Manufacturing Global – May 2020

Innovation and the journey to supply chain digitalisation M AY 2 0 2 0

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FOREWORD

W

elcome to the May edition

remain competitive, while Henning

of Manufacturing Global

Ohlsso, CSR Director at Epson

This month’s cover features Michael Perkins, Director of IDP Global Procurement at Volvo Car Group,

(Europe), details the company’s lean approach to manufacturing and how it draws on the Japanese philosophy

discussing the company’s holistic

of monozukuri.

approach to strategic partnerships

We also hear from Orange Business

and the evolution of its operations.

Services’ Frank de Jong, discussing the

Other leaders that feature in this edition

use of intelligent automation to improve

include Damiano Marabelli, Central & Eastern Europe Business Unit CIO, The Coca-Cola Company, who

efficiency and production processes in manufacturing, and explore the Top 10 digital factories from leading companies

discusses IT’s role in facilitating a

around the world.

‘Total Beverage’ transformation within

Do you have a story to share? Please

the company, as well as Dirk Holbach,

do not hesitate to get in touch and you

Corporate Senior Vice President Global

could be featured in our next issue.

Supply Chain Laundry and Home Care

Enjoy the issue!

at Henkel, on the effect technology has had on the supply chain.

Elsewhere Ian Masson, Commercial

Georgia Wilson georgia.wilson@bizclikmedia.com

Director at Showpad discusses how servitisation can help manufacturers

w w w.ma nufa c t uri nggl o b a l. com

03

You see a shipping terminal.

We see the missing container that will shut down production.

C3.ai transforms Manufacturing. Š 2020 C3.ai, Inc. All Rights Reserved. is a mark of C3.ai, Inc.

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CONTENTS

10 26 SERVITISATION: LEVERAGING DIGITAL TO DRIVE MANUFACTURING

38 Epson Europe: operating a lean approach in manufacturing

52

66

How IoT solutions are transforming manufacturing

Digital factories

sustain peak performance.

Benchmark your actual process and asset performance data against your expected performance with Honeywell Forge for Industrial, for better decisions that impact reliability, safety and profitability.

For more information, please visit: www.honeywellprocess.com/iiot

CONTENTS

84 Henkel

112

128

The Coca-Cola Company

Aerojet Rocketdyne

xx

10

M AY 2 0 2 0

11

VOLVO CARS: A NEW APPROACH TO STRATEGIC PARTNERSHIPS WRITTEN BY

GEORGIA WILSON PRODUCED BY

CHARLOTTE CLARKE w w w.ma nufa c t uri nggl o b a l. com

V O LV O C A R S

Michael Perkins, Director of IDP Global Procurement at Volvo Car Group, discusses the evolution of the company’s holistic approach to strategic partnerships

S

tarting his career in the procurement industry in the early 90s, Michael Perkins has roughly 30 years experience in the sector.

Currently, Perkins is a Director at Volvo Cars in charge of the EMEA region, as well as setting the structure globally for the company’s digital and IT services, 12

marketing and sales, and professional services in procurement. “In 2016, following a 26 year career in procurement I was looking for new opportunities.

Whilst looking, I was contacted by a recruiter on behalf of Volvo Cars, who were looking to establish the company in South Carolina. I’d never worked in the automotive industry and saw this as an incredible opportunity - the thought of bringing a Swedish automaker owned by a Chinese holding company to the US intrigued me,” says Perkins.

“Volvo Cars is an amazing company,” comments Perkins. “We are a very progressive automotive manufacturer; we are agile, creative and extremely people-driven. We also have the ability to adjust our paths faster than other premium automotive manufacturers due to our size, however we are still big enough that people are taking notice of what we are doing M AY 2 0 2 0

13

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V O LV O C A R S

“ We are a very progressive automotive manufacturer; we are agile, creative and extremely people-driven” Michael Perkins, Director of IDP Global Procurement, Volvo Car Group

and wanting to be a part of it. Ultimately at Volvo Cars we strive to provide people with the tools to move in a sustainable and responsible way.” Further discussing sustainability, Perkins emphasises that this is something which to this day is at the core of Volvo Cars’ operations dating back to its founders. In order to drive sustainability within its operations, Volvo Cars has set what Perkins believes to be one of the most ambitious climate plans in the automotive industry. “We aim to reduce our CO2 emissions by 25%

14

per car by 2025, with a long-term goal of becoming climate neutral by 2040 across the full value chain.”

When it comes to sourcing and procurement trends within the automotive industry, Perkins has seen the expectation of greater margins emerging as a challenge. “With this in mind it is critical for us to create strong partnerships with our suppliers, when we work together it’s not just about cutting costs, it’s also about improving our cross collaboration between internal stakeholders and procurement,” comments Perkins. “It all starts with collaboration. For our sourcing and procurement strategy we need to establish trust between each other M AY 2 0 2 0

Volvo – Recharged

CLICK TO WATCH

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1:00

15 and determine what is needed, in order

talking about is strategic, not favoured,

to ensure we source the right partners to

sometimes this can get blurred. I am

fulfil the requirements. We also have to

talking about someone that has our

be comfortable with the realisation that

interest in mind, but they will also chal-

we don’t know everything, and look to

lenge us and the status quo. We work

our suppliers to help improve cost opti-

jointly with our partners not only in the

misation and operational efficiency.”

successes but in the failures too,” com-

When searching for a strategic partner,

ments Perkins. When it comes to Volvo

Volvo Cars looks for companies that not

Cars’ approach to partnerships, Perkins

only have a proven track record within

describes it as holistic, “similar to what

the industry, but companies that also

I have previously discussed, when we

align with Volvo Cars’ beliefs and values.

look to source our suppliers we have a

“I think when we are looking for strategic

common target, something which we

partners - firstly they’re critical to our

are looking to achieve. Taking a holistic

success - but let me be clear what I am

approach creates a group of suppliers w w w.ma nufa c t uri nggl o b a l. com

Building

technology-driven businesses of the future, today.

In an increasingly digital, customer-centric economy, it is important for global businesses to build and execute the right digital transformation roadmap in-line with their overall business objectives and ensure that it is backed by the right people, process, and technologies.

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“

As an organization, we are committed to helping global enterprises in their digital transformation journeys as they reimagine and pivot themselves for the digital economy. For many enterprises, this journey starts by adopting a Digital Operating model that looks at 6 fundamental principles: Better user experience oriented; reference architecture aligned; automation driven; API & Microservices led; insights based & Mobile first. HCL’s FENIX approach helps our customers deliver on these principles and drives needle moving business impact for their business.

Anand Birje, Senior Corporate Vice President & Head, Digital & Analytics practice, HCL Technologies

”

About HCL 149,000+ $9.7bn

Ideapreneurs

Revenue

45

Countries

650

clients from Global 2000

140

Nationalities

250

clients from Fortune 500

V O LV O C A R S

18

that we can rely on and innovate with in

on this new approach, Perkins has

the hopes to deliver ‘best-in-class’ plans,

seen Volvo Cars’ landscape supplier

processes and products.”

landscape change. “When we started

With this approach in mind, Volvo

this project we had hundreds and

Cars established a cross functional

hundreds of suppliers covering our

team. “I would say this was the first

11 areas that we were dependent on,

time in the organisation where we

creating dependency issues, lack of

approached mega sourcing in the

efficiencies, governance and supplier

proper way by establishing a cross

management tools. With this change

functional team of decision-makers,

of approach we were able to reduce

project leaders and subject matter

the majority of our supplier base to four

experts. This allows us to be flex-

main suppliers, which are helping us

ible and adjustable to meet desired

to remove dependency, improve effi-

results,” comments Perkins. Reflecting

ciency, and implement governance and

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performance management tools.

holistic approach and collaborating with

This was a huge transformation for us.”

our partners will drive ‘best-in-class’

Volvo Cars’ four strategic partners

outcomes if we utilise each of them to

include Capgemini, HCL, Cognizant and

their strengths. Capgemini was selected

Infosys. “As a whole, any one of them

for our manufacturing, logistics, finance,

could have taken on the entire transfor-

hosting, HR, facility, legal and security,

mation project. However, like I previously

while HCL is our partner for product cre-

mentioned, we believe that taking a

ation, research development, IP assets,

E XE CU T I VE PRO FI LE

Michael Perkins Michael has a wealth of experience in expense management within a multitude of industries, including insurance, real estate, technology, legal, human capital, and private equity, to name a few. For over 15 years, Michael was a partner with Profit Recovery Partners, a professional services firm that develops, implements, and manages cost-reduction solutions.

Michael joined Volvo Car Corporation in April 2016 to help establish and launch its first manufacturing plant being built in the US. This included the overall responsibility of Machinery & Tooling, Logistics, Facilities Management, IT, Marketing & Sales, Professional Services, etc. After two years in the US, and completing the launch, Michael moved to Sweden to join the indirect procurement management team.

In his current role, Michael is responsible for the EMEA region as well as driving global direction in the areas of Marketing & Sales, CED (IT), and Professional Services. w w w.ma nufa c t uri nggl o b a l. com

19

How has the automotive industry progressed on sustainability vis-Ă -vis other industries?

Find out what 300 experts ranging from regulators, academicians to environmentalists have to say in latest report from the Capgemini Research Institute.

Read about how sustainability has become a strategic priority for automotive organizations and what are key sustainability initiatives across their value chain.

Download the report now

end user and collaboration environments, Cognizant is our partner for data management, analytics, monetisation and automation, and finally Infosys to support the delivery and transformation in our commercial operations.”

In addition to transforming its strategic partnership strategy, Volvo Cars has been digitally transforming its business functions and operations to become more agile. “Currently within the automotive industry, I would say there is a huge

“With this change of approach we were able to reduce the majority of our supplier base to four main suppliers, this was a huge transformation for us” Michael Perkins, Director of IDP Global Procurement, Volvo Car Group

focus on electrification, autonomous 21

driving, customer relationships and

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V O LV O C A R S

CAPGEMINI

22

Capgemini is a global leader in consulting, technology services and digital transformation, at the forefront of innovation to address the entire breadth of our clients opportunities in the evolving world of cloud, digital and platforms.

Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organisations to realise their business ambitions through an array of services from strategy to operations.

We have been working for more than 40 years with Volvo Cars, in different programs, supporting both the IT organisation as well as the Business side of Volvo Cars.

