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DIGITAL TRANSFORMATION AND INDUSTRY 4.0 VISION

mode40's Approach to Digital Transformation: mode40 describes itself as a full-service digital transformation company. How would you define your approach to transformation, and what do you think sets mode40 apart in this highly competitive space?

mode40 was founded on the belief that businesses should have the ability to trace their data effortlessly, from the moment it’s created at its source to the point where it delivers the outcomes needed to operate more effectively. Simply put, we’re here to help businesses turn data into profit.

This idea was born, like many great ideas, over a beer and two decades of looking for organizations which could support the needs we had. Those two decades were lived on the other side of the table in a sector leading multi-national F&B company’s IT, engineering, production planning and OT teams. The struggle was every management consultant wanted to sell a PowerPoint that did not really say anything, every integrator could not get past the PLC and the software development companies had never been on the shop floor.

We decided to redesign this space to provide full-service support tailored to organizations' digital transformation needs. Our approach tracks data from its origin through

every relevant area of your organization, ensuring the insights it reveals are fully realized. Having the control through the entire data journey process ensures that what we identify as an opportunity can actually be realized.

Think of it like the NASA moon landing. While all the disciplines existed, in their silos of specialty they could not achieve success. The achievement wasn’t the work of one team or a single piece of technology— it was the result of countless disciplines working in perfect unison. The engineers built the rocket, the scientists calculated the trajectory, the technicians ensured every system functioned flawlessly, and mission control orchestrated it all. No single piece could have succeeded alone, but together, they achieved the impossible.

At mode40, we approach digital transformation with the same mindset. We combine the precision of engineering, the innovation of software development, and the practicality of shop-floor experience into a mission-focused effort. By controlling the entire data journey— much like NASA controlled every stage of the Apollo mission—we ensure the final outcome aligns with the vision.

KEY TO SUCCESSFUL INDUSTRY 4.0 INITIATIVES:

What are the foundational elements for a successful Industry 4.0 initiative? Where do companies often fall short, and how does mode40 address these gaps?

For decades the question was ‘What technology should I buy’ as we had such limitations in rigid uses of what technology could offer. That traditional approach for off the shelf solutions fail to take into account the intricacies of each plant floor. The foundational elements must include; Clear Objectives, Data-Driven Culture, Scalable an Interoperable Technology, Workforce Empowerment and Continuous Improvement.

Many organizations struggle to reach their goals due to common pitfalls: unclear objectives, siloed IT/OT operations, undervaluing the manufacturing engineer role, and an overreliance on technology as a solution. They often neglect the importance of system integration,

robust project management, and confronting the realities revealed by performance data once surfaced. Addressing these challenges is essential for driving meaningful transformation and achieving sustainable success long term.

This isn’t a “Next, Next, Finish” world anymore. The days of plugand-play technology installations are long gone—buried with outdated mindsets. It’s time to leave the excuses behind and embrace a more thoughtful, dynamic approach.

How do we address these gaps? Our Augment and Accelerate approach is about assessing where the strengths of your team are (from leadership through execution and project management) and augmenting them in the areas where you lack the strengths.

There are 3 questions which organizations are constantly asking themselves. “Why did we fail, I thought we knew what we needed”, “ know where we want to be but we don’t know how to get

there sustainably”, and “We have no idea where to start and what is possible”.

In acceleration we use a series of approaches and products which are off the shelf available but customizable to adapt to the organizations specific needs. Products should conform to the environments they are used in as opposed to forcing the environment to conform to the product.

One of our most popular products is our Corporate Playbook. This is a framework we developed which defines the technology strategy for companies over the next 3-5 years. It is built up from the real business cases and incremental steps each technology and change element that is required to realize the gains of the organizations investment. When organizations get tired of having meetings over years to keep talking about where to start and how to define what needs to get done, insert the 30 day framework to answers.

PEOPLE, PROCESSES, AND TECHNOLOGY ALIGNMENT:

You emphasize aligning people, processes, and technology for maximum profit. Can you share some effective strategies you’ve developed to maintain this alignment throughout a digital transformation project?

There is no secret sauce in engaging team members at all levels. As you trace a piece of data that may start with a PLC, move to an HMI, transferred to the SCADA system, augmented by the MES and end up on some executive dashboard, there are many players who have a stake in what is needed. Common belief is ‘it takes to much time or costs too much’ to engage people, reality is it costs too much not to. Fail to adopt is the biggest reason projects fail, the reason adoptions fail is the lack of awareness, desire and knowledge of what the objective and “What’s in it for me” are not communicated and understood from top to bottom of the companies people pyramid.

More uniquely at mode40 we engage clients using the same techniques to building complex software. Taking the strongest attributes of the Business Analyst, Lean Manufacturing and Engineering skill set to engage customers and properly define the outcomes that any approach needs to achieve. Once this is defined the alignment of the technology can be properly assessed and implemented.

