IND USTRY 4.
0 :
Are You Ready?
FusionOps // Industry 4.0: Are You Ready?
Table of Contents
Ta b l e of Co ntents
A Connected Planet
Industry 4.0 Basics
Your Customers are Demanding It
3 Keys to Supply Chain Success in Industry 4.0
Getting Started: Open Big Data Repository in the Cloud
Getting Started: Cloud Intelligence Layer
Getting Started: Advanced Data Science
How it All Comes Together
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How to Get There
FusionOps // Industry 4.0: Are You Ready?
Table of Contents
A Connected Planet
Among self-driving cars, drones,
and responsive to changes through
smartphones and even wearable
cloud technology. And Big Data wont
technology, its clear that intelligent,
just get bigger, it will get smarter
connected devices are shaping
relying on predictive and prescriptive
our everyday lives. The supply
analytics to drive decision making.
The supply chain is
moving towards
automation.
chain is no exception to this wave
of technological change. Within a
Ultimately, not only the factory, but
few years, factories will become
the entire supply chain is moving
a mesh of cyber-physical systems
towards automation and even
where connected devices exchange
awareness that will change how
information and take actions without
products are ordered, manufactured,
requiring human involvement.
shipped and consumed. This evolution
Suppliers, manufacturers and
is called Industry 4.0,
customers will be more closely aligned
and its happening now.
Are you ready?
FusionOps // Industry 4.0: Are You Ready?
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Industry 4.0 Basics
The term Industry 4.0 presupposes
As the next logical step forward,
the passing of three major shifts
Industry 4.0 will combine the major
in how businesses approached
technological advances of the 21st-
manufacturing throughout modern
century with the same innovations
history, tracing its roots as far back as
that have made manufacturing a
the 19th century:
cornerstone of modern life.
Industry 1.0: The Industrial
Revolution redefines human
limitations by harnessing the power
of water and steam.
The Internet of Things will connect
devices and workers in the factory
with products and consumers in
the field.
Industry 2.0: Electricity pushes
people and machines even further as
manufacturing grows in scale
and scope.
Big Data technology and strategies
will handle the massive influx of
raw data from these devices.
Industry 3.0: The modern computer
opens the door for automation and
advanced statistical analysis.
together so businesses can store,
analyze and make sense
of everything.
FusionOps // Industry 4.0: Are You Ready?
Connect
devices and workers
in the factory
with products and
consumers in the field.
Cloud software will bring it all
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Your Customers are
Demanding It
Industry 4.0 is about more than just
same survey found that 60 percent
information technology. Its also
of executives said their business is
about what the customer wants.
struggling to meet these heightened
Thanks to the rise of e-commerce
demands, many of which are rooted in
giants like Amazon and the ability to
the supply chain.
60 %
of businesses
are struggling to
meet consumers
heightened
demands.
review everything online, customers
today have higher expectations than
These higher consumer expectations
ever before.
faster delivery, lower prices and
more customization wont just
In one recent survey, 82 percent
impact the retail world. This has huge
of businesses reported they have
ramifications for manufacturers in
encountered more specific and
every industry, which will need to
stringent consumer expectations,
deliver customized products at lower
including a desire for faster delivery
cost to meet heightened expectations.
time, lower prices, simple returns and
Ultimately, companies will need to get
a high degree of customization. The
down to batch size of one.
FusionOps // Industry 4.0: Are You Ready?
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3 Keys to Supply Chain
Success in Industry 4.0
In Industry 4.0, the entire supply chain will become even more compressed
and tightly integrated. Product life cycles will get shorter, lead times will
shrink and the margin of error will get even smaller. To account for these
changes, there are three key areas where executives will need to focus their
attention and drive improvement in order to be successful in Industry 4.0:
1. Innovation and supplier management: The abundance of user and manufacturer data
will allow businesses with the right tools to create advanced predictive models of their
supply operations before putting them in place.
2. Agility and visibility: As consumer demands grow more complex, supply chains will
need to be ready to pivot at a moments notice. This requires full transparency and
increased visibility within each facet of supply operations.
3. Efficiency and cost: All of this must be achieved on razor-thin profit margins. Machine
learning and advanced analytics can help businesses realize their full potential, but only
if they can acquire data insights quickly.
FusionOps // Industry 4.0: Are You Ready?
82%
of businesses
reported they
have encountered
more specific and
stringent consumer
expectations.
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G E T T I N G S TA RT E D :
Open Big Data Repository
in the Cloud
With Industry 4.0, Big Data will get
integration and scalability of data
bigger a lot bigger. By 2020, the
sources. Companies that keep data
worlds data volume is set to be 50
locked away in silos wont be able
times larger than it is today. Many
to identify new opportunities fast
organizations are already finding that
enough, and will risk falling behind.
legacy databases and systems simply
By leveraging cloud-based open
wont handle the vast amounts of data
platforms that support both standard
being generated inside (and outside)
APIs and proprietary integrations,
the business. Thats why Big Data
data is more visible and accessible
and the crux of Industry 4.0 will live
to networked devices, machines
in the cloud.
and people. Look for open Big Data
platforms to break down silos and
With a growing number of connected
unlock your full productive potential
devices, Big Data must live in
in Industry 4.0.