Since last year we have been chosen as the main Digital transformation partner for Enterprise Digital.

Our Motto for the partnership is “Guide – Enable – Deliver”. We guide Volvo Cars by leveraging our industry knowledge and expertise to provide insights to Volvo Cars on some of their strategic topics, we help enable Volvo Cars’ strategies

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to make sure implementations can accelerate, and we strive to deliver current services as well help in transforming its IT landscape into a future proof and agile IT environment.

As part of the new agreement, Capgemini will deliver a wide range of transformation services including product orientation, DevOps and cloud. In addition, Capgemini will be a main provider of end-to-end SAP consulting and technology services (including new SAP S/4HANA® implementation projects, application management and support, and infrastructure/ platform services).

In the last few years the intensity of the relationship has started to change. Rather than just delivering IT services, our relationship with Volvo Cars has started to focus more on the business impact both parties could deliver through the IT services provided to the business.

— Frank Wammes, Global Account Executive, Capgemini

HCL

HCL Technologies (HCL), is a leading next generation global technology company that helps enterprises reimagine their businesses for the digital age. Our technology products, services and engineering are built on four decades of innovation, with a world-renowned management philosophy, a strong culture of invention, risk-taking, and a relentless focus on customer relationships.

HCL’s engagement with Volvo Cars is the expansion of a partnership that began in 2016 and will see HCL continue to support the global premium car company through its ongoing digital transformation initiatives. This large-scale transformation exercise includes organization-wide technology shifts that will help Volvo Cars capitalize on new opportunities to improve internal business processes and customer experiences.

The relationship between the two organizations is driven by the key tenets of trust-transparency-flexibility, value centricity and is based on HCL’s philosophy of relationship beyond the

contract™. The partnership is now expanding to the next level and is moving into digital transformation, including product orientation, DevOps and application integration.

As an industry-leading global engineering services provider, HCL Technologies will also help Volvo Cars strengthen their competitive advantage, through an integrated transformational strategy that facilitates continuous quality & cost improvement across the product creation value stream, while accelerating revenue growth t hrough innovation.

Leveraging HCL’s combined strengths in PLM and electronics and engineering IT, we are bringing together a blend of traditional and next generation global engineering services and global engineering solutions, enabling Volvo Cars to achieve productivity targets in coming days and race ahead of the competition.

— Anirban Dutta,, Client Partner, HCL Technologies, Sweden

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23

V O LV O C A R S

vehicle communication. With these fast growing trends it is crucial for us to develop strategic partners with the expertise to develop and utilise innovative technologies such as artificial intelligence, machine learning, big data and analytics in order to stay ahead of these evolving trends.”

Reflecting on the company, Perkins has seen Volvo Cars since 2018 evolve from manufacturing cars in Europe and China, into an auto manufacturer with systems and governance in global 24

positions. Perkins believes that Volvo Cars’ biggest strengths are its line-up of vehicles which have been completely

“ Taking a holistic approach creates a group of suppliers that we can rely on and innovate with in the hopes to deliver ‘best-in-class’ plans, processes and products” Michael Perkins, Director of IDP Global Procurement, Volvo Car Group

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25

redesigned to remain competitive and lead the premium car market, as well as its commitments to sustainability with its electrification lineup and its leadership team that isn’t afraid to cause a disruption in the industry. “I would also say our biggest success is our strong presence within the industry maintaining our ability to sell over 700,00 cars in 2019 in a declining market, which I think is pretty incredible,� concludes Perkins.

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D I G I TA L F A C T O R Y

26

SERVITISATION: LEVERAGING DIGITAL TO DRIVE MANUFACTURING Ian Masson, Commercial Director at Showpad, examines how servitisation can help manufacturers remain competitive in challenging markets WRITTEN BY

M AY 2 0 2 0

IAN MASSON

27

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D I G I TA L F A C T O R Y

T

o remain competitive in today’s rapidly evolving manufacturing landscape, most organisations are challenged to shift from simply selling products to increasing sophistication through solution

selling, in other words servitisation. This may just start with a ‘break-fix’ style service, through to embedded analytics that let teams know when parts need servicing or replacing.

SERVITISATION: DRIVING GROWTH FOR MANUFACTURERS 28

While the shift to servitisation will impact operational and commercial teams, the impact is often larger than expected. Your salespeople, in particular, are typically most impacted and often overlooked. Servitisation offers a new opportunity for boosting revenue and improving customer engagement and retention. And ultimately, it is your salespeople who will have to sell these new services and generate the expected ROI. For your sales team to be successful in the era of servitisation, they need to change the way they sell.

Instead of product-focused practices, they’ll need to be more consultative and solution-driven.

Change is never easy, and it certainly won’t happen overnight. The question is: how can you best help them do this? And more importantly, how can you make servitisation a success for your business?

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29

“ FOR YOUR SALES TEAM TO BE SUCCESSFUL IN THE ERA OF SERVITISATION, THEY NEED TO CHANGE THE WAY THEY SELL” — Ian Masson, Commercial Director, Showpad w w w.ma nufa c t uri nggl o b a l. com

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EMBRACE UP- AND CROSS-SELLING

the salesperson is still the most influen-

Moving from offering products to offer-

tial factor in a purchasing decision.

ing services may seem like a small step,

Although practice makes perfect,

but it can be a giant leap for organisa-

recent research from Showpad, has

tions. This is where ongoing sales

revealed that manufacturing sales

training and coaching are crucial to help

training stops after induction for more

your salespeople develop the neces-

than half (53%) of staff. One tactic for

sary new consultative approach;

continuous learning and practice is to

adapting different mindsets and master-

record your salespeople giving their

ing necessary new skills. You need to

new pitches and have managers and

turn your product specialists into solu-

peers rate and share feedback that

tion generalists who feel comfortable

helps them improve their skills with this

with a much broader range of offerings

new kind of selling.

and services - and can demonstrate value to customers. After all, in B2B sales,

Not only is selling a service a very different proposition to a product-driven

Showpad: What We Do CLICK TO WATCH

|

1:13

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31

D I G I TA L F A C T O R Y

PA R T N E R S

Coca-Cola European Partners

32

As the one of the most recognisable brands in the world, Coca-Cola is at an advantage: all of its potential customers are familiar with its products. The sales team does not have to educate buyers about the product and instead, they’re challenged to connect emotionally with prospects and deliver an exceptional buyer experience.

To build this emotional connection and establish salespeople as trusted partners, the sales enablement team for Coca-Cola European Partners needed a way to make messaging more consistent, give marketing better visibility and cut down on rogue sales decks.

Misalignment between sales and marketing meant

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salespeople had less customer face time because they were scrambling to find content.

Coca-Cola’s European Partners’ Brussels team now uses Showpad to improve alignment between sales and marketing so its salespeople can focus on what’s most important: building relationships with customers.

“Showpad created efficiency not just in our people but in our overall performance,” confirms Coca-Cola’s European Field Sales Enablement Manager Gregory capidis.

“Today, Coca-Cola European Partners’ sales team of nearly 400 people is equipped with Showpad. They speak about Showpad like it’s their Bible because they have all the information they need to conduct a sales conversation.”

approach but the buyer journey also

matter experts in early customer

differs. To ensure your manufacturing

meetings. They are usually able to

organisation successfully makes this

emphasise the reliability of products

move to servitisation, you need to take

and solutions. Also, they will help

the time to understand how your existing

core sales staff understand your or-

buyers procure services and to provide

ganisation’s future plans for product

your salespeople with the right content

innovation and how the new services

that maps to key purchasing stages.

will support it. This helps position

In addition, there is a whole stream of new knowledge that needs to be

your organisation as a forwardthinking player.

shared and your salespeople certainly shouldn’t have to handle this alone. To

PROFIT FROM ANALYTICS

up- or cross-sell the new service-driv-

For many organisations, the next stage

en offerings, such as maintenance and

of servitisation leverages software, of-

repairs, it is essential to involve subject

ten enabled by analytics or AI to

Showpad: Atlas Copco Sales Enablement Testimonial CLICK TO WATCH

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3:01

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D I G I TA L F A C T O R Y

AB OUT S HOWPA D

The Showpad platform integrates industry-leading training and coaching software with innovative content solutions to help teams beat their quota every quarter.

34

“Our mission is empower sales and marketing to sell the way buyers want to buy.

We deliver on this mission by providing training and coaching solutions that transform sellers into trusted advisors and by making it easy for sales and marketing teams to deliver the right content and the right experience to buyers.

That way, buyers can buy smarter and faster.�

Founded in 2011, with headquarters in Ghent and Chicago and offices in London, Munich, San Francisco, Portland, and Wroclaw, today Showpad has more than 1,000 customers in 50 countries.

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monitor the condition or supply status of the device or part in question. For example, Atlas Copco, a manufacturer of air compressors, has taken this step by offering monitoring and maintenance services with equipment to maintain its condition.

This process can include a number of sub-stages. For example, it may be as simple as re-ordering ink, or it may be as complex as dynamically allocating the nearest maintenance staff member to visit the site and carry out repairs, significantly speeding up the repair process for customers. No matter which it may be, to sell this service to clients or prospects, it’s about ensuring that your salespeople have access to all the most-up-to-date information and right content and sharing it in a timely manner.

The route from a service sell to an analytics or AI-driven software sell usually involves discussions around convenience, removing the headache of management and monitoring for the main stakeholder or budget owner. As such, the information and content shared must highlight and address these different needs, demonstrating the positive impact for the broader w w w.ma nufa c t uri nggl o b a l. com

35

D I G I TA L F A C T O R Y

36

business. For example, fewer interrup-

DRIVE BUSINESS VALUE AND OUTCOMES

tions to service, allowing staff to focus

For those of you even further along your

on more strategic initiatives.

servitisation journey, you may be looking

Again, training and coaching for

at or implementing a new business mod-

your salespeople are essential, par-

el where your customers don’t own any

ticularly with this much more complex

pieces of equipment at all. Instead, they

service offering. Your sales staff need

pay for the outcomes. One manufactur-

to truly understand the benefits to

er that has managed this very well is

your customer and with complicated

printer manufacturer, Xerox, offering

analytics, to also be able to explain

fixed printing by the page. Other manu-

them clearly and simply to a variety

facturers are also going further with

of stakeholders. That needs practice.

servitisation and effectively leasing

Otherwise, you’re unlikely to clinch

equipment to customers and bundling

that additional sale.

smart services along with it.

