FusionOps // Industry 4.0: Are You Ready?1 Table of Contents
INDUSTRY 4.0:
Are You Ready?
FusionOps // Industry 4.0: Are You Ready?1 Table of Contents
2 A Connected Planet
3 Industry 4.0 Basics
4 Your Customers are Demanding It
5 3 Keys to Supply Chain Success in Industry 4.0
6 GettingStarted:OpenBigDataRepositoryintheCloud
7 GettingStarted:CloudIntelligenceLayer
8 GettingStarted:AdvancedDataScience
9 How it All Comes Together
10 How to Get There
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FusionOps // Industry 4.0: Are You Ready?2 Table of Contents
A Connected Planet
Amongself-drivingcars,drones,smartphonesandevenwearabletechnology,it’sclearthatintelligent,connecteddevicesareshapingoureverydaylives.Thesupplychainisnoexceptiontothiswaveof technological change. Within a fewyears,factorieswillbecomea mesh of cyber-physical systems whereconnecteddevicesexchangeinformationandtakeactionswithoutrequiringhumaninvolvement.Suppliers,manufacturersandcustomers will be more closely aligned
andresponsivetochangesthroughcloudtechnology.AndBigDatawon’tjustgetbigger,itwillgetsmarter–relyingonpredictiveandprescriptiveanalyticstodrivedecisionmaking.
Ultimately,notonlythefactory,buttheentiresupplychainismovingtowardsautomation–andevenawareness–thatwillchangehowproductsareordered,manufactured,shippedandconsumed.ThisevolutioniscalledIndustry4.0,andit’shappeningnow.Are you ready?
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automation.
The supply chain is movingtowards
FusionOps // Industry 4.0: Are You Ready?3 Table of Contents
Industry 4.0 Basics
● Industry 1.0: The Industrial Revolutionredefineshumanlimitationsbyharnessingthepowerof water and steam.
● Industry 2.0: Electricity pushes peopleandmachinesevenfurtherasmanufacturing grows in scale
and scope.
● Industry 3.0: The modern computer opensthedoorforautomationandadvancedstatisticalanalysis.
● The Internet of Things will connect devicesandworkersinthefactorywith products and consumers in thefield.
● Big Data technology and strategies willhandlethemassiveinfluxofrawdatafromthesedevices.
●Cloudsoftwarewillbringitalltogethersobusinessescanstore,analyzeandmakesense ofeverything.
The term Industry 4.0 presupposes thepassingofthreemajorshiftsin how businesses approached manufacturing throughout modern history,tracingitsrootsasfarbackasthe 19th century:
Asthenextlogicalstepforward,Industry 4.0 will combine the major technologicaladvancesofthe21st-centurywiththesameinnovationsthathavemademanufacturingacornerstone of modern life.
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Connectdevicesandworkersin the factory with products and consumersinthefield.
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Your Customers are Demanding ItIndustry 4.0 is about more than just informationtechnology.It’salsoabout what the customer wants. Thankstotheriseofe-commercegiantslikeAmazonandtheabilitytorevieweverythingonline,customerstodayhavehigherexpectationsthaneverbefore.
Inonerecentsurvey,82percentofbusinessesreportedtheyhaveencounteredmorespecificandstringentconsumerexpectations,includingadesireforfasterdeliverytime,lowerprices,simplereturnsandahighdegreeofcustomization.The
samesurveyfoundthat60percentofexecutivessaidtheirbusinessisstruggling to meet these heightened demands,manyofwhicharerootedinthe supply chain.
Thesehigherconsumerexpectations–fasterdelivery,lowerpricesandmorecustomization–won’tjustimpact the retail world. This has huge ramificationsformanufacturersineveryindustry,whichwillneedtodelivercustomizedproductsatlowercosttomeetheightenedexpectations.Ultimately,companieswillneedtogetdown to batch size of one.
60%of businesses are struggling to meetconsumers’heightened demands.
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FusionOps // Industry 4.0: Are You Ready?5 Table of Contents
3 Keys to Supply Chain Success in Industry 4.0
1. Innovation and supplier management: The abundance of user and manufacturer data willallowbusinesseswiththerighttoolstocreateadvancedpredictivemodelsoftheirsupplyoperationsbeforeputtingtheminplace.
