Industrial revolution 4.0: how the Internet of things is changing business and how to stay afloat

For a moment imagine waking up in the morning in ten years. Literally out of nowhere playing your favorite music. Wardrobe expanded, offering a clean gown. The robot is preset Slippers at the foot of the bed. While you go to the sink, bathroom floor warmer, and water boiler heats a small amount of water — just enough to shave and the ritual of washing. In the kitchen preparing coffee, warmed up Breakfast, included appliances, garage — wakes up the car. Hello, people of the future, you deserve such honors. And this is not fiction: this is all already working, growing, gaining mass, like an avalanche.

Ancient wisdom says that Achilles will never catch the tortoise if in the beginning of the race the tortoise was a little bit ahead. Technological progress is always by default be in front of your business. What to do?

The fourth industrial revolution

Analysts believe that the greatest benefit from the fourth industrial revolution and its direct manifestations of the Internet of things (IoT) — will not an ordinary man, a business owner, enterprises plant. In General, business Executive and industrialist. This is not surprising: the beauty of the Internet of things in scalability, and where else we need scalability, as in a large enterprise, and very different plan? In the end, so the kitchen boiling coffee, a lot of crazy (and smart technologies) is not necessary. But to collect the bike to order in six hours — it’s more difficult.

The Internet of things is characterized by two words: millions of sensors. Imagine that every thing in your everyday life — from the sock to the vehicle — lives his life knowing his role in your daily life. Socks are not lost, the car self-wash Park and even… go. Even the steering wheel you don’t need to keep. But you’ve probably already heard about self-driving cars, and RFID sensors that track every thing in a given area. GPS, Bluetooth, NFC technologies that are appropriate weight. You more interested in how it can be applied.

Four words: big data — big opportunities. Big Data (big data) is one of the disruptive trends of this decade — fundamentally changing the principle of operation of the enterprises. When each item of plant or warehouse is equipped with a sensor that signals the condition of this item and have a system that reads and analyzes these States (for example, SAP S4/HANA), you can configure the operation of the plant as a clock, not to lose a single precious seconds to work with micron precision. Precise knowledge of the status of all items of business (no, of course you know your business, but not every item and not in real time) leads us to the next point. But they are in order.

The simplification and automation. Remember how it was before. Subjective information collected by the best worker who still loses a little bit capable robot, is sent to the database. The database is probably collected in some Excel sent by e-mail at the point of reception and processing of data. In place of the “best employees” analyzing it, working with speed, at times losing the speed of light, and then do as they can. What about now? Data is collected independently, processed independently, move ahead, the system lives its own life.

Personalization and efficiency. Early scalability meant only one thing: standardization in the worst sense of the word. Same patterns, sizes, colors, defects — but the production is, ahem, full swing. The effete Everyman of the twenty-first century want personalization — and there’s a new niche, for example electronics market: all kinds of accessories, removable battery, cases, wire, alternative chargers… the list is endless. With the Internet of things scales already pre-calculated on the consumer approach: the product can be done quickly in large quantity, but with the personal wishes of the consumer. Which in turn increases the efficiency of the enterprise: it is not necessary to alter the pipeline for executing the individual orders.

Improving the quality and speed. Make the person to do the same machine — and it is sure to one day go wrong. Give the machine the opportunity to create themselves — and you will get consistently high-quality product. The difference of man and machine that people got off on the wrong foot, and the machine follows a predetermined scenario (drawing), and checks at each stage. Multiply the previous paragraphs the quality and get the inevitable increase in speed.

Probably worth a repeat: who does not have time, he is late. Achilles never overtake the tortoise: we need a qualitative leap. But as a business to keep up with the rapid passage of time?

To understand your business, you need to understand the consumer. To get a feel for your business, the right ERP system that will provide every second contact with hundreds of millions of sensors will be the brain for your body. To stay afloat, you need to foresee the future — this was the secret of the success of the greatest entrepreneurs of mankind.

ERP (Enterprise Resource Planning = enterprise resource planning) is a class of systems for production management, human resources, Finance and assets, aimed at optimizing resources. A lot of them: SAP, Sage, Oracle, even 1C-Enterprise — examples.

