 Hello everyone, welcome to this course on supply chain digitization. This course is offered by IAM Mumbai and is jointly taught by three faculty members including myself Professor Priyanka Verma and my colleagues Professor Sushmita and Professor Devapratadas. We are in the last week of this course and we are quite excited to see the response. We hope that this course is helping you in understanding the different digitalization aspects in supply chain. If you remember in the previous session we discussed about the need of adopting a digital mindset and how it can be done and we also discussed about the industry 4.0 or the fourth industrial revolution that has recently been announced and what are the different technologies that gets covered under industry 4.0. So we had a very brief introduction of those technologies in the previous session. In today's session, we will try to go into the details of these technologies one by one and we will try to acquire its information. Today's session we will be focusing more about these technologies which gets covered under industry 4.0. If you remember this was the slide which was capturing all the nine pillars of industry 4.0 and this includes IoT, cloud computing, horizontal and vertical system integration, cybersecurity, big data analytics, simulation, augmented reality, autonomous robots and additive manufacturing. We will be discussing about these technologies one by one. Let us start first talking about IoT platforms. So as we understand what is IoT, the full form of IoT is Internet of Things. When we talk about IoT it is nothing but it is in very simple way we can say that it is a network. Now what is a network? Network of what? That is the next question. So this is a network of interconnected physical devices which can be some form of physical devices or some type of vehicles, buildings and so on. So it is like how can we connect the network between this type of different units? Now in this process of network and its corresponding units which has got connected together there are different data points which are getting generated and the role of IoT is primarily to collect this data and to exchange it. And the process of this collection and exchanging data is done through different types of sensors and having a proper connectivity mechanism. So in this system when we talk about sensors there are different types of possible sensors which depends upon the particular business requirement. So when the data has been collected the data needs to be transmitted to a central system as you can see from here and the analysis of the data is done at this point and based on that the decision making happens. So this is again the next stage in the process of IoT. Once the decision has been made it is a requirement that the monitoring of the processes can be done and accordingly if required the control can be applied. So you can say that this is a sequence of activities which are involved with IoT and very importantly there are different steps or different requirements in the IoT system which starts with the process of collecting data and transmitting it to a central system and then analyzing it to take the appropriate decision. So here if you see the role of IoT is very important it tries to bridge the gap between the two world that is your physical world and your digital world. So what is happening in your physical world is actually getting captured with the help of these IoT devices and that gets transmitted to the digital world. From there these data which is actually representing your real life activities are now further captured, shared, analyzed and then the decisions gets taken up. So we can see that with the help of IoT systems it supports in providing the real-time insights and also in developing the automation capabilities. The next step about Internet of Things or IoT is to understand that how basically it works. As we have seen in the previous slide as well the Internet of Things works on three principles that is broadly we say it as it focuses on collecting the data. It after the data has been collected it says that how it can be sent to the central system or it can be shared and then finally how that collected data is analyzed and based on the analysis the action needs to be taken. So this has been classified as you can see from here in this four form of activities. One is collecting the data, the second set of activity which talks about sending the data to a central system is getting covered under the communicates part and in the last two step basically the data is analyzed and accordingly the action is taken place. So these are the principles of IoT based on which we can say that it works, let us see that how it happens. So when we say about collecting the data there are different types of devices and sensors which are available and they can be appropriately selected depending upon the process requirement. So if we want to capture the temperature of the system we will have some temperature sensors and so on. Similarly we have other mechanisms also for capturing the data like RFID and GPS we all know about the usages of RFID and GPS. GPS is something we use day in day out using the map services that we have. So RFID as we know its full form is radio frequency identification and GPS stands for global positioning system. So RFID is the technology with which we can easily track and manage our inventory and assets and using the GPS system it becomes easy to find out the location of your shipments and accordingly you can also track your vehicles using that. So these are again very interesting technologies which has been introduced under Internet of Things and they are not the directly IoT devices but yes they serve the purpose of tracking the system. The using the IoT system of course it helps you in collecting the data in both ways that is both in online and offline mode as well. So again depending upon the type of processes that you are trying to focus the sensors, devices, the appropriate RFID or JPA system can be accordingly selected and you can have a mechanism of capturing the data either using online or using offline. The next step