overcoming key barriers to the adoption of industry 4...digital? • what is the digital maturity of...

Overcoming Key Barriers to the Adoption of Industry 4.0Dr Nico Adams

IMCRC Presentation 2

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


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


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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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/


So how to respond?

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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

• …..


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

overcoming key barriers to the adoption of industry 4...digital? • what is the digital maturity of...

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