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Digital Waves
Online consumer business Hyperconnected World
A huge impact to every industry
1st Wave
The Internet
Connected, online
2nd Wave
The Mobile Internet
Real-time, anywhere
3rd Wave
The Internet of Things
Convergence of physical & digital
4th Wave
AI and Robotics
Knowledge & automation
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Expansion of the
digital revolution into
production processes
Improved efficiencies and
productivity gains benefit
trade and shipping.
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Disruptions to previous business models
Transaction processing
Management information systems
Components & products
Specialization across physical value chain
Online information systems
Decision support and BI systems
Global functional organization and BPOs
Information & processes
Specialization across digital value chain
Community and collaboration tools
Analytical systems
Specialization of knowledge work & CoE
Community & insight
Specialization across social value chain
Transaction cost of leveraging external capabilities
Purpose of the firm will no longer be to minimize the transaction costs of doing business by gaining scale and executing efficient in-house processes
MRP, MRPII, SCM, PLM, ERP,…
Email, Internet, Extranet, eCommerce, UC, cloud,
EDI, Web1.0, process automation, SOA,…
Blogs, social networks, tweets, communities,
Web2.0, crowdsourcing, SaaS, gamification,…
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Successful digital transformation
is important to avoid waking up
one morning and having been
‘ubered’.
Positioninthevaluechain
4th: Digital transformation
Share of the value chain
Increasing digital
value contribution
New digital
customer
interfaces
Your company
today
€
€ € €€
Missing out if ‘ubered’
= lost value added
CC BY 2.0 photo credit: https://www.flickr.com/photos/joakimformo/12183655143
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Technologies already evolving to new norms
Change drivers
Digital data
Automation
Customer experience
Network connectivity
Technology enablers
Internet of things
Artificial intelligence
Wearables
Robotics
3D printing
Social networks
Indoor positioning
Mobile apps
Cloud computing
Big data analytics
Sensors
Augmented reality
Crowdsourcing
Business innovations
Digital healthcare
Social clienteling
Predictive maintenance
Multichannel retail
4th party logistics
Nowcasting
Smart transportation
Fleet management
In-store analytics
Collaborative working
Field inspection
Smart City / Smart Energy
Location based services
Plan transformation first, digital second. Digital isn’t better, better is better.
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Car industry in the process of transformation
CC BY 2.0 photo credit: https://www.flickr.com/photos/ivyfield/3910052922
Control of the digital communications
interface to the driver and vehicle owner
Ownership of the data generated in
and in relation to the vehicle usage
Individual mobility and car
purchasing behavior
IP of the software
established in vehicles
Effective protection against
cyber-attacks
Digitization of logistics
across the industry
Fourth-party logistics providers
control of the customer interface
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Industrial, business & human aspects
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Perform
Enforce continuous operational patterns for high
degree of assurance in repetitive tasks
Manage
Effectively monitor and manage services,
generate new patterns, find exceptions to them
Day-to-day life
Enhance quality of life and fundamental needs,
recognize patterns and respond to them
Experience
Enable discretionary wants & lifestyle improvement,
improve breadth & depth of experience of living
Industrial Business Human
Hard operational rules. Self-directed and autonomous. Explicit or arbitrary actions trigger events. Interaction with people.
Efficiency
Improve operational efficiency and increase
visibility into core business functions
Transform
Generate new revenue streams, boost
value-add, change business model
Optimize: time, money, resources, experiences
Protect: loss, discomfort, injury, confusion
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Digital Transformation cases with our customers
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Customer analysis/
Marketing
About 60 projects
Transportation/
Disaster prevention
About 40 projects
Traceability
About 30 projects
Smart factory
About 30 projects
Personal Safety/Security
(Elderly/Children, etc.)
About 30 projects
Facilities Monitoring/
Maintenance
About 20 projects
Smart Retail
About 20 projects
Smart Agriculture
About 30 projects
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Aircraft inspection
CC BY 2.0 photo credit: https://www.flickr.com/photos/diversey/2077360062/
Building and servicing modern passenger aircraft is a complex, challenging and expensive business
Inspection of life vests, oxygen generators and other loose emergency equipment
Traceability of the entire process,
error-free maintenance, and
lead-times are absolutely essential
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Connected Asset
Reduced operational and
maintenance cost.
Transforming from preventive
to predictive maintenance.
Converged IT and OT in power generation group for enterprise operations management
Reduced operational risk.
Risk avoiding benefits estimated
at multiple million USD.
Improved operational efficiency.
Manual hours saving estimated at thousands of hours per year.
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Connected Workers
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On-site maintenance, repair, and inspections for waterworks and sewerage facilities
Replaced paper and manual processes which were
quickly outdated or required extensive training.
Using augmented reality.
Operators can work more quickly and accurately with
real-time onsite access to data and central support.
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Field maintenance operations
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Collects vital signs of worker’s physical well being
Greater visibility to remote work locations by relaying data to supervisors
Heat stress
Fatigue
Health status
Fall detection
Accidents
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Mobile workforce
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Need to increase efficiency and effectiveness of mobile field
force, with particular issue with asset management and parts
Van as virtual warehouse – managing physical assets for field force engineering
Increased workforce productivity
Optimization of parts
Decreased repeat visits
Increased customer satisfaction
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Livestock production
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Reproductive performance of the cow and heifer is one of
the most important factors that influence farm profitability
Detecting signs of cow’s estrus from its footsteps via pedometers attached to legs
Rugged pedometer
Measures footsteps
Cloud-based analysis
Determine insemination
Detect diseases
Understanding the biological
mechanisms associated with
getting a cow or heifer bred
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Manufacturing quality control
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Denmark
Manufacturing
“Leading edge” in manufacturing
Industrie 4.0 with artificial intelligence (Zinrai)
Analysis of the manufacturing quality of the structures
and the different layers of fibers in wind power blades.
