Titanium Lens

Walk into most industrial plants today and you’ll see the same story. The equipment is reliable. The operations are familiar. Somewhere there’s a “digital initiative” trying to gain traction. Maybe it’s an AI tool for predictive maintenance or a new interface for supply chain tracking. Too often, though, those efforts stall before they scale.

This article explores what some industrial manufacturing companies are doing differently, and how others can close the gap between digital and AI potential and payoff.

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Why Digital Feels Stuck

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Nearly 90 percent of manufacturers have piloted AI in some form, but only 17 percent have managed to roll it out across their operations. The problem isn’t a lack of ambition. It’s that most of these tools aren’t built to solve a specific problem. Or no one’s sure how it fits into the daily work on the floor. It stays in pilot mode, or it fades out completely.

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But a growing number of top-performing industrial manufacturing companies are putting digital at the center of their strategy. They’re using AI to improve pricing, reduce downtime, and support teams instead of replacing them. Companies like Grainger and Caterpillar aren’t chasing buzzwords. They’re making digital real.  

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Experts on Embracing Digital in Industrials

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Digital transformation isn’t just about tools, it’s about leadership. We spoke with two experts who’ve helped industrial companies cut through complexity.

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Getting Digital Right: Practical Advice from CIO Jeff DeSandre:

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Get the data right. Legacy systems often limit data usability. One firm DeSandre worked with tracked only four product attributes instead of the necessary 200. Cleaning, organizing, and managing data can take up to a year, but it’s foundational. He notes most companies use only about 10% of their stored manufacturing data, leaving huge potential untapped.

Secure the data. Many advanced manufacturing machines offer network connectivity but neglect crucial security measures. Equipment makers often treat cybersecurity as optional, causing companies to underuse sophisticated tech to avoid risks. DeSandre advises industrial firms to push suppliers for stronger built-in data security.

The payoff is real. Despite challenges, investing in digital solutions pays off. DeSandre saw firsthand how digitizing sensitive operational processes improved efficiency and scheduling, ultimately boosting EBITDA by around 10%.  

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Three Steps for Successful Digital Initiatives (Michael Weinberg, CIO)

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Laying a secure foundation. Legacy systems often can't support modern digital initiatives. Weinberg stresses a structured approach:  

1. Establish robust information security and cloud readiness

2. Upgrade core operational and financial systems  

3. Introduce high-impact digital capabilities through a dedicated project management office.

Aligning leadership around digital security. At Tosca and later Wilmington Group, Weinberg faced pushback on security’s importance. He overcame this by educating executives through practical, real-world examples, such as using resources like the Krebs on Security website to demonstrate the tangible risks. This approach of "showing rather than telling" helped transform initial doubts into enthusiastic support.

Building new digital tools on existing systems. At Tosca, Weinberg moved customer interactions from manual processes (phone, email, fax) to an intuitive web portal integrated with existing ERP systems. Customers adopted basic functions quickly, which enabled Tosca to incrementally add advanced features like invoicing, payments, IoT data integration, and reporting.

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‍Expert Spotlight: Parthesh Shastri, CTO at Ayna
Digital pilots often stall out before scaling because they’re missing two critical pieces: robust data infrastructure and strong leadership alignment. Shastri helps industrial firms build these foundational elements first, paving the way for digital tools that actually scale. His frameworks around data infrastructure and executive alignment shaped much of the thinking in this article.

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Why Most AI Efforts in Manufacturing Fall Flat

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Digital and AI are stuck in pilot mode for many industrials. Here's where things go wrong.

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1. No clear business case
   Too many teams start with a tool instead of a problem. An AI pricing model might get deployed, but the real issue could be outdated product data or unclear quoting workflows. Without a clear line to business value—faster quoting, higher margins, better conversion—the tool ends up unused. Successful efforts start by asking: What process are we trying to fix? And what does success look like in dollars or hours saved?

2. Bad data infrastructure
   AI models trained on messy, inconsistent inputs won’t deliver anything useful. AS/400 systems, scattered spreadsheets, and disconnected ERP, CRM, and SCADA tools make clean data nearly impossible.  Invest in data governance: Creating a layer that pulls, cleans, and syncs the data helps, but companies that invest in even basic data governance upfront are the ones who see returns down the line.

