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With Digital transforming operations is your Supply chain
and Operations ready?
Yes No Maybe
Business Transformation Through Operations & Supply Chain
Page 2
“We stand on the brink of
a technological revolution
that will fundamentally
alter the way we live,
work and relate to one
another. In its scale,
scope and complexity,
the transformation will
be unlike anything
humankind has
experienced before.”
Source: World Economic
Forum, 2016
06/12/201706/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 3
Digital is not about any one technological advancement — it impacts organizations end to endIt’s about unexpected explosions, collisions and convergence within and across sectors - the opportunities or risks are
generated by the convergence of technologies and one of the outcomes of this is sector convergence.
Bandwidth
Genomics
Autonomous
vehicles
Quantum
computing
AI Edtech
Agritech
Cleantech
Blockchain
Sensors
IoT
Solar and
storage
New materials
3D printing
High definition
imagery
Drones
Cognitive
computing
RPA
Advanced
robotics
Social and gaming
Processing
power
Storage
Mobile
Cloud
computing
Medtech
Fintech
Industry 4.0CybersecurityAnalytics
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 4
The new level of disruption presents an existential threat but also a wealth of opportunities
Threats
It will take 20 years
for cybersecurity
skills to catch up
with demand.
Global CP CMO estimated
a 29% rate of click fraud,
prompting a claim that the
industry was wasting $8b–
$10b per year on fake
clicks.
Two billion jobs
will be displaced by
2050 as a result of
technology
advances.
Seventy-five
percent of
companies in the
Standard & Poor’s
500 will be new
entrants
by 2027 at the
current run rate.
In just 4 years,
Airbnb reached the
same inventory as
Hilton Hotels, which
took them 93 years
to build.
Leading e-shop offers
$2000 to
every
customer service employee
who doesn’t buy into their
“delivering happiness”
philosophy after a four-
week intensive training
program.
A drone capturing and
analyzing high-definition
video on offshore oil rigs
captures more data in 5
days than a traditional
“rope lift” team can capture
in eight weeks.
RPA enabling
automation 24
hours a day, seven
days a week, 365
days a year saves
25%–50% in costs.
Thirty-five percent
of new products for
a Global CP come
from outside the
company via its
open innovation
approach.
Opportunities
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 5
Leading companies are evolving from doing digital to being digital
Programs
► Challenging business models to
create new sources of value
► Industrializing innovation across the
breadth of your business
► Creating a culture that continuously
iterates and improves your
experiences
► Moving with operational agility
► Building an integrated, aligned and
efficient cybersecurity program
► Undertaking digital projects in
pockets across the organization
► Providing little strategic context
► Launching digital programs within
the business
► Sponsoring programs at a functional
or vertical level
Projects Operating model
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 6
Successfully being digital means integration throughout the way you work
Successful transformation starts with a D-suite and covers the end-to-end value chain
Recognize the power of digital data to
sense, predict, respond and empower
real-time decision-making.
Leaders either leverage or transform
legacy.
Place a premium on agile innovation
and take an iterative portfolio approach
to delivery.
Have an overall vision and purpose
that transcends everything you do.
Translate your business vision into
experiences and focus ruthlessly on
delivering outcomes.
Open up to the power of communities.
Recognize the potential for digital to
enable a paradigm shift, rather than a
channel shift.
Embed cyber risk into your enterprise
risk model, and establish a prioritized
and proactive cybersecurity
approach.
Invite diverse skill sets to the design
table.
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 7
Digital operations
Digital technology is set to overhaul operations
AI Blockchain
3D printingCloud and big data
FinanceHR
Finance
operating
model
Human
resources
operating
model
Supply
chain
Digital
data
People
strategy
Organisati
onal
design
Digital
Operations
Autonomous
value chain
Physical
digital
operations
Dynamic
marketplace
integration
Change
managementProcess
optimization
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 8
Digital Supply Chain & Operations
Becoming Digital … through
focusing on experience
transformation
1. Dynamic Marketplace
Integration
2. Autonomous Value Chain
‘ Sense & respond; One touch transaction’
3. Physical-Digital
Operations Excellence
‘’Smart connected productivity optimisation’
‘Lights out planning’
Internal
data
External
data
Social
Location
Third party
Behavioural
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 9
Multiple Technologies are being used to transform Operations – however leaders are taking an issue led approach….
