What is the meaning of Industry 4.0? What does Rolls Royce say?
Many people still don't understand the significance of Industry 4.0. Worried that it is only an exaggerated marketing speech, that Industry 4.0 is full of uncertainty. However, some experts believe that Industry 4.0 can be interpreted as a transformation of the business model of general industrial enterprises, not a technological revolution. According to reports, Rolls-Royce's global manufacturing director, Hamid Mughal, told a speech at the Financial Times (FT) Financial Manufacturing Summit that people cannot be unclear and uncertain because Industry 4.0 is not yet defined. The essence, while ignoring the potential of Industry 4.0. Mughal said that Industry 4.0 is not a futuristic, but a current one. Everyone is talking about the necessity of digitalization? What is the use? What value will be created for the company and what value can it create for the customer? This is a complex problem that engineers are trying to solve because it has the potential to affect everything from quality control to procurement, design to research. Industry 4.0 primarily places sensors on assets to collect data and then uses analytics to determine what is happening. Perhaps the productivity of the workshop has dropped after lunch, so the result of the insight may be to provide more salad instead of greasy food in the cafeteria. Maybe it's because the equipment is not being used properly, which means more training or redesign is needed. Putting this basic idea into the organization will bring a lot of hidden value, and there will undoubtedly be a lot of achievements that can be brought at hand, but the real opportunity is to sell this insight. Rolls-Royce has been using the engine-based-power-by-the-hour service business model for many years. Service-oriented business model seems to apply to businesses with Industry 4.0 capabilities because data and analytics can add other services to the product. According to Mughal, this is the evolution of support, knowledge, services and self-service from selling products to selling products. If it can be tangibly described in today's terminology, customers will be willing to adopt it, which will generate value and enhance the profitability and extra income of the company. Therefore, Industry 4.0 can be interpreted as a broad shift in the business model of general industrial enterprises, rather than the technological revolution that the average person tends to think. Perhaps it symbolizes that ownership will be transformed into a system that is more dependent on leasing. In this system, the manufacturer will use the time-of-use charging model to sell the function instead of the part that performs the function. Mughal said that if there is no product, there is no company, and the product is the company's DNA. The product can feed real-time information back to the design intent, and the product will continue to feedback the customer's use and operation. Although this has happened for more than 10 years, the real revolution is the cost of doing so, the ease of implementation and the amount of data that will be recorded. If the company produces high-quality information, it can pass on familiar knowledge, for example, how to reduce fuel consumption, improve usability, and make better use of assets and make more money. This information will lead to new relationships, intelligence sources, services and long-term agreements. This is the goal that Application Industry 4.0 can achieve.
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