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