Transformation
Johannes Vrana and Ripi Singh
Contents
Introduction . . . . . . . . . . ............................................................................. 2
Basics ............................................................................................. 3
Digitization ........................................................................................ 5
Numbers and Text ............................................................................. 5
Signals and Waveforms ....................................................................... 6
Images and Videos....................... .................................................. ... 7
Volumetrics and Games ....................................................................... 8
Digitalization ...................................................................................... 8
Digital Transformation ............................................................................ 9
Stages of Informatization in NDE ................................................................ 11
Digitization .................................................................................... 11
Digitalization .................................................................................. 13
Digital Transformation ........................................................................ 13
Informatization of Training and Certication ................................................ 14
Example: Informatization of Radiography ................................................... 15
Summary . . . . . . . . . . ................................................................................ 16
Outlook ............................................................................................ 17
Cross-References ................................................................................. 17
References ........................................................................................ 17
Abstract
The world of non-destructive evaluation (NDE) has seen digitization since the
third revolution. Over the last decade or so, digitalization has also been observed
to a point where it is now ready for digital transformation, in sync with the fourth
industrial revolution. The intermediary step of digitalization overlaps the third
J. Vrana (*)
Vrana GmbH, Rimsting, Germany
e-mail: johannes@vrana.net
R. Singh
Inspiring Next, Plus4Pi LLC, Cromwell, CT, USA
e-mail: Ripi@inspiringnext.com
© Springer Nature Switzerland AG 2021
N. Meyendorf et al. (eds.), Handbook of Nondestructive Evaluation 4.0,
https://doi.org/10.1007/978-3-030-48200-8_39-1
1
and fourth revolution and can sometimes be confusing. This chapter is aimed at
demystifying the stages of informatization, starting with some general life exam-
ples, understanding the evolution at the fundamental data set level, which is then
used to understand the relevant elements of nondestructive evaluation.
Keywords
NDE 4.0 · Industry 4.0 · Digital Revolution · Industrial Revolutions · Digital ·
Digitize · Digitalize · Digital Transformation · Informatization
2 J. Vrana and R. Singh
Summary
Digitization is the core of the third revolution. It is all about converting analog things
into series of 0s & 1s digits, making the fundamental element universal. Digitaliza-
tion marks the way to the fourth revolution with means to process the 0s & 1s into
meaningful value for convenient consumption. Digitalization improves specic
processes. Digital Transformation crosses the borders between companies and sys-
tems permitting the combination of all sorts of diverse digital and digitalization
solutions. It helps build or select the best solutions to specic needs and even
conveniently and seamlessly combine them with each other for enhanced value,
because the fundamental element is so universal that it covers digital content and
context. This unication of things improves the processes and functionality that we
may not have conceived before.
From NDE perspective, digitization translates almost every method into capture
of text, signal, image, video, or volumetric data in digital form; workow, analysis,
and reporting in digitalized manner; and leveraging the outcomes as digital feedback
loops to optimize life cycle cost or product design in the spirit of digital transfor-
mation. This digital transformation will eventually lead to a complete digital twin
incorporating all digitalization solutions into one virtual eco-system. All for the
benet of the customer.
16 J. Vrana and R. Singh
Outlook
Digital transformation means that every company can and should focus on its core
competency and give everybody in the value stream the choice to digitally transform
their business to their needs, because now they can engage using universally
acceptable string of digits. This mindset will allow improvement of processes across
company boarders by establishing open interfaces and data transparency. More in
short than midterm customers will require products which they can embed into their
digitally transformed environment. Companies which want to keep selling must
think about new models for customer retention Proprietary data formats and inter-
faces will prevent customer retention. Good products, easy to use and to connect
devices will bring customer retention.
At some point in future, we will be adding another column to our understanding,
representing the next step in informatization. But before that, we must work together
to embrace digital transformation in a manner that is good for NDE eco-system, the
society, and the planet.
