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At the SAP Insider conference this week in Las Vegas, one of the central themes is "Digitizing the extended supply chain." Don't stop reading if you are more interested in manufacturing production or engineering solutions; SAP includes PLM and Manufacturing (MES and EMI) solutions in what they call the "extended Supply Chain." The Industrial Internet of Things is also a key part of SAP's focus.
Because the transition to a digital economy is placing a premium on speed, customer satisfaction, personalized products, and collaboration, companies must change how they interact with customers and with the rest of their supply/design chain ecosystem. By digitizing themselves and their extended supply chain, companies can respond immediately to dynamic changes, no matter where they originate.
At ARC we have argued that industrial companies cannot afford a wait-and-see approach right now. At times of potentially disruptive, transformative change, companies that have neglected to proactively arm themselves to take advantage of the emerging opportunities face substantial risk, because large marketplace changes can happen very quickly once touched off.
In SAP's view, there are four interrelated trends driving transformative change: Customer-centricity, Product Individualization, the sharing economy, and resource scarcity. From the plant floor perspective, this presents three challenges: Market of One, Extreme Variability, and Rapid Innovation. SAP's response to these trends is a platform that places advanced, in-memory computing at the core of your operations, enabling you to simplify, connect, and enable processes along the whole of the extended supply chain.
Customer Centricity
Companies must support the manufacture and delivery of goods to the customer according to the customer's preferences. This requires an efficient, responsive manufacturing process that is dynamically aligned with changing market conditions.
Product Individualization
The longstanding industry trend to a 'lot size one' is only accelerating as new technologies enable more connectivity, awareness, uptime and analysis throughout the extended supply chain.
The Sharing Economy
As supply chains become more global and distributed, collaboration throughout becomes more important in order to support responsive performance metrics.
Resource Scarcity
Raw materials availability and sustainability are increasingly driving up manufacturing costs, both directly and through increased governmental regulation.
I like this SAP graphic, because it does a pretty good job of showing how a lot of the pieces fit together. It may start with connected manufacturing, but the roles of SAP's Predictive Maintenance & Service, recently launched Asset Intelligence Network, as well as operators, technicians, and other business networks that support an IIoT-enabled business transformation are shown. SAP has been building out their technical capabilities - cloud, HANA, ME, MII, PLM, etc. - to support the IIoT-enabled transformations for some time, but they are also working with customers to make sure their vision aligns with industry needs. They are now in a position to help customers apply real solutions to complex, transformational business opportunities presented by the Industrial Internet of Things.
Because the transition to a digital economy is placing a premium on speed, customer satisfaction, personalized products, and collaboration, companies must change how they interact with customers and with the rest of their supply/design chain ecosystem. By digitizing themselves and their extended supply chain, companies can respond immediately to dynamic changes, no matter where they originate.
At ARC we have argued that industrial companies cannot afford a wait-and-see approach right now. At times of potentially disruptive, transformative change, companies that have neglected to proactively arm themselves to take advantage of the emerging opportunities face substantial risk, because large marketplace changes can happen very quickly once touched off.
In SAP's view, there are four interrelated trends driving transformative change: Customer-centricity, Product Individualization, the sharing economy, and resource scarcity. From the plant floor perspective, this presents three challenges: Market of One, Extreme Variability, and Rapid Innovation. SAP's response to these trends is a platform that places advanced, in-memory computing at the core of your operations, enabling you to simplify, connect, and enable processes along the whole of the extended supply chain.
Customer Centricity
Companies must support the manufacture and delivery of goods to the customer according to the customer's preferences. This requires an efficient, responsive manufacturing process that is dynamically aligned with changing market conditions.
Product Individualization
The longstanding industry trend to a 'lot size one' is only accelerating as new technologies enable more connectivity, awareness, uptime and analysis throughout the extended supply chain.
The Sharing Economy
As supply chains become more global and distributed, collaboration throughout becomes more important in order to support responsive performance metrics.
Resource Scarcity
Raw materials availability and sustainability are increasingly driving up manufacturing costs, both directly and through increased governmental regulation.
I like this SAP graphic, because it does a pretty good job of showing how a lot of the pieces fit together. It may start with connected manufacturing, but the roles of SAP's Predictive Maintenance & Service, recently launched Asset Intelligence Network, as well as operators, technicians, and other business networks that support an IIoT-enabled business transformation are shown. SAP has been building out their technical capabilities - cloud, HANA, ME, MII, PLM, etc. - to support the IIoT-enabled transformations for some time, but they are also working with customers to make sure their vision aligns with industry needs. They are now in a position to help customers apply real solutions to complex, transformational business opportunities presented by the Industrial Internet of Things.