An approach for systematically “Beating” the multidisciplined complexity of Industry 4.0.

1. 1
Don’t let Industry 4.0 get, your multi headed
threat.
Gain Capabilities to manage this complex future ahead!
Hercules fighting the multi headed Hydra (John Singer Sargent 1921)
Industry 4.0 is around for several years now but own experiences, confirmed by recent reports1
,
show that it is a huge challenge for organizations to create sustainable and substantial value from it.
The most important reason seems that this revolution is taking place in and is contributing to a VUCA
(Volatile, Uncertain, Complex and Ambiguous) world with great revolutionary changes as never been
seen before which makes handling rather difficult. As a response, doing nothing is not an option
whilst handling this transformation as did before, can also pave a “road to downfall”. Therefore an
alternative approach for systematically “Beating” the multidisciplined complexity of Industry 4.0 is
required to achieve the predicted value and prosperity.
The essence of this approach is having the necessary
organizational capabilities in successfully managing the
journey to a rather unknown final destination.
There are several definitions circulating for Industry 4.0
but to keep it as simple as possible it is representing the
fourth Industrial revolution in which data, (physical and
non-physical) technology and humans are increasingly
interacting with each other. This development will not only
create new products and services but also arise new ways
to fulfill these.
1
World Economic Forum, Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing, 2019
Gartner, How to Make Our Industrie 4.0 Predictions a Reality, Faster, 2019
Organizations tried to deal with the
multidisciplinary complexity of
Industry 4.0 in a traditional way but
are experiencing now that this it is
not the way to beat this “multi
headed beast”.
“Many companies are piloting
Fourth Industrial Revolution
initiatives in manufacturing, but few
have managed to integrate Fourth
Industrial Revolution technologies at
scale to realize significant economic
and financial benefits”.
World Economic Forum, in collaboration
with McKinsey & Company, scanned over 1,000
leading manufacturers. (2019)

2. 2
During the third industrial revolution (starting late 60ties)
technology developments where typically highly
controlled and planned by dominant big companies
setting the pace to make the best possible use of R&D
investments. This made technology developments within
companies relatively obvious and future state blueprints
could be established to guide the journey well prepared to
a more predefined “end state”. This relative slow
evolutionary speed made it possible to absorb and
manage this change for organizations. For decades this
has been the perfect environment for a vast majority of
western based and led companies.
This fourth Industrial revolution is however much more characterized as a decentralized,
uncontrollable and unpredictable development, thus rightfully VUCA. The plausible reason for this is
that not only the number of sole technological developments have dramatically increased. The
additional possibilities of interconnected technologies are now boosting the total of technological
possibilities exponentially. Another aspect is that new developments are (disruptively) introduced
from all over the world in an “uncontrolled” manner making other recently embraced technologies or
solutions obsolete in a blink of an eye.
This multidisciplined complexity makes it so hard for organizations to make rapid Industry 4.0
progress and systematically gain value from the developing opportunities. Not only legacy (systems)
can be seen as complicating factors also traditional ways
of business (model) transformations seem not to work.
Organizations probably tried to handle this complex eco-
system development in a traditional way but increasingly
realizing that this it is not the way forward to beat this
“multi headed 4.0 beast”. In this current situation a
fundamentally different approach in business
transformation should be in place with different required
capabilities. The approach is distinguished by the introduction of a more adaptable multi focus
strategy in which different scenarios for the future are considered and excogitated.
Of course, it still starts with a company’s vision and preferred mission but that will in this article be a
given. The major difference compared with the past is the way the adaptable strategy should be
deployed. A few fundamental differences in thinking and ways of working towards new models, will
be factors for success:
• In this new 4.0 world it will not be possible to make a very accurate blueprint for the future.
The way forward will therefore much more a journey into a rough direction than an exact
predefined destination.
• The new technological developments in your business (model) should be building block
based in an almost “plug and play” approach enabling your company to benefit from using
the best available solutions in the market now with the ability to switch easily to alternative
solutions in the (near) future.
• Work with a manifest based development approach that enables and stimulates local
initiatives but keeps the bigger picture in mind and preventing initiatives in technology (nice
to have) driven insufficient strategy enabling. A manifest rule example could be that new
solutions should be feasible for other parts of the organization but not mandatory to roll out
widely immediately.
“Probably the most important factor
for success is the organizations
capability of moving along this 4.0
journey. Continuous capability
building is therefore the driving force
behind the success of implementing
Industry 4.0.”
“By 2020, a third of skill sets will
comprise skills that are not currently
considered crucial to the job.”
World Economic Forum

3. 3
• Probably the most important factor for success is
the organizations capability of moving along this
journey. Continuous capability building is
therefore the driving force behind the success of
implementing Industry 4.0.
Capability 4.0 building comprises the hard and soft
aspects of capabilities and it is easier said than done to
mature in this gradually over time. It can be composed in
3 main pillars. Developments in all three together increase
the essential 4.0 capability of an organization.
1. The more physical aspect capabilities of fit for
purpose automation e.g. AGVs, robots and
mechanizations;
2. the human capabilities in managing and working
with the right skills in this new technological
environment;
3. and thirdly the capability of using data driven intelligence to make better business decisions
from the increased data availability.
The 4.0 progression journey can start rather small
(building block wise) with the future direction in mind.
These small steps (should) however create tangible value
today whilst building 4.0 capabilities for the future. To
make your choice for the right initiatives the organization
should identify what could be feasible for the organization.
E.g. if no high volume standardized administrative
activities are executed there is no need for looking at RPA
(Robotic Process Automation) possibilities. The normal
processes for project (portfolio) selection in place but in
addition the company 4.0 manifest should enable fast
small steps as well as big roll out when desired.
So concluding, what could be done differently to handle this Industry 4.0 challenge?:
1. Firstly, there is a need for mind shift towards moving a rough direction instead of pursuing an
exact destination.
2. Secondly, create an eco-system of “plug and play” building blocks that prevents you creating
a future legacy system.
3. Thirdly, Guide the building block development by a 4.0 manifest so the direction stays
coherent.
4. And at last but maybe the most important of all, gradually develop the 4.0 capabilities
throughout the organization. Capabilities in processes, human fit and digital. (see capability
wheel)
Don’t hesitate to commence or proceed this organizational 4.0 journey right now as waiting should
not be a healthy option.
About the author: Harmen is for decades a passionate innovative technology-based business
improver. He is a seasoned advisor for organizations to initiate the spark for innovation and bring
energy to make it happen.
3 pillars feeding the “4.0 capability wheel”
Building block approach
Future
uncertainty
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Next step technological adaptions Investigated technologies Future proof determining technologies
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