Showpad: Coca Cola Sales Enablement Client Testimonial CLICK TO WATCH

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2:37

ness shift. As such, your sales team will need to influence and convince a much bigger and wider group of stakeholders, from specialists to the c-suite.

Beyond their usual day-to-day contacts, your salespeople will need to understand their prospect’s company culture and overall objectives, not only drawing on those subject matter experts but also senior staff to talk to the c-suite or analysts to talk about risk.

Sealing the deal with a buying committee requires input from multiple people on the selling side as well.

Internet of Things (IoT) devices to moni-

SERVITISATION - THE COMPETITIVE DIFFERENTIATOR

tor equipment, making it possible to

The shift to servitisation isn’t an easy

predict, with increasing accuracy, when

path to tread and it may yet be a long

they will degrade or need repair. Here,

and winding one for some of you. But

to make this a viable offering, your

it’s a journey all manufacturers are now

salespeople need to outline how this re-

having to make to stay relevant and

moves risk and unpredictability for your

keep ahead of the competition. No

buyers - switching to an OpEx rather

matter where you are currently, you

than CapEx model. All of the volatility –

can start shifting your business to take

and revenue potential – in this instance

advantage of servitisation and through

sits with you, the manufacturer, rather

sales enablement, equip your sales

than your customer or service provider.

team for success and business growth.

In this stage manufacturers often use

This final stage of servitisation is a big step and represents a whole busiw w w.ma nufa c t uri nggl o b a l. com

37

TECHNOLOGY

Epson Europe: operating a lean approach in manufacturing

38

WRITTEN BY

M AY 2 0 2 0

DAN BRIGHT MORE

39

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TECHNOLOGY

Epson Europe’s CSR Director Henning Ohlsson explains how the company’s lean approach to manufacturing draws on the Japanese philosophy of monozukuri

T

he Japanese approach to making things, ‘monozukuri’, aims to use systematic methods of production to

reduce costs and eliminate waste to deliver

the quality customers expect. This approach to sustainability has driven innovation at 40

Epson to meet the needs of today without compromising the needs of the future.

Today’s manufacturers are realising that this goal takes them back to the lean manufacturing approach and a focus on continuous improvement; known as ‘kaizen’ in Japan.

Many innovations have come out of Epson’s approach to sustainability. The company invented the world’s first miniature digital printer in 1968, the EP-101, from which the Epson brand was born. It’s a part of the heritage of the printing industry. Epson also invented the first commercial inkjet colour printer (the SQ-2000 was launched in 1984) on which its main business is based across consumer, office and industry. Epson’s commitment to technology drives the energy M AY 2 0 2 0

41

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Gather the Data to Dominate Your Field Every day, your people, devices, and processes are generating a large amount of data, but without context, it's just noise.

Effective information management unlocks your data - from devices, systems, or organisational silos - and combines it with business intelligence to deliver powerful operational insights. By transforming trapped data into live information feeds, we help you troubleshoot problems and identify trends to improve your operations.

Henkel, has achieved substantial savings in energy consumption, waste reduction and improved Overall Equipment Effectiveness (OEE) through the adoption of technology from our Operations and Optimisation Management and Monitoring and Control portfolio.

AVEVA delivers software solutions to about 80 sites globally at Henkel successfully today.

Read about Henkel’s sustainability success here or contact us eursa@aveva.com to learn more. aveva.com linkedin.com/company/aveva @avevagroup

Epson’s Environmental Commitment: Better Products for a Better Future CLICK TO WATCH

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5:11

43 efficiency that ensures quality

lived in a closed environment. They

products are delivered across these

recycled and reused. The farmers were

three sectors.

the key cast in that society; that is why sustainability thinking is in the DNA of

SUSTAINABILITY

Epson’s Japanese engineers and a big

“Sustainability can be traced to the

part of monozukuri. Utilising craftsman-

roots of Japanese history; it was

ship to invent things very close to

invented in Japan,” explains Epson

nature leads towards a higher standard

Europe’s CSR Director Henning

of product quality.”

Ohlsson. “Some people claim this

Epson has a monozukuri school in

began with the protection of the forests

Japan. Before its engineers (including

and the planting of new trees after

software engineers) enter the R&D

each harvest. It goes back to the Edo

centre they must undertake training

period in Japan (1603-1868) where in

there, get their hands dirty, cut the

the cast hierarchy the whole of society

metal and appreciate the physical side w w w.ma nufa c t uri nggl o b a l. com

TECHNOLOGY

of production. Ohlsson believes it’s one

market in Europe but no production

of the big advantages for Epson in a

takes place there. The R&D and

competitive market. This commitment

development is done in Japan, with

to high quality allows Epson to retain a

manufacturing carried out in China,

premium positioning in a crowded

Indonesia and the Philippines. As part

market. Epson’s own rules on sustain-

of a global organisation, Epson’s role

ability thinking are maintaining this posi-

in Europe is to ensure sales functions

tion. “Energy efficiency is a key part

are operating within the global supply

of Epson’s contribution into the global

chain. “Our core role here is selling,”

push towards combating global

explains Ohlsson. “IT technology

warming, and also a big differentiator

is a very competitive market and if

from our competitors,” adds Ohlsson.

you don’t have a unique positioning you will struggle to sell. This is the case

44

EPSON IN EUROPE

in various industries – particularly

Epson’s factories supply the local

consumer electronics such as flat

M AY 2 0 2 0

D ID YOU KNOW

Epson: Re-thinking printing technology Epson’s research shows how business inkjet

last decade means that switching from

technology can transform a wide range

legacy laser technology to Epson business

of sectors, easing CSR pressures, enhancing

inkjet is proven to save money and the

bottom lines and enabling resource

environment, but more than that, it allows

redeployment. New data has highlighted

for focus on more important areas of

how simply switching from one type of

business or function,” says Darren Phelps,

printer technology to a modern alternative

VP of business, Epson Europe. “Making a

could unlock invaluable resources. Each

small change to an often-overlooked piece

year, Epson business inkjet technology

of equipment could have substantial

has the potential to save European

economic results. Minimising the total cost

organisations 1.8 billion Kwh in energy

of print and its environmental impact,

consumption, cut costs by €213 million,

while addressing human benefits are

slash CO2 emissions by 636 million KGs

all advantages enabled by our heat-free

and reduce printer related waste.

printing technology.”

Epson business inkjet printers have

Businesses and organisations adopting

secured a 56% market share increase over

Epson’s inkjet technology can reduce

the last four years, positioning Epson with

energy consumption and CO2 emissions

29% total market share across Western

by up to 95%. Additionally, staff productivity

Europe, according to IDC data. If this

is increased with print speeds up to 3.5

momentum continues, freed-up resources

times faster than comparable laser models.

would be equivalent to funding over 160 additional primary school teachers within Western Europe’s education sector.

Alternatively, businesses could eliminate 636 million KGs of CO2 annually, a volume it would take 29 million trees a year to absorb. In Kwh, the potential saving could be redeployed to power a fleet of 1.2 million electric cars for a year.

“Progressive innovation achieved over the

According to IT Managers recently surveyed

by Epson, the need to invest in new technology (58%), reducing costs (51%) and investing in new talent (42%) were cited as the top three business pressures placed on organisations in the past two years.

Meanwhile 38% stated they were under considerable pressure to improve CSR performance, while tight budget restrictions have left 37% unable to employ new staff. w w w.ma nufa c t uri nggl o b a l. com

45

TECHNOLOGY

46

panel TVs, PCs and printers – with

Ohlsson. “We can calculate that down

highly separated markets in Western

to the Euro cent level combined with

Europe. Our core positioning is to

KGs of CO2. We have a calculator for

view sustainability through the lens

our sales people and re-sellers to

of our technology and build aware-

certify these savings on a project by

ness around this offering which sets

project basis. It helps convince our

us apart.”

customers interested in reducing their environmental footprint; this is one of

ENERGY EFFICIENCY

the big advantages of our technology

When it comes to energy efficiency

where printing can help with sustain-

Epson is able to support its business

ability goals for a business, and the

customers with concrete calculations.

planet. With this tool we can also

“We can pinpoint how much they can

calculate waste reduction and plan for

reduce costs in terms of energy usage

carbon neutral printing. This way, our

and how much they can reduce

positioning on sustainability helps with

CO2 emissions by using Epson’s inkjet

sales when businesses can see the

technology versus a competitor’s laser

potential for positive impact on their

technology for example,” says

bottom line.”

M AY 2 0 2 0

“ PAPERLAB’S AIM IS TO CLOSE THE CYCLE, ENHANCING THE POSSIBILITIES FOR THE CIRCULAR ECONOMY WITHIN A MICRO ECONOMY, SUCH AS A BUSINESS USER, MAKING THE PRINTING PROCESS LEAN AND COMPLETELY AUTONOMOUS” Henning Ohlsson, CSR Director, Epson Europe

uses no water,” explains Ohlsson.

“Normally, paper recycling and making is a very resource intensive process.

PAPERLAB

The idea with PaperLab is to take

PaperLab was first launched by Epson

printed paper, pass it through the

in 2015. “It’s still a pretty ground-break-

machine to remove all the ink or laser

ing approach to printing to be able

pigments and create new paper to use

to recycle and make new paper for

once again in house. PaperLab’s aim is

printing with a dry fiber process that

to close the cycle, close the loop. This

PaperLab A-8000 Technology CLICK TO WATCH

|

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47

TECHNOLOGY

enhances the possibilities for the

UN SDGS

circular economy within a micro

Epson relies on the framework of the

economy, such as a business user,

UN’s global sustainable development

making the printing process lean

goals (UN SDGs) to adopt and create

and completely autonomous.”

KPIs to be put into practice by 2050.

PaperLab is powered by Dry Fiber

48

“Goal number 17 is about partnerships,”

Technology, which consists of three

says Ohlsson. “We work with many

processes that turn used paper into

partners to promote these goals and

new paper: defibration, binding and

inspire aligned thinking. We produce

forming. PaperLab can first scan

financial and non-financial data in a

sheets of used paper to retrieve any

business structure that everybody can

data required before reusing to create

understand. We have partnerships

fresh paper. “It’s a real engineering

that map against the goals focusing

innovation where technology can

on circularity, water, energy and more.

achieve circularity,” adds Ohlsson.