According to supporters of integrated production, which promises the Internet of things is fourth industrial revolution could change the very definition of human labor. Having their eyes, ears and the brain, cars will be able to more accurately, quickly and efficiently to carry out tasks which were always performed by men. Whether it’s bad for people? No. They will be able to move on to more creative, intellectual tasks that the strategy and planning to analysis and foresight.

What will be the ERP system of the future?

First, it is scalable. She needs to be able to read large data (Big Data) with millions of sensors (receptors your body — your business) in real time and to work equally well at a single site (say, in a separate cage) and in General (for example, to keep the balance on two legs that still can’t teach robots).

Second, flexible. The flexibility of mind necessary for survival. In light of the development of the Internet of things will be strange if the “brain” of the system — the ERP will be mapped to the same mainframe, or even to the laptop. The ability to control business from your tablet, computer, augmented reality, even with smartwatch — that’s output. The dispersal of elements of business management in the cloud and on the ground, on the server and in your pocket — everywhere.

Thirdly, the ERP system of the future must be sensitive. And to understand this point, go back to the beginning of our notes: to the connection of business with the consumer. At the heart of any business, be it b2b or b2c, social services, or consulting, Analytics or the manufacture of machinery, have an important aspect: the focus on the customer, partner, end user. Without respect and understanding of the client (and in some cases, without the creation of client needs at the expense of the ecosystem) the business will not. ERP system of the future must be responsive to the requirements of each individual customer. Personalization — one of the strengths of the Internet of things. This is the case when he wins both the client and the manufacturer.

ERP system is gradually more and more like a living brain of an organism, that is your business. The thinner and faster the communication between the individual elements-the cells, the better the business works. Communication between smart products, Internet of things and smart machines that produce them, will allow the machine to determine the target production depending on the needs of the end user.

How will the Internet of things future

If your phone knows that its battery will “die”, it can give a signal to the plant, where the production received the new battery exactly designed for your phone. If it is a new phone — he’ll be off with your settings. At exactly the moment when you throw on any old thing, new ones will be waiting for you. So the user sees the future of the Internet of things, 2020. Feel the future — and you will understand what should be the “brain” of your business in the future. The entrepreneur will need to feel every cell of your business.

Sergey Kuzin, senior architect of business solutions for SAP CIS, believes that without the introduction of elements of the Internet of things every company becomes uncompetitive. And indeed, what we can talk about competition, if you are using black labour, when all use robots? When you use horses, and all the long ride on cars? The fourth industrial revolution shifts the focus from technology itself to the management of technology. On the proper use of resources, continuous analysis of millions of variables and strategic planning.

By 2020 the IOT market will be enormous, and win the one who faster rearm. Once bill gates said that in the future there will remain two types of companies: those who have gone online, and those that went out of business. But that was thirty years ago. To paraphrase the legendary billionaire, we can say that by the year 2020 also will be the two types of companies: those who came in the Internet of things, and those that went out of business.

However, the need to resolve several issues. Alexander Anufrienko Ivan Kireev from SKOLKOVO believe that the Internet of things prevent lack of open standards and exploits. Increasing the personalization is an inevitable effect of the development of the Internet of things — entails threats to personal security. It’s one thing when I hacked your website, and quite another when hacked into your pacemaker or self-driving car. The avalanche have a tendency to chew and spit out both questions, they will be solved anyway.

The modern entrepreneur is half the time spent on operational tasks — data analysis, their interpretation, the adoption of tactical decisions. Does this require a quality product? Of course. But the product would be even better if the entrepreneur moved from the tactics and placement of their internal troops on the battlefield (for the client, of course) to strategy is started more to look forward to make strategic decisions that will affect the company tomorrow, in a year, in a hundred years.

One day, so in the year 2020 in the mess and chaos of data — so they seem human be born a true artificial intelligence. He might already be embodied in various ERP applications. He will open your car doors in front of you. He will manage your business for you, as no man could in the history of mankind. The name he had yet to think of. The newest system of resource management will equip entrepreneurs of big business ahead of the fourth industrial revolution and the world will discover the true power of the Internet of things, big data, business networks and cloud technologies.

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