Illustrative examples of how Industry 4.0 technologies can improve organisational social performance (OSP)
| Sub-theme | Social indicator | Technology | Illustrative examples of how Industry 4.0 technologies can improve organisational social performance | Source |
|---|---|---|---|---|
| Employment Practices | Human Rights | Big Data Analytics | Employing BDA can create actionable insights for governments and policymakers where vulnerable groups are targeted. Modern slavery, forced labour and wage disparities within organisations can also be identified | de Assis (2018) |
| Blockchain | Automotive companies including the Volkswagen Group and Ford have formed a consortium with LG Chem, Huayou Cobalt and RCS Global to track and trace raw material supply on a blockchain platform developed by IBM in an attempt to identify and reduce human rights violations, such as forced labour across plants in DR Congo, Korea and the United States. The Organization for Economic Cooperation and Development (OECD) provides platform governance to ensure that raw materials are sourced and processed ethically, thus helping to meet compliance requirements through immutable audit trails | IBM (2019a) | ||
| Workplace Diversity | Big Data Analytics | Existing diversity gaps can be identified using data analytics through the ability to gain a holistic understanding of the current workforce in terms of gender, age, ethnicity, etc. BDA can be used to analyse and create equitable compensation structures, thereby closing the gender pay gap. Also, by highlighting key metrics, BDA can help to improve diversity retention | McKinsey and Company (2017) | |
| Artificial Intelligence | Daivergent, an organisation dedicated to the autistic and neurodiverse community, trains and manages a candidate pool of diverse talent. The Daivergent platform, in collaboration with an SAP module, uses AI to match neurodiverse candidates to vacancies, thereby helping client companies to hire and manage a diverse workforce | SAP (2020) | ||
| Job Satisfaction and Quality | Digital Twins | Through digital twins, production and warehouse facilities can be mapped interactively, thereby determining the shortest paths required for on-floor breakdowns, maintenance and logistics processes. This leads to more effective time utilisation where employees perform value-adding tasks | Mussomeli et al. (2020) | |
| Augmented Reality | Using AR in training for job specific situations, the US Department of Agriculture's Food Safety and Inspection Service has been able to improve retention rates of inspectors prior to graduating from training into the actual role. Using this technology, the organisation claims they are able to provide better training and placement leading to improved job satisfaction for inspectors | Deloitte (2018) | ||
| Artificial Intelligence | In their 2020 Sustainability Report, the Volkswagen Group have committed to digitisation as a key enabler, with the use of AI helping in different business areas. They state that, in an effort to improve cognitive ergonomics, the Group will increase the use of AI to remove repetitive administrative tasks so that employees can spend more time on preparing for final decisions, which will improve job quality | Volkswagen (2021a) | ||
| Training and Education | Augmented Reality | AR can provide step-by-step visual training for employees, thereby reducing errors and training times. This improves the quality of training while reducing costs attributed to a lack of in-house skills and errors in the learning curve. The approach is particularly useful for new hires and seasonal employees, where short training times are critical | Porter and Heppelmann (2017) | |
| Artificial Intelligence | Indonesian mining organisation, Petrosea, has embraced digital transformation for survival and adopted AI based technologies in one site to help source raw materials such as copper, nickel and lithium faster and more efficiently. To address the re-training needs of a low-literacy workforce, the organisation used an AI based gamification app to engage and train employees, which enabled the creation of a digital mind-set and improved profits | McKinsey and Company (2020b) | ||
| Flexible Working | Augmented Reality | Off-site assistance can be provided to on-site technical engineers through AR devices, such as smart glasses and cameras. With online meetings having become the norm relevant, stakeholders can use AR technology to provide real-time updates while working from home | Deloitte (2017) | |
| Internet of Things | IoT devices combined with Manufacturing-Execution Systems have been adopted by a US tier-one firm surveyed by consulting firm McKinsey & Co. to gather real-time data on the shop floor processes and production. The consulting firm further states that even though most managers are not physically present on the shop floor, the real-time data enables relevant and informed discussions during videoconferences | McKinsey and Company (2020b) | ||
| Career Development | Big Data Analytics | Employees' performance management over the years can be tracked more effectively via the use of more detailed, complex data sources such as metrics including time to close an open job. BDA can also aid in finding vacant positions that would be best matched for enabling job rotations and upskilling as part of employee development based on employees' training records and performances | Peakon (2019) | |
| Child Labour | Blockchain | Tony's Chocolonely, an Amsterdam based chocolate manufacturer, has collaborated with Chainpoint and Accenture to build “BeanTracker” – a blockchain platform to trace cocoa in their chocolate supply chain. The platform collects and verifies data from sources in Ghana and Cote d’Ivoire until the chocolate bar has been produced and wrapped in Europe. Through this project, the organisation states that they are moving towards their vision of 100% slave free chocolate by establishing upstream traceability and mitigating instances of child and forced labour by identifying all stakeholders involved | Forbes (2019) | |
