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Industry 4.0Changes
Everything
Joel SemeniukFounder (1997), Chief Innovation Officer, Imaginet
Corporate Microsoft Regional DirectorStartup Mentor, Angel Investor
Chief Innovation Officer (CInO)
My job is to Foster Innovation (something new, original, or improved that creates value)
WITHIN MY COMPANY
WITH OUR CUSTOMERS
WITH OUR PARTNERS
Innovation is…
SOMETHING NEW, ORIGINAL, OR IMPROVED
THAT CREATES VALUENothing more fancy or inspiring than this.
The brainchild of the German government describing the next phase in manufacturing – a fourth industrial revolution.
INDUSTRY 4.0
MechanizationSteam PowerWater Power
The rise of the factory system
“END OF 18TH CENTURY
1st Industrial Revolution
Mass ProductionAssembly LineElectricity
It is considered to have begun with Bessemer steel in the 1860s and culminated in mass production and the production line.
“BEGINNING OF 20TH CENTURY2nd Industrial Revolution
ComputerAutomation
First programmable logic controllerLed to wide-spread use of robotics
“EARLY 1970s
3rd Industrial Revolution
Cyber Physical SystemsInternet of ThingsInternet of Services
Evolving at an exponential rate. The breadth and depth of these changes herald the transformation of entire systems of production, management, and governance.
“NOW
4th Industrial Revolution
First presented at Hannover Messe. Some are calling it Data-Driven Product Lifecycle
MANUFACTURING 4.0
3 years
2 years
1 year
SHORTER DELIVERY TIMES VOLATILE MARKETS
24/7 SERVICE
SHORTER PRODUCT LIFE CYCLES
MORE INDIVIDUALIZED CUSTOMER WISHES
IoT Service Operation
Batch-Size One3D Printing
Next-Gen. Robots
Intelligent Powertools
App Store/Digital Services
Connected Products
Remote Monitoring,
Predictive Maint.
End-2-End Digital
Engineering
IoT-Enabled Manufacturing
IoT Service Implementation
Sales/Marketing & Business Models
Work Environment
Adaptive Logistics
Aftermarket Services
Product Usage Data
CONTINUOUS PLANNING
CONTINUOUS MONITORING
TIGHT FEEDBACK LOOPS
CONTINUOUS RELEASE CYCLES
INTERNET OF DATA
INTERNET OF THINGS
INTERNET OF SERVICES
INTERNET OF
PEOPLE
INDUSTRY 4.0
Smart Factory
Smart Mobility
Smart Grid
Smart Areas
Smart Logistics
Social Web
Business Web
Smart Buildings
NEW OPPORTUNITY FOR LEARNING AND CUSTOMER SERVICE.
CONTINUALLY MODIFYING MANUFACTURING BASED ON OPERATIONAL DATA
OVER THE AIR UPDATES
CONTINUALLY ROLLS OUT NEW “FEATURES”
CONTINUOUS MONITORING
NEW OPPORTUNITY FOR LEARNING AND CUSTOMER SERVICE.
CONTINUALLY MODIFYING MANUFACTURING BASED ON OPERATIONAL DATA
OVER THE AIR UPDATES
CONTINUALLY ROLLS OUT NEW “FEATURES”
CONTINUOUS MONITORING
Tesla knows you have a flat BEFORE YOU DO
and is already acting on it.
COMPETING FOR VALUE, NOT EFFICIENCY
LET’S TAKE A LOOK AT AMAZON
IT’S ABOUT DATA!
LET’S TAKE A LOOK AT AMAZON
But what's really driving Amazon's growth is itsCLOUD-COMPUTING BUSINESS
Industry 4.0 Didn’t Start with Manufacturing
SOFTWARE
is Eating the World
Software is Already
Good at This
AND HAS BEEN FOR A
WHILE
DevOps
Continuous feedback
OPERATE
STEER
DEPLOY
DEVELOP/
TEST
Continuous business planning
Continuous customer
feedback and optimization
Continuous testing
Collaborative development
Continuous monitoring
Continuous release
and deploymen
t
Data Is the New Oil
DATA
NEEDS
=~
NEEDS
• What does Industry 4.0 have to do with how we run our business?
• Premise: Industry 4.0 is a reflection of change already in motion that will impact everyone and everything on the planet
“WHAT DOES THIS
MEAN TO US?
