 Hello everyone, welcome to this course on supply chain digitization, we are in the last week of this course and we truly believe that this course has helped you in understanding the different aspects of digitization that has been brought out in supply chain and how different decisions can be taken up in supply chain. I am Professor Priyanka Verma from I am Mumbai and we are going to cover that last week in the last module of this course. So this week we will be talking more about the digital infrastructures which are available in supply chain and particularly today's session we will be focusing more about the different technologies that are available under industry 4.0. When we talk about digitalization it is very important that we understand the difference between digitization and digitalization. We know that in today's time it is very important that we try to adopt the digital mindset and this is reason being if we look around us, we see all the existing processes have got modified whether it is about buying groceries, whether it is buying about textiles, any dresses, any equipments, any electronics items and so on. The way we are doing our businesses has entirely got changed and we know that things are getting digitalized a lot. So it is very important that we understand the difference between digitization and digitalization. When we talk about digitization it is it simply means that we are trying to digitize the information. If you see the processes there are different ways by which the data is getting captured. Sometimes we are capturing some audio files, some video files, some images, some text and so on. So data has to be captured and these are available in different forms but these needs to be digitized so that the systems or the processes associated with it can understand it very well. This process is particularly referred as the digitization. The next step comes to the digitalization where the data that has been captured it is subsequently used and here we try to automate all the business processes which are attached to it. So digitalization focuses more on bringing up automation and the processes gets automatically handled, the data being generated, shared and accordingly decisions being taken up. Whereas the last stage you can see is about digital transformation where we introduce the digital products in these processes and we try to see the objective is subsequently achieved and that is why the third stage talks about digital transformation. So when we look into this three aspects that digitization, digitalization and digital transformation we can see that this is turning up into in a form of pyramid and this is a very famous transformation pyramid referred as digital transformation pyramid. So any business or any processes when they are trying to adopt this digitization into the processes they have to go through these systems where they try to understand the existing processes, see the scope of digitization and see that where are those touch points from where the digitization can be enabled that is you can start capturing the data and you can convert them into a form which can be understood by the processes easily and then in the next step of digitalization you try to automate the whole processes, try to establish the connection between the different elements and see that the system is running in automated method. Whereas in the last stage that is at the topmost part of the pyramid we are focusing more on the digital transformation side where what we try is that the system which has now got automated how this can be enabled and how the whole processes can be digitalized and in that process we try to introduce different digital processes and different digital equipments which can help us in enabling our objectives. This digital transformation pyramid is quite appropriate and is a very famous concept which is required to be introduced whenever we are trying to introduce digitization in the system. So whether you are trying to digitize your existing processes it can be a supply chain process it can be any other process like that you always need to follow this pyramid to ensure that the digitalization is enabled into that particular process. Now let us try to understand that when we are trying to bring any digital transformation in a process which can be simple warehouse management process or transportation management system or any system like that there are always some success elements which are attached with it and parallely there are challenges. So it is very important that we have a very clear objective of implementing the digital transformation and parallely we should also understand the challenges which are associated with it. We all understand that implementing digital transformation in any existing processes will always bring lot of success for us. Now how do we measure this success? How do we see that ok if we implement a digital system into our processes or a transformation has been brought up? How that your existing processes will improve? Prominently we can quantify we can qualify these success elements in the form of improvement in the efficiency of the processes or improvement in the productivity of the system. Similarly there is increased agility in the whole process which can manage some small changes into the system very easily and accordingly adapt to it to manage these small changes. The customer engagement obviously will increase and that will help you in ensuring that you are having better connections or better engagement with the customers. The responsiveness and the innovation element will further improve due to digital transformations as things are more transparent and accordingly the predictions can be done so that you are ready to you are prepared to act on the system in a responsive manner and you also it can drive you for bringing some innovative solutions as well. Talking about the financial benefits which are quite measurable the end result of all the success elements will obviously lead you to a good financial benefit into your overall processes. There can be few more success elements which are attached to it which will typically depends on what type of processes you are trying to transform using the digital transformation system. But obviously introducing such digital transformation is not so easy and there are going to be certain challenges and that has to be taken care whenever we are planning for implementing any digital transformation into our system. The major challenge is about managing people whenever we are bringing any digital transformation. Reason being people are always used to work in a certain way and these type of transformation obviously need that type of mindset by which people are ready to change their process and also they are ready to explore this new way of method. So, managing people is one of the critical challenge whenever we are trying to introduce digital transformation into the system. There is always a fear among the people that because of these digital transformation their jobs may go away and so on. But that is one understanding that is very important to be developed