Embracing people, process and technology within the fourth industrial revolution

Are you aware of the benefits of embracing Industry 4.0 or even know of what it is???

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Introduction?

The fourth industrial revolution is upon us, probably better known as Industry 4.0 or by some of the constituent parts IoT or machine learning. But what does this new conceptual industrial era really mean for organisations and how do we strategically harness the benefits it can bring? What are the implications of incorporating new technology into current organisational setups? How does this impact the People, Process and Technology balance we try to achieve during Digital transformation? This article will ground concept into practical applications and best practice. If you are searching for solutions, this is a possible next step in your digital transformation and strategy journey.?

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What is Industry 4.0??

Industry 4.0 technology helps organisations manage and optimize all aspects of your manufacturing processess and supply chain. The fourth industrial revolution conceptualises rapid and radical change to technology, industries, employee patterns and processes. Realised by increasing the interconnectivity and smart automation within a particular ecosystem. This may sound simple but the repercussions and possibilities that arise from this are profound and far reaching.??

Think of the idea of a centralised data source supporting realtime data driven decision making. Or where inteligent automation can lessen the burden on HR to hire new employees in a time of great attrition, cutting costs and reducing human error with tasks that employees are happier not doing anyway. The list goes on and with it the idea that we should be taking the opportunities of this new Industrial era seriously, our organisations health might depend on it in the mid and long terms. While this might seem far off, its vital we start laying foundations now or risk missing the boat.?

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So just what are these opportunities? Internet of things is essentially a network created by connecting all sorts of devices, sensors, vehicles, software and more. Enabling these objects to connect and share data.??

In terms of business use IoT's is the difference between having hundreds of pockets of data all over your organisation or having all data feed into one compository allowing us to get more detailed picture about customers, operations and the organisations value chains to name a few.??

But with so much data at our finger tips, there is a need to process raw data to become usable. The value comes with managing this big data and analysing it to create information the organisation can use for decision making, to optimize processes and even innovate new products and services.??

The dawn of Cloud computing has made the use of other Industry 4.0 technologies even easier because you don't need to own a physical data center anymore to simply store and process your data. By democratising the capabilities we need to tap into the value of big data, companies of all sizes can make use of cloud storage and data processing options allowing them a cost effective foundation for growing their Industry 4.0 big strategy.??

Basic automation can make work flow better, automating processes that lead to reduced costs, improved quality, improving standardisation by removing human error and increased efficiency. Pre thought out strategy and planning are necessary though, to reap these benefits. Artificial intelligence and cognitive computing form the intelligent part of automation and enable the option of many more parts of important processes to be automated.??

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A few business use cases in a nutshell:?

• Using intelligent automation to automate processes leading to a reduction of personnel, improved OEE and associated costs in a factory.?
• Using cloud computing to store and process data means you pay for what you use and gives the opportunity to reduce your technical debt and any data centres no longer needed.?
• Using IIoT to create a smart factory setup connects necessary objects and so they share data that can improve decision making and increase the efficiency of operations.?
• Using a smart factory setup for all your factories enables a Connected worker setup, not only is your data centralised but your employees performance,? motivation and knowledge capture can improve in the process.?

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Many of the applications and benefits are universal to the business world with more Manufacturing Industry specific approaches getting developed to meet the fast pace of development and assimilation of technology in this industry. Internet of things or IoT is a prime example with Industrial internet of things (IIoT) growing in recognition and is one of the quickest developing segments of IoT. But for the purposes of this blog we will stay in the context of the manufacturing industry. Feel free though to contact us if you are from other industries and would like to discuss this topic further for your industry.?

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The danger of not acting soon?

It's so advanced we can't touch it, but know that its a very real phemomena that will only increase in complexity, capability and the benefits it brings to businesses who embrace it. Wait too long before implementing the various technologies and there will inevitably be a point of no return. Created by the fact that the technological advancements will only increase in speed and certainly won't stand still for anyone. The choice is to think big taking small steps toward this vision, or think small losing the bigger picture and real benefits that could be realised. Thinking big requires strategic thinking and questioning of the different approaches while maintaining an eye of the fact that technology is inevitably just a tool and we need engagement of people within this journey for it to be successful.??