NOBLE PRIZE WINNER
• Firms exist in order to reduce transaction costs and take advantage of economies of scale
• Firms will tend to grow larger and larger over time
For most of the 20th century, we witnessed this.
It has different goals, different ways of organizing and coordinating work, different values and different ways of communicating from the way organizations were run in the 20th Century. It entails different ways of thinking, speaking and acting in the workplace. It is not only better for those doing the work and for those for whom the work is done: it is vastly better for the organization itself and its shareholders. Firms operating in this different are extraordinarily profitable.
“WHAT WE NEED IS NOT BETTER MANAGEMENT OF THE SAME KIND, BUT RATHER MANAGEMENT
OF A DIFFERENT KIND.
Steve Blank: Lean Innovation Management – Making Corporate Innovation Work
HORIZON 1
HORIZON 2
HORIZON 3
SALES
FOCUS
OUTPUT
TIME
EMERGING BUSINESSUncovering options for future opportunities and placing bets on selected optionsDecisions to explore: initial project plan, project milestones
Source: Baghai, Coley, White
Steve Blank: Lean Innovation Management – Making Corporate Innovation Work
HORIZON 1
HORIZON 2
HORIZON 3
SALES
FOCUS
OUTPUT
TIME
EMERGING BUSINESSUncovering options for future opportunities and placing bets on selected optionsDecisions to explore: initial project plan, project milestones
RAPIDLY GROWING BUSINESSResourcing initiatives to build new businesses
Business building strategies: investment budget, detailed business plans for new ventures Source: Baghai, Coley, White
Steve Blank: Lean Innovation Management – Making Corporate Innovation Work
HORIZON 1
HORIZON 2
HORIZON 3
SALES
FOCUS
OUTPUT
TIME
EMERGING BUSINESSUncovering options for future opportunities and placing bets on selected optionsDecisions to explore: initial project plan, project milestones
MATURE BUSINESSExecuting to defend, Extend, and increase Profitability of existing businessesAnnual planning and forecasting, Detailed plans for growth through adjacencies
RAPIDLY GROWING BUSINESSResourcing initiatives to build new businesses
Business building strategies: investment budget, detailed business plans for new ventures Source: Baghai, Coley, White
Industry 4.0 Thinking Driving Disruption Today• Worlds largest taxi company owns no taxis (Uber)
• Largest accommodation provider owns no real-estate (AirBnB)
• Largest phone company owns no telco Infrastructure (WeChat)
• Worlds most valuable retailer has no inventory (Alababa)
• Most popular media owner creates no content (Facebook)
• Fastest growing banks have no actual money (SocietyOne)
• Worlds largest movie house owns no cinemas (Netflix)
• Largest software vendors don’t write the apps (Apple & Google)
BUILT TO INNOVATEWorkplaces must be built to innovate, not just operate.
360° COLLABORATIONFull circle collaboration with your local and global team.
OPTIMIZE, EVOLVE WITH DATA
Data is the cornerstone of the modern business’s ability to innovate, right down to how it uses its workspace
Recognize and enhance the social experiences behind work to foster productivity and creativity
WORK AND SOCIAL
Millennials are expecting tech and data at their fingertips
MILLENIALS
Freelancer economy continues to grow at a rapid pace
FREELANCERS
Ownership – slow changeAccess – fast change
OWNERSHIP vs ACCESS
Trend towards assembling IT Solutions versus Building – This is called the API Economy
DEMOCRATIZATIN OF IT
Interfaces for filtering and accessing massive data
BOTS AND AI
Leverage all of this to change the nature of customer and employee engagement
SEGMENTS OF ONE
Modern organizations must embrace Agile and Lean across all horizons of business.
AGILE AND LEAN
SummaryINDUSTRY 4.0 IS REALLY A REFLECTION OF A NEED TO CHANGE THE NATURE OF BUSINESS
INDUSTRY 4.0 REFLECTION OF SOFTWARE AND DATA DRIVEN MODELS – EVERYTHING IS SOFTWARE
INDUSTRY 4.0 REQUIRES AN AGILE BUSINESS
BEING AGILE ACROSS OUR ORGANIZATION FUNDAMENTALLY CHANGES HOW WE WORK
Steve Forte: Manufacturing helped shape Agile.
Now we’re seeing Agile reshape Manufacturing.
“
Thank YouJoel Semeniuk @JoelSemeniuk JoelSemeniuk.com