among them that these transformation will always help you in improving your existing profiles and bring a better way of doing the same job. So, the first thing that we have discussed is about the people. The next challenge which is important is about process. It is very important that how the processes are currently working. So, we have to see that the processes are well defined wherever there are certain non-value adding activities that needs to be removed and the processes are clear and available to everyone. So, that the transformation where wherever it is required can be accurately calculated can be accurately identified and accordingly the digital solutions can be implemented. So, understanding the process and correspondingly knowing the stakeholders who are involved with those processes is very important and it is so that the role of each and every stakeholder, the meaning of each and every step in the processes is very clear and it becomes easy for us to identify where we can introduce the digital transformations and in what manner. The third is the communication which is again a very important challenge. The communication between the top management and the other member of the organization so that it is clear by the whole system that what is the need of this implementation and how it is going to affect in terms of bringing improvement in the efficiency, improvement in the productivity and overall in the improvement of the whole system so that people are enough motivated for implementing this particular transformation. The next is absence of measurement where people are in sorry in general we are confused that what needs to be measured whenever we are trying to implement any digital transformation. Reason being the right way of measuring the performance of the system is mostly unavailable in the system. So, if there is a clarity on what is the KPI or what is the right process or right observation of the given process that we are looking for it becomes easy to apply the digital solutions and then correspondingly track for it and see that how this particular digital solution is helping you in improving the overall performance. So, absence of measurement that is we can say that the way we can identify the process which needs to be measured and what needs to be measured and how it can be measured. They can be some more challenges again it will typically depend on the type of your processes on the type of your businesses and so on. So, in general we have discussed about the digitization digitalization and bringing digital transformation in any system and while implementing this digital transformation what are those success elements and what are the challenges for implementing this particular digital transformation in detail. We will now go to the next stage that is understanding once we have understood about the digitization concept how these digitization can be enabled in manufacturing environment, in supply chain environment or in any other related environment. For this we are going to talk about the term which has been coined in Germany in the in Hanover fair in 2011 called as industry 4.0. This is also referred as the fourth industrial revolution and interestingly this is the way we have come so far we will talk more about industrial revolution in the next slide, but let us try to understand what does industry 4.0 looks for it and what it aims for it. The way we have been working that is our traditional way of working has got transformed due to the implementation of industry 4.0. We will see that how this transformation has happened by applying industry 4.0 technologies. The purpose of industry 4.0 is all about how can we integrate these different technologies that we have just discussed in the digital transformation stage and how these technologies can help you in making your processes better in defining it better and making better decisions. Similarly, when we talk about industry 4.0 this is bringing a paradigm shift in the process so the way we have been working obviously has got changed due to this implementation of industry 4.0 and technologies. When we talk about technologies there are several technologies which has got covered under industry 4.0 some of them are like automation, artificial intelligence, internet of things, data analytics, robotics and so on. We will talk about each and every technology in detail as we will move on. So when we talk about industry 4.0 in manufacturing sector particularly you see that there are certain innovative shifts that has happened in the manufacturing environment and that is what is helping you in implementing industry 4.0. So let us see this progress in the innovative shifts that has happened in the manufacturing environment. We understand that there are lot of digital technologies which have been introduced in manufacturing environment particularly and these technologies are helping us in capturing the data at different points of the processes and because of these available technologies the computational power of analyzing this data has got tremendously improved and that we can see that with every year passing on the technologies are improving better and better and that is helping us in analyzing big data set going forward. The availability of data helps us in going to next innovative shift which is analyzing that data by applying the appropriate analytical tools and techniques. Innovative shift is referred between the human and machine collaboration where we see that how automation has been brought up and how human and machine can collaborate together to improve the performance of the system and this has been achieved significantly in many sectors. There are several successful stories that actually confirms this collaboration. Finally we also know the innovative shifts that has happened in the manufacturing particularly where advanced manufacturing techniques and technologies have been introduced and our traditional methods of production has got improved and there are several technologies which actually helps you in advancing in bringing the advances in the manufacturing. We can see several examples which can confirm this relationships again. So, we see that there are certain innovative shifts that have been appropriately applied in the manufacturing environment starting for from the capturing of data and improving the computational power or analyzing the data and taking proper decisions based on that or the collaboration between human and machine how this can be managed, how automation can be brought up and so on and finally how these advanced technologies are being implemented. But how do we apply these innovative shifts in the regular manufacturing environment? There are two ways for doing that. In terms of the skill that is required for managing these advancement it is very important that companies try to understand that there is a need of upskilling or there is a need of re-skilling to see that they match to these requirements of the innovative shifts and then they are able to fulfill the objective of implementing digital transformation into the system. So, this can be achieved