There is a risk of ‘green washing’ if there

“It’s not only for office documents but

is not enough potential behind the

also paper packaging, labels etc. It

partnerships. Among many partner-

can address the future needs of the market where we’re seeing a return to recyclable packaging.”

M AY 2 0 2 0

“ SUSTAINABILITY THINKING IS IN THE DNA OF EPSON’S JAPANESE ENGINEERS AND A BIG PART OF MONOZUKURI” Henning Ohlsson, CSR Director, Epson Europe

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49

TECHNOLOGY

“ WHEN WE LOOK AT SUSTAINABILITY AND THE EFFORTS WE SHOULD BE MAKING TO COMBAT GLOBAL WARMING AND CLIMATE CHANGE, ENERGY EFFICIENCY AND CIRCULARITY THINKING WILL BE KEY” Henning Ohlsson, CSR Director, Epson Europe

50

ships that demonstrate our align-

as an example. “It’s a dramatic situation

ment with the UN’s SDGs, we work

where the sense of urgency was not

with Uniserve driving engagement

immediately understood; the same

with young people and support Sea

problem persists with climate change

Clean who are pulling plastic out of

where the lack of a sense of urgency

the oceans.”

is preventing success. In good times we have to do the right things other-

FUTURE THINKING

wise in bad times we’ll get caught out

The challenge with making the right

– this applies across the whole

changes to support the future of our

sustainability story. At Epson this is

planet is that not everybody appreci-

understood as a top down approach

ates the sense of urgency,” laments

but each individual has to contribute

Ohlsson, citing the coronavirus crisis

as well, from the bottom up.”

M AY 2 0 2 0

51

“The principles of corporate behav-

Ohlsson reiterates that Epson

iour must be strong,” Ohlsson pledges.

excels by looking at sustainability

“When we look at sustainability and

through the lens of technology. “I’m

the efforts we should be making to

excited about the engineering power

combat global warming and climate

of our Japanese colleagues. They live

change, energy efficiency and circularity

for what they do. There’s so much

thinking will be key. For example,

potential our customers can realise

dry fiber technology will be a big

thanks to their efforts.”

part of the future for packaging, while inkjet printers have untapped potential in textiles as those industries move from the analogue to digital process.” w w w.ma nufa c t uri nggl o b a l. com

S M A R T M A N U FA C T U R I N G

52

How IoT solutions are transforming manufacturing WRITTEN BY

M AY 2 0 2 0

FR ANK DE JONG

53

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S M A R T M A N U FA C T U R I N G

Orange Business Services’ Frank de Jong, on how intelligent automation is improving efficiency and production processes in manufacturing

I

ndustrial Internet of Things (IIoT) solutions are radically changing industries and work processes. In the manufacturing

sector we are seeing continuous transforma-

54

tion thanks to small improvements that, by exploiting digital technology, become intelligent solutions that improve efficiency and production.

In today’s world, manufacturers are leveraging new digital technologies and evolving their processes rapidly. Some of these improvements can involve dramatic changes to manufacturing equipment and the creation of smart factories in which automation plays a huge part.

It can be daunting for some manufacturers when looking at digital transformation to see changes happening at such a large scale and involving so much new technology. However, it is also true that companies no longer

M AY 2 0 2 0

55

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HANDLING YOUR SUCCESS CLEVERTECH, founded 1987, is a leader in the automation sector, able to design and manufacture customized systems for Front and End of Lines Automation.

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Transforming your business with robotic process automation CLICK TO WATCH

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2:48

57

have a choice over whether or not they

increased output can place them

embrace this wave of digitalisation to

ahead of their competitors. IoT isn’t just

one degree or another. It is now sim-

about big transformations: sometimes

ply a question of when and how they

the simplest and smallest innovations

implement digital solutions, and not if

can in fact have the biggest impact and

they should.

give organisations the head start they

Failing to do so will leave organisa-

need on their digitalisation journey.

tions falling behind their competition.

Manufacturers need not be worried

INCREASING EFFICIENCY

about these inevitable advancements,

In production environments, it is often

instead, if they follow the route of a

the seemingly trivial and simple prob-

gradual, small scale implementation

lems that can cause manufacturers

of IoT into their operations, they will

the biggest issues, and become the

find that the resulting efficiency and

most costly. Keeping track of tools and w w w.ma nufa c t uri nggl o b a l. com

S M A R T M A N U FA C T U R I N G

FACT

Robotic Process Automation from Orange Delegating time-consuming

workforce is invaluable for

tasks to a virtual round-the-

boosting productivity and

clock workforce can speed up

keeping your employees

these processes five-fold while

engaged. Remove inefficiencies

providing employees with real-

and automate processes.

time guidance.

58

Allocate entire workf lows to Yielding significant improvements

bots or provide agents with

in customer service and

next-best-action guidance, it’s

satisfaction as well as long-term

up to you. The ROI benefits

payoffs, Robotic Process

include:

Automation (RPA) is the ultimate

• 9 0% reduction in process and

solution to increase productivity and ensure the workforce can focus on value-adding activities only they can do.

cycling time • 5 0% immediate cost savings • 100% data accuracy • 4 5% increase in staff

Working 24/7, hand-in-hand with agents, this smart robotic

M AY 2 0 2 0

productivity and service levels

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S M A R T M A N U FA C T U R I N G

parts can be hugely time consuming and

supply chain management, allowing for

replacing lost assets can cost compa-

better and more efficient processes and

nies small fortunes. This is a problem that

a reduction of mismanagement through

has historically been addressed through

human error. This is a perfect illustra-

manual stock checks and written records

tion of how digital transformation, when

and inventories. All of this takes time out

applied to the most common and basic

of workers’ days. Time which could be

of pain points within the manufacturing

spent in increasing production.

industry, can make a tangible difference

Digital inventories are more accurate,

very quickly.

faster, and over time can be scaled to

60

not only track and trace the tools and

INCREASING WORKER SAFETY

parts that a factory has but extend to

IoT devices can also be used to

the larger supply chain. This solution

increase the safety of an organisation’s

becomes a stepping stone to automated

workforce. This is obviously desirable

MARCH 2020

Data Journey CLICK TO WATCH

|

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61

for everyone involved. Increased worker safety will increase worker satisfac-

“ Digital inventories become a stepping stone to automated supply chain management, allowing for better and more efficient processes.” ­– Frank De Jong Senior Digital Business Consultant, Orange Business Services

tion and ensure that a company is less frequently understaffed due to injury.

In addition to this, in many countries, national occupational health and safety laws will hold companies responsible for failing to prevent certain industrial accidents. The risk of this can be significantly decreased through the introduction of IoT solutions.

Think, for example, of connected devices that can warn workers about the movements of potentially dangerw w w.ma nufa c t uri nggl o b a l. com

S M A R T M A N U FA C T U R I N G

ous vehicles or machinery. Using technology to warn of approaching vehicles in the often-noisy environment of a factory floor can help to avoid collisions which would otherwise have resulted in injuries. In other instances, IoT devices can be used to minimise workers sustaining injuries by using machinery for which they are not qualified or authorised. Here, there is technology that can verify the worker’s identity and whether or not they should be undertaking specific tasks. Implementing IoT solutions 62

to these problems completely changes the liability profile for the company. In case of an emergency at a manufacturing plant that would demand an evacuation, the very same devices can track the workers’ location allowing for quick accounting of staff whereabouts, making everyone safer when it matters the most. Small innovations like these make production environments safer places whilst reducing costs.

SIMPLICITY AND PRACTICALITY The digital transformation of manufacturing through IoT does not necessarily have to be complicated or discouraging. It is simply a matter of introducing M AY 2 0 2 0

the use of sensors and devices into traditional machinery and manufacturing processes and analysing the data generated accordingly. There is also no need to act hastily; it can be a gradual and continuous process that offers incremental improvements. By mastering these basics, organisations will find themselves increasing output and efficiency, thereby increasing profits, which can be pumped back into their digital transformation journey.

To help companies keep up with IoT applications, Orange has therefore developed ‘Live Objects’, a secure and

“ Leveraging new digital technologies can involve dramatic changes to manufacturing equipment and the creation of smart factories in which automation plays a huge part.” ­– Frank De Jong Senior Digital Business Consultant, Orange Business Services

w w w.ma nufa c t uri nggl o b a l. com

63

S M A R T M A N U FA C T U R I N G

“ Manufacturers that can quickly adopt new digital technologies will be the ones that will gain the most value and become the leaders of their sector” ­– Frank De Jong Senior Digital Business Consultant, Orange Business Services 64

globally available platform that

NO ONE SIZE FITS ALL APPROACH

provides the basic functionality

When it comes to the type of con-

needed for an IoT project. Live Objects

nectivity needed for these technolo-

enables the remote management of

gies to be implemented there is no

connected devices, collects and

one answer. Connectivity is tied to the

analyses the generated data. It also

application. If the factory is located in

allows quick integration of new devices

a big city, then 5G connectivity may be

into a production facility and to start

the answer. If, on the other hand, we

using the collected data. The use

are talking about remote rural areas, a

cases listed may appear simple, but

combination of satellite and LoRa or

good ideas are essential to make the

BLE is a possibility. Orange has experi-

most out of the potential of the IoT.

ence in all these types of connectivity and the choice mainly depends on the

M AY 2 0 2 0

65

type of application and the geographi-

operations could be worth more than

cal location.

$470bn per year. The possibilities, as we see, are enormous. Manufacturers

A GRADUAL PATH OPENING UP HUGE POTENTIAL

that can quickly adopt new digital tech-

IoT has just arrived in the manufac-

the most value and become the leaders

turing sector but will remain and is

of their sector. The initiatives that can

expected to grow rapidly. McKinsey

be implemented quickly are the simple

estimates that IoT applications in manu-

and common sense IoT use cases.

nologies will be the ones that will gain

facturing could generate up to $ 3.7trn in economic value per year by 2025, while IDC research predicts that by 2025 improvements in IoT application w w w.ma nufa c t uri nggl o b a l. com

T O P 10

Digital factories

66

Manufacturing Global lists its top 10 digital factories from leading manufacturing companies WRITTEN BY

GEORGIA WILSON

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T O P 10

How To Make Potato Chips In Frito-Lay’s Chip Factory CLICK TO WATCH

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68

10

PepsiCo

NEW YORK, UNITED STATES [1965]

Harnessing the potential of artificial intelligence and machine learning, within its subsidiary manufacturing plant – The Frito-Lay – PepsiCo utilises machine learning to analyse the sound of crisps to automate the quality check for texture. The company is also harnessing the technology alongside a vision system so it can predict the weight of potatoes being processed, and is trailing the technology to determine the ‘peel percentage’. PepsiCo is also harnessing robotics, speech recognition, augmented data analytics, big data and data analytics within its operations, and has launched global training courses on advanced machine learning and computer vision technology.