By 2020, the
worlds data volume
is set to be
50x larger
than it is today.
open platforms to enable ease of
FusionOps // Industry 4.0: Are You Ready?
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G E T T I N G S TA RT E D :
Cloud Intelligence Layer
For the past 25 years, companies
unlimited data sources. The cloud
have relied on manual, desktop-based
intelligence layer speeds up analysis
reporting to get information about
of data by providing supply
the business to support decision-
chain-specific models including
making. In Industry 4.0, a companys
common metrics like on-time in-
ability to derive intelligence from the
full, inventory days of supply,
staggering amount of operational data
supplier responsiveness and forecast
available to them will be the primary
accuracy. The cloud intelligence
determinant of their ability to grow.
layer leverages the real-time data in
the central cloud data repository to
This will be achieved through a
set goals and achieve measurable
cloud intelligence layer that enables
business impact using a library of
dynamic, real-time insights across
supply chain metrics.
FusionOps // Industry 4.0: Are You Ready?
A cloud intelligence
layer enables
dynamic, real-time
insights across
unlimited data
sources.
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G E T T I N G S TA RT E D :
Advanced Data Science
In Industry 4.0, the supply chain will be moving so fast and the data will be
so complex that human intelligence alone will not be able to keep up many
decisions will need to be automated. The first step towards automated decisionmaking is embedding advanced data science into the supply chain. Many
companies are doing this with software tools and highly-paid data scientists.
More advanced companies are using predefined algorithms to recommend the
best possible decisions based on all the data points that are being interpreted
without human involvement.
Predictive analytics: This is used
Prescriptive analytics: With data
for things like demand forecasting,
constantly moving in and out,
maintenance schedules and product-
decisions need to be automated,
use insights, which can all be
too. A prescriptive analytics engine is
effectively predicted with the right
able to take data insights to the next
data science tools.
level by presenting the best available
Predefined
algorithms
recommend the
best possible
decisions based on
all the data points
that are being
interpreted.
decisions that humans or machines
can act on.
FusionOps // Industry 4.0: Are You Ready?
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I N D U S T RY 4 . 0
How it All Comes Together
Industry 4.0 is much bigger than just the factory floor. It connects, suppliers, customers,
manufacturers and products together, using a cloud-based big data platform.
SUPPLY CHAIN INTELLIGENCE CLOUD
Collective Intelligence Machine-Driven Prescriptive Actions Mass Customization
ADVANCED MANUFACTURING SYSTEMS
SUPPLIERS
Dynamic
reconfigurability of
supply network
Cyber-physical systems (CPS)
Full automation
Totally interconnected systems
Machine-to-machine communications
Mass customization
Rapid response to
changes in customer
requirements
SENSORS
Reactivity
Traceability
Predictability
ADVANCED MATERIALS
Smart value-added
products
Technical differentiation
Connectivity
FACTORY
FusionOps // Industry 4.0: Are You Ready?
On-demand
manufacturing
Higher quality
products
Total reliability
CUSTOMERS
ROBOT
Real-time
autonomy
Full transparency
on data reporting
INTERNET OF THINGS
Object tagging
Internet to Object
communication
Real-time data capture
Optimized stocks
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How to Get There
Supply chains can be
fully connected
Intelligence is moving from IT teams to
analytics to get actionable insights from
business users and now to machines.
those sources. With these capabilities
The first step is making intelligence self-
linked via an intelligent cloud layer,
service. Intelligence needs to be moved
supply chains can be fully connected
closer to the place of decision-making
from start to finish, setting the stage
closer to business users. Ultimately,
for automation of routine tasks.
from start to finish,
setting the stage
for automation of
routine tasks.
machines will make decisions and take
actions.
FusionOps is exactly the solution
supply chain leaders need to take
The supply chain of an organization
advantage of everything the new era
is no exception to this trend of
of industry has to offer. Combining an
technological evolution. To adapt now,
intuitive intelligence cloud platform
companies need to develop an easy
with supply chain expertise and
way to integrate huge quantities of data advanced data science, FusionOps
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from internal and external sources, and
allows businesses to make better
leverage predictive and prescriptive
decisions quickly and easily.
FusionOps // Industry 4.0: Are You Ready?
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FusionOps Path to Supply Chain 4.0
INTELLIGENT CLOUD
AUTONOMOUS CLOUD
Su
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DISCONNECTED
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up
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Sa
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Fin
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COMPANIES STRUGGLE
FUSIONOPS TODAY
FUSIONOPS TOMORROW
Silos of raw data
Integrates internal &
external data in the cloud
Predict: failures, demand,
supply, maintenance
Leverages data science &
machine learning
Act: automate responses
that drive the supply chain
Reduce cost-to-serve
Optimize automatically
Only executional supply
chain software
Limited visibility
Lack of cohesion between
Sales, Finance, Suppliers,
MFG, and Logistics
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FusionOps // Industry 4.0: Are You Ready?
Break down silos between
internal teams and external
stakeholders
Table of Contents
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www.emarketer.com/Article/Companies-Keep-Up-with-Soaring-Customer-Expectations/1012615
www.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.html
www.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.pdf
www.mhlnews.com/global-supply-chain/how-will-industry-40-affect-supply-chain
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FusionOps // Industry 4.0: Are You Ready?
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