2. Digital transformation agenda in the “New Normal = Never Normal” context
Key points
1.
How can the Industry 4.0 community deal with a
crisis with the Now. Next. Beyond. approach?
2. How to adapt to the crisis in a structured way?
3.
What is important about the Digital
Transformation Strategy?
4.
Which digital tools could be useful in the context of
the Now. Next. Beyond. approach for Industry 4.0?
The current world is so unbelievably
unexpected, unreal, unfriendly and abnormal.
Welcome to the ‘brave new world’ of:
• a dangerous virus without a safe vaccine
• people without safe physical contacts
• supply chains without safe physical goods
or safe physical delivery
How can digital transformation help now?
Oleksiy Shmuratko
Manager, Advisory
EY Ukraine
EU4Digtial Facility Coordinator in Ukraine
2
Crises and deadlocks when they occur
have at least this advantage,
that they force us to think
Jawaharlal Nehru
„
3. Crisis operating model for a Resilient Enterprise: Now. Next. Beyond
3
How do organizations respond to the crisis in the
sector, in the economy?
Distributing task priorities across three horizons:
Now.
Urgent intervention in the processes to limit the impact of
the crisis on the continuation of operations
Next.
Adaptation of organization management to the conditions
of rigid restrictions and deep transformation
Beyond.
Crisis management, building a sustainable organization, re-
evaluating development conditions and successful
transformation
Supply Chain
Management
Financial and
Investment
Management
Information
Technology
and Security
Leadership and
communication
Well-being of the
Organization’s
Staff
Risk
Management
Government
and Public
Relations
People
Management
Reputation
and
Customer
Relations
Insurance and
Financial
Sustainability
4. “…I always remember the observation of a
very successful soldier who said, “Peace-
time plans are of no particular value, but
peace-time planning is indispensable.”
Dwight Eisenhower
5-star General, 34th President of the United States
Letter to Hamilton Fish Armstrong, 31 December 1950
4
5. Planning as a structured approach to adapt to the ‘New Normal’
emergency
response teams
emergency plans
and mechanisms
communication
plans
employee health and
safety
flexible work
arrangements
health
monitoring
systems
supply chain
taskforce
assess risk and effects
of supply chain delays
or disruptions
securing redundant
sourcing continuous
customer
relationship
management
scenario
planning
legal and commercial
contract reviews
active stakeholder
management
adjusting budgets and
business plans
risk management
optimization
supply chain
reorganization
footprint optimization,
forecasting and production
planning
Key steps for actionEvolution of crisis
delayed or interrupted
supplies of raw
materials
changes in
customer demand
logistic cost
increases
alternative logistic
routes
production stop
payment defaults
logistics shortages
leading to delays in
delivery
delay or loss of
sales
store closures
settlement challenges
related to import and
export trade
transport barriers
or slow-downs
quarantines
travel
restrictions
additional non-tariff
trade barriers
curfews
cancellation of trade
fairs and other mass
gatherings
general
economic downturn
How do you respond?
Establish crisis management teams / task
force to calmly manage short term (liquidity)
impacts and countermeasures
Assess potential risks and define coordinated
response mechanisms
Communicate clear and positive messages via
coordinated standardized communication tools
Focus on employee health and protection of
productive assets – define supply chain and
production risks
Incorporate crisis impacts in budgeting and
business planning process and implement early
warning mechanisms
Update corporate strategy and review
resilience of business model for future crisis
potentials
short term liquidity
measures and
management
assess crisis
impact and
prepare response
bridge financing
holistic
performance
improvement
flexible
organization
✓
Now.Next.Beyond.
shorttermmedium-termlong-term
5
✓
✓
✓
✓
✓
6. Industry 4.0 response to the crisis – in the Now. Next. Beyond. context
Now. Next. Beyond.
Complexity
RPA
AI
Industrial
Robotics
Digital
Twins
Industrial
Internet of
Things
Smart
Enterprise
Big Data
Analytics
Cyber-
security
Control
Towers
6
Digital Transformation Strategy
7. Scenario planning analysis to understand all-round impact
on your business
7
Now.
Next.
Beyond.
Risk dashboard:
EY Risk Nav™
EY Clients utilizing risk dashboards in
GRC or ERP software, such as EY Risk
Navigator, can augment the dashboard
with data from the final and
intermediate states of SPA processing:
• Causal pairs can be utilized to
generate accurate, dense mind
maps and other relationship
diagrams
• News indicated drivers can be
utilized to provide a feed of relevant
information to the dashboard user
• Scenarios generated by SPA can be
visualized within the dashboard,
with supporting data available on
detail screens.
This is the opportunity to positively change how our clients
plan for and react to risk.
