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As companies strive to maintain their competitive edge, compliance with industry standards has become more important than ever. One such standard that has gained popularity is the ISO 9001. While this standard is well-known, many companies, particularly those in the automotive industry, have started adopting the IATF 6949 as their compliance standard.
For organizations looking to comply with industry standards, the first step is usually to implement an enterprise architecture (EA) practice. This practice provides a holistic approach to unifying business and technology goals, aligning them with a common vision and roadmap. The benefits of EA are numerous, including improved agility through consistent processes and tooling, improved budgeting, cost savings, interoperability across systems, regulatory conformance, and maintaining a competitive edge by adopting emerging trends that provide a strategic advantage. You can read more about the benefits of EA here.
However, compliance through an EA platform is not limited to IT departments alone. In fact, many organizations, particularly those in the automotive industry, must comply with industry-specific standards such as IATF 6949. For these companies, compliance is not limited to just their IT systems or servers, but rather, it encompasses their entire business processes.
One such company, Danfoss Drives, is a leading provider of power quality solutions, even though they are not an automotive company, they need to be compliant as vendor. As part of their compliance requirements, they had to be compliant with the IETF 6949 standard. To achieve this, they implemented a management system in collaboration with us (Bizcon) and Mega International’s platform, HOPEX. The system provided them with a comprehensive set of processes that helped them comply with the IATF 6949 standard.
Per Østergaard Nielsen at the HOPEX Connect 2023 event in Aarhus, Denmark.
Apart from compliance, HOPEX also helped Danfoss Drives streamline its business processes, resulting in improved efficiency and cost savings. Additionally, it enabled the organization to adapt to emerging trends and technologies, allowing them to maintain their competitive edge in the market.
Compliance with industry standards is crucial for companies looking to maintain their competitive edge. Adopting an EA practice and implementing a comprehensive EA platform is the first step towards achieving compliance. However, compliance is not limited to just IT systems and servers, but rather, encompasses the entire business processes of a company. By adopting a comprehensive approach to compliance, organizations can not only comply with industry standards but also streamline their processes, resulting in improved efficiency and cost savings.
A strong and responsive management system is crucial to any organization’s success, especially when facing changes in organizational structure, business processes, and IT applications. It ensures that the organization can adapt quickly and effectively to any changes and remain competitive in its market.
In this particular case, Danfoss Drives had a vision to become more agile. To achieve this, they implemented an EA platform that included all their business processes and IT applications, as well as accounting for potential changes in the future. The EA platform, based on HOPEX, was designed to be scalable and adaptable to any future changes, such as organizational restructuring or mergers and acquisitions.
Danfoss Drives has been running HOPEX for the past 10 years, and it is constantly proving its value, as the company faces periodical changes within its segment. HOPEX allows them to make small adjustments quickly and with ease.
HOPEX also enabled Danfoss Drives to successfully integrate a competitor they had acquired several years ago. Within 18 months, the acquired company was able to fulfill the standard that the company had set, thanks to the scalability of the system. This success was only possible because the processes were in place and designed to handle future changes.
It’s important to note that when discussing an EA platform, HOPEX in this case, we’re not just talking about value streams or business capabilities. While those are important aspects, the operating model is equally as critical. This operating model should be designed with scalability and responsiveness in mind, ensuring that the organization can respond quickly to changes, no matter the size or complexity of the changes.
A strong and responsive EA platform enables the organization to remain competitive, adapt to changes quickly, and handle any future changes with ease. The system should be designed with scalability and responsiveness in mind, allowing for a smooth and successful integration of any new processes, structures, or acquisitions.
Compliance with industry standards is essential for companies to maintain their competitive edge. Adopting an enterprise architecture (EA) practice and implementing a comprehensive EA platform that encompasses the entire business processes of a company is crucial in achieving compliance. Such a system, as demonstrated by Danfoss Drives’ case, not only ensures compliance but also streamlines processes, resulting in improved efficiency and cost savings.
This requires a commitment to continuous improvement, innovation, and the adoption of emerging technologies that provide strategic advantages, and an investment in robust EA tools to enable them to adapt to changes quickly and effectively. The benefits of a well-designed EA platform are numerous, and the consequences of ignoring compliance standards can be significant. Therefore, it is vital to act today and invest in a comprehensive management system to ensure compliance and success in the future.
Find out about the importance of an adaptable and scalable EA platform to ensure business success amid changing circumstances.
Watch Per Østergaard Nielsen make essential points and get valuable insights into Danfoss Drive’s EA operating model!