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The organisational transformation of Industry 4.0

Apart from emerging technologies, what other factors are determining factors in a digital transformation journey?

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The transformational movements of the fourth industrial revolution are unstoppable. The energy transition, the adoption of emerging Industry 4.0 technologies, urban mobility, smart cities and digital transformation itself impact our personal lives and, consequently, reflect on organisations.

Industry 4.0, materialised by the massive adoption of emerging technologies applied in the industrial area of companies, aims at operational excellence, a prescriptive maintenance, better energy efficiency and promotes connectivity between equipment and systems, enhancing the strategic use of data. Some of these most adopted technologies are the IoT or IIoT, drones, virtual reality, augmented reality, cloud computing, digital twin, 3D printing, among others.

The solutions used to implement the concept of Industry 4.0 produce significant changes in the way professionals perform their tasks, but do not transform organisations as a whole. In fact, they make them more efficient and competitive, however, the cultural dimensions and the structuring values of the organisation directly impact the success of the digital transformation strategy.

For an organisational transformation, culture and processes need to be addressed along with the adoption of emerging Industry 4.0 technologies. Organisational transformation happens with the execution of digital transformation, where technology, processes and organisational culture are aligned to generate new business models and create sources of monetisation. This requires that the organisational structure is adapted to the massive use of conventional and emerging Industry 4.0 technologies, that processes are optimised to minimise waste and that the organisational culture is adapted to a more collaborative performance between departments and the use of open innovation ecosystems.

It's not a simple journey and, for this very reason, the majority of manufacturing in Latin America is still in the Industry 3.0 era. This helps explain why Latin American countries rank so poorly in the International Institute for Management Development (IMD) Global Competitiveness Index.

To change this scenario and make the industry more competitive, it is important that the sector invests increasingly in digital transformation journeys, working simultaneously on the three fundamental pillars (Technology, Processes and Culture) and on the three organisational dimensions (Back, Middle and Front offices). Back office is understood as the industrial area assets; Middle office are the business support departments (finance, HR, etc.) and Front office, the departments that work directly with customers (sales, marketing, services, etc.). This action, supported by the execution of a digital transformation framework and the use of a methodology that leads in a structured way to initiatives that impact the entire organisation, from the most operational layers to the board of directors, will result in organisational transformation.

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When this occurs, we have an extremely positive transformation for the organisation as a whole, where Industry 4.0 technologies, in fact, act as enablers for digital transformation. At this point, the organisation will be prepared to guarantee its space in this context of the fourth industrial revolution in which we live, and develop sustainable competitive advantages.

Want to know more about digital transformation? Download our free ebook with everything you need to know via the QR code below or by accessing this link.

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Head of Digital Transformation

Victor Venâncio

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The organisational transformation of Industry 4.0

Apart from emerging technologies, what other factors are determining factors in a digital transformation journey?

August 6, 2021

published by

Head of Digital Transformation

Victor Venâncio

The transformational movements of the fourth industrial revolution are unstoppable. The energy transition, the adoption of emerging Industry 4.0 technologies, urban mobility, smart cities and digital transformation itself impact our personal lives and, consequently, reflect on organisations.

Industry 4.0, materialised by the massive adoption of emerging technologies applied in the industrial area of companies, aims at operational excellence, a prescriptive maintenance, better energy efficiency and promotes connectivity between equipment and systems, enhancing the strategic use of data. Some of these most adopted technologies are the IoT or IIoT, drones, virtual reality, augmented reality, cloud computing, digital twin, 3D printing, among others.

The solutions used to implement the concept of Industry 4.0 produce significant changes in the way professionals perform their tasks, but do not transform organisations as a whole. In fact, they make them more efficient and competitive, however, the cultural dimensions and the structuring values of the organisation directly impact the success of the digital transformation strategy.

For an organisational transformation, culture and processes need to be addressed along with the adoption of emerging Industry 4.0 technologies. Organisational transformation happens with the execution of digital transformation, where technology, processes and organisational culture are aligned to generate new business models and create sources of monetisation. This requires that the organisational structure is adapted to the massive use of conventional and emerging Industry 4.0 technologies, that processes are optimised to minimise waste and that the organisational culture is adapted to a more collaborative performance between departments and the use of open innovation ecosystems.

It's not a simple journey and, for this very reason, the majority of manufacturing in Latin America is still in the Industry 3.0 era. This helps explain why Latin American countries rank so poorly in the International Institute for Management Development (IMD) Global Competitiveness Index.

To change this scenario and make the industry more competitive, it is important that the sector invests increasingly in digital transformation journeys, working simultaneously on the three fundamental pillars (Technology, Processes and Culture) and on the three organisational dimensions (Back, Middle and Front offices). Back office is understood as the industrial area assets; Middle office are the business support departments (finance, HR, etc.) and Front office, the departments that work directly with customers (sales, marketing, services, etc.). This action, supported by the execution of a digital transformation framework and the use of a methodology that leads in a structured way to initiatives that impact the entire organisation, from the most operational layers to the board of directors, will result in organisational transformation.

When this occurs, we have an extremely positive transformation for the organisation as a whole, where Industry 4.0 technologies, in fact, act as enablers for digital transformation. At this point, the organisation will be prepared to guarantee its space in this context of the fourth industrial revolution in which we live, and develop sustainable competitive advantages.

Want to know more about digital transformation? Download our free ebook with everything you need to know via the QR code below or by accessing this link.

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