• The Scenario Planning Advisor (“SPA”) helps our clients realize risks they may
not have previously considered. Utilizing artificial intelligence technologies
designed by IBM Research, SPA puts an added emphasis on identifying the
extreme yet possible risks and opportunities that are not usually considered in
daily operations
“
SPA will change risk planning and strategic thinking:
► Modernizes strategic planning, shifting from cycles of annual or quarterly review to on demand
as events arise
► Provides a variety of often unexpected potential future outcomes for decision makers to
consider
► Accelerates production of these outcomes from 3-4 weeks (typical duration of traditional,
“manual” advisory approach) to a few hours
► Promotes a diversified point of view by eliminating natural biases associated with risk planning
► Encourages exploration through an immense capacity to rapidly analyze and extract risk drivers
from news, journals, social media, and other digital sources
8. Supply chain management with Control Towers and Digital Twins
8
Improving the disruption response
through real-time monitoring and
scenario analysis
• Vital to having an accurate up to date view of end-to-
end supply chain
• Starts with end-to-end view of demand, inventory and
supply (factories and suppliers)
• Over-lay global and local events data such as pandemic,
geopolitical, economic or natural disasters
• Full digital twin allows for scenario modelling to assess
and determine the right course of action
Benefits
• Visibility of current state of supply chain
• Incident monitoring and reporting enables rapid well
designed responses in the event of crisis
• Agile response to day to day frequent but low impact
issues – port strikes, production line shut downs, etc.
• Improved major event responsiveness with crisis
response based on modelled scenarios
• Improved operational excellence
These measures are
updated every hour.
Thus giving a real –
time picture of every
location’s performance.
Control Tower Analytics
Operational Pulse
Supply Chain Control Tower
Examine global
flows through
to regional
execution
• Easy Visualization
• Onestop Solution
• Data Integration
• Report Automation
• Trend Analytics
Shipment
Stock
Fleet Status
Covering…
Now.
Next.
Beyond.
9. Cybersecurity preparation, planning and execution
9
Prepare the
workforce and
promote well-being
Set Expectations
Relax always “available” demands, but
set clear goals and expectations
Establish Social Channels
Social channels keep employees and
clients feeling connected and focused
Track, Monitor, and Provide Updates
Updates avoid spread of misinformation,
panic, and decline in productivity
Awareness Trainings
Provide employee training to protect
against social engineering by hackers who
attempt to exploit COVID-19
Leverage technology
to expand digital
workspace capabilities
Amp Up Remote Work Capabilities
Enhance remote work infrastructure to
scale and support business operations
Plan for Response & Business Continuity
Review response plans and contingencies
such as alternate employee communication
channels (e.g., phone, social media)
Secure Communication and Collaboration
Establish platforms that enable employees
to work on day-to-day activities remotely
High Touch Technology for Self Service
Establish self-service platforms such as
chatbots and IVR for issue management
Make cybersecurity
a top priority
Ensure Data Security and Backups
Review remote workforce data security
needs, update policies and procedures,
and communicate data handling practices
Secure Virtual Infrastructure
Review and fortify infrastructure security,
such as for Virtual Private Networks and
Virtual Desktop Infrastructure
Revamp Endpoint and Mobile Security
Deploy or enhance endpoint and mobile
security to monitor and respond to threats
Third Party Sustainability
Get regular updates from dependent third
party security service providers; Revise
SLA’s as needed
53% of US workers are
afraid of the spread of
coronavirus and 29% of
them are afraid to go to
work due to the risk of
exposure
Your organization can
take proactive steps now
to adapt to changing
workspace needs in the
face of pandemic and to
ensure continuity of
business operations.
Source: Forrester’s Q1 2020 US
PandemicEX Survey
Now.
Next.
Beyond.
10. Digital strategy design: What are the tools?
Digital
Channels
Digital
Marketing
Digital
Commerce
Digital
Service
Core
Systems
Common
Services
IM & ChatE-mailForums Mobile&
Apps
Online
Affiliates
Gadgets &
Widgets
Virtual
Assistants
Smart
DevicesWebSiteSocial Media
Sales
Planning &
Forecasting
Shopping
Basket
Account
Management
Product
Ratings &
Reviews
Quotation
Management
Pricing
Engine
Product
Config. B2B Sales 2.0 Partner Sales
Management
Payments
Gateway
Order Management Self-Service / Account
Management Complaints Management Service Knowledge BaseDispute & Case Management
Analytics &
Insight
Digital Asset
Management SEO Landing Page
Optimisation
Digital Lead
Management
Social Media
Marketing
Campaign
Management &
Automation
Marketing
Planning
Brand &
Campaign
monitoring
ERP CRM Supply Chain Billing
Integration
Platform & MDM Gamification WebContent
Management
Identity
Management &
Anti-Fraud
Enterprise Social
Networks Search Real Time
Decisioning
Business Rules &
Workflow
WebAnalytics Customer Feedback /
Satisfaction MonitoringSocial Media Analytics Business Intelligence Predictive modelling
Threat Intelligence
Countermeasure Planning
Security
Monitoring
Incident
Response
Vulnerability
Identification
Remediation
Complicate
Data & Context
Complicate & Detect
Reactive & Proactive
Actions
Prioritized Risks
BusinessPriorities
RiskAppetite
Agile Innovation
Flight Map1
End to End
Experience Map
Digital Maturity
Assessment
2 3 Digital Canvas Digital Diagnostic Tool Innovation Games4 5 6
Digital Roadmap
Customer research
and insights
framework
Digital technology
capability framework
7 8 9
Digital Transformation
and Program
Management
Digital Operating
Model
Operating Model
Impacts on processes
and functions
10 11 12
13 14 15 16 17 18
Cyber Resilience
Blueprint
Cyber Threat
Management
Framework
Big data and the
analytics sandbox
Fraud analytics and
monitoring
dashboards
Advanced Analytics
Methodology to
support the full
outsourcing journey
10
Now.
Next.
Beyond.