is about communicating the data. So as we said that once you have got the data you need to share that data right. So this captured data is actually sent over the Internet to the to either to a central system or to the respective destination but remember it is very important that while sharing the data the corresponding protocols are required to be followed. So that is a important aspect over here. When we talk about what are the different ways by which this can be shared we have different system available like Wi-Fi, Bluetooth, LP, WAN or even you can directly connected through Internet as well. So this is the way in which the data is being shared to the respective parties and the next step is about analyzing this data. The data that you have received so far you need to analyze it so that you can take appropriate action. For the purpose of analysis there are different ways as we already know that is visualizing the data or creating a report based on that. So there are different ways by which the data can be analyzed and the corresponding identification of the processes can be done at this stage. The data can also be processed in the cloud only. So if there exist any outliers corresponding actions can be triggered immediately or if there is an anomaly the action for that can be taken accordingly and that is why the step is a very very important step after getting your data. As the analysis step was helping you in understanding the criticalities associated with the process or any outliers or anomalies the next step is to take an action based on that. So if there is some severe outliers you can accordingly trigger the actions from there. This can be done in different ways. It can be in the form of alerts, in the form of mails, notifications or depending upon the subsequent requirement or which your analysis has shared these type of actions can be initiated as per the IoT platforms. So if you have seen over here when we were talking about IoT we were also talking about collecting the data, sending the data and acting the data. For collecting we understand that we are already using some type of sensors or some type of RFID and GPS depending upon the process requirement. But when we talk about sending or sharing the data we need a mechanism for that and here comes the second technology in place that is your cloud computing under industry 4.0. And this part we are going to obviously discuss in detail but remember that each and every technology work in collaboration with the other technology under industry 4.0 so that it can be used in an appropriate way. So here the IoT devices are helping us in collecting the data but that needs to be shared which is done through cloud computing and the next step is to analyze the data and act on the data. For that part we rely on big data and analytics type of technology under industry 4.0. So using IoT is basically integration of three or four technologies together and then finding out its appropriate usage. So we can see that how IoT can be made more useful in collaboration with the other technologies of industry 4.0. When we talk about the cloud computing stores and processes this IoT data that you have got at the large scale the purpose of connection is to exchange data from and to this devices and the data which you have got obviously needs to be transferred over the internet and as you already discussed the protocol needs to be managed. Now once the data has been obtained you can easily apply the appropriate big data analytics as the strength of big data analytics is to analyze large data of various types. So this can be easily done by selecting the right type of analytics and algorithm under that. So we have seen that how IoT works let us also try to understand that what are the different types of IoT. So when we talk about different types of IoT and its usage broadly we can classify the types of IoT into three category. The first one is the industrial internet of things. The second one is the consumer internet of things and the third one is the commercial internet of things. Remember here we are trying to classify the IoT based on its usage probably there can be other ways of classification as well. So when we talk about the first type that is the industrial internet of things these are mainly used for the industrial purpose. Some examples can be like your instrumentation or your M.E.A systems and so on and here mainly the interaction or the communication between machine to machine that happens can be executed efficiently. Here the processes can be automated with the use of industrial internet of things and the automated processes whatever data is getting generated can be analyzed and the appropriate insights can be given at this point. When we talk about the consumer internet of things remember its usage is very interesting which we do day in day out in our everyday life. So this belongs to the individual usages or maybe sometimes with the family usages. If you try to understand that what are these consumer internet of things this is something that can be informed of a wearables, something like your watch, your smart watches and so on, some type of home appliances or some personal monitoring devices and so on. So these are basically as you can see these are for the personal usages. When we talk about the data that is being generated in the consumer internet of things these the volume of the data is quite small compared to the other two type of IOTs and it can easily get connected to your mobile based apps based on which you can track yourself and you can also monitor it and you can get an idea about the whole system and the processes. So the third one is your commercial internet of things and basically these category of IOTs are majorly used for the commercial purposes. So in terms of its application it is quite useful in office buildings, supermarkets, hotels, hospitals and so on. So any commercial purpose as we can see from here it can be used for monitoring, lighting, asset tracking etc depending upon the commercial usage. This again in this system as well the data which has been collected is brought to the centralized database or to a