Analog–Digital Transformation (ADX): Concept and Framework

This chapter develops the theoretical framework of Analog–Digital Transformation (ADX) by synthesizing insights from the AMT literature. This chapter argues that digital transformation in manufacturing should not be understood as a simple transition from analog to digital systems. Instead, transformation occurs through the interaction between digital infrastructures and human-centered operational capabilities. Digital technologies enhance visibility, analytical power, and scalability, while analog capabilities provide contextual interpretation and problem-solving capacity. To clarify this relationship, this chapter introduces the concepts of Analog Transformation (AX) and Digital Transformation (DX). AX refers to the renewal of human-centered capabilities such as experiential judgment, cross-functional coordination, and learning routines, while DX refers to the deployment of digital infrastructures including data platforms, analytics, and AI systems. This chapter argues that competitive advantage arises when AX and DX co-evolve and reinforce each other. ADX therefore emphasizes complementarity and synergy between analog and digital domains and conceptualizes transformation as a continuous organizational learning process rather than a technology adoption project.