Beyond the Hype: Unpacking the Role of Digital Transformation and Simulation in Modern Engineering
Helen Brearley
Communications, EDRMedeso
In the realm of digital transformation, there’s no shortage of hype. With the constant evolution of digital tools, many organizations are eager to adopt new technologies, from AI to digital engineering, hoping for transformative outcomes. However, as Wladimir Shamai from Danfoss emphasizes, digital transformation’s true value often goes beyond simply acquiring tools – it’s deeply rooted in leadership and a strategic approach to implementing these changes.
Digital Transformation: A Leadership Endeavor
Wladimir’s journey with Danfoss began in 2017, with a focus on expanding simulation capabilities within R&D. Over the years, this work grew to include manufacturing, supply chain, and ultimately products and services, all under an initiative termed “Digital Engineering Enablers.” This focus isn’t merely on integrating technology but on how these tools contribute to the broader business objectives. According to Wladimir, “tools like simulation are just tools” until they are purposefully aligned with a company’s strategic direction. When used effectively, these tools help businesses solve pain points and maintain a competitive edge in the market.
As we progress our conversation, it soon becomes clear that a critical takeaway is that simply implementing digital tools without a strategic framework is likely to fall short of expectations. Leaders need to prioritize these tools based on business needs, which often involves tough decisions regarding where resources and investments are directed. Wladimir stresses that prioritization must be a collaborative effort, relying on insights from practitioners and stakeholders across the organization to identify high-impact applications.
Spotting Impactful Applications
For digital engineering to genuinely impact a business, identifying the right applications is paramount. Wladimir explained how Danfoss assesses where simulation capabilities can most effectively support growth or defend its market position. He uses a strategic, three-pronged approach: aligning with business priorities, engaging a team to prioritize resources, and listening to employees who are directly affected by these changes.
“Listening to those who will go through this change is yet another key aspect,” he said, underscoring the importance of employee buy-in. Understanding the unique needs of different departments allows leaders to craft a digital transformation journey that resonates with their workforce. By involving practitioners early, companies can uncover unforeseen opportunities and foster an environment where innovation is not only welcomed but actively encouraged.
Building a Business Case for Digital Engineering
One of the biggest challenges in digital transformation, particularly for simulation technology, is securing buy-in from decision-makers who control the budget. Wladimir advocates for a data-driven approach here—proving value through tangible, case-based results. “The best way to sell it is to be specific and practical instead of generic and ideological,” he advised. To illustrate, he described how pilot projects that demonstrate measurable value can effectively convince leaders to support larger investments.
Wladimir’s strategy at Danfoss has been to start small, demonstrate clear returns, and then gradually scale successful initiatives. This approach aligns with his broader philosophy of taking iterative, measured steps. “Think big, but go step-by-step,” he explained, emphasizing that smaller, targeted initiatives often yield more sustainable results than grand, sweeping projects.
Driving Change: Beyond Tools to True Transformation
Once the right digital tools are in place and the budget secured, the next challenge is driving organizational change. For Wladimir, the change process extends far beyond implementing tools. He believes in nurturing a culture that encourages collaboration, open communication, and flexibility. “There’s no shortcut to engaging with people,” he shared, highlighting that successful change relies on conversations and ongoing engagement.
Change management in digital engineering also requires understanding and respecting varying levels of risk tolerance within a team. While some employees may be early adopters, eager to test new technologies, others may be more cautious. Wladimir’s experience has shown that identifying those willing to pioneer new processes can create momentum for broader adoption. Initial pilot successes can serve as proof points, allowing leaders to gradually scale these practices across the organization.
Maintaining Momentum and Managing Expectations
Sustaining a digital transformation journey requires both agility and patience, particularly from top-level management. Wladimir typically allows a few months for new initiatives to demonstrate preliminary success, after which he evaluates and pivots as necessary. This iterative approach helps Danfoss stay responsive and ensures that only the most promising projects move forward.
Despite careful planning, not all initiatives will yield immediate or positive results. According to Wladimir, fostering a pragmatic and transparent environment is essential to building a culture that tolerates and learns from failure. This allows teams to take calculated risks, innovate, and ultimately succeed.
Quantifying Success and Demonstrating Value
As digital engineering capabilities at Danfoss have matured, so too has the organization’s ability to quantify their impact. Wladimir shared some impressive results: by reducing the need for physical prototyping, Danfoss has accelerated product development timelines, significantly cut costs, and reduced energy usage – a win for both the company and the environment! For example, replacing one physical test with a simulated iteration not only saves costs but also reduces energy consumption, a particularly valuable benefit when tests span weeks or even months.
What’s more, these capabilities are now helping Danfoss defend and grow its business. In industries where providing simulation models of products is becoming a prerequisite for doing business, these advancements give Danfoss a competitive advantage. Through rigorous, case-by-case evaluations, Wladimir’s team continues to gather metrics that justify further investment, reinforcing simulation’s role in shaping Danfoss’ future.
Digital Engineering Versus Other Digital Transformation Challenges
For those wondering if digital engineering presents unique adoption challenges compared to other digital transformations, Wladimir offers a valuable perspective. He believes that adoption hinges on demonstrated value, which is consistent across different types of digital initiatives. However, realizing the full potential of digital tools requires a fundamental shift in how organizations operate. It’s not enough to digitize existing processes—companies must be open to rethinking and reinventing their workflows entirely.
Wladimir used the example of Enterprise Resource Planning (ERP) systems: when they were first introduced, some companies simply digitized their existing accounting processes without rethinking how these systems could streamline daily operations. The real value emerged only when they started leveraging ERP systems to conduct continuous, real-time operation. Similarly, digital engineering tools require an openness to redesign processes to fully capitalize on their benefits.
The Future Role of Engineers and AI
Our conversation ends with the intriguing prospect of the role of AI in digital engineering. Wladimir is optimistic about AI’s potential to complement and enhance engineers’ cognitive potential. Far from replacing human expertise, he sees AI as an augmentation tool – one that can help engineers access distributed knowledge, streamline research, and push the boundaries of innovation in fields like pharmaceutics and industrial design.
In the coming years, the demand for engineers skilled in AI, machine learning, simulation, and 3D printing will only grow. For organizations to attract top talent, they’ll need to create environments that foster these skills and enable engineers to thrive.
A Continuing Journey in Digital Engineering
Reflecting on his journey, Wladimir expressed gratitude for the ongoing collaboration that has fueled Danfoss’s advancements in simulation. But while they have made significant progress, the work is far from over. Digital engineering, as Wladimir sees it, is a continuously evolving field, one that demands both commitment and adaptability. Only by learning from one another can we collectively push forward, tapping into the transformative power of digital engineering and inspiring others to do the same.
Listen to Wladimir on the Simulation Leadership Podcast
