Industry 4.0: From strategy to execution... and vice versa

Industry 4.0 is a hot topic, and you can probably spend a lifetime on reading all related articles. What is clear today, is that we are entering a new era of operational business, and that disruption is knocking on the door. Not all of the promises will become reality, but we can't neglect it either. What does this mean for the way you define and execute your operational strategy?

From strategy to execution

1. Strategy definition: You don't define an Industry 4.0 strategy, you define your strategy in the Industry 4.0 age. It is crucial to make a good analysis of where you are today and map all potential challenges and opportunities in the market. Besides having a good view on your own individual strategic position, you also need to get a good insight in the status of different technologies: what is already possible today and which future developments can you expect?

2. Opportunity identification: Technology is never the goal, it is a means to an end.  In this step you need to link your concrete business challenges or opportunities with the right set of technologies. Where do you see concrete business cases? To give an example: don't state you will implement 3D printing as part of your strategy, state it as you will look at the potential of 3D printing in your supply chain of spareparts.

From execution to strategy

3.  Pilot execution: The best way of knowing, is by doing. In this phase you will select tangible pilot cases. The goal of these pilots is not to have a full blown implementation, main goal is to grow your knowledge and insights in the technology. You can use the motto: Think big, but start small. It is important to bring your vision to your employers by making it tangible, and you need to invovlve them into their future.

4. Learn: "Learning is an experience. Everything else is just information" - Albert Einstein. At the end of the pilot, you need to build a business case based on facts and not on assumptions. It is also a good way to look at the soft benefits of the technology, how do your employees react to the change? This empirical way has the advantage that you will learn a lot, but you need to be aware that not every pilot will be successful.

The vicious circle

5. Adapt: Embrace change, as it is the only stable thing in today's world. By combining your strategic framework with tangible pilots, you will gradually build your knowledge and exposure to new technologies. By doing so over and over again, you will reduce the uncertainty and risks, and you will be moving in the right direction. 

This approach brings your strategy to life and inspires your people, not only by words, but also by deeds.

The success of a business strategy in the Industry 4.0 age is not defined by technology itself, it is defined by what people do with it.