Digitalisierung – das Wundermittel für alle Probleme?...Around 80% of generation 0-14 will live in Asia ... Emerging markets will dominate the world’s top 10 economies in 2050

23.04.2019 - 1www.lenzing.com

FH OÖ CAMPUS STEYR, 25. April 2019

Digitalisierung – das Wundermittel für alle Probleme?


● Per capita health care spending is rising faster than per capita income

● By 2050 health care spending will almost double claiming 20-30% of the GDP of most developed countries

● Health economies dictate the shift from treating towards predicting, diagnosing and monitoring

Age of VUCA(volatility, uncertainty,complexity, ambiguity)

1

Population andwealth growth in emerging

markets

2

Megatrends (1)

Ageing populationin Europe

3

Urbanization and“smart cities”

● Development of networked mega cities, mega regions and smart cities combining mobility, infrastructure and convenientsustainable lifestyle

● 50% of smart cities will be from Europe and North America

● City centers becoming shopping areas for expensive goods and living areas for “double income no kids” households

4

Health, Wellnessand Wellbeing

5

Source: Frost&Sullivan

Impact● Geopolitical and economic instability intensifies, raising concerns about growing volatility and uncertainty on the fashion

industry

● China interrupted: decelerated growth and shifted attention to India, Turkey and other high-growth markets; supply chainis getting faster, more flexible and shorter within the region Europe & Americas

● Population growth in emerging markets in Asia (China, India, Indonesia) and Americas (Brazil and USA)

● Western Europe decreasing population

● Average income per capita increasing

● Around 37% of world’s Gen Y population (15-34 years today) will live in India and China

● Around 80% of generation 0-14 will live in Asia

● New job seekers in Europe will decrease

● Ageing population in Europe will need to work longer

Megatrend


Digitalization andOmni Channel

6

Fast fashionvs. slow fashionat the same time

7

Megatrends (2)

Demand forpersonalization /individualization

8

Shift ineconomic power

to Asia

9

ImpactMegatrend

● Emerging markets will dominate the world’s top 10 economies in 2050 (E7: China, India, Indonesia, Brazil, Russia,Mexico, Turkey)

● Vietnam, India and Bangladesh are projected to be the fastest growing economies

● However, today’s advanced economies will continue to have higher average incomes

● Channel management moving closer to B2B2C relationships

● E Commerce growth rate is expected over 12 % p.a.

● E-commerce in luxury fashion will increase fourfold until 2020

● Blogger, You-tuber get the power as main opinion leader in the fashion and lifestyle industry

● Rising of a lot of start-ups in the apparel industry with sustainability background

● Global Fast Fashion retailer grow in the online business and are facing challenges for further high growth rates

● Greenpeace published in 2017 a new white paper against fast fashion and trend towards slow fashion andsustainability

● Regional brands will grow

● Flexibility and short supply chains will become the key drivers

● Demographic change will show increased demand for quality product in addition to fast fashion

● Demographic change will raise the need for alternative working concepts

Source: Frost&Sullivan


Effectivity

Process

EfficiencyTransparency

System Organisation Supply Chain Operations InternationalSupport

Order to fulfillmentand Logistics:analyze and improveinterfaces and reducedisturbances

Purchasing: tailormade purchasingprocess for eachcommodity group

Productionintegrated into SAP

Purchasing: basis forcommodity basedstrategies

Business ProcessOptimisation andreengineering indedicated areas

Succession planningand training of newemployees in key roles

Align sales planningprocess with productionplanning andforecasting (XYZplanning)

Improve logistics andsupply chain

Definition andharmonization of keyquality parameters

Drive continuousimprovement projects

Support other plants indedicated areas

Provide cross-training to other plants

Develop a roadmap for implementing value based strategy


Example 1:Defining and implementing purchasing strategies


Integrated digital tools can help creating value very fast

Classified &enriched data

Unstructuredmulitlingual data

Standardontology Customer specific

ontology

Automated classification &attribute extraction

SEMANTICENGINE

SEMANTICENGINE

Classification: quality & flexibility

ready to use both standard as well as customizedontology

flexible and full customizable high detail level (+15k categories) high precision (min 95%)

Operation: high performance real time analysis on demand maximum drill down detail high data volume fully automated process easy to use

Project: no invading approach no impact on legacy systems only few weeks of implementation customer orientation: high flexibility during project


Example 2:Sales / Operations Planning Process

Sales Planner

Manager

Create sales forecast(demand)

Commit toproduction

volumes(supply)

Reconciliation:Balance demand &

supply

Alignment

Alignedallocation

Create thefinal

allocation

Plant Planner

Conduct fineplanning

Approval

Confirm finalproduction

volumes


Collect, Enhance & Deliver

Example 3:Operations Improvement Process


What are we doing with all the data we obtain on a dailybasis?


Data Science helps us understanding interdependencies ofstochastic data and provides predictive models


What is the biggest barrier in implementing digital tools?


for yourattention!

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Digitalisierung – das Wundermittel für alle Probleme?...Around 80% of generation 0-14 will live in Asia ... Emerging markets will dominate the world’s top 10 economies in 2050