LEARNING SUMMARY OF INDUSTRY 4.

NAME-SANJAY KUMAR SIJUI

PRN NO. -18021141098

Panel Discussion 1: Transition to Industry 4.0

First and foremost, creating networks that can adapt and respond to change will be a vital part of
your process if you want to retain success in Industry 4.0. As result of creating sophisticated
automated networks, Industrial companies expect to generate 3.6% p.a. in cost reductions over the
next five years, driven by internal improvements and by working closely across value chains.
Whether you’ve embraced the notion of digital manufacturing or you’re wondering where to even
begin, there are things you can do right now to move a little closer to the future and make that all-
important transition to Industry 4.0.

To compete in tomorrow’s world, it’s important to embrace the evolution of technology and
understand how to harness its power to enhance your organisation’s operation. To ensure your
processes are at their most efficient, having the ability to incorporate the Internet of Things (IoT)
into your everyday operation will prove essential. As we move deeper into Industry 4.0, the
capabilities and tools to help you learn from your products while they’re in the field will be all the
more possible meaning you can maximise your output while gaining more time to steer the business
towards a bright and prosperous future. But of course, making the transition to Industry 4.0 can
seem easier said than done. If you’re looking to transform your business and embrace this brave
new world, here are three steps you can take.

Look to the future

In business, those who look to the future usually become pioneers in their field. You and your
business are no exception. As Industry 4.0 develops, it’s important to understand current market
trends, innovations and insights in addition to the direction they’re heading in. Become informed,
make plans by collaborating with colleagues, speak to third parties to see what they can offer you,
and you’ll be able to strategize with full force. On this occasion, dwelling on the past will prove
fruitless.

Understand your pain

When you have a sore knee that won’t go away, to mend it you need to understand the source of
the pain in relation to how it’s affecting you. To gain an insight on what how to improve your
operation and understand where to invest in terms of technology, you need to understand the
source of your weaknesses. Or more specifically, your organisational pain points. By using the big
data sources to gather as much information about your consumer base, your productivity levels,
your output, your profits, and the efficiency of your operation as possible, you’ll be able to make
plans to move seamlessly into the realms of Industry 4.0. This will also gain a greater understanding
on what isn’t working and which areas need to be fortified. As a result you’ll be able to refine your
plans and build an infrastructure to vastly improve the business, one that incorporates new
technologies and ways of thinking. Locate your pain points, understand why they exist and you’ll be
able to eradicate them for good.
Enlist your suppliers

Once you’ve planned for the future, created a strategy, mapped out an infrastructure and decided
where as well as how you’re going to invest, you should enlist the help of your suppliers to put
everything into practice. Industry 4.0 is based on cyber-physical systems which marry digital
technology and tangible machinery to create one efficient, thriving eco-system. So, to make your
transition final, you’ll need to enlist a host of third party suppliers to make your new set-up and way
of working possible. By now you’ll understand what you want to do, where you want to invest and
what you’ll need to make your transition; this means sourcing the right systems, technology and
hardware suppliers should be straightforward. Always speak to potential suppliers in person, taking
the time to understand their services and how they can benefit your business. Make decisions at
your own pace, weigh up your options and you’ll be up and running to your maximum potential in
no time. Above all else, when you’re making your transition into Industry 4.0 it’s essential that
you’re able to plan for potential failures and have the agility to respond to change — keep these
things in mind throughout the whole process.

Panel Discussion 2: Industry 4.0 & the world of start-ups

The three modern industrial revolutions of the past were altogether activated by specialised
advancements: the commencement of mechanical assembling toward the end of the eighteenth
century, the division of labour and assembly line production toward the start of the twentieth
century and presentation of programmable logic controllers (PLC) for computerisation purposes in
assembling made industry automation in 1970's.

Industry 4.0 concept and integration

In the last two decades several R&D works has been done and published. But the all those
humongous research is being adopted only recently. Now let’s understand some of the most
interesting components of Industry 4.0 revolution:

1. Horizontal and Vertical system integration

Most of today’s IT systems and hardware’s are not fully integrated. Companies, suppliers nor the
engineering departments are well connected. From the enterprise to the engineering itself and from
products to plants to automation lacks complete integration. But with the introduction of Industry
4.0, companies, department functions, and systems will become much more unified or centralised,
and there will be seamless data transfer between various stake holders.