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The premise of there being a point of no return is based on two factors.??

By not implementing the technology or delaying this, the gap between the ‘As is’ and the ‘To be’ technology capability is growing. Why is this important? Imagine the ideal situation where your company is highly competitive in its various markets because its using the latest technology. If this isn't the case, then we need to invest in the digital transformation needed to reach this state.??

The bigger the gap, the more investment it takes to reach our 'to be state’. Besides this the digital transformation takes time, again the bigger the gap the more time it will generally take just to get to the current level of technilogical capbility running the risk of having invested in past technology by the time we reach our end goal.?

So all-in all, the bigger the gap the higher the risks, and the longer transformation will take. The second factor is that technological advancements are presently relatively juvenile and easier to implement. But like with any new technology we have seen in the past, if it was worth developing it soon became something wholely adult and complex. The longer companies wait to engage with Industry 4.0, the more complex the technology will likely become adding to the levels of risk involved in any given project. So there is a logical point of no return when the amount we need to invest is not logical with the levels of risk and potential ROI. Starting with a strategy of think big, and start small is a great way for companies to start bridging the gap.?

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The need for digital strategy and organisational change management?

Implementing new technologies in an organisation can have huge impacts on the governance, the process structure and especially the employees. Analysing the ‘as is’ and 'to be’ states are vital to creating a strategy that takes the path of least resistance, namely foreseeing barriers that could be troublesome and applying change management best practice that can get rid of more that would inevitably arise during the course of the digital transformation if left unmanaged.??

The strategy chosen for Industry 4.0 technology implementation and use is going to be pivotal for competitive advantage, ROI and simply staying relevant in face paced markets and developing technology. Many companies opt for a start small approach, focusing on point solution pilot or proof of concept (PoC) projects.??

Even if these are successful, these have often not taken into account the bigger picture and larger integration challenges go neglected. Furthermore, taking too long on PoCs or pilots in this small approach can leave us testing technology that is outdated or no longer the best solution available to us. Resulting in a big investment but not really realising the full ROI that was available to us initially.??

We advocate for the Think Big, Start Small approach. Essentially creating a clear vision of how we are going to realise value from the investment into Industry 4.0 in everything from the first steps to how these come together in the bigger picture. Strategically analysing what technology to apply and how best to apply it. Bringing this together with some basic assessments of the ‘as is’ and 'to be’ states, where we gain a deeper understanding of the company we wish to change.??

Whatever the strategic setup may be, with the very thought of starting some of these projects comes a great deal of change for an organisation’s employees. Strategically cancelling unnecessary changes through a tactically smart Roadmap is a good start, but there are some natural steps to take in order to help the employees understand why these changes are needed and how they can become actively involved in the value proposition of a project.??

Neglecting to manage change will leave an organisation feeling the fall out with situations like high employee attrition rates which in turn effects CSAT figures and the companies ability to function where vital knowledge workers are taking highly sought after expertise somewhere else.??

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A few situations where strategy and change management can improve a companies bottom line during Digital transformation.?

• When a client is wanting to increase their digital maturity via a rigorous Digital transformation program, there is a need to gather information about the ‘as is’ state while clarifying the 'to be’ state. Strategic analysis and advisory are key to helping this client realise the choices they have on the table and plot the best path toward digital maturity.?
• Implementing new technology that requires employees to be tech able and where they don't have this ability will inevitably lead to failure.? Unless we plan strategically sound communications, manage proper training of employees and take the time to help them understand why this change is happening now and whats in it for them if they proactively take part instead of resisting.?
• Implementing a project to automate large parts of processes can leave employees worried for their jobs and uncertainty about basic governance issues like responsibility, roles descriptions and who essentially needs to do what tasks. Strategically assessing the needs of the situation by interviewing key stakeholders? to give a clear picture of the ás is’state. Outcomes like reorganising the governance structure to accomodate the new automations and setup up a project to clarify roles and responsibilities within this. Using Change management best practice support the employees through this process change.??