Industry 4.0 by implementing a successful data Strategy
What do successful businesses have in the common? The majority of them are investing in Business Intelligence (BI) at an enterprise-wide scale, and are using this data to make better decisions in a shorter amount of time. The left-hand part of the chart below lists the top 30 businesses around the world, ranked by revenues, as per the Fortune Global 500. A variety of industries are represented: Walmart in the top spot with retail, through electronics, automotive and energy, and several manufacturing firms. The second list is the top companies in terms of market capitalization. It is clear that both lists aren’t able to be interpreted into equal numbers. Market capitalization is a measure of the amount of confidence individuals have in the companies’ ability to give a decent return on investment, while revenue is a reflection of the way in which the company is performing. However, as you observe, the majority of the companies that have an impressive market cap are predominantly digital. They have achieved this by making their decisions based on reliable data that is gathered through an integrated platform. Many manufacturing firms are involved in creating a product, then selling it, receiving cash, and then repeating the cycle. But ultimately, every manufacturing company must become more technologically adept to compete in the current Industry 4.0. Producing a high-quality product doesn’t suffice to be on top of the market any longer.
Fourth Industrial Revolution (Industry 4.0)
We’re currently in the fourth industrial revolution (Industry 4.0). First, the Industry 4.0 , which occurred around the beginning into the 18th century revolved mostly focused on power generation usually using coal and steam power. The second revolution in industrial technology led to industrialization and mass production throughout the West. A less significant third industrial revolution was in place between the 1970s and the 2000s, focused on improving production efficiency through automation and robotics , as well as the utilization of digital capabilities. We are now currently in Industry 4.0, where everything is automated with intelligent. This isn’t the kind of automation that is based on a person’s decision, but rather automated based on analysis of the data that is collected during everyday activities. Manufacturing has not changed the way it is delivered to the market, however, there are robotics, automation as well as data that permit efficiency to be evaluated, recorded and enhanced.
Putting Data Into Action
After many years of collecting data, today we have technology to utilize that information to change the way business processes are conducted. Technology is now more affordable and therefore more available. For instance, the price of sensors has dropped dramatically. In the past 15 years, their price is down by 200 percent. Today, every manufacturing facility is equipped with sensors on its production line that collect data and increasing production. Around $15 trillion in opportunities is anticipated to arise from the application of IOT devices. Furthermore, Intel anticipates that there will be to connect 200 billion devices to be in place by 2020.1 IoT devices are everywhere–from refrigerators, thermostats for homes, lights to doorbells. All that data is not just within the device but moving into the cloud. Companies must decide to use and analyze data and then use it to alter how they conduct business and manage their business. Gartner forecasts that by 2021 AI will create $2.9 trillion in value for businesses. While this isn’t tangible in the sense of a tangible product but the data does have the potential to bring market value, as well as market share, to businesses who figure out ways to harness it by incorporating it into the business operations. Additionally, AI is also expected to help recover 6.2 billion hours employee productivity. It’s simple.
What is the best way to integrate BI with ERP?
An traditional ERP system can handle multiple tasks like marketing, sales, financials buying manufacturing operations, warehouse management Quality management, as well as manufacturing operations. Certain integrated and connected BUSINESSES must choose to analyze and leverage data and use it to influence how they conduct their OPERATIONS. 4 alithya.com businesses are more likely to have than “ERP +.” An ERP+ can also handle tasks such as the management of assets in an enterprise. Think HR, field service, engineering tasks or recruitment of talent that feed into one. This implies it is possible that the ERP system is collecting information from every aspect of the company. It could even set up an intelligence dashboard that focuses on specific departments or domains that are based on particular metrics given to these areas of business. Who has access to this information? In an average business only 22 percent people have access analytic insights.2 The majority of organizations view data as an element that is used to guide executive decision-making, so dashboards are generally made for executives or the top managers. This means that the majority of those who generate the data do not see the value of it. While the overall image is crucial but regular analysis of the department or job function level can result in significant improvements in efficiency. Personnel in the frontline of their job understand what data is and where it came from. When they are empowered with the power of analysis, which is in the form of simple-to-understand dashboards, they will be able to take action on changes that positively impact daily operations.
BI STRATEGY should BE based on STRATEGIC goals, like increasing REVENUE, reducing costs AND IMPROVING SUPPLIER RELATIONS WITH SUPPLIER PART growing customer satisfaction.
For example, they have released two new yogurt flavors. They also monitored the activities on their social channels on the flavors. One of them was extremely successful but the other didn’t which is why they altered their strategies to boost production of the flavor that is most popular and cut production of the less popular flavor. This allowed them to avoid an oversupply of inventory that was not sold for the flavor that was not popular. If they had not been able to monitor feedback in real-time this company would have to rely on sales data for weeks to mark down inventory that was not needed to eliminate it. This can only be accomplished by a system capable of not just providing the relevant business data as well as give insight that can provide the power to make decisions. It’s an electronic feedback loop. Digital transformation of this kind is the goal of every business. Microsoft Dynamics 365 handles everything from operations to sales, field service, customer service, project services which can be contract manufacturing, building projects or custom projects, marketing operations, as well as managing supply chain. Microsoft Dynamics 365 brings all information together in one. In one system, businesses are able to use the complete power BI software. Dynamics 365 is also able to interface to Cortana intelligence in addition to Azure IoT hub. Azure IoT hub. Consider those companies that rank in the top thirty within the Global Fortune 500; most are thriving in using digital assets. This could be user information or other operational data They are continuously gathering data, analysing it, and making use of it to make better decisions. Companies such as Microsoft, Facebook and Amazon have gotten to the point they are now by making use of the digital assets they own. It’s possible to think that the products or services provided by these companies differ from those offered by manufacturing companies, and you’re wrong, but the value of making use of digital assets is the similar. There’s no reason that organizations that are in the manufacturing, distribution and retail industries shouldn’t make the same use of data. The objective is to improve the efficiency of factories not just at the 50,000-foot mark and also on the level of machines. If you have the right ERP solution, you’ll be able to track the shop floor’s connected products, and eventually create smart value chains that connect customers.