Definition: Value Management 4.0, The Era of “New” Thinking
Anirban Bhattacharyya is CEO of Amplo Global Inc. He has over 18 years of experience in strategy, research and development, and implementation in physical and digital operations manufacturing, supply chain process improvement, and process automation services. He holds a Bachelor ‘s degree in engineering from the Birla Institute of Technology and Science, India, and an M.B.A. in strategy and marketing from Duke University ‘s Fuqua School of Business.
Industry 4.0 re-imagines the automation of third-generation digital systems to create additional value. While automation remains central to enterprises, today the focus is on the interconnectedness between physical systems and digital assets, improving customer experiences as a driver for operational excellence. Hallmarks of Industry 4.0 such as Smart Factories are entirely experience-centric, tying next-gen innovation with seamless usability, uncovering areas for bottom-line and top-line improvement.
Design led value management helps clients create value through a delightful network of experiences. This encompasses products/services, experiences, and operations for both internal stakeholders and end-customers, as they pivot towards new directions in the Industry 4.0 era.
Challenges in the digital era:
Most recent programs are witnessing a convergence of the four pillars as shown in below picture:
The pressure on enterprises is mounting. They are challenged by:
- Higher productivity needs, in response to demands for mass personalization
- Changing supply chains, breaking down locational silos and gaining from specialists through “coopetition”
- Accelerating technology development in the Industry 4.0 era requiring harmonization
- Competitive labor markets with a few high-demand skill sets to drive innovation
How market should respond: POV
These challenges can be addressed by revealing layers of hidden motivators and drivers of usage and applying empathy-led value innovation to create value in the operational chain.
Product Design Thinking:
Product-centricity to understand the core value proposition to the user and delve into the different layers of approaches to amplify usability.
Service Design Thinking:
Digitization and integration of resources on the cloud, reformatting as adaptive and on-demand services to empower value creation.
Experience Design Thinking:
Experience analysis to arrive at actionable insights at molecular and holistic levels, improving experience quality to optimize value generation.
Repeatable and adaptive nature of delivery keeping development and operations in mind. Focusing on return on experience and return on investment.
Execution of Value Management to organizations:
At the end of the day, holistic value management is key to drive using the following
- Engaging with deeply integrated Design Thinking Framework
- Driving Innovation and User experience as a system integration practice in Industry 4.0
- Delivering Value Metrics driven through Design Thinking
To execute any value management program, an approach could be:
- Agile Thinking to measure capability (current and future and, score), interspersed with human intervention as intensive workshops with outcome clarity
- Design Thinking as a holistic approach to create adoption and change
- Unique model through thought leadership via
- Upskilling training to corporate
- Collaborative models with the entire value chain to share knowledge by blurring industry boundaries between OEMs and suppliers and forward trading partners
The core value proposition to this approach is as follows:
- Unique “Thinking” model for Industry 4.0
- Ability to deeply customize the model to the industry vertical and the organization’s unique issues
- Capabilities to seamlessly execute ideas as prototype through value execution
During this phase of work, a successful outcome includes:
- Clarity in goals and prioritized ideas as ‘Value Outcomes’ to achieve, our client’s experiential offering in marketplace
- Seamless integration to execute the value outcomes as a process of value management execution
- Monitor and measure determinant value metrics for the stream of Value Management in practice
A client can embed Agile Thinking in process transformation by uncovering the different layers of customer insights and ideating innovatively to positively transform stakeholders and customer experience. It can translate subjective and personalized perspectives into executable ideas, co-partnering with clients to turn these action-points into rapid prototypes through value management execution.