Industry X.0 is the digital reinvention of industry, where businesses use advanced digital technologies such as IoT, Advanced Analytics, Artificial Intelligence and Cloud Computing to transform their products and services, their core operations, customers’ and workers’ experiences, and ultimately their business models. The manufactured product is on a path from being static—delivered once and then maintained—to become living, i.e., connected for, continuous enrichment, predictive maintenance, integration into a wider value chain and hence being bundled with or delivered As-a-Service.
This transformation goes beyond the fourth industrial revolution by developing smart products, connected services and As-a-Service business models and hence has a profound impact on how businesses operate and on core business capabilities such as innovation, R&D, engineering, product lifecycle management, customer service and IT.
The Nordics is a very exciting region with a huge potential in digital reinvention of industry. Many companies are leaders in their industry, operate globally and export the vast majority of their products and services. To succeed in global markets, they need to execute and deliver new forms of digital services and experiences to their customers. To do that, their R&D sometimes faces challenges that they often cannot address simply by growing internally. The emphasis on protecting IP and focusing R&D in one location has been the prevalent model. But to thrive in the new often means rapid innovation, partnering in ecosystems, working with new types of companies—in new ways—to gain access to new types of capabilities and services. This requires a major shift in culture and mindset.
Four characteristics of Industry X.0 businesses :
- They are smart, with every product and production process self-monitoring, and data generating, aware of its evolving context.
- They are connected, sharing data everywhere in real-time.
- They are living, able to respond and change quickly to meet new needs and seize emerging opportunities.
- And they are learning, creating increasingly relevant and valuable experiences over time.
Denmark’s journey to Industry X.0 underway
This is a new mindset that for many is yet to become well established. Many Danish businesses are using digital technologies like cloud, social and mobile to do what they have always been doing—just in a smarter a way. However, this is often not enough.
Industry X.0 is about the transformation of industry models. And achieving that goes to the core of strategy: R&D, the product journey, and how companies define and manage what they deliver to customers.
Businesses already make significant investments in R&D. But to embrace digital transformation, R&D itself has to become a digital process. It’s a big shift. For example, Mercedes recently launched a new operating system for its cars. This is a huge change for a company that has traditionally designed and created vehicles. From building cars to creating an operating system that enables services and value on a software platform is, from an internal perspective, a huge transformation. We believe that this a change that many businesses will have to embark on.