About Odes Poon

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“The path to the CEO’s office should not be through the CFO’s office, and it should not be through the marketing department. It needs to be through engineering and design.” – Elon Musk

leadership post image

 

A new type of leadership is emerging. It is visionary, tech savvy, cross discipline, cultural focused, and completely collaborative.

Industry 4.0, its derivatives, and its competitors are essentially strategies for use of technology to enhance business and industry. It has become a national strategy both in Germany (its birthplace) and here in Australia – Australia’s Industry 4.0 Task Force follows the German model. Similar programs exist in countries worldwide under various names.

Its effects are extremely far reaching. Some of its foundations are profoundly connective, such as the Cloud, Internet of Things, and Industrial Internet of Things for instance. They are not only connective, but also offer great potential for business model innovation and creating end-to-end solutions on a whole new scale.

The Cloud and Internet of Things are already rapidly changing our enterprise landscape. For example, cloud enterprise solutions, AI, and FinTech are examples of where the enterprise is being virtualised, allowing high levels of automation and improved business strategy, data visibility and analytics. This expands potential for B2B and B2C. The Industrial Internet of Things is fast connecting the operational world with the enterprise, with the convergence point in the virtual environment. Now organisations are increasingly integrated between their enterprise and their operations. Now new business models are emerging at a rate never seen before.

Looking past the hype of Industry 4.0 and the arguments over its definition and standards, we see many examples of organisations using it to advantage. It doesn’t end with organisations either. Industry clusters are forming and concepts from Industry 4.0 are enabling them to converge and unify in this virtual space.

It is in this connectivity, in this virtual space, in this integration, where endless new opportunities are emerging.

This is where the new leadership paradigm is emerging.

The new leader will have more in common with Elon Musk, a Millennial technologist CEO, or a future leader still in school today. They will embody visionary, tech savvy, cross discipline, cultural and collaborative.

It is a given that a leader is visionary.

In a world where Industry 4.0 and similar ideas underpin national strategies worldwide, it is a given that a leader is tech savvy.

With enterprise, operations, organisations and industry clusters connecting in the virtual world, it is a given that leaders are cross-discipline.

To be truly connective, innovative and realise the greatest opportunity, a leader must be cultural focused. Cultural and societal needs are the greatest opportunities of all.

To actually make it happen, the new leader needs to be completely collaborative. Opportunity is downscaled when the level of collaboration is downscaled. Potential is realised when all stakeholders contribute to the solution. Engagement becomes a conversation between customers, suppliers, supporters, regulators, organisations and wider society itself.

This is the new leadership paradigm. One where visionaries collaborate with other visionaries, to innovate and drive meaningful wide scale solutions, catering to cultural and societal needs. The new leader will be as much team player and collaborator as they are a leader, as it takes a team of leaders to realise Industry wide or cross-industry opportunities.

The job of leader has become more challenging, but more rewarding.

What is Industry 4.0? Is it hype, a threat, or an opportunity?

industry 4.0 deconstructed by a tool

It’s all of the above.

The hype?

It’s become a buzzword for the Fourth Industrial Revolution.
On the surface it’s a confusing gab-fest of acronyms and buzzwords surrounding industrial technology and concepts, and often confused with IoT.

In reality, the term “Industrie 4.0” was coined in a 2011 study about the Internet of Things and the fourth industrial revolution. It was followed in 2013 by Plattform Industrie 4.0, set up for the digitalisation of industry.

The threat?

Industry 4.0 is a strategy for use of technologies and manufacturing concepts to improve industry. These technologies and concepts are both powerful and connective, enabling advances in manufacturing capabilities, reducing labour input, and integrating the advantages of digitalisation.

They are also transferrable to industries outside of manufacturing.

For example, Smart Cities are supported by many of the same technologies. The digital twin, used to model products or processes in manufacturing, can be used to model cities for development and planning. Another example is in logistics, where mechatronics and robotics technologies from manufacturing are being used to automate logistics and distribution centres.

The real threat however, was a race triggered by Industry 4.0 being out in the open – in plain sight and supported from the top, by German Chancellor Angela Merkel.

Before “Industry 4.0”, industry’s convergence to it was organic, with organisations and regions evolving at their own pace.

Now every nation is scrambling to get in the race with their own version, each with their own name for it. Here in Australia, we use the German name, Industry 4.0. Prime Minister Malcolm Turnbull setup the Industry 4.0 Task Force in 2016.

The threat is that nations worldwide are putting support into industrial strategies which have far reaching and profound effects, and awareness is being driven from the highest levels of government.

The result will be great risk for those who lag and fail to evolve to a digitally transformed model. Disruption will be the final result, along with displacement of workers.

The opportunity?

For those that adapt to the forces driving Industry 4.0, great opportunities are possible.

Three examples of areas for opportunity are in innovation, scale of solutions, and value-add.

