July 11, 2018

Learn - How to Become Industry 4.0 Digital Manufacturing Champion

Industry 4.0 manufacturing and distribution systems utilize end-to-end digitization and data integration in all information generation, processing, analysis & decision making and communication activities. Industry 4.0 companies offer along with traditional products, digitally enhanced products and digital products/services also. In these production systems there are digital twins, physical assets and virtual assets that are connected and communicate. The connected information systems integrate all suppliers, all customers and all manufacturing and service facilities of the enterprise. Each and every machine and each and every person are connected in these digital manufacturing companies/factories.

Mastering Industry 4.0 implementation and transformation requires initial learning and subsequent deep understanding of the scientific and managerial knowledge and technologies of Industry 4.0 by the complete enterprise staring with the top management. A top management with a compelling vision for  the transformation is essential for the company to become  a champion.

PWC, one of the top management consultancy organizations did a survey in 2018 about the implementation status of Industry 4.0 and identfied digital champions from 1100 companies surveyed.

Four ecosystems are essential in digital manufacturing systems: Customer ecosystem, Operating ecosystem ( suppliers, manufacturing facilities, internal logistics, external logistics), Technology ecosystem and People ecosystem.

Customer ecosystem is the basis for exchange of information and value. Integrated operations, technology and people ecosystems serve the customers through the customer ecosystem that is integrated with the other three ecosystems.

Digital champions implement new digital technologies in purposeful manner and deploy them in various application in value creating mode. They are able apply the technologies in multiple applications by employing partners instead of slowing down implementation due to paucity of internal talent.

Artificial intelligence is being used in 9 per cent of companies and its use is increasing. Employees with relevant digital skills are required and they are in short supply. Hence tailored training programs development and organization are crucial. Digital champions have to invest heavily in people development training. 

How to Become Industry 4.0 Digital Manufacturing Champion? - Blueprint

1. Invest in Learning Industry 4.0 Knowledge and Skills
2. Conduct an Audit of Four Ecosystems - Customer, Operations, Technology, and People
3. Define Ecosystem Vision and Value Proposition
4. Develop a Model for Each Ecosystem
5. Set Ecosystem Project Investment Decision Board and Encourage Project Proposals
6. Approve Projects and Build EcoSystem Components. Improve Capabilities iteratively
7. Realize the Value of the New Production System
8. Reinvest and Expand Operations

You can download PWC Report from https://www.strategyand.pwc.com/industry4-0

Customer Ecosystem - Subsystems and Components 

Complementary Products
Performance Services
Financial Solutions

Digital Technology
Hardware and Infrastructure
Software and Apps
Platform Integration
Third Party Platforms
E Commerce Service
Advanced Customer Services
Demand Signals and Insights
Data Acquisition and Analytics

Multichannel Interaction
Customization of Product and Service

Operations Ecosystem - Subsystems and Components

Digital Research and Development
Procurement 4.0
Smart Manufacturing - Connected Manufacturing System
Connected Logistics and Distribution - Smart Warehouses and Trucks
After Sales Services - Digital Channels and Digital Support to Service Professionals
Product Life Cycle Management

Persons and Firms as Partners

Research Institutes
Open Innovation Platforms and Participants
Development Partners
Development Stage Component and Material Suppliers

Materials Suppliers
Component Suppliers
Internal Production Facilities
Contract Manufacturers
Inbound Logistics Service Providers
Warehouses and Distribution Centers
Transporters and Last Mile Delivery Centers and Facilities
Repair Centers
Service Providers

Digital Champions - Bosch, Daimler Benz

Digital Transformation at Daimler Benz - Now Daimler is Digital Champion of PWC Survey

The Technology Ecosystem - Subsystems and Components

Digital Technologies

3D Printing
Artificial Intelligence
Augmented Reality
Virtual Reality
Automated Guides Vehicles
Mobile Devices
Driverless Trucks

Networks and Connectivity
Cloud Computing
Edge Computing

Integrated Platforms
Human Machine Interfaces
User Experience
Data Networks
Integration Layers


Core ERP
Integrated Business Planning Models
Manufacturing Execution Systems
Data Analytics
PLM and Digital Twins

People Ecosystem - Subsystems and Components

Skills - Skill Sources - Mindset and Behavior - Career Development


Skill Sources

Mindset and Behavior

Career Development

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