cloud platform and the next type of analytics, communications, monitoring can be done on this collected data. So we now understand the overall functioning of the IOT system and we also understand the different types of IOT and its corresponding usages. Remember that depending upon the use of these type of IOT systems their industrial usage or postal usage or commercial usage the appropriate technologies has to be selected. So this is quite a very interesting area over here. When we talk about the applications of IOT in supply chain domain there are very interesting applications and as we are saying that the tracking or seeing your supply chains day in day out is a very important aspect. This objective can be achieved with the help of applying IOT in your supply chain. First application as you all know is about tracking your inventory, tracking your resources. So IOTs help you in real time tracking and having a visibility of your resources of your inventory in your supply chains. Similarly, when we talk about other application it is the predictive maintenance in which the IOT systems helps a lot in terms of understanding the future requirement of the maintenance of your equipments and this will help you to anticipate the equipment failure and thus helps in minimizing the downtime of the equipments. So the IOT systems can help in analyzing the data and trigger to the user about its possible failure of the equipment. So the users can accordingly select the right appropriate method over here to ensure that the downtime is minimum. The third application is inventory optimization which aims on reducing any excess inventory as well as stockouts. So if you are able to track it obviously we can link it with your decisions related to inventory management appropriately. The last application as we can see is about improved decision making because the data that has been captured in supply chain can be used for driving the appropriate insights which can be triggered into better supply chain planning. When we talk about implementing IOT in any system not only in supply chain in any system there are corresponding challenges as well. The first and foremost or the most important challenge is the investment cost. So this system obviously requires heavy investment sometimes and that is why implementing this in a given system becomes a difficult affair. The second issue is about security of the data and privacy of the data. As we understand that we are capturing critical data at different points. So securing that data and ensuring that this is the privacy of the data is maintained is the next challenge. The third is about scalability which is to ensure that the IOT system that you have deployed it can handle the growing volume of data and its devices. So we know that the processes are going complex more and more partners are getting added up in the supply chains. This obviously will lead to increase in your data. So the IOT system that has been deployed should be capable enough in taking care of this scalability. The next challenge is about integration with the existing system. Here most important issue is about the compatibility. The compatibility when we are trying to say it means the compatibility between the IOT systems and the legacy systems. So if that is possible then obviously this is a very very useful tool for us. And lastly this is the most important one you can again say is about human behavior. So we need lot of approvals for implementing the system. So unless the management is ready to apply these type of systems it is difficult for breaking these changes into the organization. These challenges we already have discussed in our last session as well which is related to people management. Talking about the emerging trends that has been observed in IOT system particularly in supply chain we can see that there are lot of data points which are getting generated and which are getting captured. So if you are bringing all these data points into a central system and then analyzing it and then taking a decision the process becomes more and more complex. Instead of that the focus is now shifting on edge computing where the process data is brought closer to the source which will help in making faster decision. The second important trend we can see is the application of blockchain in supply chain which will ensure the transparency and traceability. We will be talking more about blockchain in the future sessions. The next emerging trend we can see with respect to AI and ML integration with the data collected we know that lot of data points have got collected. So here we can apply appropriate predictive analytics to enhance the performance of the system. And lastly the IOT devices or IOT system is also seen which will support in reducing the environment impact of the supply chains. So again we can see that these are emerging trend of IOT in supply chain and this can be easily applied or explored by the business as well. We will now talk about the second technology in industry 4.0 in detail and that is cloud computing. So let us try to understand what is cloud computing? In cloud computing the delivery of computer services is done over the internet. This can be in the form of servers, storage, softwares, databases, networking and so on. So if you can see the purpose of cloud computing is to ensure that we are able to provide flexible resources which in turn are economical for use. Here it is focused that there is not much investment done for the infra and for the data center. However, the given things are shared between the different parties so that the overall system remains economical. So we can see that it is a win-win situation where the admin is getting the benefit of economy of scale whereas the recipient who is using the system does not have to invest and that is why there is no upfront Kpex investment for the recipient which is again economical for the overall system. So when we talk about the types of cloud computing it can be deployment based or it can be service based. When we talk about deployment base it can be public, private, community or hybrid whereas service base it can be IAAS, PAAAS