Cross-References
Creating a Digital Foundation for NDE 4.0
Industrial Internet of Things, Digital Twins, and Cyber-Physical Loops for NDE
4.0
Introduction to NDE 4.0
Value Creation in NDE 4.0: What and How
References
1. Vrana J, Singh R. The NDE 4.0 from design thinking to strategy. J Nondestruct Eval. 2021;40:
8. https://doi.org/10.1007/s10921-020-00735-9.
2. Vrana J. NDE perception and emerging reality: NDE 4.0 value extraction. Mater Eval.
2020;78(7):83551. https://doi.org/10.32548/2020.me-04131.
3. Vrana J, Meyendorf N, Ida N, Singh R. Introduction to NDE 4.0. In: Meyendorf N., Ida N., Singh
R., Vrana J. (eds) Handbook of Nondestructive Evaluation 4.0. Springer, Cham. https://doi.org/
10.1007/978-3-030-48200-8_43-1.
4. Vrana J. Digitization, digitalization, digital transformation, and informatization. YouTube. 2020.
https://youtu.be/8Som-Y37V4w. Published 21 July 2020.
5. Bloomberg J. Digitization, digitalization, and digital transformation: confuse them at your Peril,
Forbes. 2018. https://www.forbes.com/sites/jasonbloomberg/2018/04/29/digitization-digitaliza
tion-and-digital-transformation-confuse-them-at-your-peril. Accessed 27 Sept 2020.
6. Kluver R. Globalization, informatization, and intercultural communication. Am Commun
J. 2000;3(3)
7. Singh R, Vrana J. NDE 4.0 why should Iget on this bus now? CINDE J. 2020;41(4):613.
Digitization, Digitalization, and Digital Transformation 17
... This is a process of moving to a digital business, reflecting the digitalization of work processes, ordering, and production methods by firms for the purpose of operating innovation and efficiency until the early 2010s. The third step, digital transformation, refers to the achievement of customer-led strategic business innovations that require organizational change, as well as the implementation of digital technologies [10,18]. ...
Article
Full-text available
We attempted to analyze the effect of changes in financial performance after digital transformation on firm value creation, compared to undigitalized firms for digitally transformed firms listed in the KOSPI market in Korea. To this end, we conducted an independent sample t-test and a multivariate regression analysis for a total of 12,143 firms listed on the KOSDAQ market, from 2011 to 2021. As a result of the empirical analysis of our study, it was confirmed that digitally transformed firms showed differential results in changes in financial performance compared to undigitalized firms. Overall, changes in profitability, stability, and growth are excellent, but in some aspects of activity and productivity, it is confirmed that they are weaker than undigitalized firms. In addition, it was confirmed that there was a difference in the change in the current ratio and the total asset turnover rate in the changes in the financial performance affecting the value creation. Nonetheless, there were insignificant differences in other variables.
... Digitalization is distinct from digital transformation, as it focuses on the processing of information and analysis of digital data usage to improve workflows via automation of existing processes [3]. Digitalization merely improves certain defined or specific processes whereas digital transformation is a broader process which extends across different companies and systems allowing the grouping of all types of digitalization and digital solutions [4]. Verhoef et al. ([5], p. 889) defined digital transformation as "a change in how a firm employs digital technologies, to develop a new digital business model that helps to create and appropriate more value for the firm". ...
Article
Full-text available
Digital transformation is important not only in the manufacturing sector but can also help service-based organizations to achieve competitive advantage. Therefore, this study has examined the impact of digital transformation on competitive advantage and the mediating role of entrepre-neurial orientation. Innovation capability is considered a moderator between digital transformation and competitive advantage. The data for the research were gathered from service companies in Jor-dan, and AMOS was utilized for the analysis. The results revealed that digital transformation not only influences competitive advantage but also affects entrepreneurial orientation. Entrepreneurial orientation significantly mediates the relationship between digital transformation and competitive advantage. In addition, innovation capabilities moderate the relationship between digital transformation , competitive advantage, and entrepreneurial orientation. Innovation, production, and operational managers as well as owners of service companies can use the results of this research as a guideline for policy-making in order to develop a competitive advantage.
