Digital Transformation- Industry 4.
0 - A
Systems Approach
Course Outcomes By the end of this course, Students will be able to
01
explain the new paradigm of technological
advancements, digitization, digitalization and
Digital transformation, and summarize what it
By the end of this course, Students will be entails.
able to understand the concepts and
02
components of the Industry 4.0 apply the
same to understand the interplay between
Digital Transformation and Industry 4.0.
04
By the end of this course, Students will be
able to analyse how Industrial Internet
harness the power of smartness from
technologies.
03
By the end of this course, Students will be able to
design and Develop case study of Industry 4.0 in
a particular industrial domain
01 Introduction to Industry 4.0
Digitization, Digitalization
02 and Digital
Transformations
03 The various industrial
revolution
04 Digitalization and networked
economy
Digitization Vs Digitalization Vs Digital Transformation
What is digitization?
• Data Level (bits and bytes).
• Data Conversion process of analog audio and video production to
digital formats.
• Digitization is creating a digital version of analog/physical things
such as paper documents, microfilm images, photographs, sounds etc.
• Automation of existing manual and paper based processes, enabled by
digitization of information from analog to digital format.
• Since the 1960s Digitization is the connection between the physical
world and software. It is an enabler for all the processes that provide
business value.
Examples of Digitization
• Text and images digitized when scanner captures an image and converts bitmap image
file.
• An optical character recognition ( OCR ) program analyzes a text image to identify
alphabetic letter or numeric digit, and converts each character into an ASCII code.
• Easy to preserve, access, and share.
• E-books
• Property Records
• Maps
• Banking
• ERP, CRM implementation
What is digitalization?
• Digital technology adaptation-Process level
• Digitalization means turning interactions, communications, business
functions and business models into digital ones.
• Leads to a mix of digital and physical as in Omni channel customer service,
or smart manufacturing, provide revenue generating and value-producing
opportunities.
• Technologies used are API, APP, cloud.
• Incorporate digital technologies in everyday life and leads to digital business.
• Process optimization results in cost reduction and increase in efficiencies.
• It is a strategy/ process that goes beyond implementation of technology to
changing entire business model and evolution of work.
Examples of Digitalization -
• PLC logic or PID control in a microprocessor-based system for
feedback control, sequenced logic for a batch process, automated
shutdown logic, temperature control, speed control.
• Note: Digitalization improves an existing business processes.
• Takes a process from a human-driven event or series of events to
software-driven.
Examples of Digitalization
• John Deere leads the way with IoT-driven precision farming
• Sensors and IoT implemented.
• Automated farming machines guided by software, GPS technology
and satellites. Farmers control the precise placement of seeds and
chemicals, spray precisely the right amount of fertilizer and harvest
precisely.
• Increases crop yields by optimizing land, seed and fertilizer usage
Digital Transformation
• Business Level
• Requires broad adoption of digital technology and cultural change.
• It is more about people than about digital technology.
• Requires organizational changes that are customer centric, backed by
leadership , driven by radical challenges to corporate culture and
leveraging technologies that empower and enable employees.
• As per Kane et al.(2017) Few business could undergo successful business
transformation.
• 25% of organizations had transformed into digital business, 41% were on
transformative journey,34% invested time talking about the trend
Data change- Process Change – People changes(Customer and employee enablement)
and Culture change/ Organization barriers/Life is changing/entire mind set is
changing.
Digitization: Pass a data to digital format
Reduced or eliminated almost 100% of the paper (digitally storing the
information) and manual processes replaced by models of digital
processes
Digitalization: digital technologies are being used in the processes.
Process- efficient, productive, profitable, customer satisfaction, optimize
business results and revenue, reduce costs, new customer experience.
Digital Business Transformation: New business designs/model,
changing the value chain and surely creating a new supply of products
and services to provide customer value.
Process- modernization, rationalization and simplification new business
rethinking
Digital transformation in banking
• ATM technology has evolved to accommodate cash and cheque
deposits, secure transactions, and support for multiple accounts.
• Online and mobile banking, and cashless payment systems.
• Bank business via the web, including paying bills and sending funds
directly to friends and family. A new wave of payment systems,
including PayPal and Paytm, let consumers pay for everyday
purchases with accounts linked directly to their phones, no cash or
plastic card required
Digital transformation in retail
• Digital technologies enabling loyalty cards and e-coupons to automated
inventory and retail analytics systems.
• Smartphones at checkout to access in-store discounts and deals, customer
purchases are tallied by digital systems that track consumer behaviour
trends, tie into inventory and purchasing systems, and trigger
individualised customer journey events like email and SMS messaging.
• Personalisation of the in-store experience enabled by digital beacons that
link to mobile apps to sense when particular shoppers enter the store.
• Amazon Dash Buttons: IoT-enabled devices with buttons that trigger
automated reordering of an item.
Satya Nadella on how Microsoft can enable digital transformation :
“These systems of intelligence and how we bring about the technology, how we bring
about this cultural shift, is what Microsoft is focused on, with four core ingredients. We
call them solution areas: modern workplace, business applications, applications and
infrastructure, and data and AI.”
4 Pillars of Digital Transformation
Industry 4.0 is the digital transformation of
manufacturing/production and related industries and value creation
processes.
Homogeneous
and more
Resilient
Heterogeneous
and less
Resilient
https://www.youtube.com/watch?v=fGY10wnzkE0
https://www.youtube.com/watch?v=oYDBp06WBNY
Industry 4.0 need a strategic and staged approach
• Industry 4.0 is not ‘something’ you realize overnight.
Drivers for Industry 4.0
Industry 4.0 Checklist
• ASSESS YOUR INDUSTRY 4.0 MATURITY
• DEFINE YOUR VISION
• FIGURE OUT FINANCING
• SET UP YOUR PILOT
• MAP CROSS-FUNCTIONAL PROCESSES
• ENGAGE EXTERNAL STAKEHOLDERS
• PREPARE YOUR PEOPLE
ASSESS YOUR INDUSTRY 4.0
MATURITY
• Where is my organization on the continuum of Industry 4.0 maturity?
• Where are there gaps in my organization’s evolution to the next level?
• What are my customers’ and/or employees’ biggest needs?
Industry 4.0 Maturity Level
Walker Reynold industry 4.0
https://www.youtube.com/watch?v=0gd4CcZYo9s