Take innovation. Industry 4.0 is not innovation, but it’s wholistic strategy and palette of technologies provides an abundance of toys to play with to develop innovations. You might run a service company troubleshooting office printers, but barely make profit due to competition. By innovating, you might find a way to speed up problem solving by developing a field service Augmented Reality support app. This improves profit, but then you realise you could license this app to your competitors and make even more profit. Soon, realising your app can be easily adapted for servicing of other equipment, you further enhance your solution and grow your app market beyond our original market.

On scale of solutions. Two of the pillars of Industry 4.0 are Internet of Things and Industrial Internet of Things. Opportunities for large scale solutions are enabled by these ideas. Using these, related companies that functioned separately before can now operate in unison, integrated by them. How does this help? By increasing the level of automation and exchange of data. Automation of business interactions and data flows builds new efficiencies, reduces human error, saves time, saves money, enhances speed of operations.

On value-add. Advanced Manufacturing and Big Data are also pillars of Industry 4.0. Advanced Manufacturing can produce items of higher quality and precision, allowing better pricing power and higher profit margins for manufactured goods. Using Big Data to capture and share information along the production value chain can add further value, by building trust. Imagine the confidence of buying a high quality, high precision product, where production information is available for every stage of manufacture, for full traceability. Price and profit can be boosted again, as the product is good, and the supplier and collaborators are trusted.

So where can I buy an Industry 4.0?

You can’t. It is a strategy for use of technology to enhance your business.

There are ongoing standards battles, with no end in sight. Industry 4.0 and all of its relatives are also constantly evolving. Some are already bringing up Industry 5.0 before 4.0 is even agreed upon.

But there is a way forward…

Pre-Industry 4.0, the world was moving that way anyway. Post Industry 4.0, at minimum a vision has been put out there. And we can edge towards it. Albeit, it is an evolving vision.

There is no benefit to wait as there is much risk in not moving. With the right strategy though, there is no need to focus on what Industry 4.0 is or is not. Instead, focus on what elements of it we can use, to bring us to closer to our desired vision.

It is these elements that provide us our possible next steps. With good guidance their realisation may be achieved. This allows us to move, step by step, through the Fourth Industrial Revolution.

If you would like to find out more, please get in contact here.

About the author

Odes is a consultant and advisor to C-suite leaders on trends and strategies for innovation, manufacturing, and industrial technologies. He is able to decode the complex into easily visualised solution paths. He is also the founder or the Business Innovation Matrix, a group of leaders, innovators, technologists and backers, devoted to driving change for greater good.

An innovative economy is vital for long term Australian prosperity 
Prime Minister Malcolm Turnbull knew this when making the innovation agenda his first signature policy. So why has it failed?

Because he sent the wrong message
In the 2016 election, Mr Turnbull campaigned by appearing in places like advanced manufacturing centres & start-up hubs, talking up technology, & speaking of his commitment to research & science. This sent the wrong message. It tied innovation with costly new technology spending & costly new R&D programs that need long term commitment for risky returns. There was no perceived connection between spending & new jobs for ordinary Australians. His “Innovation” & “Jobs & Growth” catch phrases thus had no relationship, making them meaningless. It obscured the significance of innovation at a time when innovation is key to our future.


Innovation is simply doing something new to do something better
That’s what he needed to say.
By doing better, business can reinvest some of its benefits back into growth plans & jobs to support them. That’s what he needed to explain.
A commitment to support us to do something new & better. That’s what he needed to promise.


For business, doing something new to do something better is vital
It can be as practical, affordable & easy, or as outlandish, expensive & difficult as you like. It can be primitive or involve complex technologies. It can be obvious. It can be completely outside of the box. So long as it is practical, achieved on time & on budget, & brings meaningful advantage, benefit or opportunity, it is a good innovation. It all depends on your mindset, your willingness to explore new territory, & your ability to design something that’s achievable.
Innovation is wide open to interpretation, but it creates a creative way of thinking & designing. A few examples of fertile grounds for innovation are in sales models, branding, marketing, production, manufacturing, business process, customer support, logistics, & service delivery.

 

Innovation does not have to be about technology, but it is a great place to start
Technology is arguably the best resource for innovation. There are reasons for this, & their sum is far greater than their parts. There are a new wave of technologies disrupting enterprise & operations. Those technologies are converging & will unify enterprise with operations, & expand scope for product & service innovation as well. That convergence will be a force multiplier, enabling even greater opportunities for further innovation.


An example is in a new smart factory application
Technology connects the plant floor with manufacturing execution systems & efficiencies produce savings to keep the plant competitive & profitable. Now the plant is in a stronger position. Some profits are reinvested in engineering for future expansion & technologies for connecting with the enterprise. Some jobs are created & now a strategy for the future is in play. When the enterprise is connected, organisational efficiencies produce further savings, making the business even more competitive & profitable. The now connected smart factory & smart enterprise have the infrastructure to analyse & identify further ways to innovate. Reinvestment in new improvement projects start again, creating more jobs, savings, & another strategy for the future.