interestingly with the help of industry 4.0 or the fourth industrial revolution. So, in this way we have seen these four foundational types of innovative shifts which are required to implement industry 4.0 in manufacturing which includes your capturing data, improvement in the computational power, analyzing the data, improving the human machine collaborations and then also seeing that how advanced manufacturing technologies can be implemented and together we can say that we have implemented industry 4.0 and this can be achieved by doing a end-to-end skill transformation this is done either through upskilling or re-skilling. Going forward let us try to understand this fourth industrial revolution from where it has come and what is the history behind that. So, this is the industrial revolution that has happened. We started with the first industrial revolution. This happened in the end of the 18th century actually started from the year of 1760 and it was there till 1840. In this period the railways and steam engines were first introduced and the mechanical production machines which were being introduced was powered by water and steam. So, that is why it was referred as the first industrial revolution. In the second industrial revolution which is also referred as industry 2.0 it actually started at the beginning of the 20th century typically between 1870 to 1940 and here the focus was more on mass production and the electricity was particularly introduced into the manufacturing environment and that is why this was the indeed a very big revolution for us. Here the concepts of sub-assemblies and the usage of different types of machine tools were also introduced. In the third industrial revolution which was typically in the end of 20th century we can say in time period while it was it was between 1960 to 2010 in this time majorly the computers were introduced and this could this was possible due to semiconductors and internet being introduced in parallel. See all the production machines particularly the mechanical production machines in this the usage of robotics have been introduced and this has significantly improved the way processes can be done and this has improved the efficiency and productivity of any manufacturing environment in that time. So, that is why the third industrial revolution was quite interesting because we started using computers and it was saving our time and efforts. The fourth industrial revolution for which we are right now referring and is popularly known as industry 4.0 this was introduced in Germany in the year 2011 in the Hannover fair and here the cyber physical systems was introduced which is again very big revolution in the field and here different types of tools and techniques were used the purpose of these tools and techniques was to see that the gap of cyber physical world is minimized and thereby seeing that how it can benefit in implementing digital transformations and overall changing the whole processes and systems so that the businesses can be redone in a new way. So, we have seen that industry 4.0 is focusing on products and services how they can be digitalized and that is why it is trying to offer a very new experience to the customers for implementing the purpose of implementing these digitalization into any business is to ensure that how the customer reach can be improved and more and more customers can be targeted and for that it is important that you have the right type of digitalized business strategies to achieve this particular objective. Here when we are trying to implement digitalization it is very important that we try to merge the value chains both in the vertical way as well as in the horizontal way. So, the question comes is how we can implement these things this is a this is particularly the objective of industry 4.0 but what are those tools and technologies which can help us in achieving these objectives. So, there are 9 pillars of industry 4.0 which are the most prominent technologies you can say gets covered under industry 4.0 we will just have a brief discussion on these technologies in this session but as we will move ahead we will be talking about each technology in detail and we will also discuss about their application. The first technology that we are going to discuss in detail is IoT or Internet of Things which is very common and if you talk about what is IoT this is nothing but it refers to actually a network of interconnected physical devices or it can be interconnected vehicles or type of connection between platforms vehicles or appliances and different type of objects which are particularly embedded with sensors actuators and connectivity and if you talk about the functions it helps the to collect the data basically and also to exchange the data between themselves and act on that. So, that is one very important feature of IoT this all this is possible remember that these things can be done without any human intervention and that is what IoT is a big revolution in today's time and this is being implemented in different ways in different processes in different forms. We will talk about IoT in detail as we will move ahead. The second technology which is again very useful is referred as cloud computing. Now, because of cloud computing it is not necessary for all the partners to have their own software and hardware instead of that this is a model where the computing resources and the services can be shared between the members over the internet and this sharing can be based on different models it can be either freely available or it can be based on some payment mode depending upon your usage and so on. So, we will talk about cloud computing also in detail. The third is the horizontal and vertical system integration under industry 4.0 Now, here if we talk about horizontal integration and vertical integration in vertical integration the all the functions in any business are typically are vertically linked. For example, you can have your upstream linkage in the supply chain or you can have downstream linkage in the supply chain something where you can track your process starting from production till your consumer. So, it shows the vertical integration that needs to be achieved. Whereas in horizontal integration this is quite interesting here we integrate similar type of activities or functions within the organization or may be between different other organizations as well. Because of this it helps you in enabling the collaboration between similar organizations or between different or between similar departments. A very simple example can be where you try to integrate production happening between different factories. So, this becomes a horizontal integration within the same company. The next is cyber security. So, if you see we are following a order in these technologies the internet of things are actually helping us in capturing the data the cloud computing are actually helping us in sharing the data and accordingly making it available for everyone in the organization. The horizontal and vertical system integration helps us in understanding that the data needs to be captured from