INDUSTRY COMMENT
are key to enabling these vital decision-support capabilities. Centrally capturing and analysing information from operational, finance and corporate management areas of the business, these platforms make it possible to identify dependencies and model different scenarios. This ensures that decisions can be made using comprehensive and reliable data that is supported by all parties involved.
#3 ABILITY TO CHANGE PROCESSES, BUSINESS PROCESS MANAGEMENT
KEY TAKEAWAYS • Transition from pilot stage to large-scale roll-out of an Industry 4.0 project is no easy task. • Industry 4.0 solutions will affect a wide number of different business areas, so everyone involved must be able to participate. • Enabling joint decisions means everyone in the decisionmaking circle will need crossdepartmental access to relevant data. • Inflexible business processes can hamper a firm’s ability to grow and this is often down to the business software. • Manufacturing digital champions are adept at connecting people, systems and partners across the extended value chain. • If an ERP system lacks integration capability, the IT environment will become complex and the advantages of Industry 4.0 will not be realised.
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Inflexible business processes can hamper a firm’s ability to grow or evolve and from experience, this is often down to the business software which organisations use. Either processes are controlled via multiple individual solutions, which means that process changes to an isolated system can trigger a whole cascade of follow-up measures and interface problems. Or the central management system is so complex that the overview of processes and interfaces is missing. As a result, processes cannot be designed flexibly, and changes can only be made by specialists at great expense.
#4 ABILITY TO CONNECT FROM PRODUCTION TO MANAGEMENT, MES INTEGRATION Improvements in manufacturing generated from Industry 4.0 solutions can only be fully exploited if all business units are able to benefit. This means that as soon as the Manufacturing Execution System, MES is directly connected to the ERP system, the advantages of a smart factory can also be applied to business processes such as sales, service and support, purchasing, or business development. The ERP-MES connection is also essential for directly evaluating the return-on-investment generated by Industry 4.0 measures in a financial context, so as to support future
investment decisions.
#5 ABILITY TO ANALYSE PERFORMANCE, KPIS From intelligent control systems to new human-machine interfaces with voice-controlled technologies or data glasses, the implementation of Industry 4.0 technologies has a farreaching impact on familiar processes and performance values. To obtain precise figures from the outset and understand the influence of innovative technologies on business results, an integrated Enterprise Performance Management, EPM will be helpful. As an integrated element of modern ERP systems, EPM provides industry and role-specific key performance indicators KPIs. This enables all hierarchies and areas of responsibility to be transparently represented, so that weak points can be identified and KPIs achieved. Leveraging an integrated EPM, enables organisations to pinpoint which individual digital transformation measures have had an impact on value creation and business development as a whole.
#6 ABILITY TO COOPERATE, ECOSYSTEMS Digital transformation is often accompanied by new business models and services that require close cooperation with partners and customers. According to a recent study by PwC, manufacturing digital champions are highly adept at connecting people, systems and partners across the extended value chain, as well as enabling multichannel customer interactions, either directly, or through third parties. The process of assessing current technical capabilities and identifying potential Industry 4.0 implementation hurdles will help Middle East companies define a future strategic direction for growth more clearly, to make investment decisions accordingly.
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