M AY 2 0 2 0

09

Ericsson

STOCKHOLM, SWEDEN [1876]

“The fourth industrial revolution has arrived, and it will transform manufacturing as we know it�, says Ericsson. Across Sweden, Estonia and China, Ericsson is accelerating its use of next generation smart manufacturing by developing and implementing 5G and industrial IoT systems in a real environment. Its three smart factory environments for the testing and acceleration of innovations include: the 5G factory (Sweden), the digital factory (Estonia) and the internet of things (IOT) factory (China).

69

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Nokia and Telia leverage 5G performance for Industry 4.0 CLICK TO WATCH

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2:11

71

08

Nokia

ESPOO, FINLAND [1865]

“Paving the way for enterprise customers to realise the vision of Industry 4.0 and industrial automation,” Nokia’s Oulu factory in Finland is harnessing the very technology that it offers to its customers, reporting a “30% increase in productivity and a 50% decrease in “time of product delivery to market, and an annual cost savings of millions of euros”. During the World Economic Forum in 2019 industry leaders and industry consultancy McKinsey called the Oulu factory an “advanced 4th Industrial Revolution Lighthouse, reflecting leadership and proven success in adopting and implementing 4IR technologies at scale.”

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T O P 10

07

HP

CALIFORNIA, USA [1939]

Based in Singapore, HP’s Smart Manufacturing Applications and Research Centre (SMARC), is a 6,000 square foot facility that utilises additive manufacturing, 3D printing, advanced robotics and big data, to accommodate its team of engineers that oversees more than 50 manufacturing supply lines globally. “The Singapore campus is a reflection of our drive to constantly reinvent the way we work as well as develop new technologies to enhance productivity and efficiency across our global operations,” Richard Bailey, president for HP Asia-Pacific Japan.

72

© HP

M AY 2 0 2 0

Intel Business: Making Factories Smarter CLICK TO WATCH

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73

06

Intel

CALIFORNIA, USA [1986]

As industry 4.0 brings significant change to the industry, Intel is harnessing the benefits of ‘smart factories’, such as autonomous production, hyper-agility, real-time analytics and operational transparency – with particular focus on the supply chain. Intel believes that, in order to achieve a true intelligent factory, every process and system needs to be integrated into a holistic system run by real-time data and IoT connectivity.

w w w.ma nufa c t uri nggl o b a l. com

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Siemens: Industry 4.0 Integrated Industry reaches the next level CLICK TO WATCH

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4:00

75

05

Siemens

MUNICH, GERMANY [1847]

By harnessing artificial intelligence, IoT and computing speed, Siemens is changing the fundamentals of how its sites and teams operate. In 2018 the company released its new strategy ‘Vision 2020+’, which aspires to revamp its 170-year-old operations in a new artificial intelligent (AI) version and invest in technology to dominate in a digital era. In operation since 1989, Siemens’ factory in Amberg, Germany is undergoing a transformation from analog manufacturing to analytics-fueled digital production by developing its use of digital twins, analytics, cloud, machine learning and IoT technology.

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T O P 10

76

04

Samsung

SEOUL, SOUTH KOREA [1938]

The Samsung Networks Smart Factory is dubbed ‘the birthplace of innovations’ by the company. Within its factories “only the most advanced technologies have been implemented into daily operations”.

By leveraging 5G, artificial intelligence, robotics, IoT and mixed reality, Samsung is driving new innovations to industrial 5G solutions. “Industry 4.0 promises to streamline the manufacturing process by implementing modern information and communication technologies,” says Samsung. 5G, with its high speed and high device density capabilities, will be key to this revolution in the production industry, and will enable faster processing on the production line to deliver higher quality yields. Furthermore, with a 5G-enabled smart factory, real-time communication among millions of sensors, devices, and systems will be possible to improve environmental safety as well as quality control.

M AY 2 0 2 0

03

General Motors

DETROIT, MICHIGAN, USA [1908]

General Motors is driving selective industry 4.0 technology. While it will be harnessing the technologies associated with industry 4.0, to enhance its productivity, quality and safety, the automotive manufacturer is selecting wisely the technology it adopts. “There will be technology that will transform our business,” commented Dan Grieshaber, GM’s directorglobal manufacturing integration. “But we won’t do it just because we can”, he adds, preferring to call industry 4.0 ‘smart manufacturing’.

Currently, within its factories General Motors is harnessing artificial intelligence, machine learning, mechanical gloves, drones, 3D printing and collaborative robots using 800-1,200 in a single plant.

General Motors: Manufacturing and Advanced Technology CLICK TO WATCH

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E M E A | A P A C | | APAC N O R T H | A EMEA M E R I C A AMERICAS FIND OUT MORE

FIND OUT MORE

T O P 10

80

BMW Factory: Integration of A.I. in the Production Line CLICK TO WATCH

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2:55

02 BMW

MUNICH, GERMANY [1916] Manufacturing 320,000 cars in 2018, BMW’s Regensburg Plant in Germany has been described by the World Economic Forum as a ‘factory of the future’ at the forefront of industry 4.0.

At the plant, the company harnesses over 3,000 connected machines, robots and autonomous transport systems linked via an IoT platform. It also utilises 3D printing and data analytics within its operations, seeing a decrease of 80% for deployment time and a 5% reduction for quality issues.

“A smart factory is characterised by a smart way of using new technologies, (and) new ideas to get innovations on a next level,” says Frank Bachmann, BMW’s Regensburg

plant manager.

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T O P 10

01

Boeing

ILLINOIS, USA [1916] “Working smart”, across the United States, Boeing harnesses high technology solutions to reshape the future of its factories in: Utah: using a high-tech overhead “blanket”, a “smart susceptor” blanket, moving 82

production lines and 3D printing.

California: using and scaling up 3D printing across the company and mobile computer carts, to wire huge solar panels for spacecraft as well as testing advanced exoskeletons, external wearable devices to increase mechanical leverage, strength or speed.

Washington: using finger scanners, small wrist computers and headsets to quickly find parts, as well as automated tools, optical laser templates and robotic machines.

Missouri: using “smart factory” viewing tools that show productivity metrics.

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Boeing: Boeing 777X Officially Starts Production CLICK TO WATCH

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THE JOURNEY TO DIGITALISATION IN SUPPLY CHAIN WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

MANUEL NAVARRO

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HENKEL

Dirk Holbach, Corporate Senior Vice President and CSCO of Laundry and Home Care, Managing Director of Henkel, discusses the effect technology has had on the supply chain

T

he Fourth Industrial Revolution is here.

Technology is an enabler and it is having an increasingly prominent effect on how

manufacturing companies and their supply chains operate. Henkel is a leading solutions provider in 86

three core areas: Adhesive Technologies, Beauty Care, and Laundry and Home Care. Over the past few years, the firm has experienced rapid transformation and has its finger on the pulse of the latest technological innovations.

Overseeing the company’s worldwide supply chain for Laundry and Home Care is Dirk Holbach, Corporate Senior Vice President Global Supply Chain. Holbach has worked for Henkel in a variety of roles for almost his entire working life.

Having joined the company as Junior Manager of Corporate Purchasing in 1996, he became responsible for purchasing at Laundry and Home Care in 2004 before transitioning into several different roles prior to moving into his current position in July 2015. As part of Holbach’s current role, he is responsible for the end-to-end supply chain M AY 2 0 2 0

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Increasing Productivity, Quality and Safety at Henkel – at Scale A key partner to Henkel’s digital transformation is Parsable, the leading Connected Worker Platform for enterprise industrial companies.

Parsable is a software platform that helps the world’s largest industrial and manufacturing companies arm their frontline workers with the necessary tools to thrive in today’s digital-first world. In addition to Henkel, its customers are top global companies in the manufacturing and energy industries, including consumer packaged goods, resources and chemicals, packaging and building materials, and automotive and aerospace.

Parsable is one of Henkel’s partners to help digitise Henkel’s operations. The Parsable Connected Worker Platform transforms static, paper-based standard operating procedures into dynamic work instructions, including multimedia voice, text, video and photos, as well as real-time team collaboration. Given that 72% of tasks at a factory are still performed by humans, according to a recent study by research firm A.T. Kearney, Parsable provides companies with new data and insight into human work so they can improve productivity, quality and safety – at scale.

“They’re primarily focused on supporting companies through digitalisation on the shopfloor. Although a relatively new partner, we’re currently evaluating various opportunities to build on their preconfigured platform,” said Dirk Holbach, Corporate Senior Vice President Global Supply Chain Laundry & Home Care, Henkel.

Parsable underwent an intense deployment at Henkel during 2019. “We’ve been pioneering this new market, called connected work, which provides modern digital tools to industrial workers,” says Lawrence Whittle, CEO of Parsable. “The consumer packaged goods market is an increasingly active area for us and it ultimately led us to Henkel, who is clearly one of the biggest players in this space on the global stage.”

In order to establish a mutually beneficial and longlasting partnership, Whittle believes transparency is

Overview of Connected Work and the Parsable Platform

essential in order to achieve success with some of the world’s biggest companies. “You have to be able to align with each other; otherwise, technology companies can’t survive,” he says. “We’ve invested a ton to ensure that we’re not only delivering an easy-to-use, softwarebased platform to help frontline industrial workers do their jobs better and more efficiently, but also that we support and even drive the key business objectives of our customers.”

“Ultimately, our goal is to improve the overall operations at Henkel,” explains Whittle. “In order to achieve that, there is a clear objective around productivity, safety and quality. At the moment, there’s a demographic shift in the industry. It’s vital that you capture the knowledge of employees that are at retiring age and leaving the company, and transferring that knowledge to the new generation. While there’s a real necessity to drive efficiency, quality and safety, there is also a requirement to understand a new way of working and recognise a new type of worker that really needs these modern, digital tools.”

