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“Industry 4.0” – the concept of integrating digital information to drive the physical act of doing business in an ongoing cycle – is the true driver of Digital Transformation. The constant feedback process (i.e., the “physical-digital-physical loop”) that catalyzes a next step and further action in the physical or digital phases, is what successful organizations are finding makes Digital Transformation a meaningful and productive evolution. In this report by Deloitte, survey respondents share their ROI findings around the PDP loop, as well as how it is positively impacting their plans for future Digital Transformation initiatives.

  • The physical-digital-physical loop (PDP loop) is propelled by real-time access to data being collected, creating a flow that perpetuates constant feedback.
  • The PDP loop fosters a more flexible system that adapts to learning from changes in the environment.
  • Physical-world data sources include enterprise resource planning, customer relationship management, product lifecycle management systems or non-transactional internal systems (e.g., email). Other commonly used data sources, including the Internet of Things (IoT), both field-based and facility-based, and predictive model outputs.
  • Many executives are still traversing a learning curve as they work to familiarize with their connected systems’ data and then leverage it to make impactful decisions.
  • The most critical stage in the PDP loop is digital-to-physical, where algorithms and automation translate decisions and actions from the digital world into movements in the physical world.
  • Respondents who reported the best ROI, as well as respondents who have made significant digital transformation investments, also report having a confident grasp of data findings and using it for more informed decision-making.
  • Companies that are more involved in digital transformation are likelier to realize its benefits and will keep investing to further their growth and expertise.

I read the article mentioned above ( and thought it was interesting. While I am not offering an endorsement of a strategy, tactics, thoughts, service nor a company or author, the information was intellectually stimulating and thoughtful and worth a review.