2. IoT and cloud integration

With the introduction of MEMS based Nano sensors (STmicro), the possibility to develop electronic
hardware from the scratch. The availability of cloud based service like AWS makes it possible for
seamless integration of data to PC’s. For much more knowledge on IoT, see predictable-designs (a
great website for prototype development)

3. Data analytics, Edge computing & Machine learning

If there is one major force behind the possibility of faster adoption towards industry 4.0, big data
analytics has to be the key. The introduction of Tensor Flow and GPU based processing has made it
even more possible for a large spectrum of entrepreneurs to develop SaaS platforms. The edge
computing platform has provided service companies with secured data management centres and
transmission.

4. Block Chain and smart contracts

This may be a surprise addition to the Industry revolution. But, there is scope and space for
integrating payment platforms (a.k.a smart contracts) between vendors and suppliers.

5. 3-D printing (Additive manufacturing)

With the advantage of customised products, the company/start-ups can focus to make new designs
or customer oriented approach rather than conventional way of design-mould-manufacture.

Market Opportunity

If we analyse every decade from 1970’s till now, there will be always a new market opened up and
start-up companies from garages overthrow established companies. These new companies being
ahead of the curve ends up being monopoly in each sectors

 Wearables: The fast moving consumer market is lucrative for any business opportunity. The
proven marketing and Biz models makes the road map worth looking. See the start-ups from
India working on Smart watches. (Muse wearables)
 Connected Home: The integration of the appliances and utilities can provide the customer
save money and stay connected with home. The Biz might be suitable in developed
countries and not in developing countries.
 Healthcare: This is billion-dollar vertical inviting young people to change the world and
provide better medic-care to people. Every doctor might agree the need to introduce PoC
services to vast population. See the Start-ups Merkel-Haptic, Paige.Ai
 Industrial IoT SaaS: The wave of digitising industries started around 2009 by C3IoT, Space-
time, MAANA. This was followed by other start-ups like Tachyus, Ground Metrics and so on.
There is still space for such companies in developing economies like India, Brazil, China.
 Predictive maintenance: Just like we go to see doctors; machines also need maintenance
engineers. But tracking the health of large number of assets may not be always feasible by
human resource. Here ML combined with vibration/acoustic monitoring helps to detect
early stage defects in machines. See Augury, PetaSense, Dravak
 Energy monitoring: The application of tracking energy use can help to save companies cost.
Monitor. Analyse. Optimize

Shift in Business Models

If you think about a founding a start-up, then critical analysis of Service vs Product biz models should
pique your interest. Here’s Why?
“Due to the requirement of machines and manpower, investment is usually high in product firms
from the prototype phase onwards. That’s the reason, they require a large amount of funding from
investors. Service firms can be started from a comparatively much smaller amount than product
firms. If they get less funding from investors, then it does not have the severe effect on service
firms” (Source: Business alligators).

From many combinations, there are possibly two ways one can develop a hardware/software IIoT
company:

Prototype- MVP- Test- Marketable product- After sale service and Issues-Update the product

Prototype-MVP- Test- Service product- Update any data processing issues- iterate the product

For the product platform, Initial investment and lack of confidence from customers can drag back
the start-up progress. While service industry can get initial customers far easy than former case. The
choice of Biz model always hinges upon the founders and advisory board.

What should be budding IIoT Entrepreneurs do?

 Problem statement: The whole idea of Industrial IoT is not only about implementing python
codes, IoT hardware but validating the problem statement within the industrial community.
The defined problem and the related solution should be iteratively checked and again
checked. If possible, Understanding the degree of replicability of your product is key.
 Customer focus: Work closely with the industries and present your ideas to conferences and
events. Understand the customer problem and provide solution
 Hardware or Software: Yes. It seems difficult to develop hardware for solution. But, there
are far less competition compared to SaaS model. Always do remember: People never buy
IoT, but they need solution.
 Product or Service: Every biz model has pros and cons. But choose what yours are
comfortable. Test the market and proceed. Never jump to conclusions
 Avoid too much spending: Be bootstrapped. Investors like founders who know value of
money. Use open source rather than paid services.
 Make MVP: If time permits, read The lean start-ups blog rather than any other. Worth Gold.
 Pitch: Read Guy Kawasaki to know the Art of pitching and get Airbnb pitch deck for slide
layout.

As a conclusion, we should acknowledge the work done by many experts, but still Industry 4.0 or
Smart factory is always fuzzy and disorganised. There needs much larger understanding of various
business sectors and value addition by IIoT.