Jan GodsellProfessor of Operations and SC Strategy

Industry 4: How ready are you?

‘ICT enabled convergence oftechnological and business processeswill herald the next generation of(German) manufacturing’

Prof. Henning KagermannFebruary 2014, RAE

Servitisation

IoT / Industrie4.0 /Big Data /

Analytics

Circular / SharingEconomy

RedistributedManufacturing

/ Re-shoring

Consumer

Improvedproductivity

Part of a series of inter-connected trends…

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

0

2

4

6

8

10

12

14

83% participants operated in a B2B context,across a broad range of sectors

Broad range of technologies with databases andcomputer networks most prevalent…

0

10

20

30

40

50

60

70

80

90

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

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

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

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

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

Still in infancy…

Data-driven