The continuous cycle of innovation is vital for long term business
This is because it maintains competitiveness, creates benefits, advantage, & opportunities. Once profit is realised, reinvestment sustains the next innovation cycle, which produces the next opportunity. And on it goes. But it all comes down to doing something new, to do something better. What new things are you doing to improve your business?

 

Please leave a comment to start the discussion, or contact ILeadIn at www.ileadin.com.au/contact/#start, to find out how you can kick start innovation in your organisation.

This is a guest article kindly submitted to ILeadIn by John Pamflett of Mescon, published with his permission. Thanks John!

Most of us have heard of the Internet of things. The IoT is the concept of connecting devices and having them talk over the internet.
We used to dream of our fridge knowing what you have in it, and automatically ordering the milk. This concept is fast becoming an reality. Several smart phone applications already prompt you as you approach your local supermarket, that you need to pop in and top up on specific supplies. In my house we can control lights, Pond Pump and Security camera from our smart phones. The ability to track our parcel delivery is a standard service of most couriers.

The Industrial Internet of Things is a logical extension; The value of connecting sensors and devices in production and manufacturing environments is high. It has the potential for custom orders, tracking, traceability , quality control, increased efficiency, reduced maintenance , higher accountability. However connecting to manufacturing data is different. I love the concept of knowing and learning what is happening on the plant floor, but the concept of us influencing manufacture is dangerous. There are many safety issues and production logistics associated with production which most people do not understand. For example painting a light coloured car after a dark colour requires a significant, time consuming cleaning process to prevent contamination. My biggest concern it becomes possible for the innocent, as well as hackers and terrorists to initiate destructive actions such as opening the gates of a dam or to change the ingredient quantities in our food.

The flow of data into the production environment needs to be highly protected, with devices such as unidirectional gateways. (Everybody I talk to in the Corporate IT world do not know they exist.) Unidirectional gateways physically, through using a transmitter and a receiver, only allow data to flow in one direction. For more information about how production and manufacturing data can allow better informed decisions to be made enquire on this website or visit www.mescon.com.au.

I’ve had an interesting journey. Born before colour TV, PCs, mobile phones, the internet, & search engines, I am now a go to guy for automation technology, networking, manufacturing solutions, & business visualisation. In a long career selling & promoting technologies, engineering & delivering industrial solutions, I’ve needed to attune to change & developments which disrupt. These changes are accelerating, & their potential for impact is growing. So in this environment of flux & re-adaptation, what’s needed to survive? Reflecting on the success of the enterprises I have worked for or supported, one skill emerges as essential for enabling entrepreneurial success. It is design.

 

It is process design, operational design, product design, systems design, design of anything that solves a business problem. It can be for technologies. It can be for services. It can be for any aspect of business. CEOs of the most innovative companies of our time & the new wave of disruptors all use this to great effect. To lead their organisations through great change & do more than survive. To thrive.


I don’t say it’s the only skill needed for success, or downplay other leadership traits, but design is so relevant for the opportunities before us, & for dealing with disruption & competition. Its importance is that it’s the enabler of innovation. New CEOs must become proficient in it, because this is what enables them to innovate & pull off “impossible” wins like Steve Jobs & Elon Musk. It’s valuable because technology is becoming ever more accessible & quick to integrate into commercial opportunities. IIoT, virtualisation, 24/7/365 global collaboration, & more, are providing enterprise with abundant resources for the next big win. Business leaders that can design are able take advantage. Lofty CEOs propped up by layers of minions & disconnected from the engine room are endangered.


Leading design also legitimises a leader’s mandate for leadership. CEO’s that orchestrate their organisation’s next big win are less likely to come under attack as those that leave it to others. So how does a non-tech savvy leader learn how to design complex & often highly technical solutions? It’s not as difficult as you think.


Designing industrial automation solutions requires cross discipline, cross platform, multi-industry design, yet can be readily communicated & coordinated by non-technical business leaders. How is this possible? By functional design. Automation engineers use a design principle commonly used by software developers to create functional designs, which specify the functionality of a software application, only this is applied to a much wider design. This is how automation engineers integrate cross discipline, cross platform, multi-industry design. At its heart though, this is non-technical design, & is ideal for business leaders to learn. Using it they can take charge of innovation in their business. The only caveat is not to learn by trial & error, without expecting major consequences. If well trained & proficient though, it is the only way to innovate successfully with least cost.


With good guidance & proper training, a non-tech savvy business leader can readily learn design principles from automation to become an effective business innovation leader, & enable their organisation to thrive in a time of disruption & change. Their initiative legitimises their mandate for leadership, & ensures the best chance for an organisation’s success. Innovation is not left to chance, it is designed.

Update Aug 2016

ILeadIn completes a de-palletiser automation project for a manufacturer based in Mulgrave.

ILeadIn commences automation technology consulting work for a University in Melbourne.

ILeadIn has a new contact email address for enquiries: contact@ileadin.com.au

ILeadIn Is Online!

Today, ILeadIn’s website development commenced.

ILeadIn is a multi-disciplinary consultancy specialising in innovative use of technology for automating the operations & enterprise systems of a business.