My partners and I are practitioners. Only I have more than 6 years at the intersection of production and IT. We have both successful projects and problematic ones. We know from personal experience why projects are not successful and we know how to work with it. Over 5 years, costs have been reduced and risks eliminated by more than 30 million rubles. We regularly study the experience of other companies, participate in discussions with “manufacturers” and developers of solutions and products. We are intermediaries between IT and business. Our difference is communication in a language you understand: what you need, why and what value it creates for your client. How this can be implemented and what pitfalls there are along this path, what needs to be foreseen. Why do you need this? To save money and time, unlock potential and provide opportunities for growth. How long? You can answer that 2 times , but this is the minimum figure.

Digitalization is the introduction of digital technologies and systems, reengineering (restructuring) of business processes, starting to work with data: determining what data is available and what the data model is, data quality criteria and conducting primary analyses. Examples: • implementation of ERP system • robotization of routine operations • transition to cloud technologies in specific systems. Digital transformation is the final stage of complex transformations, the use of the results of digitalization. It is characterized by a multiple reduction in the costs of information processing (receipt, transmission, processing, analytics), changes in the organizational structure and culture, and the creation of new products and business models. The active use of end-to-end cross-analytics for decision making, digital channels of communication with clients begins, hypotheses are tested based on data and new products/technologies are developed. Examples: • use of accounting data or other IT systems to assess the effectiveness of related departments, review the motivation system and/or their number/structure; • the use of blockchain-based contracts to eliminate legal disputes between counterparties on complex projects; • using platforms, for example, Yandex Taxi or Wildberry to search for clients, work with them, conduct analytics and optimize the loading system based on it; • transition to a new business model, for example, instead of selling chemical fertilizers, transition to payment for the cultivated area and the results achieved in changing the level of productivity, etc. You can read more about digital transformation here(https://www.chelidze-d.com/post/digital-transform)

We focus not only, and not even so much, on IT technology. How much for processes and people, training and unlocking potential. In our work, we use practice-tested tools and techniques that can be quickly taught to you, including: • Digital transformation and digitalization: goals, technologies, process automation, data and quality management, end-to-end analytics • 14 Toyota DAOs and Lean Manufacturing • PAEI theory of Isaac Adizes • Systems Constraint Theory • Regular management practices: SMART tasks, delegation, visualization and others • Managing communication between departments • Psychology of management and personnel motivation • Managing change and resistance • Process management • Project management according to PMBoK and Agile/Scrum, product approach We also work through classic consulting, coaching or mentoring. It depends on what your request is and what you are ready for.

Modern and digital companies either change fundamentally, at the cultural level, or take a “formal” approach. In the first case, repeated analysis of “old” and “young” digital companies shows on average a 2-fold difference in labor productivity (rubles of net profit per person per year) and the profit-to-revenue ratio. In the second case, you will most likely suffer losses and your investments will either not pay off or will bring a 10-20% increase in performance indicators.

If you are confident in your abilities, then you can implement changes on your own. But statistics say that with a probability of 70-84% you will receive a problematic (deadline, budget, quality) or failed project. And you will be responsible in any case. However, you may not bother with this issue. The issue of survival in the market is also your responsibility. Thanks to practical experience, we know the most dangerous risks and common problems. We know how to work with them. In addition, before implementing expensive solutions, we suggest “playing” with free or “budget” services. Develop competencies and decide for yourself whether it is necessary. And if necessary, then approach this issue more consciously. Also, taking into account all our competencies, knowledge and focus on the success of our clients, we can work with a payment scheme for support in achieving planned results or completing established stages. However, in any case, you need to remember that in the end, NO ONE will EVER remove responsibility from you. If you, as a leader, are not ready and/or will not change, then all changes will be meaningless. Your employees will adopt your role model. And, most likely, even at the stage of initial communication we will tell you about this and refuse cooperation.