2. Agility and visibility:Asconsumerdemandsgrowmorecomplex,supplychainswillneedtobereadytopivotatamoment’snotice.Thisrequiresfulltransparencyandincreasedvisibilitywithineachfacetofsupplyoperations.
3. Efficiency and cost: Allofthismustbeachievedonrazor-thinprofitmargins.Machinelearningandadvancedanalyticscanhelpbusinessesrealizetheirfullpotential,butonlyiftheycanacquiredatainsightsquickly.
InIndustry4.0,theentiresupplychainwillbecomeevenmorecompressedandtightlyintegrated.Productlifecycleswillgetshorter,leadtimeswillshrinkandthemarginoferrorwillgetevensmaller.Toaccountforthesechanges,therearethreekeyareaswhereexecutiveswillneedtofocustheirattentionanddriveimprovementinordertobesuccessfulinIndustry4.0:
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82%of businesses reported they haveencounteredmorespecificandstringent consumer expectations.
FusionOps // Industry 4.0: Are You Ready?6 Table of Contents
OpenBigDataRepositoryin the Cloud WithIndustry4.0,BigDatawillgetbigger…alotbigger.By2020,theworld’sdatavolumeissettobe50timeslargerthanitistoday.Manyorganizationsarealreadyfindingthatlegacy databases and systems simply won’thandlethevastamountsofdatabeing generated inside (and outside) thebusiness.That’swhyBigData–andthecruxofIndustry4.0–willlivein the cloud.
With a growing number of connected devices,BigDatamustliveinopenplatformstoenableeaseof
integrationandscalabilityofdatasources.Companiesthatkeepdatalockedawayinsiloswon’tbeabletoidentifynewopportunitiesfastenough,andwillriskfallingbehind.Byleveragingcloud-basedopenplatformsthatsupportbothstandardAPIsandproprietaryintegrations,dataismorevisibleandaccessibletonetworkeddevices,machinesandpeople.LookforopenBigDataplatformstobreakdownsilosandunlockyourfullproductivepotentialin Industry 4.0.
GETTING STARTED:
By2020,theworld’sdatavolumeis set to be
than it is today.
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50x larger
FusionOps // Industry 4.0: Are You Ready?7 Table of Contents
CloudIntelligenceLayerForthepast25years,companieshavereliedonmanual,desktop-basedreportingtogetinformationaboutthe business to support decision-making.InIndustry4.0,acompany’sabilitytoderiveintelligencefromthestaggeringamountofoperationaldataavailabletothemwillbetheprimarydeterminant of their ability to grow.
Thiswillbeachievedthroughacloud intelligence layer that enables dynamic,real-timeinsightsacross
unlimited data sources. The cloud intelligence layer speeds up analysis ofdatabyprovidingsupplychain-specificmodels–includingcommonmetricslikeon-timein-full,inventorydaysofsupply,supplierresponsivenessandforecastaccuracy. The cloud intelligence layerleveragesthereal-timedatainthe central cloud data repository to setgoalsandachievemeasurablebusiness impact using a library of supply chain metrics.
GETTING STARTED:
A cloud intelligence layer enables dynamic,real-timeinsights across
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unlimited data sources.
FusionOps // Industry 4.0: Are You Ready?8 Table of Contents
AdvancedDataScience
Predictive analytics: This is used forthingslikedemandforecasting,maintenance schedules and product-useinsights,whichcanallbeeffectivelypredictedwiththerightdata science tools.
InIndustry4.0,thesupplychainwillbemovingsofastandthedatawillbesocomplexthathumanintelligencealonewillnotbeabletokeepup–manydecisionswillneedtobeautomated.Thefirststeptowardsautomateddecision-makingisembeddingadvanceddatascienceintothesupplychain.Manycompaniesaredoingthiswithsoftwaretoolsandhighly-paiddatascientists.Moreadvancedcompaniesareusingpredefinedalgorithmstorecommendthebestpossibledecisionsbasedonallthedatapointsthatarebeinginterpreted–withouthumaninvolvement.
Prescriptive analytics: With data constantlymovinginandout,decisionsneedtobeautomated,too.Aprescriptiveanalyticsengineisabletotakedatainsightstothenextlevelbypresentingthebestavailabledecisions that humans or machines can act on.
