FusionOps // Industry 4.0: Are You Ready?1 Table of Contents

INDUSTRY 4.0:

Are You Ready?

FusionOps // Industry 4.0: Are You Ready?1 Table of Contents

2 A Connected Planet

3 Industry 4.0 Basics

4 Your Customers are Demanding It

5 3 Keys to Supply Chain Success in Industry 4.0

6 GettingStarted:OpenBigDataRepositoryintheCloud

7 GettingStarted:CloudIntelligenceLayer

8 GettingStarted:AdvancedDataScience

9 How it All Comes Together

10 How to Get There

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FusionOps // Industry 4.0: Are You Ready?2 Table of Contents

A Connected Planet

Amongself-drivingcars,drones,smartphonesandevenwearabletechnology,it’sclearthatintelligent,connecteddevicesareshapingoureverydaylives.Thesupplychainisnoexceptiontothiswaveof technological change. Within a fewyears,factorieswillbecomea mesh of cyber-physical systems whereconnecteddevicesexchangeinformationandtakeactionswithoutrequiringhumaninvolvement.Suppliers,manufacturersandcustomers will be more closely aligned

andresponsivetochangesthroughcloudtechnology.AndBigDatawon’tjustgetbigger,itwillgetsmarter–relyingonpredictiveandprescriptiveanalyticstodrivedecisionmaking.

Ultimately,notonlythefactory,buttheentiresupplychainismovingtowardsautomation–andevenawareness–thatwillchangehowproductsareordered,manufactured,shippedandconsumed.ThisevolutioniscalledIndustry4.0,andit’shappeningnow.Are you ready?

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automation.

The supply chain is movingtowards

FusionOps // Industry 4.0: Are You Ready?3 Table of Contents

Industry 4.0 Basics

● Industry 1.0: The Industrial Revolutionredefineshumanlimitationsbyharnessingthepowerof water and steam.

● Industry 2.0: Electricity pushes peopleandmachinesevenfurtherasmanufacturing grows in scale

and scope.

● Industry 3.0: The modern computer opensthedoorforautomationandadvancedstatisticalanalysis.

● The Internet of Things will connect devicesandworkersinthefactorywith products and consumers in thefield.

● Big Data technology and strategies willhandlethemassiveinfluxofrawdatafromthesedevices.

●Cloudsoftwarewillbringitalltogethersobusinessescanstore,analyzeandmakesense ofeverything.

The term Industry 4.0 presupposes thepassingofthreemajorshiftsin how businesses approached manufacturing throughout modern history,tracingitsrootsasfarbackasthe 19th century:

Asthenextlogicalstepforward,Industry 4.0 will combine the major technologicaladvancesofthe21st-centurywiththesameinnovationsthathavemademanufacturingacornerstone of modern life.

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Connectdevicesandworkersin the factory with products and consumersinthefield.

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Your Customers are Demanding ItIndustry 4.0 is about more than just informationtechnology.It’salsoabout what the customer wants. Thankstotheriseofe-commercegiantslikeAmazonandtheabilitytorevieweverythingonline,customerstodayhavehigherexpectationsthaneverbefore.

Inonerecentsurvey,82percentofbusinessesreportedtheyhaveencounteredmorespecificandstringentconsumerexpectations,includingadesireforfasterdeliverytime,lowerprices,simplereturnsandahighdegreeofcustomization.The

samesurveyfoundthat60percentofexecutivessaidtheirbusinessisstruggling to meet these heightened demands,manyofwhicharerootedinthe supply chain.

Thesehigherconsumerexpectations–fasterdelivery,lowerpricesandmorecustomization–won’tjustimpact the retail world. This has huge ramificationsformanufacturersineveryindustry,whichwillneedtodelivercustomizedproductsatlowercosttomeetheightenedexpectations.Ultimately,companieswillneedtogetdown to batch size of one.

60%of businesses are struggling to meetconsumers’heightened demands.

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FusionOps // Industry 4.0: Are You Ready?5 Table of Contents

3 Keys to Supply Chain Success in Industry 4.0

1. Innovation and supplier management: The abundance of user and manufacturer data willallowbusinesseswiththerighttoolstocreateadvancedpredictivemodelsoftheirsupplyoperationsbeforeputtingtheminplace.

