Industry 4.0 - Enabling Digital Operations Self Assessment
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Welcome To The Industry 4.0 / Digital Operations Self Assessment
The fourth industrial revolution - characterized by the increasing digitization and interconnection of products, value chains and business models - has arrived in the industrial sector and offers attractive opportunities. Industry 4.0 not only comprises the digitization of horizontal and vertical value chains but will also revolutionize company product and service portfolios and lead to the implementation of new, often disruptive business models.The following Self Assessment is designed to provide you with an understanding of your company's position regarding Industry 4.0 by measuring your actual against your target maturity along six dimensions, thereby identifying needs for action as well as classifying your current maturity level. In order to take your understanding to the next level, register for the benchmark after having completed the assessment to gain valuable insights on how you are positioned against competitors in your industry.
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What Industry 4.0 Is
  • Industry 1.0

    End of 18th century

    In the late 18th century, the invention of mechanical production powered by water and steam started the first industrial revolution.

  • Industry 2.0

    Beginning of 20th century

    The second industrial revolution was fueled by the start of mass production powered by electricity and combustion engines to power machines in the beginning of the 20th century. The first assembly lines were introduced, the use of new materials and chemicals became possible and communication was getting easier.

  • Industry 3.0

    1970

    In the 1970s, the introduction of automation and robotics ushered a new era, the third industrial revolution. Electronics and IT such as computers, robots and the Internet constitute the beginning of the information age.

  • Industry 4.0

    2015

    At present, we find ourselves at the beginning of the fourth industrial revolution. Based on cyber-physical production systems aiming to connect the physical and digital world of production, Industry 4.0 / Digital Operations comprises the digitization and integration of value chains and products and/or services. IT, machines and humans are connected, interacting in real time thus creating a more flexible, resource-efficient, customized way of manufacturing – the Smart Factory. The integrated analysis of data and collaboration form key value drivers.

What Your Peers Think About Industry 4.0
For the PwC 2016 Global Industry 4.0 Survey we conducted interviews with more than 2,000 senior executives from industrial products companies in 26 countries across Europe, the Americas, Asia Pacific, Middle East and Africa. Here are our key findings:

From talk to action

Digitisation drives quantum leaps in performance

Deepen digital relationships with more empowered customers

Focus on people and culture to drive transformation

Data analytics and digital trust are the foundation of Industry 4.0

Robust, enterprise-wide data analytics capabilities require significant change

Industry 4.0 is accelerating globalisation, but with a distinctly regional flavour

Big investments with big impacts: it's time to commit

For more information visit the website for the survey or download the survey here:
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What We Think About Industry 4.0
To describe our view on Industry 4.0 / Digital Operations we created a maturity model which includes the most relevant functional dimensions as well as the maturity stages a company can be in. We use it to help companies understand where they currently are on their digital journey and which next steps are sensible in respect to their current situation and the industry they are operating in. The maturity model serves as a basis for the Self Assessment, so your current maturity level will be shown as part of the result.
I
The Digital Novice has just started the digitization of his business model and operations and the main focus is on getting internal integration started. The portfolio is typically dominated by physical products and there is limited integration within the vertical and horizontal value chains.
II
The Vertical Integrator already added digital features to his products and/or digital products and services to his portfolio. He uses data to create value and already achieved some integration of his internal vertical value chain from the enterprise resource planning over the shop floor to the manufacturing machines or even products.
III
The Horizontal Collaborator already achieved a decent level of vertical integration and now focuses on collaboration and integration with partners, customers and suppliers. On top of the horizontal process and IT integration he forms loosely coupled value networks with partners to serve customer requests.
IV
The Digital Champion already implemented vertical and horizontal integration to a degree sensible for his business. His focus is now on developing new disruptive (and often data-driven) business models and an innovative product and service portfolio to serve the individual customer requests. Collaboration is a key value driver.
Business Models, Product & Service Portfolio
Market & Customer Access
Value Chains & Processes
IT Architecture
Compliance, Legal, Risk, Security & Tax
Organization & Culture
I
Digital Novice
The Digital Novice has just started the digitization of his business model and operations and the main focus is on getting internal integration started. The portfolio is typically dominated by physical products and there is limited integration within the vertical and horizontal value chains.
Digital Novice
Business Models, Product & Service Portfolio
First digital solutions and isolated applications
Market & Customer Access
Online presence is separated from offline channels, product focus instead of customer focus
Value Chains & Processes
Digitized and automated sub processes
IT Architecture
Fragmented IT architecture inhouse
Compliance, Legal, Risk, Security & Tax
Traditional structures, digitization not in focus
Organization & Culture
Functional focus in „silos“
II
Vertical Integrator
The Vertical Integrator already added digital features to his products and/or digital products and services to his portfolio. He uses data to create value and already achieved some integration of his internal vertical value chain from the enterprise resource planning over the shop floor to the manufacturing machines or even products.
Vertical Integrator
Business Models, Product & Service Portfolio
Digital product and service portfolio with software, network (M2M) and data as key differentiator
Market & Customer Access
Multi channel distribution with integrated use of online and offline channels; Data analytics deployed, e. g. for personalization
Value Chains & Processes
Vertical digitization and integration of process and data flows within the company
IT Architecture
Homogeneous IT architecture inhouse
Compliance, Legal, Risk, Security & Tax
Digital challenges recognized but not comprehensively addressed
Organization & Culture
Cross functional collaboration but not structured and consistently performed
III
Horizontal Collaborator
The Horizontal Collaborator already achieved a decent level of vertical integration and now focuses on collaboration and integration with partners, customers and suppliers. On top of the horizontal process and IT integration he forms loosely coupled value networks with partners to serve customer requests.
Horizontal Collaborator
Business Models, Product & Service Portfolio
Integrated customer solutions across supply chain boundaries, collaboration with external partners
Market & Customer Access
Individualized customer approach and interaction together with value chain partners
Value Chains & Processes
Horizontal integration of processes and data flows with customers and external partners, intensive data use
IT Architecture
Common IT architectures in partner network
Compliance, Legal, Risk, Security & Tax
Legal risk consistently addressed with collaboration partners
Organization & Culture
Collaboration across company boundaries, culture and encouragement of sharing
IV
Digital Champion
The Digital Champion already implemented vertical and horizontal integration to a degree sensible for his business. His focus is now on developing new disruptive (and often data-driven) business models and an innovative product and service portfolio to serve the individual customer requests. Collaboration is a key value driver.
Digital Champion
Business Models, Product & Service Portfolio
Development of new disruptive business models with innovative product and service portfolio, lot size 1
Market & Customer Access
Integrated Customer Journey Management across all digital marketing and sales channels with customer empathy and CRM
Value Chains & Processes
Fully integrated partner ecosystem with self-optimized, virtualized processes decentralized autonomy
IT Architecture
Partner service bus, secure data exchange
Compliance, Legal, Risk, Security & Tax
Optimizing the value chain network for legal, compliance, security and tax
Organization & Culture
Collaboration as a key value driver