industry 4: how ready are you? - university of warwick...real-time data inventory… supply chain...
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Jan GodsellProfessor of Operations and SC Strategy
Industry 4: How ready are you?
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‘ICT enabled convergence oftechnological and business processeswill herald the next generation of(German) manufacturing’
Prof. Henning KagermannFebruary 2014, RAE
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Servitisation
IoT / Industrie4.0 /Big Data /
Analytics
Circular / SharingEconomy
RedistributedManufacturing
/ Re-shoring
Consumer
Improvedproductivity
Part of a series of inter-connected trends…
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0 5 10 15 20
Other
Research and…
Production/Manufactur…
Marketing/Sales
Human Resources
Job Function
0 10 20 30 40
Executive
Junior management
Middle management
Senior management
Senior Audience
71 respondents from 55 companies across23 countries
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0
2
4
6
8
10
12
14
83% participants operated in a B2B context,across a broad range of sectors
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Broad range of technologies with databases andcomputer networks most prevalent…
0
10
20
30
40
50
60
70
80
90
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0.00
1.00
2.00
3.00
4.00
Products andServices
Manufacturingand Operations
Strategy andOrganisation
Supply Chain
BusinessModel
LegalConsiderations
0% 20% 40% 60% 80% 100%
Level of customisation
Digital features
Data-driven services
Data quantity used for…
Data-driven services …
0% 20% 40% 60% 80% 100%
Process equipment…
Process equipment…
Upgrading space
Autonomously guided…
Self-reacting processes
Digital modelling
Operations data collection
Operations data usage
Cloud solution
IT security solution
0% 20% 40% 60% 80% 100%
Industry 4.0…
Indicators definition
Invesment
Employee skills
Collaboration between…
Leadership support
Cost-benefit analysis…
0% 20% 40% 60% 80% 100%
Real-time data inventory…
Supply chain integration
Supply chain visibility
Supply chain agility
Lead time
0% 20% 40% 60% 80% 100%
As-a-service business…
Data instructed business…
Lifecycle tracking
Scheduling and…
Marketing channels
IT supported business
0% 20% 40% 60% 80% 100%
Contracting models
Legal risks
Data protection
Intellectual property
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Level 1 Level 2 Level 3 Level 4 Not Relevant
Data driven services are still embryonic andgenerally account for >2.5% revenue
Development of new products and servicesis predominantly data driven
Products and Services
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Significant overhaul & upgrade ofequipment is required to be I4 ready
Good progress in terms of collecting datadigitally, but generally not fully
comprehensive
Manufacturing and Operations
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Supply ChainVisibility of site location, capacity,
inventory and operations generally limitedto 1st tier suppliers.
Generally been a focus on lead time reductionon key materials to improve agility
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Business Model
0% 20% 40% 60% 80% 100%
As-a-service business model
Data instructed businessdecisions
Lifecycle tracking
Scheduling and maintenancetrigger
Marketing channels
IT supported business
0.00
1.00
2.00
3.00
4.00
As-a-servicebusiness model
Data instructedbusiness decisions
Lifecycle tracking
Scheduling andmaintenance
trigger
Marketing channels
IT supportedbusiness
As-a-service business models are generallystill at the concept stage
Good traction in developing more datadriven approaches to decision making
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Still in infancy…
Data-driven