2. Agility and visibility:Asconsumerdemandsgrowmorecomplex,supplychainswillneedtobereadytopivotatamoment’snotice.Thisrequiresfulltransparencyandincreasedvisibilitywithineachfacetofsupplyoperations.

3. Efficiency and cost: Allofthismustbeachievedonrazor-thinprofitmargins.Machinelearningandadvancedanalyticscanhelpbusinessesrealizetheirfullpotential,butonlyiftheycanacquiredatainsightsquickly.

InIndustry4.0,theentiresupplychainwillbecomeevenmorecompressedandtightlyintegrated.Productlifecycleswillgetshorter,leadtimeswillshrinkandthemarginoferrorwillgetevensmaller.Toaccountforthesechanges,therearethreekeyareaswhereexecutiveswillneedtofocustheirattentionanddriveimprovementinordertobesuccessfulinIndustry4.0:

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82%of businesses reported they haveencounteredmorespecificandstringent consumer expectations.

FusionOps // Industry 4.0: Are You Ready?6 Table of Contents

OpenBigDataRepositoryin the Cloud WithIndustry4.0,BigDatawillgetbigger…alotbigger.By2020,theworld’sdatavolumeissettobe50timeslargerthanitistoday.Manyorganizationsarealreadyfindingthatlegacy databases and systems simply won’thandlethevastamountsofdatabeing generated inside (and outside) thebusiness.That’swhyBigData–andthecruxofIndustry4.0–willlivein the cloud.

With a growing number of connected devices,BigDatamustliveinopenplatformstoenableeaseof

integrationandscalabilityofdatasources.Companiesthatkeepdatalockedawayinsiloswon’tbeabletoidentifynewopportunitiesfastenough,andwillriskfallingbehind.Byleveragingcloud-basedopenplatformsthatsupportbothstandardAPIsandproprietaryintegrations,dataismorevisibleandaccessibletonetworkeddevices,machinesandpeople.LookforopenBigDataplatformstobreakdownsilosandunlockyourfullproductivepotentialin Industry 4.0.

GETTING STARTED:

By2020,theworld’sdatavolumeis set to be

than it is today.

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50x larger

FusionOps // Industry 4.0: Are You Ready?7 Table of Contents

CloudIntelligenceLayerForthepast25years,companieshavereliedonmanual,desktop-basedreportingtogetinformationaboutthe business to support decision-making.InIndustry4.0,acompany’sabilitytoderiveintelligencefromthestaggeringamountofoperationaldataavailabletothemwillbetheprimarydeterminant of their ability to grow.

Thiswillbeachievedthroughacloud intelligence layer that enables dynamic,real-timeinsightsacross

unlimited data sources. The cloud intelligence layer speeds up analysis ofdatabyprovidingsupplychain-specificmodels–includingcommonmetricslikeon-timein-full,inventorydaysofsupply,supplierresponsivenessandforecastaccuracy. The cloud intelligence layerleveragesthereal-timedatainthe central cloud data repository to setgoalsandachievemeasurablebusiness impact using a library of supply chain metrics.

GETTING STARTED:

A cloud intelligence layer enables dynamic,real-timeinsights across

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unlimited data sources.

FusionOps // Industry 4.0: Are You Ready?8 Table of Contents

AdvancedDataScience

Predictive analytics: This is used forthingslikedemandforecasting,maintenance schedules and product-useinsights,whichcanallbeeffectivelypredictedwiththerightdata science tools.

InIndustry4.0,thesupplychainwillbemovingsofastandthedatawillbesocomplexthathumanintelligencealonewillnotbeabletokeepup–manydecisionswillneedtobeautomated.Thefirststeptowardsautomateddecision-makingisembeddingadvanceddatascienceintothesupplychain.Manycompaniesaredoingthiswithsoftwaretoolsandhighly-paiddatascientists.Moreadvancedcompaniesareusingpredefinedalgorithmstorecommendthebestpossibledecisionsbasedonallthedatapointsthatarebeinginterpreted–withouthumaninvolvement.

