Organizations worldwide are actively looking at their business processes and findings ways to modernize everything they do. 2020 was an extraordinary year. We learned so much about connectivity, how to ensure greater levels of resiliency, and what organizations can do to keep people productive and safe. Digital transformation efforts are helping organizations modernize to stay more competitive in an ever-growing digital economy.

“Organizations with digital transformation focus and committed resources have demonstrated to be more resilient in the COVID-19 pandemic,” says Suya Xiong, research manager of IDC’s IT executive programs. “Organizations need to reassess their digital transformation investment and focus their investment on the unique capabilities that differentiate them in the market.”

Today, companies are seeing how digital solutions like cloud, autonomous systems, multiregional disaster recovery solutions, and even on-demand digital infrastructure are all helping leaders modernize their digital efforts. According to a new report from IDC, despite the pandemic, direct digital transformation (DX) investment is still growing at a compound annual growth rate (CAGR) of 15.5% from 2020 to 2023. It’s expected to approach $6.8 trillion as companies build on existing strategies and investments, becoming digital-at-scale future enterprises.

The IDC report also predicts that by 2025, driven by volatile global conditions, 75% of business leaders will use digital platforms and ecosystem capabilities to adapt their value chains to new markets, industries, and ecosystems.

From outages and inconsistency to the cloud and new digital experiences: A real customer story

We often don’t talk about how unique a cloud journey that incorporates modernization effort can be. In partnership with Fujitsu America, UGN went on a modernization journey and learned a lot in the process. UGN, Inc. was founded in 1986 as a partnership between Nihon Tokushu Toryo Co. Ltd. (Nittoku) and Autoneum Holding AG. UGN produces high-quality acoustic, interior trim, thermal management products for the Japanese transplant automotive industry in North America.

Since 2002, UGN’s leadership has reconfigured the manufacturing strategy to enhance profitability and lower cost. This leadership also embarked on a journey to ensure that their digital systems met strategy requirements for a growing market. In our special podcast series, we sat down with UGN, Fujitsu America, and Oracle to discuss the project, the goals, the challenges, and the outcomes.

The challenges

UGN needed to develop an ecosystem that could be more resilient today and help them approach a broader market more effectively. Outages were taking a toll on critical applications, and UGN’s growth was outpacing the existing technological capabilities being currently utilized.

The solution

UGN used Oracle Cloud Infrastructure (OCI) to do some extraordinary things with its digital resources. First, they migrated critical resources into a far more resilient cloud ecosystem. Next, as the underlying engine of OCI, autonomous systems ensured that all UGN’s workloads were secured, updated, properly maintained, and could scale with the business.

Finally, the migration created a far more resilient ecosystem no longer prone to outages. Furthermore, they helped UGN reduce latency and modernize their most critical data and application sets.

The outcomes

Working with a good partner, UGN deployed their entire ecosystem in half the initially planned timeframe. They modernized their data sets, improved application performance, reduced latency, created a more robust business, and ensured that users persistently had the best possible experience.

They also created some pleased executives because UGN can continue as a leader in the automotive space while utilizing advanced cloud and digital tools.

Final thoughts

Listen to the whole podcast to hear about the fantastic journey that UGN went on with Oracle and Fujitsu America. There, we discuss in more detail UGN’s approach, how they deployed their infrastructure into the cloud in half the time, and how executive leaders saw the benefits from their transformation journey.

Another critical point is to understand what cloud and solutions like OCI can bring you. In discussing some of the challenges at UGN, OCI and the underlying autonomous ecosystem brought the following benefits to UGN’s organization:

  • Provides multiregional disaster recovery solutions

  • On-demand infrastructure resource creation with dynamic scaling to meet increased traffic demands

  • Real application cluster database with high availability

  • Segregation and segmentation of applications through public and private subnets

  • Enhanced load-balancing capabilities using public and private load balancers

  • Improved security posture with Identity and Access Management (IAM) service

  • Performance improvement in transaction and batch processing

  • A complete reduction in outages and downtime

  • Greater support for remote and distributed users with better application performance and less latency

Getting started on your cloud and transformation journey doesn’t have to be complicated. Some great partners and leaders are ready to help you build a map to navigate the cloud waters. Meanwhile, check out the special Oracle podcast series to hear UGN and others discuss how they got started, the lessons they learned, and some of the remarkable outcomes they’ve experienced.

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