| Health and Safety | Health and Safety Practices | Big Data Analytics | Past incidents can help provide valuable information on potential accident hotspots. These can then be monitored or modified if possible and BDA can be used for predictive purposes, i.e. the possibility of accidents occurring and their impact based on likelihood and severity matrices | IBM (2019b) |
| Health and Safety Incidents | Digital Twins | Corrective actions can be taken prior to accidents occurring, through real-time simulations. This has the potential to reduce incidents and improve practices by identifying hotspots, root causes and troubleshooting | SAP (2019) | |
| Artificial Intelligence | Lloyd's Register has used AI innovatively to perform deep analyses of health and safety data for a professional consulting firm offering services in marine, energy and manufacturing industries. By identifying, segregating and analysing complex datasets, the organisation has been able to generate insights on 78,000 incidents which were previously not categorised, thereby improving health and safety incident data and providing management with better root case analyses and actions | Lloyd's Register (2019) | ||
| Internet of Things | IBM, in collaboration with Mitsufuji, developed innovative solutions through their Maximo® Worker Insights which uses IoT devices to constantly measure and analyse employee heart rate, location and related health data to prevent health and safety incidents before they occur. The data collected from the wearable workwear fabric is shared with an employee on their smartphone in case of dangerous situations (e.g. heat stress) to increase awareness of their surroundings | IBM (2019b) | ||
| Social Safety Practices | Big Data Analytics | BDA is useful for collecting, analysing, tracking and forecasting the spread and impact of infectious diseases. BDA can be a source of contact tracing, producing a detailed medical history based on travel and contacts, leading to the reduction of hotspot formation. Hotspots can be predicted and early warnings can be issued to implement the required measures | Wu et al. (2020) | |
| Augmented Reality | The use of AR in combination with engineering principles has helped the NHS during the COVID-19 pandemic where experts remotely provided instructions, inspected processes and supported in the manufacture of ventilators. Due to the widespread impact of the virus, these experts could not physically be present on the shop floor; however, they were able to guide the production process remotely, which created and distributed knowledge more efficiently than previously when they relied on paper documentation | Institution of Mechanical Engineers (2021) | ||
| Internet of Things | Libelium, an IoT solutions provider, worked with Equimodal, an organisation specialising in secure access gateways, to implement the Libelium FeverKit which measures employees' temperatures through IoT devices in real-time as they enter and sanitise themselves. This data is then shared with on-site managers to create awareness in case high temperatures are detected, indicating COVID-19 symptoms. Libelium further state that the solution is applicable in multiple other scenarios such as turnstiles and walkways | Libelium (2020) | ||
| Business Practices | Procurement Standards | Blockchain | Blockchain makes it mandatory for each supply chain actor to input transaction details (such as cost, origin, lead time, etc.) throughout the supply chain, from origin to consumer outlets. This enables end-to-end transparency and traceability for safety critical products, mitigating product tampering and counterfeits. It also helps organisations in audits and in checking Code of Conduct conformance for future performance evaluations | MediLedger (2020) |
| Big Data Analytics | SAP deployed their analytics tools to support Air Canada's operations in approximately 220 airports spanning six continents in an effort to streamline procurement spend. In addition to reducing costs and improving agility and automation, Air Canada was able to gain improved visibility of their procurement processes and control spend effectively. This ultimately led to a better experience for suppliers as well, in addition to enhancing procurement compliance | SAP (2021) | ||
| Partnership Standards | Big Data Analytics | SAP's spend analysis software works in collaboration with Dun and Bradstreet's market intelligence to support customers in obtaining as much insights as possible before contracting a vendor. This information consists of numerous sources such as supplier credit reports and social media news, updated and analysed in near real-time using machine learning algorithms to offer client customers' valuable insights, such as sustainability indicators on prospective and current suppliers | SAP (2022) | |
| Artificial Intelligence | Volkswagen, Porsche and Audi have partnered with AI organisation Prewave to analyse supplier related news from public and social media source in more than 50 languages and 150 countries in an effort to proactively identify supplier breaches of sustainability requirements set out by the manufacturers. The AI algorithm monitors over 4,000 suppliers to transparently provide data, which could be helpful in targeting sustainability risks early on before they occur, thereby reducing risk occurrences and improving compliance | Volkswagen (2021b) | ||
| Fair-Trade and Anti-Corruption | Blockchain | FairChain Foundation is working with coffee farmers in Ethiopia to bring about transparency in the coffee supply chain though blockchain. In addition to digitising the supply chain and providing proof of provenance through an immutable audit trail, the organisation is aiming to transparently drive value back to the farmer and provide access to credit which will ultimately aid in improving living standards. Through transparency and traceability, the entire value chain is visible to all stakeholders, ensuring profits are distributed equally | FairChain Foundation (2019) |
