IND USTRY 4.

0 :

Are You Ready?

FusionOps // Industry 4.0: Are You Ready?

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Ta b l e of Co ntents

A Connected Planet

Industry 4.0 Basics

Your Customers are Demanding It

3 Keys to Supply Chain Success in Industry 4.0

Getting Started: Open Big Data Repository in the Cloud

Getting Started: Cloud Intelligence Layer

Getting Started: Advanced Data Science

How it All Comes Together

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How to Get There

FusionOps // Industry 4.0: Are You Ready?

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A Connected Planet
Among self-driving cars, drones,

and responsive to changes through

smartphones and even wearable

cloud technology. And Big Data wont

technology, its clear that intelligent,

just get bigger, it will get smarter

connected devices are shaping

relying on predictive and prescriptive

our everyday lives. The supply

analytics to drive decision making.

The supply chain is

moving towards

automation.

chain is no exception to this wave

of technological change. Within a

Ultimately, not only the factory, but

few years, factories will become

the entire supply chain is moving

a mesh of cyber-physical systems

towards automation and even

where connected devices exchange

awareness that will change how

information and take actions without

products are ordered, manufactured,

requiring human involvement.

shipped and consumed. This evolution

Suppliers, manufacturers and

is called Industry 4.0,

customers will be more closely aligned

and its happening now.

Are you ready?

FusionOps // Industry 4.0: Are You Ready?

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Industry 4.0 Basics

The term Industry 4.0 presupposes

As the next logical step forward,

the passing of three major shifts

Industry 4.0 will combine the major

in how businesses approached

technological advances of the 21st-

manufacturing throughout modern

century with the same innovations

history, tracing its roots as far back as

that have made manufacturing a

the 19th century:

cornerstone of modern life.

Industry 1.0: The Industrial

Revolution redefines human
limitations by harnessing the power
of water and steam.

The Internet of Things will connect

devices and workers in the factory
with products and consumers in
the field.

Industry 2.0: Electricity pushes

people and machines even further as
manufacturing grows in scale
and scope.

Big Data technology and strategies

will handle the massive influx of
raw data from these devices.

Industry 3.0: The modern computer

opens the door for automation and
advanced statistical analysis.

together so businesses can store,

analyze and make sense
of everything.

FusionOps // Industry 4.0: Are You Ready?

Connect
devices and workers
in the factory
with products and
consumers in the field.

Cloud software will bring it all

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Your Customers are

Demanding It
Industry 4.0 is about more than just

same survey found that 60 percent

information technology. Its also

of executives said their business is

about what the customer wants.

struggling to meet these heightened

Thanks to the rise of e-commerce

demands, many of which are rooted in

giants like Amazon and the ability to

the supply chain.

60 %
of businesses
are struggling to
meet consumers
heightened
demands.

review everything online, customers

today have higher expectations than

These higher consumer expectations

ever before.

faster delivery, lower prices and

more customization wont just

In one recent survey, 82 percent

impact the retail world. This has huge

of businesses reported they have

ramifications for manufacturers in

encountered more specific and

every industry, which will need to

stringent consumer expectations,

deliver customized products at lower

including a desire for faster delivery

cost to meet heightened expectations.

time, lower prices, simple returns and

Ultimately, companies will need to get

a high degree of customization. The

down to batch size of one.

FusionOps // Industry 4.0: Are You Ready?

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3 Keys to Supply Chain

Success in Industry 4.0
In Industry 4.0, the entire supply chain will become even more compressed
and tightly integrated. Product life cycles will get shorter, lead times will
shrink and the margin of error will get even smaller. To account for these
changes, there are three key areas where executives will need to focus their
attention and drive improvement in order to be successful in Industry 4.0:

1. Innovation and supplier management: The abundance of user and manufacturer data
will allow businesses with the right tools to create advanced predictive models of their
supply operations before putting them in place.
2. Agility and visibility: As consumer demands grow more complex, supply chains will
need to be ready to pivot at a moments notice. This requires full transparency and
increased visibility within each facet of supply operations.
3. Efficiency and cost: All of this must be achieved on razor-thin profit margins. Machine
learning and advanced analytics can help businesses realize their full potential, but only
if they can acquire data insights quickly.

FusionOps // Industry 4.0: Are You Ready?

82%
of businesses
reported they
have encountered
more specific and
stringent consumer
expectations.

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G E T T I N G S TA RT E D :

Open Big Data Repository

in the Cloud
With Industry 4.0, Big Data will get

integration and scalability of data

bigger a lot bigger. By 2020, the

sources. Companies that keep data

worlds data volume is set to be 50

locked away in silos wont be able

times larger than it is today. Many

to identify new opportunities fast

organizations are already finding that

enough, and will risk falling behind.

legacy databases and systems simply

By leveraging cloud-based open

wont handle the vast amounts of data

platforms that support both standard

being generated inside (and outside)

APIs and proprietary integrations,

the business. Thats why Big Data

data is more visible and accessible

and the crux of Industry 4.0 will live

to networked devices, machines

in the cloud.

and people. Look for open Big Data

platforms to break down silos and

With a growing number of connected

unlock your full productive potential

devices, Big Data must live in

in Industry 4.0.

By 2020, the
worlds data volume
is set to be

50x larger
than it is today.

open platforms to enable ease of

FusionOps // Industry 4.0: Are You Ready?

