The impact of Industry 4.0 on your strategy
With the emerging wave of the 4.0 Industrial Revolution, business leaders across the world understand the importance of using emerging technologies in order to leverage the business potential and facilitate the services closer to their customers. However, with the market overflowing with the latest technologies in a number of different areas, it can be challenging to keep up with the latest trends and tools one should use in order to maximize the benefits in the particular organization. The latest report on Leading Transformation: Shaping the C-Suite for Business 4.0 Innovation by AESC demonstrates that business leaders are overwhelmed by the constantly emerging technological solutions that they are supposed to use while ensuring seamless operations within the company. Furthermore, it is not only a CTO who should be keeping up with the latest trends but now more than ever C-Suite executives in the marketing, operations and HR are under the pressure to make sure the teams are agile, collaborative and remote while delivering high-quality performance.
Although it might be overwhelming at first, the adoption of 4.0 technologies comes with benefits that far outweigh a short-term frustration or uncertainty. Some of these benefits include increased productivity, growth of profits, team collaboration, transparency, and customer satisfaction.
What is actually Fourth Industrial Revolution?
The Fourth Industrial Revolution or Industry 4.0 is a way of describing digitalisation at an accelerated speed that we are experiencing now. The boundaries between physical and digital work are rapidly luring or even shifting towards the digital world and advances such as artificial intelligence, robotics, the internet of things, genetic engineering and more are establishing a strong presence in the market and in the organisations’ operations.
What are the impacts of Industry 4.0 on your strategy?
The early adopters of Industry 4.0 can already harvest the fruits of the implementation of the technologies within their business. The first one is productivity. Productivity in the fast-paced world where opportunities come and go at the speed of light is an essential characteristic business should build on in order to ensure future growth. Digital technologies are becoming more and more intuitive making employees more efficient. These days productivity doesn’t only mean how many tasks employees have done during their day but how well they have done them because inevitably, that will have a far greater impact on executing your strategy. By implementing technologies that can help employees stay organized, connected and gather and process large amounts of data and making them easily readable will result in a lower rate of employees frustration over tasks that may appear more difficult but also in higher accuracy and quality outcome.
It is not surprising that early adopters usually perform above average than the rest. The reason is, the change is inevitable and instead of fighting it, businesses perform much better when implementing the changes and adapt to the market shifts in their early stages. Having the first-mover advantage is not only in launching a new product or service but also in adopting the newest practices that can position you ahead of your competitors. Therefore, for the successful execution of the business strategy, business leaders should be aware of the current and forecasted market trends and shifts that might dramatically impact the course of the business. A business that implements system automation techniques, experience greater accuracy, improved fulfilment and increased customer satisfaction which as we all know, can determine the success of the business.
The investment in digital transformation is like any other. This initial cost appears greater than if you would stick to your old ways but if you are able to see beyond the few weeks you will soon realise that what might seem like a significant investment at the beginning is actually saving you money in the long run. Higher automation of a variety of tasks results in shorter time people have to spend on the resulting in the lower labour costs. What is even more important to say is, employees can now spend time on tasks that are still hard to automate such as working on strategic goals of the business, interacting with clients and setting comprehensive targets for the business growth and let technology execute the repetitive work in the background.
Data is money
As you may have noticed, we have mentioned several times data analytics and analysis of big data in the previous paragraphs. This is because the success in Industry 4.0 lays in the ability to correctly and comprehensively collect, analyse and understand big amounts of data in a short period of time upon which business can execute. Enabling cross-functional analytics within your organization will enable you to establish strategic priorities as you move forward. Knowing how to use valuable data in order to drive business growth is a real skill and doesn’t happen overnight. Make sure to work on building your data stack by using real-time analytics to tailor the strategic steps as you evolve.
Building an ecosystem
Sometimes you may find yourself stuck when building new products or services for your customers. In these cases, look for ways how you can collaborate or partner with other businesses to eliminate your boundaries and foster continuous growth. It may be hard or even scary at first sharing the tactics and secrets with other business but remember sometimes you go farther together than alone. Establishing clear boundaries and working dynamics can result in profiting and exciting partnership that not only you but most importantly your customers will benefit from. The adaptation of the technologies is still ongoing and we are far from being fully digital which means you will come across challenges as your business grows. However, the technologies and systems of the fourth industrial revolution have the potential to help your business decrease inefficiencies, increase productivity and help establish a strong position in the market.