... Termasuk di Jawa Timur, tujuh dari sepuluh pekerja di Jawa Timur adalah pekerja informal (BPS, 2021d). Salah satu adaptasi perilaku yang dilakukan adalah pemanfaatan internet dan teknologi informasi atau yang disebut transformasi digital (Vrana & Singh, 2021). ...
Article
Full-text available
The COVID-19 pandemic has proven to accelerate digitalisation transformation in Indonesia. Various economic activities have involved digital media, the internet, and information technology to support productivity, including informal workers who make up the majority of workers in East Java. This research can provide an initial picture of digital transformation and its impact on informal workers in the new normal through the National Labor Force Survey Data from 2019 to 2022, complemented by other data. Using binary logistic regression analysis, all independent variables in the form of digitalisation, social security, productive age, and risk of exposure to COVID-19 proved to have a significant effect on the welfare of informal workers in the new normal. Furthermore, with the focus of the analysis on digitisation, this study shows that digitalisation can significantly catalyse the formalisation of the informal workforce. The formalisation will reduce the vulnerability of informal workers so that microeconomic activity can be accelerated, which impacts the macroeconomy and society in East Java. This study can also describe the specific segmentation of regencies/cities in East Java regarding the readiness for digitalisation transformation as measured by analysis of variable factors related to the demand and supply sides of digital transformation. Both sides were then carried out a cluster analysis of the Regency/City area in East Java.
... More in depth, in corporate terms digitalisation means turning interactions, communications, business functions and business models into (more) digital ones which often boils down to a mix of digital and physical as in omnichannel customer service, integrated marketing or smart manufacturing with a mix of autonomous, semi-autonomous and manual operations. In Clerk's definition, digitalisation is centred on digital information (Clerk, 2021). The megatrend of digitalisation, that was already dominant before the pandemic, has been further strengthened by recent events, reinforcing the need for digital transformation of market players in different sectors. ...
Chapter
Full-text available
Digitalisation as the megatrend for industrial and business transformation influences SMEs to various extent. Depending on the sector and the size or even the age of SMEs digitalisation becomes beneficial or even means some limitations to further business development. The present research paper as part of the international project on the ‘Possibilities and barriers for Industry 4.0 implementation in SMEs in V4 countries and Serbia’ explores the attitude of Hungarian SMEs towards digitalisation and investigates what SMEs in Hungary consider as benefits and drawbacks of digitalisation. The results show that while Hungarian SMEs do not experience special pressure for digitalisation from the regulatory bodies and find that digitalisation helps them to operate in a cost-effective way, it also reveals that the advantages of social media and possible software usages are not exploited and limited human resource or finance hinder the digitalisation process.
... Introduction Vrana and Singh (2021) explain that the phenomenon of "digitization is around us since the third revolution. Over the last decade or so, digitalization has also been observed to a point where it is now ready for digital transformation, in sync with the fourth industrial revolution. ...
Article
Full-text available
Digital transformation causes a comprehensive change of the company through the use or renewal of information and communication technologies with the aim of greater productivity, growth and competitiveness of the company. Digitization offers new business opportunities to companies, optimization of work processes and operations, more efficient operations, higher productivity, new ways of designing and operating business models, encouraging innovation and development, and new ways of promoting, communicating and connecting companies. Telecom operators are confronted with a choice between remaining a traditional telecommunications operator providing SOHO (small office/home office) businesses basic infrastructure services or switching to digital transformation. This study confirms that the SOHO market segment in the field of basic infrastructure of telecommunications services is saturated, that there is a potential for operators to offer additional services, and that customer loyalty is not related to the amount of implemented business solutions. Operators can thus build a business partnership in terms of mutual development and creating growth for all stakeholders in the process. The main guidelines of growth present a great opportunity for operators, arising from the challenges of SOHO businesses to switch to the process of digital transformation. Therefore, operators have to be prepared; the main guidelines of growth are conditioned by adjusting their strategic goals, redefining business processes, upgrading technology, raising the level of business relationship and developing a partner ecosystem.
