| | SEPTEMBER 20229CIOReviewother economic development initiatives, Industry 4.0 was ground-breaking and pulled together a robust set of industry approaches that had widespread applicability and huge potential. While its origins were in Germany, its value and potential have become recognized worldwide.Described as the 4th Industrial Revolution, the official definition is "the merging of cyber and physical systems". People often assume it is about technology, robots, and automation. While those are all potential aspects, so are sensors, connectivity, the Internet of Things (IoT), and safety.Fundamentally, it is about turning real-time data from your operations into information to make better decisions and drive improved processes, be those decisions manual or automated.Competitive AdvantageIndustry 4.0 is a philosophy or a corporate strategy and is about how you use data to drive a smart or digital factory, how you empower your workers with data and use techniques such as process improvement and 6-sigma to improve performance. This is supported by various enabling technologies, connected devices, and analytical tools.The result? Improved performance, higher Overall Equipment Effectiveness (OEE), and reduced downtime, which by the way, then delivers increased revenue and profitability. By 2030, the estimated GDP value of Industry 4.0 in North America is a massive $7.1 Trillion.How does Digital Transformation relate to Industry 4.0?While on the surface Digital Transformation and Industry 4.0 appear to be fundamentally different and disconnected, Manufacturing can bring the two together to its advantage. Digital Transformation's focus on the Customer drives internal business change and improvements in internal business flow. This need for interconnection and smooth flow of information within your company will translate into goals to drive your Digital Transformation.These Customer views and business goals provide essential input for Manufacturing to understand what is needed and to formulate a plan on how to drive change. Industry 4.0 approaches can then be utilized to provide data-driven approaches, automation, and advanced tools to deliver on those customer needs.For example, maybe the customer has specific requirements related to on-time delivery, these can be built into the business processes, from production scheduling, raw material purchasing, and delivery, through to manufacturing operations, supply chain, and shipping. The interconnection of these critical internal processes works in harmony to accelerate the business and deliver on the customer's needs.Key Takeaways1. Firstly, focus on the Customera. How can you add value for them?b. How can you make their life easier?c. How can you pivot your business model to deliver on the above?2. Secondly look at how Data can drive your businessa. Critically review the data to understand what is going onb. Become Data-driven in all of your decision-makingc. Use data to identify and drive, improvements and automationIf you satisfy the customer needs, they will keep coming back! Industry 4.0 approaches can then be utilized to provide data driven approaches, automation, and advanced tools to deliver on those customer needs
< Page 8 | Page 10 >