Augmented
Reality
Crowd
Sourcing
IOT and Sensors
Mobile
Smart
Labels
Autonomous
Vehicles
AI
Cloud
Robotic Process
Automation
3D printing Block ChainRenewables
RoboticsAnalytics
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 10
One main challenge that Companies are facing in the 4.0 World is how to increase the control capability
EY Maturity Model for Supply Chain Control
IT Requirements
Digital
Shadow
Real-time localization
IoTPlattform
Digital
Supply Chain
Controllability
Technical Foundation
Transparency & Visualization
Cyber physical System
Management Processes
► Material flow analysis
► History
► Forecasting
► Geofences
► Self-regulating system
► Algorithms
► Data Analyst
► Data-based decisions
► Interpretation
► Control Processes
► Partially automated business processes
Maturity
Latency
Technology
Organisation
► RTLS
► GPS
► Cloud Readiness
► innovation Team
► Project Sponsor
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 11
The technology we are using enables accurate 3D Object Localization in real time
► Fast and easy
installation
► Interface for additional
sensor data (machine
data)
► Integrated software
enables real-time
visualization and
analytics tools
Applications
► Real-time visualization
► Interface for recording process
data
► Recording tool parameters
► Motion analysis
► Control and optimization of
inbound and outbound logistics
► Definition of specific zones within
the production areaMeasures
► Position
► Direction
► Time
► Distance
► Speed
► …
Workpiece / Product
Transport assets
Tool / Machine
Employee
Mounting
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 12
Position data provide new levers for Control loops and Real-time Control
Historical data Real-time data
Heap Map Spaghetti Diagramm
Automated ERP transactions can be performed
Automatic inventory
update by
warehouse location
Alarm in
Danger
situations
E-mail to person
responsible
Generate
maintenance
order
Self-Driving
Tool
Release
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 13
Real Time Localization SystemTechnology PoC
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 14
BitCoin is the re-invention of the most basic workload in the world of modern computing: transaction processing.
33Congratulations. We just reinvented technology from 1966.
What’s the big deal?
The Block Chain
CICS in 1966
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 15
BlockchainsHow they work…
Distributed processing
Every node in the network checks the work of other notes.
Transactions are confirmed by a kind of digital majority vote.
More parties on the network, more collaboration, more security.
…replace single points of failure with a secure consensus algorithm to validate transactions
Synchronized Records
Every participant in the network keeps a copy of all the transactions.
Transactions are secured by encryption to prevent tampering.
An accurate local copy of the entire transaction history.
Smart Information
• Transactions can be sent with rules attached - small programs that govern when and how money is delivered.
• Rules-based automation inside the transaction processing engine.
…don’t just synchronize information, they also enable process automation
…are most reliable, secure mechanism ever invented for storing & synchronizing digital records.
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 16
The foundation of our solution is a digital twin of the supply chain built using asset & inventory tokens
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 17
Product life cycle management on a blockchain networkOverview
Block chain for QC lab
Process vs. Product orientation
of data structures
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 18
Wine Blockchain EYOverview
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Page 19
Robotics Process AutomationOverview
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
EY on RPA: http://bit.ly/2eZd44f
Page 20
RPA Demo
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
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Unlocking the full value of RPA
OTHER TYPICAL USES
IT services
► Installation
► FTP download, upload and
backup
► Server application and
monitoring
► Synchronizing, deleting
and emptying folders
► File management
► Email processing
► Batch processing
► …
HR services
► Payroll
► Benefits admin
► Pay slip management
► Time and attendance
management
► Recruiting process
► Onboarding
► Education and training
► Compliance reporting
► …
Supply chain
► Inventory Management
► Work order management
► Demand and supply
planning
► Quote, invoice and contract
management
► Returns processing
► Freight management
► …
F&A
► Sales order
► Order to cash
► Collection
► Procure to pay
► Incentive claim
► Record to report
► Supply chain vendor
setup
► Trend tracking
► …
We’ve seen…
25% increase in capacity in back office
One robot doing the equivalent of up to 10 FTE
Digital and robotics can automate over 90% of the processing of simple claims
06/12/2017 Operations Center – Business Transformation Through Operations & Supply Chain
Thank you