How do companies move from value chains to value networks? Why is a fundamental mind-set shift required for 4IR? Which capabilities do value network organisations need to possess? Which platform options are available? How to ensure buy-in and change management to ensure 4IR success? People as critical enabler of 4IR

1. October 2018 Dr. Harry Teifel
www.progressusdigital.com
Industry 4.0 – Moving from
awareness to real value-add

2. 2
Introducing Progressus
4IR Platform specialising
in 4IR and Digital
Transformation Support
Customer-centric Products
and Services around 4IR
Differentiation is mix of
skills and “social capital”
investment
Common brand with
aligned offering and
product management
Participation voluntary;
termination possible at
any time
Logic: Expertise for
clients impossible to fit in
one company
Diverse Skills: IT,
Engineers, Humanists,
Mgmt and Technology
Growth to 40 experts in
4 months with avg. 20
years+ experience

3. 3
Various stages of 4IR
4IR Stages
Re-
alize
Re-frame
Re-configure
Re-envision
Re-invent

4. 4
Dictating Adapting
Complexity
leads to
Tipping Point
Using data for
continuous
differentiation
Creating value by
networking with others
Continuously
harvesting Technology
potential
Being agile and dealing
with complexity
4IR drives complexity – which can only be dealt with through networks

5. Level of
Competi-
tiveness
in industries
Adopters
increase their
competitiveness
and disruption is
initiated
Competition in
the market
moves to a
higher level as
benchmark
New Technologies
are available and
allow for
performance
improvement
Traditional players
can’t keep up, a
shake-out occurs
and the cycle
repeats itself
Time
+
5
4IR means competition at a higher level – and fight for survival

6. 6
More of the same won’t work – 4IR requires new Solution-Thinking
• Discarding of 2nd and 3rd Industrial Revolution paradigms
• Old-word operating manual irrelevant for 4IR
• New Solution Thinking required
• Companies need to re-frame their desired future state

7. Traditional linear Business
Value Chain
7
Digital
Value
Network
Business
The market
dictates what it
wants
Every one is
involved in
innovation
Assets are
shared and
waste reduced
Value is created
in any-to-any
networks
Data and
relationships
are the most
valuable assets
4IR / Digital
Transformation
Supply chains will make way for Digital Value Networks

8. 8
1. Connect
2. Interact and evolve
3. (Re-)build relationships
4. Operate in agile way
5. Leverage data
6. Scale
7. Protect
8. Improve
9. Innovate
Networked organisation
need to..:
Digital Value networks mean new capabilities for companies to operate
Digital
Value
Network
Business

9. 9
Construction Industry
• Planning
• Project Design
• Costing / Quantity
Surveying
• Funding / Banking
• Insurance
• Project Mgmt
• Risk Mgmt
• Quality Mgmt
• Construction
• Facilities Mgmt
Construction as Case-study: Need to link interactions and Technologies
Technologies
Inter-
actions

10. 10
Or combination – dependent on specific situations?
Need for parties to build cyber-physical platforms to cooperate in 4IR

11. 11
Digital
Transformation
obviously needs...:
Strategy and
innovativeness
Technology and
Software
Business Enterprise
Systems
(Un-)fortunate truth: People determine 4IR success
Data and Business
Intelligence
But nothing
happens without
people and
organisations

12. 12
Shared 4IR Vision
and optimal
Roadmap
Threats, risks and
Data deployment
stages
Technological and
other Disruption
Enterprise System
incl. IT / SW / Tech
and Process gaps
and alignment
Future business
model, relationships,
way of working
Business benefits
and optimal
Technology usage
Seeing and experiencing
benefits of 4IR
4IR / DT* principles,
challenges and
options
2 3
4
5
6
7
8 1
Achieving a shared 4IR vision & Roadmap means multiple perspectives
*DT = Digital Transformation
Progressus
4IR Product
Modules

13. 13
Group /
Community /
Platform
Dynamic value creation in
Platform environment Dynamic utilization of
Data and Things
Person
Push
+
Pull
• Complexity and variability extremely high in 4IR environment
• No System will be able to plan and prescribe what to do
• Initiative to find and create “linkages” as new way of working
• Complete buy-in, clarity of role and tools indispensable in 4IR
4IR complexity only manageable with flexible and committed people

14. 14
Sector-specific
Requirements
External Interfaces
Analytics Additional Tools
Data visualisation
Processing and Action Management
Device Management
Connectivity and Harmonization
DatabaseNeed for configuration of Technology and Sector-specific 4IR Platforms
Define vision of
common
Platform
Solution
Define Platform
Value Creation
Eco-system
Configure
POC for
solution
validation

15. 15
Traditional world
Digitalized 4IR World
4IR as era of unequalled
opportunity – for those who
accept the challenge
Exponential
organisational growth
and network effects
Combined effect of
disruptive Technologies
Digitally empowered
customers
Networked value
creation
Agile cooperation in
organisations and
platforms
Time taken for change
Extent
of
change
Time for
change
Extent
of
change
• “The change in the
next 10 years is
equivalent to the change
in the last 30”
• Old ways have to be
replaced to deal with
change and complexity
4IR allows for unparalleled innovation and growth; the time is right now!

16. 16
Thank you;
May the 4IR be with you