... Z punktu widzenia zarządzania w PS -po przejściu transformacji technologicznej -często następują innowacje w jego modelu biznesu. Spośród czterech "dźwigni" niezbędnych do "uruchomienia" przedsiębiorstw, a wynikających z digitalizacji, najbardziej istotnymi dla PS wydają się być: 1) gromadzenie, przetwarzanie i analiza danych cyfrowych oraz 2) stworzenie bezpośredniego dostępu online do klientów i beneficjentów przez sieci społecznościowe (Berger 2015). Z kolei współcześnie mniej ważnymi "dźwigniami" dla przedsiębiorstw społecznych wydają się być: 3) szybka łączność oceniania z punktu widzenia giełdowych graczy rynkowych i 4) automatyzacja. ...
Article
Gündelik ve/veya toplumsal hayatın gerekliliklerinden biri haline gelen dijitalleşme süreci, birçok aracı ve alanı içeriğinde barındırmaktadır. Çoğu toplumsal kurum ve kuruluş gibi medya da dijitalleşmekte ve habercilik, iletişim ve telekomünikasyon alanlarının verdiği imkânlar doğrultusunda dönüşümler yaşamaktadır. Dolayısıyla medyaya yönelik uzman iş gücü yetiştiren iletişim fakültelerinde öğrencilerin dijital araçlar ve ortamlar hakkında bilgilendirilmesi bir zorunluluk olarak karşımıza çıkmaktadır. Aksi takdirde mesleğin uygulama alanına dâhil olan öğrenciler, dijitalleşme konusunda eksik bir bilgilenme süreciyle karşı karşıya kalacaktır. Çalışmanın konusu, devlet ve vakıf üniversitelerinin iletişim fakülteleri bünyesinde bulunan “Gazetecilik Bölümü ile Radyo, Televizyon ve Sinema Bölümü” müfredatında yer alan dijital içerikli derslerdir. Belirtilen iki bölüm müfredatında yer alan dijital içerikli dersleri farklı açılardan analiz etmeyi amaçlayan bu çalışma, habercilikle doğrudan bağlantısı olan iki bölümdeki müfredatı tanımlaması ve konuyla ilgili öneriler getirmesi açısından önem arz etmektedir. Nitel bir araştırma örneği olan bu çalışmada, belgesel tarama tekniği kullanılarak 605 ders dokümanı incelenmiştir. Elde edilen bulgulara göre çalışma kapsamında incelenen her iki bölüm müfredatındaki dijitalleşme, 10 temel ders altında gerçekleşmektedir. Dijital içerikli dersler, analiz edilen müfredat içeriklerinde genel olarak teorik ve seçmeli olarak bulunmaktadır. Dijital içerikli derslerin üst sınıflara geçildikçe sayısal olarak arttığı da çalışma kapsamında ulaşılan bulgular arasındadır.
Article
Informatization is defined as the process by which information technologies, such as the World Wide Web and other communication technologies, have transformed economic and social relations to such an extent that cultural and economic barriers are minimized. What does this mean for nondestructive testing and evaluation (NDT/E)? In short: informatization in NDT and NDE has happened and will continue to happen, independent of whether individuals or companies like it or not. However, we can shape it—together.
Chapter
Full-text available
The world of non-destructive evaluation (NDE) has seen digitization since the third revolution. Over the last decade or so, digitalization has also been observed to a point where it is now ready for digital transformation, in sync with the fourth industrial revolution. The intermediary step of digitalization overlaps the third and fourth revolution and can sometimes be confusing. This chapter is aimed at demystifying the stages of informatization, starting with some general life examples, understanding the evolution at the fundamental data set level, which is then used to understand the relevant elements of nondestructive evaluation.
Chapter
Full-text available
Cyber technologies are offering new horizons for quality control in manufacturing and safety assurance of physical assets in service. The line between non-destructive evaluation (NDE) and Industry 4.0 is getting blurred since both are sensory data-driven domains. This multidisciplinary approach has led to the emergence of a new capability: NDE 4.0. The NDE community is coming together once again to define the purpose, chart the process, and address the adoption of emerging technologies. This handbook is an effort in that direction. In this chapter, the authors define the industrial revolutions and technologies driving the change, use that context to understand the revolutions in NDE, leading up to the definition of NDE 4.0. In the second part of this chapter, authors have proposed several value propositions or use cases under “NDE for Industry 4.0” and “Industry 4.0 for NDE” leading to clarity of purpose for NDE 4.0 – enhanced safety and economic value for stakeholders within the NDE eco-system.