The Parsable Connected Worker Platform currently has users in more than 130 countries, and is available in 14 languages.

LEARN MORE

HENKEL

for Laundry and Home Care, and in 2018 the business unit accounted for

“ Introducing digital for digital’s sake doesn’t make any sense”

€6.4mn sales. Within Holbach’s business unit, Henkel has six regional hubs, as well as 33 factories and 47 warehouses under his remit. Despite being founded in 1876, the DAX company is still majority owned by the Henkel family, and Holbach believes this really sets his

— Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel 90

organisation apart from its competitors.

“It provides us with a different strategy: the Henkel family has shown its continued commitment to the company, enabling us to operate with a long-term perspective. We have a strong company

M AY 2 0 2 0

Henkel: Operating a long-term approach in manufacturing CLICK TO WATCH

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1:28

91 culture, and our shared values help us to create sustainable value for future generations,” he explains. “Our portfolio is diversified because we have two consumer goods businesses and one that’s focused on industrial markets. It’s certainly a unique mix.”

Holbach understands that the journey to achieving digitalisation is a continuous one and not something that can be accomplished overnight. “In 2013, we began to invest in our digital backbone, which led to us connecting all our factories together through a standardised approach,” explains w w w.ma nufa c t uri nggl o b a l. com

Changing the way you think about data LEARN MORE

More and more companies collect huge amounts of data and want to turn them into money. But where are the obstacles to achieving that?

When it comes to data monetization, most companies only scratch the surface. This is because the use of data can only be imposed to a limited extent. Instead, companies need to get as many people as possible excited about using data. Analytical competence is often confined to the IT or BI department, employees are not trained in working with data or do not have the right tools to use data easily and sensibly in their daily work. The fact is, the more employees and managers are used to working with data, making decisions based on facts and playfully drawing new insights from data analysis, the more likely it is that companies will develop ideas on how to make money with data - be it in the form of services or even entirely new business models.

In other words, it is necessary to build a data-driven corporate culture. But what does the path to this end look like?

A culture of analysis begins with empowerment.

Employees must be empowered to explore data themselves and answer their own questions. This also includes a certain degree of trust managers must have in their teams when dealing with data. Modern BI tools also help to curate and purposefully manage data.

This way, everyone gets access to the data they need without jeopardizing sensitive data and governance regulations.

What role do technologies like AI play here?

If companies want more employees to work with data, they need to make access as easy as possible. Technologies such as Natural Language Processing (NLP) and AI can help.

NLP - the ability of computers to understand human language - lowers the entry barrier for professional analytics. With our Ask Data feature, users can formulate questions about

Henrik Jorgensen Country Manager DACH at Tableau Software.

their data in natural language. When people can interact with a data visualization like a personal assistant, it allows more people across all disciplines to ask deeper questions about their data, thus increasing the overall acceptance of data analysis. With the use of AI-based data analysis, we are now going one step further and making statistical knowledge more accessible. For example, the new Explain Data feature can be used to explain statistical outliers. This allows users without specialist knowledge to quickly expose the 'why' behind their data by simply clicking on the data point in a visualization. Explain Data evaluates hundreds of patterns and explanations within seconds, taking all available data into account.

Innovations such as these foster a culture of curiosity and strongly promote a data-driven corporate culture.

SEE HOW TABLEAU WORKS

HENKEL

94

Holbach. “I’m always looking at the

consumer goods (FMCG) business, we

business benefit for implementing

primarily think in relatively short cycles,”

technology because introducing digital

explains Holbach. “If the end user has

for digital’s sake doesn’t make any

no benefit from a specific technology

sense. It’s important that new technol-

then they’ll stop using it. You can’t intro-

ogy helps solve business challenges,

duce new technology for the sake of it

such as ensuring that processes

— there’s no point. We’re still adopting a

become faster, cheaper and more

vertical approach and are continuously

agile.” Implementing technology that

trialling new technology in several

serves a purpose is a key pillar to

different pilot locations.” However,

Holbach, and he believes that harness-

Holbach understands the challenge of

ing new processes and systems that

change management and the process

aren’t sustainable has no long-term

involved for a successful culture shift.

value to Henkel. “As a fast-moving

“There’s a whole transformation of the

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95

E XE CU T I VE PRO FI LE

Dirk Holbach With more than 20 years of experience in Supply Chain, Operations, Purchasing and Sales, Holbach has held various roles on a local, regional and global level at Henkel.

His special focus has been on supply chain strategy and organization development, network optimization, continuous improvement and post-merger integrations.

Holbach holds a Master’s degree in Business and Mechanical Engineering and a PhD in Information Science. w w w.ma nufa c t uri nggl o b a l. com

HANDLING YOUR SUCCESS CLEVERTECH, founded 1987, is a leader in the automation sector, able to design and manufacture customized systems for Front and End of Lines Automation.

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Henkel: Connecting factories together through a standardised approach CLICK TO WATCH

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1:40

97

business to consider and it’s vital that

last ten years. “It’s become part of our

you give employees the time to under-

DNA and is anchored into our mind-

stand and embrace new technologies

set,” explains Holbach. “Our products

and provide targeted support and

are used millions of times every day

trainings,” he affirms.

around the world, and we recognise

Henkel has five core values that it

the potential impact we can have by

centres operations around: customers

developing sustainable innovations.

and consumers, financial perfor-

We’re designing more and more of

mance, sustainability, people, and the

our packaging to ensure it’s 100%

foundation as a family business. As a

recyclable, reusable or compostable

result of the company’s sustainability

as well as using recycled materials to

drive, Henkel has reduced its specific

produce it.” The company was one

energy consumption by more than

of the first organisations to publish

50% in its Laundry division over the

a formal sustainability report more w w w.ma nufa c t uri nggl o b a l. com

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says. “This means that you then have less resource consumption to produce

“ We’re designing our packaging to ensure its 100% recyclable as well as only using recyclable materials to produce it”

it, ship it, and it subsequently allows the consumer in the final phase to use our products in a more sustainable way.”

Another one of Henkel’s core values is people. The importance of having a team in place that is aligned to a common objective is at the heart of the company’s drive. Henkel places considerable value on its recruitment drive,

— Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel

as well as ensuring it retains the talent it already has. “People are key. As part of our digital journey, I’ve built up a small, centralised regional team that

than 28 years ago and has a clear forward-going ambition: to triple the value it creates through business activities relating to its environmental footprint by 2030 – compared to the base year 2010. With a more sustainable approach at the forefront of Holbach’s strategy, he maintains that his company is continuously seeking to reduce the amount of packaging in its products. “Compaction is a major trend in our industry at the moment.

By taking certain chemicals out of a product, it makes it more compact,” he w w w.ma nufa c t uri nggl o b a l. com

99

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101

works on a range of pilot use cases as

learnings that will enable training on

well as the implementation across all

the capabilities that are relevant today

our sites,” says Holbach. “Our recruit-

and in the future.”

ment strategy is to ensure we have a

Following the influx of technology

solid mix between data scientists and

such as data analytics, artificial intel-

traditional engineers with an under-

ligence (AI) and machine learning

standing of our businesses. We must

(ML), Holbach believes in operating

ensure that all of Henkel’s employees

proactively rather than reactively in

have the opportunity to upskill them-

a bid to differentiate from its peers.

selves, by having access to digital

“Technology has helped to redefine w w w.ma nufa c t uri nggl o b a l. com

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Henkel: Developing trust essential to success CLICK TO WATCH

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1:03

103 the business frame that we operate

systematically started to collect an

in,” he says. “We’re only now starting

increasing level of real-time data.

to embrace AI and ML but it’s an area

A member of Holbach’s team,

we’re looking to do more in. We’re still

Sergey Afanasyev, International Digital

in the testing stage with a lot of new

Transformation Manager at Henkel, is

technology and it’s important that

focusing on two key pillars: connected

we’re continuously looking for new

workers and digital upskilling. “I like

opportunities that will accelerate our

to encourage digital collaboration

current processes. We have to always

between the people using mobile

see how far we can push the bar.” With

technologies as well as helping build

technology’s influence on the manu-

and develop the skills that employees

facturing sector showing no signs of

need today because of the digital

slowing, the plethora of data at com-

technologies already in place,” explains

panies’ fingertips should be embraced.

Afanasyev. He believes that new

Over the past few years, Henkel has

technologies such as AI, ML and Big w w w.ma nufa c t uri nggl o b a l. com

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H E N KE L PART N ER Q U O T ES Clevertech: “We’ve worked with Clevertech for many years. It’s a well-established business in packaging our goods and making them ready for shipment. It has a real drive to add digital capabilities into its products and is an important partner to us.”

Micro-Biolytics: “The partnership focuses on chemistry analytics.

We’ve been working together for a number of years and we are continuously trying out new ideas and concepts.”

Aveva Solutions: “The company is part of Schneider Electric and the home of Wonderware. It’s a special and long-term partner. Wonderware is the platform we use to connect all of our IOT together and the partnership is crucial to us.”

Parsable: “It’s primarily focused on supporting companies through digitalisation. Although a relatively new partner, we’re currently evaluating various opportunities to build on their preconfigured platform.”

Tableau Software UK: “Tableau is now owned by Salesforce and is an important piece of our digital infrastructure. It’s our visualisation and analytics tool and enables us to review all our data in supply chain and manufacturing.”

O9 Solutions: “It’s a very fast growing company and we’re checking how it can support us in our end to end planning process.”

Zaptic: “It’s a newer player on the market with a no code platform to connect the shop f loor workforce with digital instructions and daily management workf lows. We’re now testing Zaptic’s solutions in

TEMBO: “TEMBO is more of a traditional technology supplier and we’re collaborating in the complexion of our product.

It helps supply machinery for unit dose and is based in the Netherlands so we can work very closely together to

our operations.”

expand our capabilities.”

w w w.ma nufa c t uri nggl o b a l. com

105

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Together creating the next

Data should be embraced to achieve a competitive advantage. “These tech-

“ I like to encourage digital collaboration between the workers and paperless operations”

nologies allow us to unlock values and data that we acquire through our digital backbone technology that ultimately brings us a competitive advantage,” says Afanasyev. “Technology itself is agnostic. It’s important to us that we only leverage technology that is true to our vision and strategy.”

