4.0 thoughts on Digitalization strategy

“Awesome, we need to ‘get some of those’!” The potential of actually using some of the amazing new technologies in industrial practice is awesome indeed. Now, I do not mean to be a party p**per, but what does that actually mean? What does all this “Virtual Stuff” (Industry 4.0 / Internet of Things (IoT) / Big Data / Cyber-Physical Systems (CPS) / etc.) mean beyond the visionary, at the tactical level where mid-level management needs to find a way to implement all this? We need to move beyond visionary planning and start to create the time and space to play and improve. Those who do not play may retire early. Sooner rather than later key components of your business will be digital. Here are my 4.0 things to think about when designing your digital strategy.

1.0 Network quality

The first one is technical and should be obvious. You cannot connect things when the connection itself is poor. The following is a basic list of what in the current context qualifies as network quality:

• Coverage
• Bandwidth
• Integration with other elements

Depending on the operating conditions network quality may be quite a challenge. For example, in industrial production environments there may be dust or mists that obscure network, high temperatures, magnetic fields, heavy constructions, constructions that block part of the radiation (Faraday’s cage), and undesired interaction between machines and fields. An example of the latter may be a network field interfering with medical equipment or a copier.

The network field coverage in the work environment is non-trivial, especially for mission critical information exchange. Receiving and e-mail two minutes later is usually fine, but when controlling a robotic arm, things may get nasty quit quickly. Luckily, there are applications and companies providing services to design and verify network density. In addition to the coverage element of network density one also needs to (over)design for bandwidth. How many agents will interact with each other at what data rates and at what level of criticality? What is your strategy for expansion, i.e. what happens during the five years or so after implementation? More agents? Augmented Reality glasses?

2.0 Security

The times that you could use your neighbors WiFi using a laptop, nmap, and a Pringles can are a bit of the past. However, also the proverbial Pringles can has evolved and during the past few years, attacks have become more prevalent and sophisticated. Implementing an IoT strategy and then being ransomed for a bunch of bitcoins (at least at the time of writing ;)) is not something you want to explain to your manager or board.

3.0 Legal aspects

Legal responsibility has been an easily overlooked item on the list until quite recently (link self-driving car hitting a person). When systems are all connected and partly intelligent, who is to blame when something goes sideways? Of course, accidents are an extreme example, but one can also think about production delays and customer claims. Who messed up? The person with the Virtual/Augmented Reality glasses, the intelligent robot, the “system”, who? Here we clearly need some new, not too restrictive legislation. A balance must be struck between preventing to be wiped out by AI, the possibility of a self-driving car being sued after an accident, the freedom to experiment and move forward, and finally yet importantly, the freedom to explore economic benefits. After all, in the end someone needs to pay for the matrix.

4.0 Vision

The last but certainly not least point is vision. A clear and articulated vision helps to keep on track make the best choices you can. Digitalization is moving fast and quite often we do not know what is coming. When things speed up and get messy a clear head is what separates the bytes from the bits (sorry, could not resist). Do not step into Cyber-Physical Systems because that is what you are supposed to do right now. Do not go paperless because that is what your friend of competitor says he is doing. Do not expect that “Going Digital” or “Embracing the Digital Transformation” is good enough.

For Digitalization to work, be safe, and be an actual net plus in society and the economy we need:

• A clear vision

Why do we want Digitalization? What should it bring to the business? What does the implementation look like? What should it not look like?

• Metrics

Quantify several goals along a roadmap to your vision, track deviation, and adjust as you go. Some obvious metrics are lead-time, cost per unit, production per month, and claims per x amount of pieces produced. Additional metrics are for example product quality, product tracking, upstream and downstream integration,

• Clarity of vision and mission on all levels

The most important is to create a culture where everyone at all levels understand the vision and mission and how his or her part contributes. Digitalization is set up for failure when it remains a visionary discussion at top level. Digitalization is a messy and turbulent journey. Only when the frontline troops understand the goal and have the freedom to adjust as circumstances develop can you move forward (see “Commander’s Intent” in Jocko Willink and Leif Babin's book "Extreme Ownership". In fact, see the entire book.).

Technology is of course a key component of Digitalization, but that is not where the biggest bottleneck lies. Digital awareness and (corporate) cultural changes are needed to not just burn our hands on this new fire, but also learn to cook with it. See you on the other side of the singularity.