Digitisation in the Realm of IR4.0

Adopting new technologies does not have to be an all-or-nothing approach.

In the last decade, there has been a major push for digitisation in the form of wholesale technology deployment. Prior to this well-publicised initiative, enterprises were blissfully satisfied by internal digital solutions, referred to as application systems. During these periods, there were efforts made to bring forth connectivity with external stakeholders, through internet front-end applications. In these cases, it became a unidirectional conduit that fed internally digital applications and less about true communicative cohesiveness.

Digitisation in IR4.0 requires us to examine where we presently stand. It’s not simply a matter of augmenting what we have but conducting a comprehensive and clean greenfield examination of digitisation. Pivotal questions involve:

• What should our final digitisation scheme look like?
• Are there business processes, tasks and events that require reshaping?
• Establishing the scope of digitisation?
• Consideration on what IR4.0 technologies need to be considered as a part of our digitisation initiative?
• To what extent will human capital be required and in what form relative to present conditions?
• What new resources will be required to establish the IR4.0 digitisation objectives?
• How much are we able to invest? What value gains do we expect, both savings and opportunity? What timeframe has been set and to what degree of slack has been included?
• Consideration of external influences that affect the initiative, time schedule and value expectations?

These questions are fundamental and the depth of effort in responding to them is significant. Many questions may be difficult to answer simply because of the shift from digitisation represented by internalised automation (IR3.0) to one involving board technology cohesiveness (IR4.0).

The Stragglers

One cannot assume that everyone is ready for IR4.0 digitisation. As we look about the variety of enterprises we see many that are still floundering in excess procedures, paper-laden endeavours and gross inflexibility. Justified by years of normality, they are now under globally disruptive conditions, being forced to change in order to survive. But unfortunately, it’s not a cooperative release but one that still holds onto the habit. In these cases, habits become digitised with consideration for optimisation. The result becomes one in which efficiency is lost and time is consumed.

Not all is bad with being a straggler because you have less vested which would otherwise be held onto with great fervour. Therefore, it means that while the effort may be large, the envisioning is apt to not be challenged by vested practices. Still the stragglers, like the IR3.0 adopters aspiring to go IR4.0 digitisers, must consider value, conceptualised design and the scope of their endeavours.

IR4.0 requires us to re-evaluate our business under present conditions.

IR3.0 Digitisers Aspiring to IR4.0 digitisation

As many companies may be stragglers, there are as many who are already on the digitisation path. Existing ambitions now become subject to change. What we know in this shift is based more on cohesive opportunity and less on the technologies. This means that when we examine the various technology members in the IR4.0 paradigm we become more concerned about process interactive coherence that relates to the way we “should” be doing business. This results in our journey, beyond the formidable questions, involves pondering on how we do our business (efficiency, appropriateness, purposeful) and what really should our business be like. 

It strikes squarely on our strategies and tactics that will eventually be encompassed within the IR4.0 digitisation deployment. Likewise, it also means that we have to be vigilantly mindful that adaptability and flexibility are strongly considered in order to avoid perpetuating change. In a recent discussion, a company brought up this point and decided on utilising artificial intelligence (AI) to provide guidance relating to inflexibility adaptations. What transpired in subsequent conversations revealed two flaws; the first being that recognising inflexibility in itself was a problem and the second being that the AI rules were based solely on past conditions (not present). As a result, the use of AI was modified to look at changing outcomes and not based around past baseline conditions.

Moving to IR4.0 digitisation involves transitioning in a real-time context and avoiding possible big bang approach deployment pitfalls. Obviously, new technologies may appear to be massive efforts but that does not mean that it requires an all-or-nothing approach. Contextually the mindset is not one of traditional practice but one that follows the rules of lean agility. Invest a little to get a little and do it cohesively. Assuming that we have undergone appropriate upfront considerations, we take existing internal digital applications and adapt them for external IR4.0 digitisation. This may involve creating new internet portals, establishing an exchange conduit between analytic resources, or providing expanded mobility. Regardless, the goal is to move forward and lay the groundwork for more formidable IR4.0 endeavours.

IR4.0 requires us to re-evaluate our business under present conditions.

Eye on the Horizon

Our existence is dynamic and so are the various IR4.0 digital technologies. Not only do we have to be mindful of the ebb and flow of vendors but also the dynamic changes relating to the functional behaviour of the technologies. One cannot assume that what is here today will be there tomorrow. This means that our mindset must be acutely attuned to the dynamics of disruptive change. In 3.0 digitisation we managed this through project initiatives kept to modest short timeframes and broader plans not reaching beyond or grasp should we need to act. 

Almost every case of failure and catastrophic disruption to initiatives is the direct result of visions that escape controlled realities and enter into a wishful dream-like state of fantasy. This condition may be powerful in gaining funding support but it is humiliating when ever-present conditions bring about a truthful awakening. Be alert, don’t dream too much, and retain as much control as possible for your IR4.0 digital endeavours.

“We cannot expect the safety, comfort and familiarity of digitisation experiences as we have had during IR3.0 wherein challenges were internalised. In IR4.0 digitisation the effects become a burden of the community, with all of its interconnected parts whether established or forthcoming.”

The golden glow of digitisation opportunity is not a cakewalk. If it was enough to have catastrophic disruptions occurring we must also contend with the intense demands that surround IR4.0 and digitisation in particular. We cannot expect the safety, comfort and familiarity of digitisation experiences as we have had during IR3.0 wherein challenges were internalised. In IR4.0 digitisation the effects become a burden of the community, with all of its interconnected parts whether established or forthcoming. 

There’s a great deal of confusion, yet not unexpected, especially when dealing with shifting paradigms and disruptions to conventional business practices. 

This means that profound engineering expertise will be essential and not become a cavalier experimental pursuit. With distancing and movement restriction, this creates added pressure on domestic resources and remote talent. Contributors will need to be the best of the best in terms of engineering skill, industry understanding and be able to work remotely in an effective communication environment to meet the needs of the IR4.0 digitisation initiative.

In conclusion, what we see today isn’t a lot of failure stories but a substantial amount of confusion. Many enterprises are holding onto IR3.0 digitisation vestiges that have resulted from present disruptions. In-flight initiatives have been throttled back and focus redirected to sustainment efforts (IR3.0/IT). And although the buzz is still about keeping the dream alive, the next several months will determine what the effect will be on reestablishing and advancement of the IR4.0 digitisation story. Our hopes should be on advancement, but in doing so we may need to become satisfied with existing in a stable IR3.0/IT state. Make wise use of your time to clean up present conditions, envision with clarity the right state of your business, and prepare to put digitisation back on the rails in the realm of IR4.0.

Jerry Durant is Chairman and Founder of The Clarity Group Global an established advisory consultancy committed to technological and organisational advancement. Clarity Group also is engaged in various progressive ventures involving challenged enterprises recovery, intelligent philanthropic investments and greenfield research.

Food for Thought

“Most of the executives I talk to are still very much focused on digital largely as a way to do ‘more of the same’, just more efficiently, quickly, cost-effectively. But I don’t see a lot of evidence of fundamentally stepping back and rethinking, at a basic level, ‘What business are we really in?’" - John Hagel III, Co-Chairman at Deloitte LLP Center for the Edge leaders