1. IT unpreparedness, conservatism, lack of customer focus 2. Lack of global understanding of the goals of digital transformation among management. The result is inflated expectations, expectation of a quick effect, and disappointment in the results. 3. High investments without guarantee of results, lack of understanding of what technologies are relevant and how to apply them 4. Lack of elaboration of the issue of data management: quality criteria, model and structure, use cases for end-to-end analytics 5. The inconvenience of current IT systems, their fragmentation and high labor costs for “integration”, support and staff resistance 6. Lack of competencies in project and product management, change implementation. 7. Low level of digital competence and literacy, lack of virtualization of skills All these factors lead to the fact that 70-84% of transformation projects are problematic (timelines, budgets, success criteria are not achieved), or fail and are closed

The most common mistake of most companies is the emphasis on implementing systems and services and relying on their functionality. In this case, no internal changes are made. As a result, the work is not simplified, but becomes more complicated, plus you have to spend resources on maintaining systems that “internally” themselves have a lot of losses and force you to hire expensive specialists. Optimization based on lean manufacturing principles allows you to first remove losses in business processes and then convert them into digital data. Already at the optimization stage, you can get up to 100% productivity growth . It all depends on the “neglect” of the problems. In addition, at the stage of design or pilot operation of an IT system, you can reduce the costs of its maintenance by up to 90%. And 50% is practically guaranteed. This is based on my personal experience of interacting with a number of different solutions from different developers. The more effort you spend at the testing stage and eliminating losses in the maintenance processes, the easier and cheaper it will be to use. As a result, when combining lean manufacturing and digitalization, you will get a synergistic effect and be able to increase labor productivity up to 4-5 times (there are real examples). And working in an office is no different from production. Most offices are characterized by extremely low labor productivity, a large number of losses: unnecessary operations that do not create any value, uneven workload, and overload. Full automation of everything will be very expensive. That's why: 1. Optimization 2. Digitalization 3. Transformation Read more about digital transformation here (https://www.chelidze-d.com/post/digital-transform), and a separate series about lean manufacturing will be released soon

The share of unsuccessful and problematic projects reaches 70% . And this value is relevant for all projects, including digital transformation. The share of such projects is 70-84%. One of the main reasons is ignorance of project management approaches “on the ground” and the choice of the wrong “approaches” to project management. Read more about project management here (https://www.chelidze-d.com/post/project). A separate post is being prepared about grocery products

Digitalization, digital transformation, lean manufacturing are primarily about people. About increasing their efficiency, reducing the amount of unproductive work, realizing their creative potential. But people will resist, you need to work with the reasons for resistance, motivation. The main fear of your people is that after the changes they will be fired. In addition, after the changes, you need qualified and motivated personnel. They will design, use, improve processes and products. It is your people, not third-party consultants. And it's your money. You need to be able to work with such people. Otherwise, you will have turnover, poorly designed systems and processes. The result is endless training of new employees on complex tools, a large number of losses, and all this is financial loss. There is another option - you will have dear people who will not justify the cost of them. And numbers or lean manufacturing will not save you. Your goal is 5% turnover per year and moderate motivation of staff who will want to earn money, but will not burn out. You can read more about this mechanism here(https://www.chelidze-d.com/post/%D0%B8%D0%BD%D1%81%D1%82%D1%80%D1%83%D0%BC%D0%B5%D0%BD%D1%82%D1%8B-%D1%83%D0%BF%D1%80%D0%B0%D0%B2%D0%BB%D0%B5%D0%BD%D0%B8%D1%8F-%D1%87%D0%B0%D1%81%D1%82%D1%8C-2-%D0%B4%D0%BE%D0%BB%D0%B3%D0%BE%D1%81%D1%80%D0%BE%D1%87%D0%BD%D1%8B%D0%B5-%D0%B8%D0%BD%D1%81%D1%82%D1%80%D1%83%D0%BC%D0%B5%D0%BD%D1%82%D1%8B-%D0%BC%D0%BE%D1%82%D0%B8%D0%B2%D0%B0%D1%86%D0%B8%D1%8F-%D0%B8-%D0%BC%D0%B8%D0%BA%D1%80%D0%BE%D0%BA%D0%BB%D0%B8%D0%BC%D0%B0%D1%82#viewer-fqpgj)

The trade secret of successful companies is the management system. They will easily show you their equipment and technologies, but will not show you the “secret” recipe. From my own experience, I can say that you can bring the same team to the peak of efficiency and get decent results even before implementing numbers. You can also introduce all the assistants, all the technologies, but only get losses. IT systems must be designed based on certain values and principles. 3D printers must print exactly what is needed, neural networks must be properly trained, tested, and retrained based on goals and objectives. The contract on the blockchain must be properly structured and the criteria under which payment occurs must be determined. The final decision is made and the responsibility is still borne by the person. You need the right, effective people in the right jobs.