or SAAAS. So what are these types of different types of cloud computing? Let us try to understand them in detail. So when we talk about types of cloud computing based on deployment we know that there are typically four types. The first one is public cloud. If we talk about the infrastructure in public clouds that are shared the cost is typically very low and because of that the security is also considered as quite low. So most of your Google apps or AWS as you know falls under the public cloud. When you talk about private clouds they are actually dedicated to a single organization and the complete infrastructure is owned and managed by the organization itself. In terms of the security the private clouds offer the highest level of security and it includes like some example over here are HPE, Dell, IBM and so on. When you talk about the community cloud this is very interesting. This is typically shared by multiple organizations with the similar needs we can say it can be like some government agencies which are sharing the same cloud or it can be like some universities which are sharing the same clouds and so on. So the cost associated with it is moderate in nature and the security is also moderate. This is co-community cloud solutions we can see as example. In the hybrid cloud it can be a combination of public and private both. In terms of hybrid cloud how it is used maybe an organization might want to use a public cloud for its web servers and maybe a private cloud for its customer database. So depending upon the usage the selection of the public and private cloud in the system can be decided. A very interesting example is Azure and IBM. When we talk about classification of cloud computing based on the services that they are offered it can be categorized into three types. The first one is IAS that is infrastructure as a service. The second one is P-A-A-S that is platform as a service. And the third one is S-A-A-S that is software as a service. So as the name suggests when we talk about I-A-A-S which is focusing more on providing infrastructure as a service here the access to the hardware or the infrastructure is available. These hardware infrastructure are like your storage desk or it can be network or OS and virtual servers and so on. Here in this system the highest level of flexibility and control over the resources are requested by the end users. Simple example is your Amazon web services or AWS system. When we have the second way of classifying the cloud computing that is based on services it is P-A-S the full form is platform as a service. Here the customized development of platform is done to the end users. It can include operating system, database, programming environment, web servers and so on. It offers a very high level of clarity in the management of the resources compared to I-A-S. A simple example if is your Microsoft Azure and similarly the last category is software as a service that is S-A-A-S. Here the expectation of the end user to get the access to the software applications on a pay per use basis. So it is the most convenient option for the end users particularly for managing their resources if compared to I-A-S or P-A-S. So this we use day in day out like your Google Docs to Gmail, your Office 365 and so on. The third technology that gets covered in industry 4.0 is horizontal and vertical system integration. So this is not a technology is basically it is a pillar of industry 4.0 and when we talk about it what is horizontal and vertical system integration this is these are the strategies which needs to be implemented as per industry 4.0. The focus of this integration is to and see that how you can leverage your digital technologies that we have learned so far that is your IoT, your cloud computing and your data analytics, how this can be particularly leveraged and some data driven approaches can be applied in order to transform your existing operations where the purpose is to remain competitive in the market. So when we talk about horizontal system integration it is focusing on connecting the activities which are operating at the same level in a very very simple language. For example, if we will integrate the production planning scheduling and the manufacturing execution system we are trying to have a horizontal system integration over here. On integrating this production planning, scheduling and manufacturing excellence we can say that the coordination and the synchronization of the manufacturing operations can be achieved effectively. When we talk about vertical system integration this tries to integrate each and every player in a given supply chain either it can be upstream downstream depending upon the focus. The entire strategy is to ensure that there is a end to end visibility of these overall process as well as there is a good control on the process and as a when required the optimization of the processes can also be done. So this is about connecting the players in a sequence we can see a very simple example. If we try to integrate the product life cycle management along with the manufacturing execution system and with its ERP system that is the enterprise resource planning we can see that there is a sequence of activities which is being done. It starts with understanding a product life cycle with the manufacturing execution system and then finally seeing its supply chain. So there is a coordination again which is happening in a series and that is why it can be achieved through proper vertical system integration. So decision about should we go for horizontal system integration or vertical system integration will typically depends upon the process requirement. What is the focus in which you are trying to bring your digital changes or the digital adoption? So based on that these strategies can be accordingly selected to make the improvement in efficiency and productivity of the overall system. So till now we have seen the three pillars of industry 4.0 which covered your IoT, your cloud computing and your horizontal and vertical system integration. We will be talking about the remaining pillars in the next session. So thank you everyone have a nice day.