Industry 4.0 : Making your business more competitive

Industry 4.0 : Making your business more competitive

by

Manoj Kumar Trivedi

Founder, Director & Business Mentor

iGlobal Research and Analytics

The world of uncertainty is engulfing fast changing the way we do business. Organisations are no more limited through objective principles of management. The world of work faces an epochal transition. 

From defence to State adminstration to manufacturing economy, from social public convinience to personal utilisation, global economy has felt the necessity to facilitate efficiency in all speheres protecting from the negatives of inevitable and non - retractable  globalisation.

While AI will remain the tool of increasing efficiency, the images,information and data produced has to be analysed and utilised by human being for economic benefit of nation, state and organisation.

In uncertain world

Business Leaders and Employees are under huge pressure to future-proof their organisations.If this is the downside for organisation incurring huge capital investment, the upside is the huge new opportunities.

Blair Shepherd, Global Leader, Strategy and Leadership Development of PwC has said - " One of a leaders most challenging task is to execute against the issues arising today in a way that prepares the organisation for the future.The ability to be comfortable in both strategic discourse and practical execution and to ensure each informs the other is a combination of  skills that is rarely found but critical for leadership".

Mechanization and automation is ever since 1950's through various industrial revolutions. Ever since,only job lost is of elevator on the reason of safety. 

Each revolution has brought in and updated skills across sectors. Instant Fourth revolution is more of cyberspace and robotics which provides ample opportunity for business development. Integrating the global business digitally facilitates peeping in the real time global economy that helps neutralizing macroeconomic implications at micro levelof operation on real time basis.

Whereas, global environment is uncontrollable, organizational environment is controllable facilitating customer service commensurating changing global economy and on real time basis to beat the competition. 

Given all the revolution, industrial underperformance still haunts many Business Leaders and CEOs. They may have achieved numbers, but,

• When put in scale of economic value, the performance and  achieivement may or may not be encouraging in comparison to previous year and stakeholders/board pressure keeps on mounting Y-O-Y.
• Lot of savings brought on the table, clocks-off, leaving Business Leaders wonder where all the money gone !!!
• The reason why profit does not commensurate change in sales volume is still unanswered.
• The reason why total manufacturing cost is not same across days, weeks, months and year is still elusive.
• Answer to Law of Diminshing Margin is yet to be explored.

and many more such intangible costs spoils the performance.

Being competitive

Irrespective of the fact whether any organization opts for the technology, it has to compete rigorously with smart factory in so far as cost space is concerned. Reducing operational cost will be a new normal through - Labor cost, Predictive Maintenance and Energy Management.For being competitive to beat the competition, organisations have to look beyond these standards.

Harnessing power of constantly evolving digital disruption to break down well-established barriers to entry and devise new business models is a complex endevour, but equally necessary.

Business transformation has to represent a fundamental and risk laden reboot of a company with the goal of achieving a dramatic improvement in performance and altering its future trajectory. It can no more be limited to conventional norms of selective improvement. A transformation is not a series of incremental changes. Rather, it is a fundamental reboot that enables a business to achieve a dramatic, sustainable improvement in performance and alter the trajectory of its future.

Profiling white collar worker in the age of disruption is mandatory creating opportunity for both organisations and white collar workers embracing the revolution.

White-collar worker now require a different set of skills to succeed. Just as blue-collar workers needs better training and education, focusing particularly on rudimentary Science,Technology and IT space, white-collar workers will also need their own refresher courses on Economic Engineering, Mathematics and Statistic disciplines.

Most of the Business Leaders & CEOs are busy leveraging finance and customer analytics. They have to move step forward "Leveraging Operation" reading operational economic fine prints to control cost at operational level- a powerhouse and profit generator enabler. While Lean process, TPM and Kanban are the tools of doing right things in a right way, they have to look beyond for doing things right.

The cost savings are largely a result of greater efficiency and technological integration. Industry 4.0 replaces redundant legacy systems, such as those for operations management and enterprise resource planning, with a single, enterprise-wide, interoperable whole — which is much less expensive. Because user experience in operational systems has improved in recent years, employees tend to be happier and more productive with Industry 4.0.

The revenue gains, for their part, come largely from ofering new digital features and products, or, from introducing analytics and other new digital services to customers. In addition, the availibility of real-time data enables companies to offer more personalized products and customized solution, which ususally generate significantly higher margins than mass-manufactured offerings.

Whether digital or not, Business economics lost in the lust is inseparable and will become invincible now for economic value engineering facilitating improving existing industrial underperformance and smooth transition to new normal. 

Business is at war today. Sustainability is at stake in a VUCA world. Knowing how to win the war means developing sophisticated understanding of business economics with economic resoning skill and rational thinking at margin for economic value addition across operation weighing decisions against real time cost exploring alternative deriving opportunity cost and determining market determinant.

Improving existing underperformance ensuring smooth transition to new normal with economic value engineering will endure growth beating competition with competitive edge. 

Productivity analysis and measuring efficiency through application of Business Economics using Econometrics is the future business building block which has been oflate included in their curriculum by Indian Govt in premium technical institute of Asia and BRICS Countries, Indian Institute of Technology, though "theoretically". Moreover, IFRS 13 calls for Fair Value Measurement and reporting across operational segments.

Going beyond general descriptive discourse, second to none, we offer two days highly specialized discourse on Economic Engineering and Econometrics for "practical" application of Business Economics deriving Econometrics taking to the realm of economic reasoning, revenue generation and enduring growth. 

Beside improving Economic reasoning take away, the discourse will leverage -

• Increased collaboration within the functions
• Self develop Personal and Inter-personal skills
• Building exponential imagination to enhance critical thinking
• Creativity & Innovation; determining oportunity cost deriving alternative
• Improve Analysis, judgement and  decision making process
• Rational thinking at margin
• Real-time economic analysis
• Weighing decisions against real-time costs
• Increased value proposition across business segment
• Reduce gap between market orientation and performance relationship
• Improve employee engagement reducing attrition
• Improve overall productivity ensuring organic growth
• Improve profitability.

IMPORTANT : MSMEs are the pillar and engine of growth of any economy. They constitute about 95-99% of vendor master space of any organisation. They have the ability to make or break any #LargeScaleOrganisation. 

Imagine, if all the vendors/business partners of any organisation can reduce price to the minimum extent of 5% it will have massive impact over profitability and growth of any large organisations. But #MSMEs have no occassion to hire costly qualified talents neither they have enough money to invest in SmartFactory. But they have equal right to grow through competitive price impacting the economic entities they are associated with.  As global expert accredited and retained by leading International Economic Consulting Firm who has been assigned the project by EU & UK Govt to renegotiate and develop industries across 100 African & ASEAN Countries, we have undertaken taken backward integration route and pledge to help MSMEs within Annual Turnover of INR 500 Millions/US $7 Millions only by making them competitive to the benefit of #LargeScaleIndustries through customized telephonic/Skype mentorship program for Economic Reasoning Skill, reading Operational Economic fine prints and Economic Value Engineering, main characteristic of IR 4.0 that counters cost reduction method by smart factory at a highly discounted rate and nominal online advance fee/payment of US$ 250/INR 16,700 per Hour.

Write to us at trivedi.k.manoj@gmail.com,or call on us at (91) 9433013863 for global Corporate level In-house and Public Level discourse.

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