The right MEDS (Maturity in Eco-systems & Data Science) to unlock value from digital - Part 3!
Badrinarayanan Parthasarathy
Director at EY Parthenon | Ex BCG - Pernod Ricard - L&T - Cognizant - Alstom | IIM Indore | NIT Trichy
Abstract:
With the rise of Industry 4.0 and other technologies and advent of post Covid new normal, all types of organizations have started talking big on digital, and have started doing digital as well. Through this article, I share my understanding of the maturity in India and a potential approach to progress the right way.
1. What is Industry 4.0? Why is analytics important to them? (Part 1)
2. How can analytics drive efficiencies & beyond? (Part 2)
3. How can analytics be a foundation for business evolution? (Covered here)
Recap - Part 1 & 2:
Industry 4.0 is not a revolution based on new technologies, but the ability to connect various elements in business - equipment, people and beyond. However, due to longer pay back period for such initiatives, adoption in India is still slow. Analytics, using all data that exists, may be the key to start delivering value and enable end-to-end transformation. Their exists use cases for analytics in all functional areas - manufacturing, supply chain and sales. However, adoption of such initiatives may need to take an incremental maturity approach to succeed, due to the existing ways of working and people mind set.
What is the recommended incremental maturity approach?
“Anything that is measured gets improved" - we can start applying rule based descriptive decision science from existing data to provide actionable inputs. This in-itself would create substantial business value, which can be used to digitize operations and enable better data collection. These can then be scaled up to perform causal analytics, and subsequently to predictive models as data volume goes up. This stage would help users perform sensitivity analysis and business validation, laying the foundation for trusting analytics at various levels. Once these are set in place, advanced analytics can come in to optimize operations and provide the value missed out from the preceding models.
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Apart from driving efficiencies and effectiveness, companies are looking at customer experience as a key focus area, and several businesses are transforming their operations through a customer-centric approach. They are upgrading from a sales approach to an eco-system approach – creating a metaverse-in-reality across supplier, organization, customers, influencers, and consumers. As the maturity increases, complementing alliances partners can be included in the eco-system for missing products and services, creating a single integrated platform for the consumer. A scenario, where an organization includes its competition in its own eco-system, may find increasing adoption in all sectors.
Conclusion:
At the current moment, analytics opportunities are still initiatives, the key however would be to adopt a strategy around analytics. Innovative business models like ‘Uber’, have changed the dynamics of the automotive sector. ‘Swiggy’ has revolutionized food and restaurant businesses. ‘Insta-mart and Zepto’ are?re-defining retail operations. The ‘urban claps’ have brought everyone to our door-step in the click of a button. More importantly, ‘Google’, which aspires to be the omnipresent, omniscient and omnipotent ??for consumers, has started investing in business graduates, as B2B and B2C have started merging into a single?eco-system.
It shall only be a matter of time for analytics driven strategy and operations to take precedence. Over time, supply chains across businesses including competitors, shall get integrated into common platforms – a concept several market leaders across sectors have started exploring. After-all, the concept of?“Vasudeva Kudumbakam”?is not just about geographical connect, its across everything from machines to businesses. As an after-thought, Industry 4.0, may be the physical manifestation of this concept, more than anything else that has occurred or may occur ever.
1. What is Industry 4.0? Why is analytics important to them? (Part 1)
2. How can analytics drive efficiencies & beyond? (Part 2)
3. How can analytics be a foundation for business evolution? (Covered here)
Disclaimer:??This article represents my thoughts/views on the subject based on personal and professional experience across organizations and is an upgraded version of my article for the student community of a management institute (Well-known Institute of Management in North India) last year and does not act as a research support or as a professional recommendation to any organization or from any organization. Special thanks to MS Power Point Icon and Image Search Feature for the nice images, and my friends for providing feedback on breaking up this article into multiple parts.