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G E T T I N G S TA RT E D :

Cloud Intelligence Layer

For the past 25 years, companies

unlimited data sources. The cloud

have relied on manual, desktop-based

intelligence layer speeds up analysis

reporting to get information about

of data by providing supply

the business to support decision-

chain-specific models including

making. In Industry 4.0, a companys

common metrics like on-time in-

ability to derive intelligence from the

full, inventory days of supply,

staggering amount of operational data

supplier responsiveness and forecast

available to them will be the primary

accuracy. The cloud intelligence

determinant of their ability to grow.

layer leverages the real-time data in

the central cloud data repository to

This will be achieved through a

set goals and achieve measurable

cloud intelligence layer that enables

business impact using a library of

dynamic, real-time insights across

supply chain metrics.

FusionOps // Industry 4.0: Are You Ready?

A cloud intelligence
layer enables
dynamic, real-time
insights across

unlimited data
sources.

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G E T T I N G S TA RT E D :

Advanced Data Science

In Industry 4.0, the supply chain will be moving so fast and the data will be
so complex that human intelligence alone will not be able to keep up many
decisions will need to be automated. The first step towards automated decisionmaking is embedding advanced data science into the supply chain. Many
companies are doing this with software tools and highly-paid data scientists.
More advanced companies are using predefined algorithms to recommend the
best possible decisions based on all the data points that are being interpreted
without human involvement.
Predictive analytics: This is used

Prescriptive analytics: With data

for things like demand forecasting,

constantly moving in and out,

maintenance schedules and product-

decisions need to be automated,

use insights, which can all be

too. A prescriptive analytics engine is

effectively predicted with the right

able to take data insights to the next

data science tools.

level by presenting the best available

Predefined
algorithms
recommend the
best possible
decisions based on
all the data points
that are being
interpreted.

decisions that humans or machines

can act on.

FusionOps // Industry 4.0: Are You Ready?

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I N D U S T RY 4 . 0

How it All Comes Together

Industry 4.0 is much bigger than just the factory floor. It connects, suppliers, customers,
manufacturers and products together, using a cloud-based big data platform.
SUPPLY CHAIN INTELLIGENCE CLOUD
Collective Intelligence Machine-Driven Prescriptive Actions Mass Customization

ADVANCED MANUFACTURING SYSTEMS

SUPPLIERS
Dynamic
reconfigurability of
supply network

Cyber-physical systems (CPS)

Full automation
Totally interconnected systems
Machine-to-machine communications

Mass customization

Rapid response to
changes in customer
requirements
SENSORS
Reactivity
Traceability
Predictability

ADVANCED MATERIALS
Smart value-added
products
Technical differentiation
Connectivity

FACTORY

FusionOps // Industry 4.0: Are You Ready?

On-demand
manufacturing
Higher quality
products

Total reliability

CUSTOMERS

ROBOT
Real-time
autonomy
Full transparency
on data reporting

INTERNET OF THINGS
Object tagging
Internet to Object
communication
Real-time data capture
Optimized stocks

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How to Get There

Supply chains can be

fully connected
Intelligence is moving from IT teams to

analytics to get actionable insights from

business users and now to machines.

those sources. With these capabilities

The first step is making intelligence self-

linked via an intelligent cloud layer,

service. Intelligence needs to be moved

supply chains can be fully connected

closer to the place of decision-making

from start to finish, setting the stage

closer to business users. Ultimately,

for automation of routine tasks.

from start to finish,

setting the stage
for automation of
routine tasks.

machines will make decisions and take

actions.

FusionOps is exactly the solution

supply chain leaders need to take

The supply chain of an organization

advantage of everything the new era

is no exception to this trend of

of industry has to offer. Combining an

technological evolution. To adapt now,

intuitive intelligence cloud platform

companies need to develop an easy

with supply chain expertise and

way to integrate huge quantities of data advanced data science, FusionOps

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from internal and external sources, and

allows businesses to make better

leverage predictive and prescriptive

decisions quickly and easily.

FusionOps // Industry 4.0: Are You Ready?

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FusionOps Path to Supply Chain 4.0

INTELLIGENT CLOUD

AUTONOMOUS CLOUD

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DISCONNECTED

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COMPANIES STRUGGLE

FUSIONOPS TODAY

FUSIONOPS TOMORROW

Silos of raw data

Integrates internal &

external data in the cloud

Predict: failures, demand,

supply, maintenance

Leverages data science &

machine learning

Act: automate responses

that drive the supply chain

Reduce cost-to-serve

Optimize automatically

Only executional supply

chain software
Limited visibility
Lack of cohesion between
Sales, Finance, Suppliers,
MFG, and Logistics

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FusionOps // Industry 4.0: Are You Ready?

Break down silos between

internal teams and external
stakeholders

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Mountain View, CA 94041
+1 (408) 524 2222
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www.emarketer.com/Article/Companies-Keep-Up-with-Soaring-Customer-Expectations/1012615
www.gartner.com/smarterwithgartner/what-supply-chain-leaders-need-to-know-about-industrie-4-0/
www-01.ibm.com/software/data/bigdata/what-is-big-data.html
www.sloanreview.mit.edu/article/minding-the-analytics-gap/
www.zdnet.com/article/industry-4-0-its-all-about-information-technology/
www2.deloitte.com/content/dam/Deloitte/ch/Documents/manufacturing/ch-en-manufacturing-industry-4-0-24102014.pdf
www.mhlnews.com/global-supply-chain/how-will-industry-40-affect-supply-chain

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FusionOps // Industry 4.0: Are You Ready?

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