GETTING STARTED:
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recommend the best possible decisions based on all the data points that are being interpreted.
Predefined algorithms
FusionOps // Industry 4.0: Are You Ready?9 Table of Contents
How it All Comes TogetherIndustry4.0ismuchbiggerthanjustthefactoryfloor.Itconnects,suppliers,customers,manufacturersandproductstogether,usingacloud-basedbigdataplatform.
INDUSTRY 4 .0
SUPPLYCHAININTELLIGENCECLOUDCollectiveIntelligence•Machine-DrivenPrescriptiveActions•MassCustomization
•Dynamic reconfigurabilityofsupplynetwork
•Total reliability•Rapid response to
changes in customer requirements
•On-demandmanufacturing
•Higher quality products
•Masscustomization
INTERNETOFTHINGS•Objecttagging•InternettoObjectcommunication•Real-timedatacapture•Optimizedstocks
SUPPLIERS CUSTOMERSCyber-physical systems (CPS)•Fullautomation•Totallyinterconnectedsystems•Machine-to-machinecommunications
ADVANCEDMANUFACTURINGSYSTEMS
SENSORS•Reactivity•Traceability•Predictability
ROBOT•Real-time autonomy•Fulltransparencyondatareporting
ADVANCEDMATERIALS•Smartvalue-added products•Technicaldifferentiation•Connectivity
FACTORY
FusionOps // Industry 4.0: Are You Ready?10 Table of Contents
How to Get There
IntelligenceismovingfromITteamstobusiness users and now to machines. Thefirststepismakingintelligenceself-service.Intelligenceneedstobemovedclosertotheplaceofdecision-making–closertobusinessusers.Ultimately,machineswillmakedecisionsandtakeactions.
Thesupplychainofanorganizationisnoexceptiontothistrendoftechnologicalevolution.Toadaptnow,companiesneedtodevelopaneasywaytointegratehugequantitiesofdatafrominternalandexternalsources,andleveragepredictiveandprescriptive
analyticstogetactionableinsightsfromthosesources.Withthesecapabilitieslinkedviaanintelligentcloudlayer,supply chains can be fully connected fromstarttofinish,settingthestageforautomationofroutinetasks.
FusionOpsisexactlythesolutionsupplychainleadersneedtotakeadvantageofeverythingtheneweraofindustryhastooffer.Combininganintuitiveintelligencecloudplatformwithsupplychainexpertiseandadvanceddatascience,FusionOpsallowsbusinessestomakebetterdecisionsquicklyandeasily.
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fromstarttofinish,settingthestageforautomationofroutinetasks.
Supply chains can be
fully connected
FusionOps // Industry 4.0: Are You Ready?11 Table of Contents
FusionOpsPathtoSupplyChain4.0
DISCONNECTED INTELLIGENTCLOUD AUTONOMOUSCLOUD
COMPANIES STRUGGLE
•Silos of raw data
•Onlyexecutionalsupplychainsoftware
•Limitedvisibility
•LackofcohesionbetweenSales,Finance,Suppliers,MFG,andLogistics
FUSIONOPS TODAY
•Integrates internal & external data in the cloud
•Leveragesdatascience& machine learning
•Reducecost-to-serve
•Breakdownsilosbetweeninternal teams and external stakeholders
FUSIONOPS TOMORROW
•Predict:failures,demand,supply,maintenance
•Act: automate responses thatdrivethesupplychain
•Optimizeautomatically
Logistics
MFG
Finance
Sales
Suppliers
Supplie
rsLogisti
cs
Finance
Sales
FusionOps // Industry 4.0: Are You Ready?12 Table of Contents
www.emarketer.com/Article/Companies-Keep-Up-with-Soaring-Customer-Expectations/1012615www.gartner.com/smarterwithgartner/what-supply-chain-leaders-need-to-know-about-industrie-4-0/www-01.ibm.com/software/data/bigdata/what-is-big-data.htmlwww.sloanreview.mit.edu/article/minding-the-analytics-gap/www.zdnet.com/article/industry-4-0-its-all-about-information-technology/www2.deloitte.com/content/dam/Deloitte/ch/Documents/manufacturing/ch-en-manufacturing-industry-4-0-24102014.pdfwww.mhlnews.com/global-supply-chain/how-will-industry-40-affect-supply-chain
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