where and needs to be shared in what way. The next part is the cyber security which actually takes care of the computer systems, the software and the data which is being captured how the safety and security of these things should be taken care. So, there is lot of progress and developments that keep happening in this area and the overall objective is the systems that are being used or the data that is being generated how the safety of it is properly managed. So, this comes under cyber security element. So far we have got our data we have shared it we decided with which whom to share we have also protected it the next is analyzing the data remember the data is available in different formats it is quite possible that these data can be in structured format or unstructured format. So, the big data analytics which is the next technology helps you in analyzing that data big data analytics is nothing but it helps you in examining this large and varied data where the purpose is to understand certain trends certain patterns or certain behavior which can be used for taking the appropriate decision and that is what the purpose of big data analytics is. The next technology and industry 4.0 is referred as simulation as we know simulation is just trying to replicate the real world system and here you can create a computer model which is trying to imitate the existing real life process and all those changes in the simulation model can be brought up. So, that you can analyze the future performance of the real life scenario and appropriate decisions can be further taken. The next is augmented reality which is again a very interesting technology under industry 4.0 it has got lot of attention. So, when you talk about augmented reality in this typically you can add any virtual object or any type of audio or any explanation maybe that will help in enhancing the actually the real world environment. So, this is again being used a lot in different sectors then next technology is autonomous robots and this has been tremendously used in different manufacturing environment. The purpose of this autonomous robots are to ensure that the task or any difficult action in any environment can be done without any human intervention. So, depending upon the complexity of the processes or the hazards which are associated with it the autonomous robots are subsequently being introduced in different environment. The last technology under industry 4.0 is the additive manufacturing. So, if you remember the traditional manufacturing is always focusing on subtractive manufacturing where the material is removed from the products to create the final product. However, in additive manufacturing which is also called as 3D manufacturing here we try to create the object by adding the material layer by layer and this is based on typically any digital 3D model. So, this is the new advancement in the manufacturing area and obviously right now this is not this is at a nascent stage but there are many sectors which has subsequently adopted to this additive manufacturing and going forward there is going to be a big usage of this particular technology as well. So, we will be talking about all of these technologies in detail as we will move forward. Let us go to next stage where we try to understand the applications of these industry 4.0 technologies particularly in supply chain management. How do you think that these industry 4.0 technologies can help us in managing our supply chains better? So, the first application we know about industry 4.0 application in supply chain is through predictive analytics. So, we already have discussed a lot about analytics in our previous module and particularly AIML applications in solving different problems in supply chains. So, predictive analytics can help us in selecting the right algorithm under AIML and which can help us in analyzing the historical data and this can be used for understanding the demand patterns. This further can help us in managing our inventory better and also improving our forecast accurately. The next important application of supply chain is to ensure that supply chain is connected and when we say about a connected supply chain it simply means that there is a seamless connection between each and every member of the supply chain and the information is flowing between them. This will help every stage in the supply chain to take the right decision and the best decision depending upon that scenario. So, implementing these technologies under industry 4.0 will help us in achieving this particular target. The next application is about automation and robotics. We know that autonomous robots, automated guided vehicles, these are the new advancement which can help us in improving the order picking operation, packing operation, transportation operations and many other similar activities in warehousing and transportation or in manufacturing as well. This ultimately will lead to increase in the efficiency and also reducing in the operational cost. So, this is the third application of industry 4.0 in supply chain. Next is about blockchain technology. This is the new advancement and we will be talking about it in detail but particularly what blockchain does in supply chain is to introduce transparency and traceability in the supply chain. You can track your suppliers, you can track your vendors, you can track the sources of the material, you can track the pricing and many other things. So, this will help in keeping a secure and tamper proof record keeping of transactions and also about the product movements. This will improve the trust in the system and the partners associated with the supply chains gets tremendously benefited with the implementation of blockchain technology. We will be talking about blockchain in detail in subsequent sessions. The last is application we can see is in is making your warehouses smart. So, that is why it is referred as smart warehousing. Implementation of these technologies under industry 4.0 like your sensors, like your RFID technologies will help you in tracking your products, your inventory, your items on a real time basis and this will lead to increasing invisibility in the overall processes which will be helping you further in reducing your errors. So, we have seen that prominently implementation of industry 4.0 technologies in supply chain can be done in these ways and this can help us in increasing the supply chain further. So, to summarize we started our discussion about understanding of digitization and digitalization and going forward how these can be implemented to bring the digital transformation. How digital transformation has been introduced through fourth industrial revolution that is industry 4.0. We have seen the evolution of the industrial revolutions, how we are here, how we have reached to industry 4.0 and the journey behind that and then we also have discussed the nine pillars of industry 4.0 or the nine technologies which together comprises industry 4.0 and finally, we have seen their application in supply chain management. So, with this we will end this session. Thank you everyone. Have a nice day.