1. Addressing a fractured industry – what are the three things vital to survive in Industry 4.0
Dr. Harry Teifel
November 2018

2. 4IR has multiple implications
4IR implications
Leveraging the power and creativity of customers
Combined effect of disruptive Technologies
Networked and multi-party value creation and innovation
Ever-changing combination of competencies
Data as driver of competitiveness

3. 4IR means greater competition and shake-out+
Level of
Competi- tiveness
in industries
Time
The 4IR game doesn’t allow anyone to abstain from playing. External Technology-enabled drivers dictate change and the need for constant organizational improvement. Competition drives new competitive benchmarks for all that players that operate in the market; this becomes the new standard. Ultimately there is a shake-out battle between successful 4IR-adoptees - and those who are unable to compete. With this cycle repeating itself. Progressus supports clients in translating and dealing with 4IR-world realities.
New Technologies
are available and allow for performance improvement
Adopters increase their competitiveness and disruption is initiated
Competition in the market moves to a higher level as benchmark
Traditional players can’t keep up, a shake-out occurs and the cycle repeats itself

4. 4IR changes the Rule-book
Old Rule-book
4IR Rule-book
Economies-of-scale
Differentiation through data and cost
Owned Resources / Assets, Erect Entry Barriers, Lasting competitive Advantage
Access, loaned / shared Assets with Scale Effect
Innovation and value creation dominated by one party
Multi-party and networked Value Creation
Higher predictability and work-to-plan activities
Agility to respond to uncertainty and change

5. Industries including Manufacturing
4IR unfolds in waves of disruption
4IR Disruption Waves
1st wave Disruption
Consumer
Coal-face
2nd wave Disruption
3rd wave
Disruption
Back-end 4IR
industries
Middle-end 4IR
Industries including Manufacturing
Frond-end 4IR
Companies

6. 4IR readiness as massive challenge
Limit
Massive investments required by SA companies for 4IR
4IR Business readiness v
Gap
Ideal iv
Manufacturing 4IR evolution levels
iii ii
Current i
Time
Challenges
Dealing with 4IR change
Agility
Data exchange
Sharing of resources and capital

7. Critical Success Factors (CSFs):
4IR Critical Success Factors
Critical Success Factors (CSFs):
Networks
Data
Mind-set

8. Hybrid Digital Supply- and Value Chain
4IR CSF 1A: Fundamental Shift to Value Networks
In the past
Hybrid Digital Supply- and Value Chain
Interim
Digital Value Network
The Future
Traditional Supply Chain

9. 4IR CSF 1B: Value Networks with multi-tier architecture
Sector Value Networks 1
Application
Sustainability + Commercial Solutions
Sector Commercial Clusters / Coops 2
Cloud / Middleware and Data Bundling 3
Thing / Data and applied Technology
“Things”, Data or Technologies

10. Any-to-any inter-compatibility
4IR CSF 1C: Any-to-any Value creation
PLM Best Practices
Automation / Robotics
Mixed Reality, Analytics and AI
New-age Production (3D, Composites etc.)
IIoT and real-time Command & Control
Design
Proto-type
Industri-alize
VC / SC Config
Build & Ship
Any-to-any
Manufacturing
Value creation
Any-to-any inter-compatibility
Digital Twinning
Full data exchange
Digitally enabled Business Flexibility

11. Differentiation through data
4IR CSF 2: Differentiation and value from data
Differentiation through data
Multi-Thing Real-time Data Digital Twin including Mixed Reality
Digitize, read & visualise
Explore, simulate and learn future-view
Analyse, control and learn past-view
Write, automate, and (self-)optimize
Command & control process automation
Analytics and Pattern Detection
Machine Learning / AI
Various Technologies: 3D Printing, Automation, Blockchain and other

12. 4IR CSF 3A: Retirement of 2IR/3IR Thinking

13. 4IR CSF 3B: Re-framing from negative to positive spiral
Competition getting worse
Less profits
More fire-fighting
More control for more risk
More Shareholder value
Less time for customers
Poor future Business case
Limitation of investments
Previous restrictions (e.g. size, investments etc.) outdated
New opportunities :
Market
Technologies
Offering
Partners
Boundless possibilities exist
Every country
Every Sector
Every Company
Self-fulfilling prophecy of despair and decline
Vision of a better future state within 4IR paradigm

14. Conclusion: Need for SA Manufacturing Platform Solution
4IR Value Network / Platform Roadmap
Demand as critical enabler for sustainability
Sector / Industry specialisation and value-add
4IR Solution Architecture & Focus areas
Responsibilities and Platform Working model
Business Model and Funding / Investments