ENGINEERING & TECHNOLOGY INTEGRATION

Optimizing Existing Assets:

Many companies constantly face pressure to adopt new technology, but Mode40 focuses on maximizing current assets first. What are some examples of this approach delivering measurable value?

I wish I had 2 days to work through this, but let me focus on a few of the areas where we see some of the biggest bang for the buck.

THROUGHPUT

We believe in maximizing the value of a company’s current assets before rushing to adopt new technology. Too often, organizations feel pressured to chase the latest trends, overlooking the untapped potential in their existing systems. By refining workflows, enhancing data utilization, integrating IT and OT systems, and extending the lifespan of equipment, we’ve helped clients achieve significant improvements in efficiency and profitability without the need for costly overhauls. Our approach not only delivers measurable results but also ensures a stronger foundation for future innovations.

But let’s talk specifics; Biggest bang for your buck areas of improvement?

Production Scheduling and sequencing, most commonly left up to an internal expert to apply a best approach to trying to blend operational challenges and sales demand. What can be realized given real world implementations? 92%

reduction in manual processes, 7% increase in facility throughput, compliance to orders grew more than 20% to a company record of >98%, 7 locations converted to centralized management.

Throughput is common choked by support process or micro-stoppages what would 21% improvement in line throughput mean to your organization

“Our team spends a lot of time trying to find their information”. What does a AI based implementation do? Reduce overall response time by 80%, improved front line training by 30%, elimination of more than 60 manual processes, deliver multilingual support, improving moral

One of our favorite example is to digitize the compliance data, compliance data has no value right? How about an improvement in 43% margin? Through a digitization process our analysis provided the sales team of large F&B the data to create a new value added product which was being classed as a secondary product. This new market allowed for substantial improvement in the valuation of the existing product stream.

ENGINEERING MEETS TECHNOLOGY:

mode40 merges engineering expertise with advanced technology. How does this blend improve outcomes for your clients in manufacturing and related sectors?

The trinity bridges the best of engineering, software development and project management and then

applying it into a rapid deployment framework. This approach reduces the common risks associated with traditional automation and consulting projects. Let’s examine a recent use case. A brand new, latest build by an OEM was designed to produce 100 units per minute. Installed, tested and validated to operate at 100 units per minute. Success! Result? Missed production targets more than 70% of the time. Integrators validated the specifications and machine performances. How can this be? The production process relied upon quick product changeovers, optimized CIP process and proper scheduling. OEM delivered on the specifications but the related production data which relied on an undefined set of processes turned into the old ‘garbage in garbage out’ scenario. So then what can be done? Take a 30 day approach to; Map the process dependencies, apply lean manufacturing tool kit to eliminate the waste, update the PLC data to map to the new processes, add additional data points to measure all stoppages and slow down events, implement SKU level tracking then integrate with the MES and retrain the team. Outcome: Elimination of micro-stops previously not measured as well as a reduction in overall CIP process time but most importantly getting to see a thumbs up from the team main operator having achieved his daily targets for the first time.

ACCELERATING TIME-TOVALUE:

You promise an accelerated time-tovalue on transformation projects. What processes or methodologies do you follow to ensure projects stay efficient while still delivering quality results?

Accelerating time-to-value is all about precision, agility, and seamless execution. We start with a deep discovery phase, mapping out bottlenecks and setting clear goals to avoid wasted time in execution. Our phased implementation strategy delivers measurable wins early, while iterative development ensures constant refinement and adaptability. With a team of broad experienced experts, we align technology, processes, and people for smooth integration, all while leveraging realtime feedback loops to pivot quickly when needed. By grounding every decision in data and focusing on actionable outcomes, we deliver results in weeks, not months, without compromising quality. Speed isn’t just about working faster—it’s about working smarter to drive immediate, impactful ROI.

WORKFORCE ENGAGEMENT AND CHANGE MANAGEMENT:

ENGAGING THE WORKFORCE IN TRANSFORMATION:

Transformation can be challenging for employees. How does mode40 foster workforce engagement and readiness, especially when implementing advanced technology tools?

We love this question. We cannot stress enough the importance of team member engagement. It is why we are demanding in our deployment approach. This approach brings a beginning to end approach on engagement of stakeholders. Engaging early and often with a documented list of the needs, concerns and risks. We execute this on two fronts. First, is a classroom setting where we can work through brainstorming exercising to help get ideas flowing and second is by engaging with people during the work where we can combine our own observations to build on and augment the teams’ contributions. This helps shape the end stage where this curated list of needs becomes a part of answering “Why” are we changing. When organizations allow the teams input to be acknowledge in this way then the adoption

of change, especially the adoption from the ‘Change Champions’ who are our first adopters and ambassadors, can have its most effect. Team member engagement cannot be compromised.

This approach brings a very practical and real human to human level of empowerment. It goes a long way over the obligatory pizza party, but pizza helps too.

CHANGE MANAGEMENT IN DIGITAL TRANSFORMATION:

What’s your perspective on effective change management in Industry 4.0 projects? Are there best practices mode40 applies to ensure smooth transitions and adoption?