3. Pilots don’t scale
   A proof of concept in one plant isn’t a win if it can’t work across five more with different machines, teams, and processes. Scaling requires systems that are adaptable and secure.  Build early integration: Grainger made digital scale by building integrations between digital tools and core systems, like ERP and CRM, so functionality wasn’t lost in translation from pilot to rollout.

4. Lack of digital leadership
   Without experienced digital leadership at the top, AI becomes just another side project. Two-thirds of industrials still lack a CDO or CIO in the top team. That gap shows up in stalled projects, weak coordination, and missed opportunities.  

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These barriers are common. But companies that address them head-on are the ones making digital stick. A few have already done it. Grainger is one of the clearest examples of what's possible when digital becomes strategy.

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Case Study: Paul Grainger, former President and head of e-Commerce at Grainger, deep dives into how Grainger became a Digital Powerhouse.

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Since launching an online catalog in 1995 and its first e-commerce site in 1996, the company has built their entire strategy around digital. Today, Grainger is North America’s largest distributor of maintenance, repair, and operations (MRO) products. They have more than 4.5 million active customers and 75% of its revenue coming through digital channels. It ranks as the 11th largest e-commerce business in North America.

Here’s how they got there.

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1. ‍ A Strong Foundation in E-commerce
   Grainger made big moves early. It layered in proprietary product data, integrated e-commerce with operations, and invested in infrastructure that could scale. These decisions allowed customers to make smarter, faster purchases with more confidence. ‍
2. Tools Built for the Buyer
   Grainger prioritized self-service tools that actually helped customers do their jobs. Smart search, mobile apps, and AI-powered chat reduced friction in the buying process.  ‍
3. AI That Supports, Not Distracts
   AI helps Grainger recommend products, sync real-time inventory, and deliver accurate data to both sales reps and online customers. The CRM system makes sure that the information seen online matches what a rep sees in person. ‍
4. Marketing That Brings Customers In
   Grainger doesn’t rely on brand recognition alone. Its digital marketing strategy includes paid search, SEO, and targeted content. ‍
5. Smart Acquisitions
   Strategic bets like Zoro.com and MonotaRO helped Grainger expand its digital reach globally. These weren’t just acquisitions. These were extensions of the company’s digital DNA. ‍
6. Customer Experience as a Strategy
   Grainger invested in platforms like Adobe Experience Manager to improve asset and content management, making the digital experience more consistent and competitive. The goal was simple: give customers what they need to be successful.

Grainger redefined what B2B commerce could look like in an industrial world. This has resulted in a 29x stock rise from 2001 to 2024, compared to a 4.5x increase in the S&P 500. That growth came from building tools that scale, and digital touchpoints that matter to industrial buyers.

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How to Get Started

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For industrial companies ready to move beyond buzzwords and pilot projects, the path forward is clear, and it starts at the top.

1. ‍Commit at the CEO level
   Digital transformation doesn’t happen by delegation. It requires visible, consistent engagement from senior leadership. A CEO who champions digital sends a clear signal: this matters. Is your CEO personally invested in digital strategy? ‍
2. Appoint dedicated digital leadership
   Whether it’s a CDO, CIO, or both, someone needs to own the digital agenda full-time. This person should have the authority, the budget, and the ear of the executive team. Does your digital leader have clear authority and resources? ‍
3. Build real-time data visibility across functions
   Legacy systems don’t need to be replaced overnight. But the goal should be unified, reliable data that teams can act on. Without this, every digital effort is flying blind. Could your teams take immediate action based on the data available today? ‍
4. Focus on high priority use cases
   Start with the pain points that have clear ROI potential, whether it’s pricing, order speed, or customer engagement. In the beginning, focus beats scale. What single digital improvement would save your team measurable time or money today? ‍
5. Rethink the customer journey
   Industrial buyers now expect the same ease they get from consumer platforms. Digitizing the full experience, from discovery to delivery, can be a competitive edge. Consider: Where in your customer journey are buyers experiencing friction, confusion, or delays? Start there to transform their experience.

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The tools and strategies outlined here aren't just theory; they're ready right now. For industrials, the opportunity is still wide open. Favorable policies have been passed. The ROI is proven. The only question left: Who’s leading your roadmap?

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