By its very definition, Industry 4.0 is disruptive and changes the very fabric of how things are done. It calls for a complex and intricate interplay between various processes, approaches and ideas. It also introduces innovative concepts and business models that are not easy to adopt, and have been slow in taking hold.
Some of the things that are bound to be affected by Industry 4.0 are services and business models, reliable and continuous productivity, IT security, machine safety, product lifecycles and industry value chain. Industry 4.0 is also going to affect workers, creating new opportunities but also causing some loss of jobs, with a resultant socio-economic impact.
Embracing this transformation and enabling businesses to survive and thrive requires an entirely new mind-set. It also means that organisations need to engage with partners who are able to take the risk to undertake projects that propose radical solutions to problems and use breakthrough technology.
Coordinating actions across different organisational units is difficult, and resistance to change has to be overcome across the board. Finding the right talent, changing the way the organisation deals with data and data security, and managing the adoption of new standards are some of the challenges. As a result, adoption has been slow. According to McKinsey, only 30% of technology suppliers and 16% of manufacturers have an overall Industry 4.0 strategy in place, and just 24% have assigned clear responsibilities to implement it.
One of the biggest challenges around Industry 4.0 is catering to a new generation of consumers called Generation C. Generation C refers to a generation of connected people. Gen C is a powerful new force in consumer culture. It's a term we use to describe people who care deeply about creation, curation, connection, and community. It's not an age group, it's an attitude and mindset defined by key characteristics.
People belonging to this group are complex and connected, focused on creating and controlling both their content and the communities they interact with. They are also the key protagonists of Industry 4.0. Without them, Industry 4.0 would not happen.
According to a study by Google, Gen C people would typically exhibit the following traits:
• 90% create content for the net at least monthly
• 83% have posted a picture online
• 76% visit YouTube weekly
• 59% look to the internet as their main source of entertainment
• 56% have followed through after watching ads on YouTube
• 55% are connected to 100 or more people through social media
In order for business to tap into this market, it must first take into consideration the fact that Industry 4.0 is all about the connected world. It is about data, and it is about learning and analysing and deciding based on data. An organisation that is not digitally transformed will not be successful in adopting 4.0, because the required underlying data will not be available, never mind the required analysis, decision making, and strategic shifts that are required.
Such business must also become part of the communities of their customers, which implies a far more personal relationship than previous generations have developed. Digital transformation lies at the heart of accessing this new breed of customer in order to leverage new applications and enablers, including big data, the IoT, cloud, mobility, collaboration and more. These tools make up the heart of the smart digital enterprise.
According to Cisco, the IoT is the intelligent connectivity of smart devices by which objects can sense one another and communicate, thus changing how, where and by whom decisions about our physical world are made. In order to move into this world, the organisation needs all the things that make these decisions possible, i.e. connectivity, sensors, data storage, data analysis, dashboards, secure connections, ubiquitous access to data and analysis results on various devices at all times of the day and night.
The least risky way to embark on the journey towards smart digital enterprises is to incubate the concept using the right combination of the above concepts. It is undoubtedly going to be a challenging journey unless there is budget available for the tools and applications required, smart 'Gen C' people involved, and the right level of strategic thinking at executive level.