At mode40, we see change management as the backbone of successful digital transformation, especially in Industry 4.0 projects. Technology can only take you so far; the true transformation happens when people and processes adapt seamlessly. Our approach focuses on aligning technology with

human behavior, creating a culture of adaptability, and implementing changes in a structured, inclusive manner. How we make the work? Lead with clear communication, stakeholder involvement from day one, phased implementation for gradual adoption but demand early wins and hands on training and support.

Sounds like an add for a course in project management, that’s because we don’t see anything revolutionary in what we do but more in the people who are doing it. Our team is comprised exclusively of experts each in their areas of discipline and with an average of more than a decade of experience the application of those experiences combined with skills delivers on the quality you would expect.

VALUE CREATION AND MEASURING SUCCESS

Unlocking Profit

in Existing

Processes: mode40 is focused on uncovering profit within current systems before recommending new investments. Can you walk us through how you identify these profit opportunities and some ways you help clients capitalize on them?

Data first, Decisions second. We begin by digging into the data— whether it comes from machines, people, or the overall process— and taking a holistic look at the decisions that impact performance. This approach allows us to map out gaps in data collection, analysis, and decision-making. By asking simple but powerful questions like, “What decisions are being made reactively that could instead be proactive?” we uncover significant opportunities for improvement.

Photo: The National Research Council of Canada’s advance manufacturing research facility in Winnipeg

Where are these opportunities typically buried? About 70% are likely hiding in spreadsheets, 20% are entrenched in tribal knowledge, and the remaining balance resides in processes that are tucked away in overlooked corners of your operations.

To press the point further, every one of our Fortune 500 clients— yes, 10 out of 10—has invested the equivalent of a small country’s GDP in their favorite ERP systems, only to find they still lack the capability to generate optimized scheduling for their facilities. Enter the infamous spreadsheet: a clear reminder that despite massive investments in technology, key opportunities for efficiency and optimization remain untapped. Those gridlines? They’re not just cells—they’re opportunities waiting to be realized.

MEASURING THE IMPACT OF TRANSFORMATION:

What metrics or KPIs do you prioritize to assess the success of digital transformation initiatives? How do you track both the immediate and long-term value created?

We focus on metrics that show real, measurable impact on the floor—things like production throughput, reducing downtime, improving OEE, and cutting costs per unit. Right out of the gate, we look for quick wins, like streamlining processes or cutting out manual tasks, to show immediate value. Long-term, it’s all about keeping costs down, getting the most out of the equipment, and driving better decisions with accurate

data. We keep a close eye on both the day-to-day and the big picture to make sure these changes stick and keep delivering results.

THE FUTURE OF DIGITAL TRANSFORMATION

Future

Trends in Industry

4.0: What trends in digital transformation and Industry 4.0 are you most excited about? How is mode40 preparing to stay at the forefront of these changes?

Here’s a little secret sauce: AI is here to change the game. After hearing that same promise for the past 25 years, I can finally admit—it’s happening. The lofty predictions of the past are becoming today’s reality.

That said, the fully automated "Jetsons factory" isn’t here yet.

No matter how impressive humanoid robots might be at mixing a perfect Manhattan, we’re still far from that level of automation. However, in three key areas, AI is already delivering on its promise. First, it empowers decision-making by putting highquality, actionable information at everyone’s fingertips, enabling real-time data-driven insights. Second, it simplifies integration with platforms like the Inductive Ignition Platform, which allow for scalable historization, augmentation, and optimization of data, creating seamless workflows. Third, it’s driving a convergence of technologies, breaking down barriers at an exponential rate. This fusion of metaverse simulation and operation is poised to redefine the manufacturing space in ways we’ve never seen.

Looking ahead, the manufacturing landscape is entering a datacentric frontier of unparalleled transformation and universal competition. As these technologies converge, they’ll push the boundaries of what’s possible, forcing a redefinition of the industry’s value proposition. It’s not just evolution—it’s revolution.

LONG-TERM VISION FOR mode 40:

Finally, where do you see mode40 in the next five years? What legacy would you like to create for the company in the field of digital transformation?

mode40’s vision is bold: delivering $1 billion annually in value to the manufacturing industry. To make that happen, we’ve teamed up with the National Research Council of Canada’s advanced manufacturing research facility in Winnipeg.

Think of it as the Stark Industries of manufacturing innovation— bringing together brilliant minds and cutting-edge tech in a stateof-the-art playground where we test, deploy, and fine-tune our breakthroughs.

And here’s the kicker: in 2025, we’re rolling out a new series of products aimed squarely at hitting that billion-dollar mark. Mark your calendars for March 2025—we’ve got announcements that will assist in setting the bar. This "defining year" is more than a milestone; it’s proof of our commitment to revolutionizing digital transformation. mode40 isn’t just setting the bar—we’re redefining how high it goes. Stay tuned. It’s going to be epic.

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