Henkel has developed key, strategic

— Sergej Afanasyev, International Digital Transformation Manager, Henkel

partnerships with a range of firms including Clevertech, Micro-Biolytics, Aveva Solutions, Zaptic, Parsable, Tableau Software UK, o9 Solutions

Henkel: Zaptic and Tembo CLICK TO WATCH

|

1:58

w w w.ma nufa c t uri nggl o b a l. com

107

HENKEL

108

1876

Year founded

€20bn+ Revenue in euros

53,000 Number of employees

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109

w w w.ma nufa c t uri nggl o b a l. com

HENKEL

and TEMBO. Holbach has a clear idea of what he looks for when seeking to establish a mutually beneficial collaboration. “There must be long-term and sustainable benefits on both sides of the partnership for it to be successful,” he explains. “It’s important that there is a level of openness that develops trust over time. This is especially true when times are volatile, and it is where you see the true value in dedicated partners.”

With the manufacturing space set to continue to transform as the digital age continues to take shape, it’s vital 110

that companies adopt an agile and lean approach to ensure they don’t get left behind in a competitive and dynamic

“ It’s important that there is a level of openness that develops trust over time” — Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel

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111

market. Holbach is confident of what he anticipates the supply chain space to look like over the next few years. “It’s clear that we’re only at the beginning because I believe that data relevance is only going to increase further,” he says. “There will be greater visibility and transparency in the supply chain over the next few years and we must be ready.”

w w w.ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

Solving business challenges with technology

112

WRITTEN BY

WILLIAM SMITH PRODUCED BY

LEWIS VAUGHAN

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113

Photo © Coca-Cola Italy w w w.ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

Damiano Marabelli, Central & Eastern Europe Business Unit CIO, The Coca-Cola Company, discusses IT’s role in facilitating a ‘Total Beverage’ transformation

T

he Coca-Cola Company (TCCC) needs no introduction, seeing as it is one of the world’s most recognisable brands. Main-

taining that privileged position requires the input of all of its different departments, and, in this regard, IT is no different. Damiano Marabelli is in charge of the company’s IT operations in one of its biggest 114

business units (BUs), as he explains: “I joined TCCC as ‘Central & South European BU IT Client Engagement Director’ at the beginning of 2013. Then I was asked to structurally merge the IT operations of the above BU with the Russia, Ukraine and Belorussia BU, creating the second biggest BU outside North America: the Central & Eastern Europe Business Unit (CEE BU) with its headquarters in Athens”.

The CEE BU operates in one of the most diverse business contexts in the world, encompassing 411 million people in 26 countries (four — Italy, Russia, Poland and Romania - account for more than half of the CEE business); 23 official languages; 16 currencies; only seven markets above a population of 10 million; and four main bottler partners (SIBEG in Sicily, CCBS in Albania, GSD in Malta and CCH in all other BU territories).

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w w w.ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

116

Damiano is guided in his role by the objectives previously set out by Barry Simpson, Senior VP and Chief Information Officer at TCCC, who two years ago articulated a digital transformation programme known as ‘Digitizing for Growth’. The three main objectives of the program are: ‘digitizing for the Consumer’ by creating more personalised, predictive and emotive experiences by harnessing data and analytics; ‘digitizing for the Customer’ by building new routes to market and forging additional partnerM AY 2 0 2 0

CEE BU – Connected Cooler Demonstrator CLICK TO WATCH

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2:08

117

ships alongside strengthening existing

System”, in short the network involves

ones; and ‘digitizing the Enterprise’ by

TCCC supplying beverage products

investing in capabilities to create an

to the bottlers which then add other

agile, engaging and productive work-

ingredients, package the products

place. To achieve those aims, TCCC

and distribute them through four main

is focused on continued investment

market channels, known as: Super-

in digital marketing, ecommerce

markets, Convenience, Discounters

platforms, scalable sales and com-

and HoReCa (including bars, pubs, res-

mercial technology.

taurants and cafeterias). While gross

TCCC’s unique relationship with

profits for bottling partners are often

its bottling partners is another

healthy, operating margins are much

important consideration for its

thinner, which leads TCCC to pursue

digital transformation. Together

innovations. “TCCC invests heavily in

referred to as “The Coca-Cola

category development, both creating w w w.ma nufa c t uri nggl o b a l. com

BUILDING ENTERPRISES FOR THE DIGITAL AGE Triveneto Servizi was established by Roberto Bontempi in Spinea, metropolitan city of Venice, in 2012. The company specialises in ICT workplace maintenance and mission critical services for multinational corporations.

More recently, Triveneto Servizi has invested in leading-edge skills, focused on developing FMCG image recognition solutions, Blockchain payment systems and high-speed fiber connectivity.

LEARN MORE

TRIVENETO SERVIZI & COCA-COLA ITALIA CASE STUDY EXPO 2015 The main activities carried out include: • Installation of laptops, desktops, printers, videoconference Coca-Cola devices.

• 24/7 Assistance during the event on the above materials and on the software’s installed with an onsite team of IT senior technicians.

• Project managing activity in preparation of the event (contact with the vendors, managing of the offers, collaboration with Telecom & CISCO in the creation of the network architecture).

There has never been a more exciting time to work with technology. In the past, innovation was limited by the capabilities of hardware and software - now it’s only limited by the imagination.

Today, mobile technology, the cloud, intelligent machines, social media, Internet of Things and emerging technologies make almost any idea possible.

Roberto Bontempi, with his 30 years of experience in building ICT companies, has been a premium partner of Coca-Cola Italia for seven years. From his Milano office, and in cooperation with his senior team, coordinated by Andrea Lombardo, Bontempi takes care of all IT desk site support services.

This facilitates all digital collaboration capabilities and technology consumerisation programmes from CocaCola’s Corporate IT, and makes the Milano employees more productive, digitised and connected. During 2020, Triveneto Servizi will fully unlock the power of the smart working paradigm in Coca-Cola Italia, promoting the fast adoption of all apps available in the Coke app store.

One of the most remarkable achievements of Triveneto Servizi and Coca-Cola Italia’s collaboration has been the ICT support provided during the preparation-executionclosure of the EXPO event for the entirety of 2015. The main features of the service provided were the Coke EXPO pavilion onsite installation, and maintenance of the IT equipment and software provided by Coca-Cola, in order to create a Coca-Cola office area, applying the Coca-Cola small office standard configuration.

The Coca-Cola Pavilion, built for EXPO Milano 2015, celebrated the company’s tradition, in line with the theme of the exposition “Feeding the Planet, Energy for Life”.

This was a stage upon which the company displayed its sustainability model – based on the promotion of wellbeing, protecting the environment and building stronger communities – in an experiential way.

The Pavilion - standing 12 metres high and covering 1,000 square meters of surface area, was constructed of environmentally sustainable materials including wood, glass and water to create an iconic space that was simultaneously contemporary and innovative.

The outer walls, made of glass and wood, recreated the Coca-Cola logo and the contour silhouette of the historic glass Coca-Cola bottle, which celebrated its 100th anniversary in 2015. Visitors to the pavilion were led along an interactive journey where they participated in the discovery of Coca-Cola world and learned about the company’s values.

The building outlined the dimensions of a basketball court and, at the end of EXPO, became a new space that the Milan community of Famagosta now uses for physical activities.

Triveneto Servizi has a vision that inspires all ICT services of its portfolio: “expect the same technology experience at work as we have elsewhere in our lives”. This means differentiating ICT services – more green, more social, more collaborative, more mobile and more reliable – that drive innovation for productivity and growth.

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T H E C O C A - C O L A C O M PA N Y

innovative packaging solutions and

few years is Price-Profit-Volume

fostering brand development,” says

Simulator and Assortment Optimisa-

Marabelli. “Given its multi-segmented

tion. Powered by Microsoft solutions

shopper and customer base, TCCC

including Azure, PowerBI and the

must spend heavily on market research

.NET framework, the software lever-

— it’s necessary for TCCC to stay ahead

ages an experience whereby CEE

of changing market trends, consump-

BU and Coca-Cola Hellenic Bottling

tion behaviour and competitive tactics.”

Company worked with McKinsey to

The close relationship with bot-

build scenarios and volume projections

tlers extends to joint IT projects. One

for profitability and margin improve-

key innovation introduced in the last

ments. “Revenue Growth Management

120

M AY 2 0 2 0

“ It’s necessary for TCCC to stay ahead of changing market trends, consumption behavior and competitive tactics” — Damiano Marabelli Central & Eastern Business Unit CIO The Coca-Cola Company

(RGM) is the core business process in The Coca-Cola System,” Marabelli explains. “It maximises system revenue by systematically identifying pockets of value and by activating offerings that most profitably convert shoppers into buyers. The essence of RGM is in understanding consumers’ perception of product value and accurately aligning product prices, placement and availability with each

E XE CU T I VE PRO FI LE 121

Damiano Marabelli Damiano has broad IT, business and change management experience through various positions he held for more than 15 years within the Whirlpool Corporation. He holds a college degree in Computer Science and an Executive Master Business Administration degree specialising in ICT Strategy, Governance and Management from the Polytechnic-University in Milan. In addition, he has earned a ccOPEX (Customer-Centered Operational Excellence) Six Sigma Black Belt certificate and an Online Masters in Social Media Communication from Il Sole24Ore business school in Milan. 51 years old, he grew up in a small lake town near Varese, Northern Italy, where he continues to live with his family.

Married with one son, Damiano is a strong tennis player and passionate about historical and philosophical essays.

w w w.ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

Photo © Coca-Cola HBC 122

customer segment. These simulation

“ It no longer makes sense to think of IT as a separate entity from marketing, finance or supply chain” — Damiano Marabelli Central & Eastern Business Unit CIO The Coca-Cola Company

M AY 2 0 2 0

and optimisation capabilities support this process and have already been rolled-out across several other BUs and bottlers.” RGM will continue to be a focus, with a new generation of RGM analytics being designed to harness AI and machine learning to elaborate on insights and realise profits.