I will be preparing a quick assessment questionnaire soon. But in general, it is necessary to undergo a primary audit in the following areas: • infrastructure and tools. Access to modern tools (clouds, data center, quality of hardware of your employees), use of modern systems and services. • processes. Conducting an analysis of existing processes. How effective are they? • products. How your products and their production comply with the principles of lean manufacturing, when and on what principles the last reengineering was carried out, and whether design thinking, critical and later thinking are used. • data. What data do you “generate”, what data do you use and for what, how accessible is it, how is the security system built. • frames. Compliance of the competencies of your employees with modern requirements. • culture. What org. culture, values, how you manage change and employees, do you accept the need for constant change and improvement. How open are you to the client?

The ultimate goal of the entire transformation is to reduce the costs of working with information to eliminate unproductive waste of time and resources. This will allow you to focus your efforts on scaling your core business, which creates value for the client and increases competitiveness. To implement lean manufacturing principles into processes, you must have the desire and knowledge. And for digital, you can use free or inexpensive digital tools. Examples are here (https://www.chelidze-d.com/post/free-it), the post will be updated. Everything here is limited by your knowledge and imagination. This way you can gain experience, your competencies, get first results and resources for more global changes at low cost. Let me give you an example from personal practice. With the help of Google spreadsheets and structured tables, sharing materials, I was able to organize an entire production. We began to save up to 2 hours a day on meetings and up to 4-5 hours a day on collecting and processing information on orders . We got rid of the need for calls between departments to collect up-to-date information, and during production and planning meetings we only clarified individual issues and did not discuss everything. At the same time, the company had previously introduced 1C. But due to reorganizations and the quality of the design of the system logic, it actually paralyzed production. What we got as a result: in 4 months, together with the debugging of management functions, we received controlled production, the absence of rush jobs and crises, a calm atmosphere and lack of turnover, a 2-fold increase in productivity. Initially, our warehouse for raw materials was full, but later it became empty, and the warehouse for finished products became full. Initially, there was no one at all; all orders were stored in the workshop.

Step 1. Its goal is to identify the problem, possible causes and understand whether we can help you and whether our knowledge is valuable to you. The step consists of answering a questionnaire and a personal meeting. ​ Where to start - choose what is more convenient. ​ We recommend that you first take the “basic” 10-question questionnaire. It will allow you to understand and appreciate our approach. What we look at, what we work with. Available at this link (https://forms.gle/mpnwN5G8xFEUQxFH7). ​ Then, or maybe immediately, if there is no doubt, we recommend completing the full questionnaire. Available at this link (https://forms.gle/my4visXRYwBgqDbM8). It will allow us to understand the essence of your problems, their depth. ​ Introductory meeting and consultation - free Step 2. The goal is to determine the format of cooperation and required reporting. • A one-time consultation at which we will discuss your problems, possible approaches to solving them, recommendations will be prepared (oral or in the form of a report) • Consultation package. When we “remember” your problems and every meeting is more productive • Conducting an audit and identifying pain points, preparing a report. All this is based on the results of a personal study of your situation, immersion in work processes, and communication with employees. It is possible to “infiltrate” under the guise of a new employee. • Comprehensive support for transformation projects. • Training individual managers in management tools, coaching or mentoring them on issues of digitalization and working with data. Step 3. The goal is to document cooperation and provide conditions for maximum efficiency. Preparation of a price proposal and conclusion of an agreement, determining criteria for the success of joint work. This step is optional for a one-time consultation. Step 4. The goal is to do the work and get the result. At this step, the main work defined at the step takes place, the preparation of the necessary reports, recommendations, etc. Step 5. The goal is to close the contract and make a decision on the advisability of further cooperation. Not required for a one-time consultation. Here we sign closing documents, hold a final meeting, at which we openly discuss the positive and negative aspects of cooperation, and decide on the need for further cooperation.