Article
Full-text available
Cyber technologies are offering new horizons for quality control in manufacturing and safety assurance in-service of physical assets. The line between non-destructive evaluation (NDE) and Industry 4.0 is getting blurred since both are sensory data-driven domains. This multidisciplinary approach has led to the emergence of a new capability: NDE 4.0. The NDT community is coming together once again to define the purpose, chart the process, and address the adoption of emerging technologies. In this paper, the authors have taken a design thinking approach to spotlight proper objectives for research on this subject. It begins with qualitative research on twenty different perceptions of stakeholders and misconceptions around the current state of NDE. The interpretation is used to define ten value propositions or use cases under ‘NDE for Industry 4.0’ and ‘Industry 4.0 for NDE’ leading up to the clarity of purpose for NDE 4.0—enhanced safety and economic value for stakeholders. To pursue this worthy cause, the paper delves into some of the top adoption challenges, and proposes a journey of managed innovation, conscious skills development, and a new form of leadership required to succeed in the cyber-physical world.
Article
Full-text available
What you don't know can't hurt you' does NOT apply to Digital Transformation. The current pandemic (Covid-19) is changing the value proposition of digital transformation from 'competitive advantage' to a 'must do initiative'. The hidden cost of not adopting Industry 4.0 is likely to be far greater than the visible cost of adopting it. In the inspection world, we call it NDE 4.0. When implemented, it promises value on all three dimensions-quality, cost, and schedule; to the stakeholders in the ecosystem ; from R&D to the leading edge of inspection. However, the very nature of the revolution requires that various stakeholders make concurrent efforts to adopt and master the application. For that, every constituent must see a value proposition from their vantage point. This paper, the first in a 3-part series, aims to help different parties appreciate WHY should they care for NDE 4.0.
Article
Up until recently, the industrial revolution was divided into three phases: (1) simple mechanization; (2) mass production; and (3) automation. Similarly, nondestructive evaluation (NDE) can be divided into three phases: (1) tools, such as lenses, sharpened the human senses; (2) the conversion of waves made the invisible visible by offering a “look” inside components; and (3) automation, digitization, and reconstruction enhanced the accuracy, speed, and ease of information sharing. During industrial development, although NDE has been decisively responsible for the quality of the manufactured goods and safety of operations, it has carried perceptions not commensurate with the value realized. Currently, industry leaders have been talking about a fourth revolution: the informatization, digitization, and networking of industrial production and the concurrent use of emerging technologies, such as artificial intelligence, augmented reality, and 5G networks. For NDE, this fourth revolution offers an unprecedented opportunity to address technical challenges and negative perceptions at the same time, leading to an enhanced appreciation of this significant discipline. The paper begins with a survey of professionals in the field to identify the perceptions surrounding NDE and moves on to demonstrate the value of integrating Industry 4.0 with NDE in the form of NDE 4.0 driven by connectivity and data mining. Building on that, this paper next presents the necessary basics and concepts, like semantic interoperability and the Industrial Internet of Things. Moreover, the key interfaces and data formats, like OPC UA and DIOCONDE, are discussed, and the International Data Spaces Association (IDSA), which goes one step further by ensuring data sovereignty, enabling data markets, and connecting the world, is introduced. The emerging reality of NDE 4.0 is that robust digital interfaces help create value, and statistical approaches combined with digital twins and threads help extract that value.
Digitization, digitalization, and digital transformation: confuse them at your Peril, Forbes
  • J Bloomberg
Bloomberg J. Digitization, digitalization, and digital transformation: confuse them at your Peril, Forbes. 2018. https://www.forbes.com/sites/jasonbloomberg/2018/04/29/digitization-digitaliza tion-and-digital-transformation-confuse-them-at-your-peril. Accessed 27 Sept 2020.