Consumer-facing technology has also been a focus, as with the company’s recently launched app aimed at teenagers. “During 2019 the brand new Coca-Cola app was active

“ Ipis acest volorepta doluptia quation elio repelestiur acerecti aut aborent occustrum quoditi ut eiciaes esi quibus aditiam util” — Name of Person, Position and company

123

in 17 CEE markets, fully leveraging

1 March 2019, more than 1.6 million

the business unit’s digital market-

consumers have installed the app, with

ing ecosystem that also includes a

more than 250,000 of them using it

GDPR-compliant consumer database,

actively every month. “As a result of

a consumer promo engine, a social

that, more than 1.3 million consum-

media listening and engaging center

ers have registered in our consumer

and so on,” Marabelli elaborates. “The

database, 1.4 million stories have been

mobile experience covered by the app

uploaded to the app and more than 4.3

involves user-generated content, loy-

million pin codes have been redeemed

alty and promotions — users upload pictures and unlock words to build stories by participating in promotions

— corresponding with the same amount of drinks being purchased.”

The delivery of such systems stems

and earning points to be exchanged

from a reimagined role for the IT func-

for digital prizes.” Since its launch on

tion, which Marabelli traces back to w w w.ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

1886

Year founded by Dr John Pemberton

$31.8bn Revenue in US dollars (2018)

700,000+

124

Number of employees across company and bottling partners

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125

Photo © Coca-Cola Italy w w w.ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

previous CIO and Vice President Ed Steinike. Marabelli remembers the words of Steinike, who previously said: “It’s all about people. Just like CocaCola’s marketing organisation, which hired some really smart people in the field of digital and interactive marketing, we started to recruit talented IT people who were more entrepreneurial, a little more strategic in their thinking, and who connected better with what marketing was trying to achieve.” This reinvigorated culture has also been 126

reiterated by Corporate CIO Barry Simpson, with Marabelli taking a number of lessons from him, including IT’s

“ 1.3 million consumers have registered in our consumer database, 1.4 million stories have been uploaded to the app and more than 4.3 million pin codes have been redeemed” — Damiano Marabelli Central & Eastern Business Unit CIO The Coca-Cola Company

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127

role in helping TCCC to implement its

ply chain. From product development,

‘Total Beverage’ strategy, which involves

intelligent supply chains, advertising

broadening its offering to become

and mobile payments, technology has

more consumer-centric. As part of that,

become an integral ingredient in all

Marabelli emphasises that IT must be

aspects of businesses. We are shifting

capable of adapting to the new ecosys-

from builders of technology to archi-

tem and constantly reinventing the way

tects of possibility that will enable our

the company does business.

business’ success as a ‘Total Beverage’

It is with this strategy in mind that

company. We do not solve technology

Marabelli conceptualises his depart-

problems; we use technology to solve

ment’s future path: “It no longer makes

business challenges.”

sense to think of IT as a separate entity from marketing, finance or supw w w.ma nufa c t uri nggl o b a l. com

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Aerojet Rocketdyne: the evolution of aerospace and defence technology WRITTEN BY

GEORGIA WILSON PRODUCED BY

MIKE SADR

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AEROJET ROCKETDYNE

After two years, Alan Avakian, Senior Director of IT and John Jackson, Chief Information Officer at Aerojet Rocketdyne, discuss the company’s innovative transformation journey since 2018

W 130

ith 20 years’ experience within information technology, Alan Avakian, Senior Director of IT at Aerojet Rocketdyne,

has spent most of his career in the aerospace and defense industry. “I started out as an application developer, working in technologies ranging from the mainframe to client/server and web. Other technical roles I have had include database administration and project management,” says Avakian.

“After working with programmers and internal customers, I branched out into other more specialized disciplines including reporting and ERP. At a certain point, I had to make a career choice between technical and management tracks, and chose management in the end for the opportunities. With guidance from others, I went back for my Masters of Business Administration and transitioned to managing my own department before becoming a Director and Chief Technology Officer.”

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AEROJET ROCKETDYNE

“ Additive manufacturing, hypersonics, and solar electric propulsion are key innovation areas for Aerojet Rocketdyne” — Alan Avakian, Senior Director of IT, Aerojet Rocketdyne

Avakian describes Aerojet Rocketdyne as “an innovative worldclass developer and manufacturer of advanced propulsion and energetics systems

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133 for customers including the US

“Additive manufacturing, hyper-

Department of Defense, NASA and

sonics, and solar electric propulsion

other agencies and companies, both

are key innovation areas for Aerojet

in the United States and abroad.” Its

Rocketdyne. We are also developing

vision is to further develop the brand

propulsion systems to utilise high-

and leverage its experience to provide

performance ‘green’ propellants.

the most cost-effective, on-schedule

Green propulsion systems are an

and reliable products in the industry.

alternative to conventional chemical

Over the last two years, Avakian has seen the aero-

propulsion systems that use hydrazine propellants for a variety of applica-

space and defense industry evolve

tions, including next-generation

significantly, with multiple new trends

launch vehicles and spacecraft,”

emerging fast such as: additive manu-

says Avakian.

facturing, solar electric propulsion, cybersecurity and cloud technology.

John Jackson is the Chief Information Officer at Aerojet Rocketdyne and w w w.ma nufa c t uri nggl o b a l. com

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AEROJET ROCKETDYNE

136

E X ECU T I VE P RO FI LE

Alan Avakian Alan Avakian is the Senior Director of IT at Aerojet Rocketdyne. In this role, he leads the organisation’s Business Alignment and Technology Management functions responsible for shared business service strategy and operations including Networking, Infrastructure, Applications, and End User Support services. He coordinates with line-ofbusiness leaders to understand their needs (including anticipated technology and product changes) and works with IT outsourcing partners for execution.

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137 has extensive experience in cyber-

security in cloud, Jackson is also

security and cloud technologies. In

seeing companies shifting to this tech-

the Information Technology arena,

nology. “Cloud solutions now meet the

Jackson mentioned that “there’s a

stringent security requirements of our

much bigger focus on security and

industry, so companies are now start-

the new Cybersecurity Maturity

ing to pivot.”

Model Certification (CMMC) that was

Further discussing data security,

released in January. An accredited

Jackson explains the company’s own

third party assessor will independently

efforts since 2018 to develop its data

assess whether internal information

security methods. “Keeping up with

systems of companies that perform

the ever-increasing security threats

DoD work (including suppliers) have

for people who want to steal your data,

the required cybersecurity controls

while also meeting the new industry

in place to meet the assigned cyber

compliance standards such as the

maturity level.” With new levels of

CMMC, are core challenges when it w w w.ma nufa c t uri nggl o b a l. com

AEROJET ROCKETDYNE

138

comes to data security as it changes

a traditional IT architecture which

so fast.” At Aerojet Rocketdyne,

relies heavily on on-premise infra-

the company has a threat hunting

structure to a hybrid architecture.”

program which allows the company

In particular, Avakian highlights the

to proactively measure its security

company’s adoption of cloud tech-

posture rather than only relying on

nology, microservices and robotic

traditional threat management meas-

process automation (RPA). “Over

ures such as firewalls. In addition,

the last couple of years we have

“we are currently embarking on an

transitioned our Product Lifecycle

Enterprise Information Management

Management (PLM) system from

initiative to establish a data govern-

an on-premise solution to a cloud

ance program. This program will

provider. Our data is housed in a

assist with the standardisation and

FedRAMP data centre with around-

integration of data and metrics

the-clock support.” In addition to

across the enterprise.”

the cloud, the company has begun

When it comes to the innovative

conducting an RPA proof-of-concept

evolution of the company, Avakian

with its Finance department. “This

explains that over the last two years

will reduce costs, eliminate input

the company has “pivoted from

errors, speed up business processes,

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What Is Artemis?

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139

E XE CU T I VE PRO FI LE

John Jackson John Jackson is the Chief Information Officer and Vice President at Aerojet Rocketdyne.

In this role, he leads the Information Technology organization focused on the development and execution of an IT strategy to help deliver on mission success. The goal of the strategy is to unlock greater value for customers and the business by enabling innovative, secure and compliant technology solutions.

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“ Keeping up with the ever-increasing security threats while also meeting the new industry compliance standards such as the CMMC, are core challenges when it comes to data security as it changes so fast” — John Jackson,, CIO, Aerojet Rocketdyne

and will be integrated with applications. Our hope is to expand the program once we have proven out the technology and business model.”

At an operational level, Avakian also explains the company’s development of a business relationship management team, as well as its healthy transition towards a balanced outsourcing and in-house operations approach. “We started with realigning some of our existing talent as well as recruiting new people with w w w.mawnufa w w.busi c t urine nggl sscohief. b a l. com

AEROJET ROCKETDYNE

1942

Year founded

$2bn+ Revenue in US dollars

5,000 Number of employees

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AEROJET ROCKETDYNE

“ An innovative worldclass developer and manufacturer of advanced propulsion and energetics systems for customers including the US Department of Defense and NASA” 144

— Alan Avakian, Senior Director of IT, Aerojet Rocketdyne a background in IT and business liaison

our requirements in relation to levels

skills,” comments Avakian, who has

of control, security considerations,

seen huge benefits from establishing

cost model and growth.”

the team. “Our customers love the fact

With these developments, Avakian

that they have an IT representative

has seen “the ability of the company’s

that is aligned to them.” When it comes

IT systems to grow with the busi-

to balancing its outsourcing and in-

ness, enabling faster turnaround of

house operations, Avakian highlights

key enhancements which were not

that “it’s a challenging opportunity as

achievable before without significant

there are benefits and use cases for

investment in time and money.” For

both methods. Our approach is to look

example, Microsoft has been help-

at the IT area and then assess which

ing Aerojet Rocketdyne to “leverage

approach or combination best meets

Microsoft Dynamics for our CRM.

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145

We will also be using Microsoft’s

– and the company’s propulsion which

Office 365 and Azure for storage later

plays a critical role in SLS’s ability to

this year.”

successfully launch the heaviest, larg-

Reflecting on the company, Avakian

est, and most valuable payloads to deep

sees the company’s biggest strength

space” is an example of one of the com-

being its people and drive towards

pany’s biggest successes to date.

innovation in everything that it does, particularly having seen the company expand its presence to drive innovation.

Avakian concludes that the company’s “NASA Space Launch System (SLS) – America’s next-generation heavy-lift rocket, powered by Aerojet Rocketdyne w w w.ma nufa c t uri nggl o b a l. com

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