Based on Artificial Intelligence, Deep Learning etc.
based analysis of ultrasonic and thermal images.
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Smart Buildings
A platform to build powerful digital services by relating
“things” in the physical environment to business
events, using real-time rules that leverage presence, in-
door position, and situational or context awareness to
trigger actions to external applications & systems
Process execution system for cyber-physical environments
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Monitor “things” in the physical world in real-time
Define rules and policies for conditions that need attention
Trigger events into applications or control systems
Make existing business applications
location and context aware!
Clinical logistics
Patient self-registration
Patient guidance and navigation
Locating & tracking of equipment
Asset & instrument management
Nurse safety
Doctor tour automation
Clinical staff efficiency
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Retail in-store analytics
16CC BY 2.0 photo credit: https://www.flickr.com/photos/franklinheijnen/15529012325
Retailers today need every competitive advantage available
Improve customer experience and sharpen store operations, zone plan, and conversion rates
Understand customer paths
Measure conversion rates
Measure dwell & conversation time
Measure promotion effectiveness
Optimize store layout
Understand valuable real estate
Align staff location with traffic
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Cashless payments
PalmSecure biometric ID
Pattern of veins in the palm
Contactless, high hygiene
Children pay for canteen lunches with biometric ID.
Parents may control spent on unhealthy food and drinks.
Virtual wallets are topped-up online.
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Verification of programmable, self-executing and self-enforcing contracts
Contracts whose terms are recorded in a
computer language instead of legal language;
the contracts contain the computer code that
executes the contract.
CC BY 2.0 photo credit: https://www.flickr.com/photos/24oranges/14417293308/§§§/
IF [Advertising Network #564445]
sends [1,000,000 clicks] that
[convert to purchases at a rate of
15% or more] , THEN release
[$.002 for each of those clicks] to
User/Account # 899782392.
Smart contracts (blockchain)
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Financial exchanges
Derivatives
Savings accounts
Prediction markets
Crowdfunding platforms
Smart property
Facilitates the automation or
removal of manual process.
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Helping customers to transform with digital
Internet of Things analytics and
decision support for urban public
transportation in smart cities.
Current state of operations on the ground
Visualization of service and passenger flows
Prediction of delays and chain of effects
Line and composition recommendations
Behavior analysis
Prediction of overcrowding
Multi-modal transport routes
Visualization of real-time situation
Real-time multi-modal traffic management
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Healthcare
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Evidence-based knowledge
to enable clinical decision
making and personalized
healthcare provision
Analysis of patient records as
data-based knowledge graph
Early detection of potential future patients and
their risks, addressing e.g. mental health
issues, using data analytics to identify patterns
Health risk algorithms to assess the health
risks of thousands of patients’ using
medical history data and non clinical data
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Hydroponics – the art of gardening without soil
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Sensors monitor air temperature, humidity, carbon
dioxide, dissolved oxygen, air current, potential hydrogen,
electrical conductivity, and root-zone temperature,
lighting, fertilizer flow, and the pH – helping to determine
and maintain optimal growing and atmospheric conditions
Full control of the seasons, making them 12 months long, 24 hour all year around production
Complete control over every aspect of
a crop’s development:
Minute control over nutrients
Optimal light levels and wavelengths
Higher crop yields
Accurate harvest schedules
Plant growth is a real and natural happening.
No genetic mutation, no wonder chemicals.
Uses less water, no fertilizer runoff into nature.
No abused and over farmed soil.
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“Digital” and “Transformation” are different things
CC BY 2.0 photo credit: Greg https://www.flickr.com/photos/sightrays/4054095536/
How IoT:n and analytics allow
a company to build or create
completely new
- operating environment
- operating model
- performance indicators
- management model
What happens after all company information is digital and analyzed?
Transformation means different
things to assembly line worker,
machine engineer, production
manager, factory director, supply
executive, management team,… or to
maintenance, support, and operation
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Building a digital business one bit at a time
CC BY 2.0 photo credit: katrien berckmoes https://www.flickr.com/photos/129891689@N02/16740449969/
One sensor
One analysis
One prediction
One metering
One function
One unit
One site
One country
One region
… at a time
Until it all comes together
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Digitalization forces biz to learn to ask questions
CC BY 2.0 photo credit: photosteve101 http://www.flickr.com/photos/42931449@N07/5397530925/
Focus on Qs, then
focus your activities in
finding those answers.
How well do we know our own business? What signals or patterns to analyze?
If you were given one question
someone was able to answer about
your business, what would it be?
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Changing the culture to a new way of working
Image credit to Rodney Malesi, United States International University , Kenya
Knowledge sharing culture
– prepare for change:
knowledge as practice and
catalyst for collaboration
Data is contextual, we we need stories to explain it
Apply data to resolve
cross-operational
challenges
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Make the digital data speak – an experience
“There is nothing new under
the sun but there are lots of
old things we don't know.”
-Ambrose Bierce
What information consumes? It consumes attention of its recipients.
Using data that businesses
typically discard or could
not process due to
technology limitations
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Digital co-creation
Building a platform, not a
one-off application
When done right, transformation value doesn’t end with one project
A wealth of information creates a poverty of attention
and a need to allocate that attention efficiently among
the information sources and those who consume it
Can you capture your audience in 2 seconds?