overcoming key barriers to the adoption of industry 4...digital? • what is the digital maturity of...
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Overcoming Key Barriers to the Adoption of Industry 4.0Dr Nico Adams
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Where are we?
01
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Non-functioning B2B Business Process Data Exchange
• Typing: 120 AUD/hour• 1 hour to process order• 200 orders a month
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Discussion Papers
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Low Use of Internet in Manufacturing
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Non-functioning B2B Business Process Data Exchange
• Typing: 120 AUD/hour• 1 hour to process order• 200 orders a month
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Non-functioning Engineering Data Exchange
• Not just business process data…engineering data too…
• Problem replicated again and again and again….
• Extrapolation over manufacturing sector: between 1 and 10 billion AUD lost productivity
Courtesy of Dr Steve Dowey, Sutton Tools
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Business Aspects
• (Manufacturing) companies do not have digital strategies
• (Manufacturing) companies do not understand business models enabled by digital
• (Manufacturing) companies do not know how to take advantage of IoT
• Lack of skills
• Want: Capability Discovery over an Industrial Internet Innovation Ecosystem
cf. Germany:
80 % of value chains digitised by 2020
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It’s a Journey
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Industry 4.0 –What changes?
02
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Industry 4.0 – What is it?
Industry 4.0
Autonomous Robots
System Integration
Internet of Things
Simulation
Additive Manufacturing
Cloud Computing
Augmented Reality
Big Data
Cybersecurity
A confluence of multiple technology sets…
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…which all drive towards one thing….
….concepts that denote the digitisation of
industrial value chains……
“…the (real-time) intelligent integration of
humans, machines and objects towards a
management of systems…..”
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…and that changes the game…
Traditional (Manufacturing)
Mindset
Digital (Manufacturing)
Mindset
Value Creation Customer Needs Service existing needs,
reactive
Address real time + emergent
needs in a predictive manner
Offering Product obsolescence as a
function of time
Product refresh via software
update, partial physical upgrade,
synergistic
Role of Data Single data point to define
future products
Use data to create product
experience, enable services,
synergies with other systems
Value Capture Profit Creation Sell the next/more of product Enable recurring revenue
Control Points IP ownership, brand,
commodity advantage
Personalisation, context, network
effects
Capability Use existing core competence,
resources and processes
Systems thinking, n-sided
markets, platforms
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Platform Economics
Products > Services > Platforms
Source: Adrian Turner, Data61
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What are the Opportunities?
03
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Business Opportunities in Digital Manufacturing….
https://reports.weforum.org/industrial-internet-of-things/general-findings/2-2-the-four-phases-of-the-industrial-internet-evolution/
• Better visibility into factory• Better visibility into supply chain• Better HSE outcomes
• Servitisation• Predictive/preventative maintenance• “Pay per laugh”
• On demand, hyperlocal manufacturing of customised products for audiences of one
• Self-assembling factories• Self-configuring factories
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Operational Efficiency/New Services
Wait for Steve Dowey, Sutton Tools
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Building a Manufacturing Platform Business
Building Platform Business….
https://www.trumpf.com
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Pull Economy
“Pull approaches, in contrast, tend to be implemented on
"platforms" designed to flexibly accommodate diverse
providers and consumers of resources. These platforms are much
more open-ended and designed to evolve based on the learning and
changing needs of the participants. Once again, we do not mean to use
platforms in the literal sense of a tangible foundation, but in a broader,
metaphorical sense to describe frameworks for orchestrating a set of
resources that can be configured quickly and easily to serve a broad
range of needs. ”
http://www.johnhagel.com/from-push-to-pull/
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Manufacturing On Demand
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So how to respond?
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Dual Strategy
&Leading
AdoptorLeading
Supplier
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Learn, Develop Strategy…
• Step 1: Develop a Digital Strategy and lay the groundwork
• What business outcomes do I want to achieve and how can digital help?
• Which new products and services do I want to develop and what is the role of
digital?
• What is the digital maturity of my company?
• Which capabilities (systems, tools, digital skills etc) do exist in my company to
get me closer to my business goals? Which ones do I need to invest in/find
partners for?
• Which structures, processes and talents in my company support digital
innovation? Which ones do I need to put in place?
• Which culture in my company supports digital innovation? Which mindsets and
behaviours are in place and which ones do I need to nurture and/or change?
• Step 2: Learn from Peers and Collaborate with Peers
• Find peers that already work with I4.0/II technologies and learn from them
• Collaborate on pre-competitive activities
• Reach out to research providers (CSIRO, universities), CRCs, Growth Centres and
industry associations (e.g. AiG) to find connections
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Experiment Bottom Up and Scale…
• Step 3: Experiment Bottom Up and Scale Slowly
• low cost, low risk
• e.g. find summer students or interns with the required capabilities (e.g.
using the Ribit platform) and work on proving an IoT enabled business
case/tech case with them (also gets new capability into the company)
• Take advantage of researcher in business
• Be agile in your experimentation
• …
• Step 4: Invest Systematically once Business Case has been proven
• Funding is potentially available through
• IMCRC
• AMGC
• CRC-p
• CSIRO Innovation Fund
• …..
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Innovative Manufacturing CRC
• Up to $30million to match industry cash
• Co-funding for manufacturing research with
Australian universities and/or CSIRO
• Projects through to 2022
• Industrial Transformation Program
• SME education, awareness and training to
catalyse investment in digital transformation
• Leadership and Business Model Innovation
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IMCRC Industrial Transformation Program
BUSINESS MODEL
INNOVATION
INDUSTRY 4.0MANUFACTURING
LEADERSHIP