“Digitalization and sustainability are two of the most powerful market influences in today’s corporate landscape,” writes the MIT Sloan Management Review. Nowhere was that more clear than this week’s GLOBE Forum.
Taking place in in Vancouver, the event is one of the largest international leadership summits on sustainable business, attracting more than 2,000 attendees from business, government and civil society from more than 50 countries.
The intersection of digitalization and sustainability was the focus of a keynote talk lead by BASF Canada President Marcelo Lu, followed by a panel discussion with DX Institute Managing Partner, David Potter. Lu spoke about the power of connecting devices and unlocking data in order to create new opportunities within an organization and with customers.
BASF unlocks data to create customer value
“The biggest and most precious resource we have is time. Digitization gives you back time to focus on other priorities.” –@MarceloRochaLu1, president @BASFCanada at #GLOBEforum #digitaltransformation pic.twitter.com/5UF7S2iLPo
— DX Journal (@DXJournal) March 15, 2018
The largest chemical producer in the world, BASF is undergoing its own digital transformation initiative with a focus on realizing efficiencies and opening up new opportunities for innovation for both itself and its customers.
Take for example, BASF’s new supercomputer called “Quriosity”, which offers around 10 times the overall computing power previously available to BASF researchers. The company is currently adding all of its R&D data into it in order to learn more, faster — like calculating the most promising polymer structure from thousands of possibilities — as well as uncover previously unknown relationships.
These digitalization efforts are also focused on creating new value for customers, including providing customers with real-time information and creating an integrated supply chain to share logistic and relevant data with customers.
“In agriculture, for example, there is a massive amount of data being collected on farms,” said Lu. “Weather, soil conditions – it’s unbelievable. We’re helping customers use that data for precision agriculture. We are now acting as a trusted advisor to help a customer use information from their own land.”
Trends Driving Digitalization
Lu noted several major trends that are driving innovation across the organization:
- Connected devices mean data is always flowing
- There is a shift from being a company that creates or produces things into a data business
- There is increased transparency produced by data, with the ability to fix things based on real information
- Data usage allows you to quantify and profile, allowing an organization to deliver mass customization
- When you collect data, you can share data, to un-silo learning
Digitalization & Sustainability 4.0
Digitalization is also being used as a tool for organizations to achieve sustainability 4.0 — be it energy and building efficiency, reducing carbon emissions or improving waste management.
Lu was quick to give examples from different industries.
“There is a big gap in understanding how much energy is needed to power electric cars,” says @BASFCanada president @MarceloRochaLu1 at #GLOBEforum. Traceability and data will help close this gap. #DigitalTransformation cc: @GLOBE_Series pic.twitter.com/d5O8tJu06s
— DX Journal (@DXJournal) March 15, 2018
“If there is one industry that has not adopted digitalization, it’s the construction industry,” Lu said. “It will be revolutionary once that happens in order to drastically reduce waste.”
In the convergence of digitalization and sustainability, data is the new oil and becomes an invaluable resource to power the circular economy. It helps companies understand how to keep resources in use for as long as possible, minimize disposed residual waste, extract maximum value from products and recover and regenerate products and materials at the end of service life.
Here’s the thing about how digital transformation will impact your business
Here’s the thing about digital transformation: Everyone knows it’s happening.
But it’s hard to know which new technology or innovation is going to be the one that upends your industry, opens up massive opportunity, threatens your company, or forever alters your role.
Today we’re introducing a new, custom-tailored service to help you figure that out. The service combines journalism, research and market analysis to help you and your team understand the state of digital transformation (DX) and explore the key developments that will impact your employees and industry.
We call this our “Here’s the thing about…” service. Teaming up with the DX Journal, we leverage journalists, analysts, researchers and strategists to help your company get a full picture of:
- What is likely to impact your industry
- Your team’s readiness to deal with it
- An in-depth look at major developments you need to pay attention to
Here’s how it works:
This service is designed to give perspective on how digital transformation will impact your company. We present our findings in an easy-to-understand format breaking down trends for multiple departments and for every skill set with documented takeaways and action items.
We uncover and share those findings in a simple, two-step process:
Step 1: Research & interview process
- Custom research on digital transformation trends impacting your industry, customers, and competitors.
- One-on-one interviews with your company’s executives, department heads or managers, employees and/or customers.
Step 2: Research presentation
- A presentation to your company in an internal keynote-style presentation to any size group — be it a small strategy team or an all-hands employee seminar.
- Our team of researchers, journalists and analysts will share the research findings, key trends in your industry and provide an overview of how well you’re set up to address challenges or embrace opportunities based on the employee interviews.
Who this service is for:
Let’s start by clarifying that digital transformation is not just an IT problem. Our clients are often leaders who are not technologists. In fact, many companies we speak with are surprised to learn how many areas of the business are impacted by DX, including marketing, HR, IT, sales, operations, legal, and others.
There’s no escaping that every area of a business is going to have to manage change that digital transformation brings. Digital transformation should not be left for the IT department alone to figure out.
With that in mind, we’ve designed this report and presentation service most commonly for executives and managers in:
- Operations, finance & strategy
- Human resource departments
- Marketing and sales departments
- IT departments
Sure, you might not have to deal with artificial intelligence in your accounting department tomorrow. Or chatbots in your HR department. Or big data solutions for your manufacturing warehouse. But how can you be sure if you don’t understand these emerging technologies? What if your competitors are? And what if they’re getting a 6-month head start?
