Why strive for Industry 4.0
Adopting Fourth Industrial Revolution (4IR) technologies may help businesses achieve sustainable growth. 4IR capabilities create higher top and bottom line value through faster design, novel products, reduced risks, elimination of waste and so on. But while growth is clearly a vital objective for any industry, is it the ultimate motive for rushing into such technologies? The world’s ever-growing population is increasingly digitised, affluent, ageing – and seeking sustainable solutions. Today, three billion people have mobile access, with a 10% annual growth rate. Innovations such as voice assistants and the Internet of Things are redefining the whole shopping experience and disrupting retail, blurring the lines between when and how consumers learn about products, decide on a purchase and actually transact. As a result, e-commerce is growing globally at 18%, with a broadening scope from fashion and electronics to beauty, cosmetics, pet care, pharmaceuticals and sporting goods. P&G’s e-commerce business grew by 30% last year, accounting for nearly $4.5 billion of sales – about 7% of total business. Low prices, free shipping and price transparency are challenging the economic model of traditional retail. New business models are forming to embrace emerging needs for the last mile in business-to-consumer and consumer-to-consumer delivery, creating space for new players. There is no doubt that the consumer-packaged goods (CPG) industry is undergoing massive disruption. The best way to rise to the challenge is transformation through leveraging technology in every corner of the business. We need to integrate product innovation, manufacturing, marketing, distribution and sales into a smooth and holistic business model. It should be fast and flexible so that it can follow constantly evolving needs. Modelling and simulation need to be used widely to design products, consumer experiences and manufacturing systems, and to optimise supply chains. P&G has tripled its use of robotics over the last […]