Intelligence + Transformation Subvert The Innovative Business Model : “Manufacturing on Demand”
Original author：Chen Qi Ting Translator：Johnson, Randy, Zhan Xuan
According to the coaching experiences of DSC in the manufacturing industry, the smart manufacturing of Industry 4.0 is not just a transformation of tools, products or technologies, but a process of “superposition”, and changing of concrete practice.
The Internet operation has subverted the original business operation mode. Under the Internet competition situation, enterprises that can’t be connected and reorganized will become orphans in the ecological circle! If enterprises could use the network to link and combine the fragmented resources, use the various technologies and platforms to connect between the production and the end consumer, reconstruct the relationship between both parties to optimize the supply chain, then the enterprise may could rebirth in the market.
Smart manufacturing relies on the accuracy of data at the sales end and the immediate supply of production resources, that’s the reasons why the blueprint planning needed to regress to the essence of how to optimize the operation. In the future, those enterprises who have the ability to “delivery on time and manufacturing on demand” will ultimately have consumers.
In the era of Industry 4.0 and IOT, the new thinking that enterprises should have
The application of IOT is just emerging. From the industry 4.0 machinery and equipment, medical long-term care, transportation operations, etc., many consumers have realized the convenience of the Internet of Things and the improvement of the quality of life. From the perspective of Industry 4.0, it brings about the innovation of thinking and industrial model. From the original equipment sales to the provision of services, the key to this is to drive the collection and analysis of the big data. Equipment suppliers must provide information application interfaces, related big data analysis and consulting services; Business owners must also establish an information-based environment and develop the ability to analysis and interpret data.
Now everyone is looking for innovation, but truly effective innovation should be “started by the administrative system within the enterprise”, especially the innovative application of information and communication, which is the key to transforming all industries. For example, Amazon Go’s unmanned store trial is a combination of the Internet of Things and cloud intelligence. This also shows that cross-industry innovation is a trend. As long as there is creativity, innovation is not just an opportunity for international companies to monopolize.
“The inertia of Taiwanese companies is usually to develop competitive technologies and then push them out to the market, but they often encounter problems of market demand differentiation and marketing channels.” the former president of the Executive Yuan, Zhang Shan-Zheng said. Enterprises should change their thinking, feel the market power, and dig the needs of consumers to develop products. This involves the collection of big data. Enterprises should be aware that “consumers are not necessarily their own customers, but they must be customers of a certain industry in the market.” Zhang Shan-Zheng said that building information and cultivating their own data analysis application team will help enterprises to gain an in-depth understanding of business opportunities and establish the new business models.
Zhang Shan Zheng said, “If enterprise can use software, don’t use hardware; If enterprise can use artificial intelligence, don’t use artificial.” Enterprise should use manpower to do more valuable things. They should also seek more cooperation through cross-border, so that companies can grow with more flexible.
Technology leads the extension of brand and service value
In the era which consumers are kings, technology brings many emerging consumer experiences. However, technology is not a substitute for humanity, but as a medium to serve customers. Emile Chih-jen Sheng, the manager of Fleur de Chine Tourism Group shares how to provide customers with a warm-hearted service innovation value.
Microsoft CEO Bill Gates said before, “Banking is necessary, but banks are consumers’ pain points”. While trying to solve these pain points, the design of the company will be limited by the development of technology because it is still on the road to innovation. In fact, products and technology should not be considered as vehicles, and the design of enterprises is also led by the development of technology, because the person who will use the products at the end are still consumers. Another successful key factor of enterprises in service innovation is the combination of software and hardware. Hardware technology plus internal systems or even employee mentality adjustments belong to software. The enterprises should consider how to make appropriate guidance and cooperation between those.
The hotel industry is fiercely competitive, Emile Chih-jen Sheng makes his employees agree that “service is not just a job”. He told them to re-define the value of their work and change their mindset and create a story creation that interacts with customers and regards themselves as owner and treat their job like friends. Looks simple things, but the results shown in the back are great! These achieving a win-win situation for enterprises, employees, and customers, and creating the core value of LDC Innovation and the culture and art.
The manager of Fleur de Chine Hotel, Chen Huici said that the future of the service industry, combined with the development of technology and the development of economic models such as Airbnb global travel community, or the world’s first self-service check in citizenM. The citizenM, which was founded in Amsterdam in the Netherlands in 2008, has many pioneering of “deviant”and subversive traditions in the international hotel industry. These bravely breakthrough traditions are the reason why the brand hotel has been able to develop rapidly in international cities such as London, Paris and New York, and is loved by new generations of travelers. These subverting past businesses and services are opportunities given by the era, and opportunities for the retail industry to grasp and reconstruct business models.