To get started, please contact the DX Institute.
Finnish micro-factory highlights path to business success
Finland has a new approach to manufacturing and its tiny — but mighty. And it’s coming to the U.S.
The ANT Plant is a Finnish industrial innovation that involves constructing a micro-factory. This approach can challenge the existing practice of mass production in countries with low production costs.
The Finnish micro-factory approach challenges the established model of a large manufacturing plant and workforce. Such traditional plants are effective at producing standardized goods at a rapid rate. However, they are less effective at niche production and their high set-up costs require the large scale production of goods at a relatively low cost in relation to the sale price.
In contrast, the micro-factory concept is based on robotics and a flexible approach to manufacturing. The key selling point is that the factory can be set-up and put to work very quickly. Once established the manufacturing of products is straightforward.
The designers of the concept — EID Tech (Kuopio, Finland) — operate partnership agreements to allow for the upkeep and to cover the lifespan services of the micro-factories. This helps to reduce the operational expertise of the company who purchases a micro-factory, according to Jari Helminen, CEO of EID Tech.
The speed of the micro-factory construction process can be seen in the video below:
One ANT Plant concept is currently used to manufacture mass-produced LED lamp tubes. Through the process, up to one million LED lamp tubes can be produced per year. This includes the steps of assembly, testing and packing on only one production line.
This sets the basis for the micro-factory being particularly suitable for a range of electronic consumer goods, especially with the lighting sector (with what is termed ‘customer-specific industrial automation’). As well as LED lamp tubes the concept can be rapidly applied to LED bulbs and LED panels and down lights.
Initial interest has come from the global electronics industry. According to the developers, the value of ANT Plant is over 20 million euros with the potential for annual sales worth tens of millions of euros.
One of the investors in the concept is the Finnish businessman Pia Kantola. In a statement Kantola said: “I strongly believe in Finnish engineering skills and in EID Tech, which is a company with both innovativeness and perseverance, together with a thorough knowledge of the automation business.”
The Finnish manufacturers are targeting the U.S. because of the current industrial policy which allows for tax reliefs to domestic production.
5 ways to improve supply chains with digital transformation
Keeping supply chains in control and competitive is a key for any company sending physical products nationally or internationally.
In a competitive market, supply chain managers seek to create net value, build a competitive infrastructure, utilize available worldwide logistics and try to meet supply with demand.
Digital technology presents efficiencies and costs reductions to maintain a competitive edge. Here are 5 key benefits for those who manage supply chains.
Digital Transformation of Supply Chains
- Big data together with advanced analytics provide insights and improve decision making. Every point of data is an interaction that builds a company’s understand in of their customers, suppliers and vendors. Supply Chain Drive uses the examples of “an item is picked off a shelf, a customer leaving a website, an online review is written, a damaged product is returned.”If parts of the supply chain network are willing to share this information digitally, then useful material can be built up, as discussed in this article published in the International Journal of Production Economics.Collected information can also be integrated into optimization tools and used for activities like demand forecasting, integrated business planning and supplier collaboration and risk analytics.
- Sophisticated sensors track and collect information, provide safeguards for goods and protect against counterfeiting among other things in supply chains. This is a hot topic in the pharmaceutical world where up to 20 percent of distributed medicines may be fake — digital supply chains can help identify fraudulent shipments. The U.S. Food and Drug Administration has recently produced new guidance on this subject for medicines manufacturers, as Pharmaceutical Microbiology has reported.
- Customer engagement: The selection of the right piece of software to enable customer engagement is key to achieving “retention, lower operating costs, increased sales and faster growth,” according to this recent article in Software Advice.Software must be mobile first. As the European Commission points out mobility is seen as a disruptive technology for business and it allows new ways of working in “an ATAWAD (Anytime Anywhere Any Device) environment.” Examples systems include Darius, which collects customer feedback, analyzes it and sends reports, and Ambrosus, which has put in place a blockchain-based ecosystem for the supply chain.
- Cloud technology solutions for the supply chain can provide business process gains and works best when a large number of suppliers and customers agree to share data over a cloud.According to an article in Forbes, companies that use an Electronic Data Interchange (EDI) to communicate throughout their supply chain are more efficient than those reliant upon emails, faxes and phone calls. Through an EDI two different companies can electronically exchange documents (such as purchase orders, invoices, shipping notices, and many others). Once the supply network is connected via a cloud then analytics, cognitive equipment and smart apps can aid decision making.
- AI and cognitive computing will provide significant advantages to those organizations that embrace them. AI will enable organizations to shift through large amounts of structured or unstructured data; assess detailed supplier assessments of a single supplier or a group of suppliers; and for assessing and calculating risk. There are also potential gains to be made from using artificial intelligence to find new ways of operating, to provide new insights, and to uncover new opportunities. Companies like IBM are developing cognitive computing systems to support supply chains.
These five examples show how technology can help, now or in the near future, to improve the efficiency of the supply chain. The adoption of such technology needs to fit in with a clear business strategy. With a clear direction in place, the promises that digitalization of the supply chain promises are considerable.
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