| | SEPTEMBER 20228CIOReviewIN MY OPINIONBy Martin Davis, CIO, Mevotech LPUNDERSTANDING DIGITAL TRANSFORMATION & INDUSTRY 4.0 MANUFACTURING What is the future of Manufacturing?AI is being used to develop new methods for analyzing dietary data. For example, researchers are using AI to develop "nutritional fingerprinting" methods that can identify the specific nutrients in food and how those nutrients impact human health. This type of information can be used to develop tailored nutrition recommendations for individualized care.People have argued that the future of manufacturing in North America is bleak and the trend in recent years has definitely seen a move to lower-cost regions. As an alternative, others have argued that we need to change our approach and it's not just about low-cost labor, it's also about productivity. Covid-19 supply chain disruption and shutdowns have further increased this focus on built local.So, how does the future of Manufacturing relate to Digital Transformation, technology and automation, and Industry 4.0? Let's start by exploring some key concepts.What is Digital Transformation?Digital Transformation starts and ends with the customer and how you add value for them, how that then impacts your internal processes, your culture, and your employees. It is the harmonious connection of all of your internal business processes to deliver on the customer promise.It is also about taking a different view of your business models to understand how you can utilize technology to add value in new and innovative ways.The two distinct dimensions of a customer-driven digital transformation are1. Integration of Digital Technology. Fundamental Customer focused changes in business models are driven by technology. This might also include customer-driven modernization of existing business models, and associated changes to internal processes to ensure they are connected and business flows.2. A Cultural Shift. Are all of your employees customer-focused? What do you need to do to help them become more customer aware? How do you go beyond that and push the boundaries, experimenting, and potentially failing? This may involve abandoning well-established processes for new ones -- ones that are maybe not yet fully defined ­ trying new things, with no guarantee of success.In some situations Digital Transformation has helped businesses transform from a one-off sale of a product to an ongoing service contract, thereby adding more value for the customer, and ultimately generating increased revenue for the seller over the longer term. For example, GE no longer directly sells aircraft engines. These days they sell engine flight hours, and associated services such as real-time monitoring, diagnostics, and dynamic maintenance.What is Industry 4.0?Industry 4.0 originated in Germany around 2012 and was designed as a drive for manufacturing improvements to grow the German economy. Unlike some Martin Davis
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