“Don’t let the standardization method mess up the information collected.” Chen Huici said that in the case of Fleur de Chine, Fleur de Chine knows that personalization, individuation and standardization are insufficient to satisfy customers, because the current competitors are not limited to the other hotels but included all the new forms of cross-border products and services, so Fleur de Chine shorten the distance from customers and employees thru the technology. Deep cultivation culture meant to manage the relationship between customers and employees. Create touched moment to increase the good impression between customer employees.
Retailers should think about whether they can build customer loyalty if they are pursing for prices when defining the products or services. If it is a pursuing of using experience, maybe the customer does not necessarily come again, but the memory will remain forever, forming a word of mouth, naturally will be passed on by word of mouth. “In a relaxed and natural way, can you also feel like at home? This is what Fleur de Chine hopes will be experienced by colleagues.” Because people will forget what you said and did, but will not forget what you let them feel.
The essence of smart retail: Goods flow smoothly
Li Shi Zhen, Vice Director of Institute for Business Model Innovation express, as technology develops in recent years, the pace is getting faster. Under the government’s policy of making the service industry technological, service providers have also intro diced technology to provide better products and services, such as POS cash register system, vending, network e-commerce, ordering system, queued artificial intelligence and etc. And also, in the digital information, businesses can further grasp consumer behaviour, preferences, to find more valuable business models through data analysis, and provide to consumers, in order to achieve a win-win result.
Li Shi Zhen shared that last year he cooperated with the Japanese New Entrepreneur Youth Hostel. Four of the rooms used ten smart devices, start from the beginning of check-in, we can use the mobile phone app to control the smart door lock of the room, the lighting inside the room, the sleep management device, the smart furniture integrated remote control, and information wall window, etc. It can be said to the current collection of IOT emerging application technology.
[Use your phone to control your accommodation experience], Including the opening of the smart door lock Qrio Smart Lock, control Philips Hue’s smart LED lighting to adjust indoor light tones, Atmoph Window is situation and information wall window, the mini robot BOCCO that will greet to you, sleep management device, Sleepion with adjustable light, aroma and situational sound, Programmable monitoring and control system MESH, Smart furniture integrated remote control iRemocon, A gadget PlugAir that connects to the phone with a headphone jack and provides information about travel and hotel information, Smart storage Smart lockers can be controlled by mobile phone, and Sony’s smart glasses SmartEyeglass provides attractions and introductory services combined with augmented reality technology, etc.
In nowadays, retail industry has changed drastically due to digital technology is involved in all aspects of virtual and reality, realizing the integration of entity and virtual depth. The transformation of retail industry attained greatest extension in physical space and time dimension for goods, people and domain. For instance, commodities are not limited by the form, type, and quantity of products. And, the form of consumer experience and delivery of goods is not subject to physical form. Lastly, Li Shi Zhen said that the goal of smart retail is “the goods flow smoothly”, as well as the circulation path changes from complex to simple and the entire supply chain is digitalized and also more flexible.
Second, the consumer-centric reason for brands and retailers is that they can use digital technology to capture comprehensive global information at any time for understanding the supply and demand of consumption. It can stimulate consumers’ potential consumer demand and provide consumers with a full pipeline of experience and services. Li Shi Zhen cited the example of amazon Go about returning to the physical storefront. Empirical evidence based on the immediate needs of consumers, the physical storefront can quickly let consumers get the goods, and can further capture customer information.
Further, when the application of the Internet of things goes deep into every household, consumers are more likely to open up the information. These are included what kind of toilet paper, oil, salt, and how long it will take up on average. After serially connected to the front end of the supply chain, trading chain and the service chain will create a spans and new service model, so that goods can be accurately delivered to consumers. Through the data collection and analysis, suppliers can grasp more consumer information and develop new products, so that the true meaning of “good flow” can be achieved.
In order to meet the core of smart retail demand, DSC saw new consumption patterns and developed new technologies platform services for integrating mobile devices, perceptual recognition, and big data computing. Not only provides application scenarios for physical store construction, consumer interaction, and also helps retailers build intelligent product application services that enable businesses to apply from imaginative and tangible entities. Cooperate with every opportunity to innovate and rebuild value under the Internet.