Prescriptive analytics: With data constantlymovinginandout,decisionsneedtobeautomated,too.Aprescriptiveanalyticsengineisabletotakedatainsightstothenextlevelbypresentingthebestavailabledecisions that humans or machines can act on.

GETTING STARTED:

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

Predefined algorithms

FusionOps // Industry 4.0: Are You Ready?9 Table of Contents

How it All Comes TogetherIndustry4.0ismuchbiggerthanjustthefactoryfloor.Itconnects,suppliers,customers,manufacturersandproductstogether,usingacloud-basedbigdataplatform.

INDUSTRY 4 .0

SUPPLYCHAININTELLIGENCECLOUDCollectiveIntelligence•Machine-DrivenPrescriptiveActions•MassCustomization

•Dynamic reconfigurabilityofsupplynetwork

•Total reliability•Rapid response to

changes in customer requirements

•On-demandmanufacturing

•Higher quality products

•Masscustomization

INTERNETOFTHINGS•Objecttagging•InternettoObjectcommunication•Real-timedatacapture•Optimizedstocks

SUPPLIERS CUSTOMERSCyber-physical systems (CPS)•Fullautomation•Totallyinterconnectedsystems•Machine-to-machinecommunications

ADVANCEDMANUFACTURINGSYSTEMS

SENSORS•Reactivity•Traceability•Predictability

ROBOT•Real-time autonomy•Fulltransparencyondatareporting

ADVANCEDMATERIALS•Smartvalue-added products•Technicaldifferentiation•Connectivity

FACTORY

FusionOps // Industry 4.0: Are You Ready?10 Table of Contents

How to Get There

IntelligenceismovingfromITteamstobusiness users and now to machines. Thefirststepismakingintelligenceself-service.Intelligenceneedstobemovedclosertotheplaceofdecision-making–closertobusinessusers.Ultimately,machineswillmakedecisionsandtakeactions.

Thesupplychainofanorganizationisnoexceptiontothistrendoftechnologicalevolution.Toadaptnow,companiesneedtodevelopaneasywaytointegratehugequantitiesofdatafrominternalandexternalsources,andleveragepredictiveandprescriptive

analyticstogetactionableinsightsfromthosesources.Withthesecapabilitieslinkedviaanintelligentcloudlayer,supply chains can be fully connected fromstarttofinish,settingthestageforautomationofroutinetasks.

FusionOpsisexactlythesolutionsupplychainleadersneedtotakeadvantageofeverythingtheneweraofindustryhastooffer.Combininganintuitiveintelligencecloudplatformwithsupplychainexpertiseandadvanceddatascience,FusionOpsallowsbusinessestomakebetterdecisionsquicklyandeasily.

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fromstarttofinish,settingthestageforautomationofroutinetasks.

Supply chains can be

fully connected

FusionOps // Industry 4.0: Are You Ready?11 Table of Contents

FusionOpsPathtoSupplyChain4.0

DISCONNECTED INTELLIGENTCLOUD AUTONOMOUSCLOUD

COMPANIES STRUGGLE

•Silos of raw data

•Onlyexecutionalsupplychainsoftware

•Limitedvisibility

•LackofcohesionbetweenSales,Finance,Suppliers,MFG,andLogistics

FUSIONOPS TODAY

•Integrates internal & external data in the cloud

•Leveragesdatascience& machine learning

•Reducecost-to-serve

•Breakdownsilosbetweeninternal teams and external stakeholders

FUSIONOPS TOMORROW

•Predict:failures,demand,supply,maintenance

•Act: automate responses thatdrivethesupplychain

•Optimizeautomatically

Logistics

MFG

Finance

Sales

Suppliers

Supplie

rsLogisti

cs

Finance

Sales

FusionOps // Industry 4.0: Are You Ready?12 Table of Contents

www.emarketer.com/Article/Companies-Keep-Up-with-Soaring-Customer-Expectations/1012615www.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.htmlwww.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.pdfwww.mhlnews.com/global-supply-chain/how-will-industry-40-affect-supply-chain

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