| Sub-theme | Social indicator | Technology | Illustrative examples of how Industry 4.0 technologies can improve organisational social performance | Source |
|---|---|---|---|---|
| Employment Practices | Human Rights | Big Data Analytics | Employing BDA can create actionable insights for governments and policymakers where vulnerable groups are targeted. Modern slavery, forced labour and wage disparities within organisations can also be identified | |
| Blockchain | Automotive companies including the Volkswagen Group and Ford have formed a consortium with LG Chem, Huayou Cobalt and RCS Global to track and trace raw material supply on a blockchain platform developed by IBM in an attempt to identify and reduce human rights violations, such as forced labour across plants in DR Congo, Korea and the United States. The Organization for Economic Cooperation and Development (OECD) provides platform governance to ensure that raw materials are sourced and processed ethically, thus helping to meet compliance requirements through immutable audit trails | |||
| Workplace Diversity | Big Data Analytics | Existing diversity gaps can be identified using data analytics through the ability to gain a holistic understanding of the current workforce in terms of gender, age, ethnicity, etc. BDA can be used to analyse and create equitable compensation structures, thereby closing the gender pay gap. Also, by highlighting key metrics, BDA can help to improve diversity retention | ||
| Artificial Intelligence | Daivergent, an organisation dedicated to the autistic and neurodiverse community, trains and manages a candidate pool of diverse talent. The Daivergent platform, in collaboration with an SAP module, uses AI to match neurodiverse candidates to vacancies, thereby helping client companies to hire and manage a diverse workforce | |||
| Job Satisfaction and Quality | Digital Twins | Through digital twins, production and warehouse facilities can be mapped interactively, thereby determining the shortest paths required for on-floor breakdowns, maintenance and logistics processes. This leads to more effective time utilisation where employees perform value-adding tasks | ||
| Augmented Reality | Using AR in training for job specific situations, the US Department of Agriculture's Food Safety and Inspection Service has been able to improve retention rates of inspectors prior to graduating from training into the actual role. Using this technology, the organisation claims they are able to provide better training and placement leading to improved job satisfaction for inspectors | |||
| Artificial Intelligence | In their 2020 Sustainability Report, the Volkswagen Group have committed to digitisation as a key enabler, with the use of AI helping in different business areas. They state that, in an effort to improve cognitive ergonomics, the Group will increase the use of AI to remove repetitive administrative tasks so that employees can spend more time on preparing for final decisions, which will improve job quality | |||
| Training and Education | Augmented Reality | AR can provide step-by-step visual training for employees, thereby reducing errors and training times. This improves the quality of training while reducing costs attributed to a lack of in-house skills and errors in the learning curve. The approach is particularly useful for new hires and seasonal employees, where short training times are critical | ||
| Artificial Intelligence | Indonesian mining organisation, Petrosea, has embraced digital transformation for survival and adopted AI based technologies in one site to help source raw materials such as copper, nickel and lithium faster and more efficiently. To address the re-training needs of a low-literacy workforce, the organisation used an AI based gamification app to engage and train employees, which enabled the creation of a digital mind-set and improved profits | |||
| Flexible Working | Augmented Reality | Off-site assistance can be provided to on-site technical engineers through AR devices, such as smart glasses and cameras. With online meetings having become the norm relevant, stakeholders can use AR technology to provide real-time updates while working from home | ||
| Internet of Things | IoT devices combined with Manufacturing-Execution Systems have been adopted by a US tier-one firm surveyed by consulting firm McKinsey & Co. to gather real-time data on the shop floor processes and production. The consulting firm further states that even though most managers are not physically present on the shop floor, the real-time data enables relevant and informed discussions during videoconferences | |||
| Career Development | Big Data Analytics | Employees' performance management over the years can be tracked more effectively via the use of more detailed, complex data sources such as metrics including time to close an open job. BDA can also aid in finding vacant positions that would be best matched for enabling job rotations and upskilling as part of employee development based on employees' training records and performances | ||
| Child Labour | Blockchain | Tony's Chocolonely, an Amsterdam based chocolate manufacturer, has collaborated with Chainpoint and Accenture to build “BeanTracker” – a blockchain platform to trace cocoa in their chocolate supply chain. The platform collects and verifies data from sources in Ghana and Cote d’Ivoire until the chocolate bar has been produced and wrapped in Europe. Through this project, the organisation states that they are moving towards their vision of 100% slave free chocolate by establishing upstream traceability and mitigating instances of child and forced labour by identifying all stakeholders involved | ||
| Health and Safety | Health and Safety Practices | Big Data Analytics | Past incidents can help provide valuable information on potential accident hotspots. These can then be monitored or modified if possible and BDA can be used for predictive purposes, i.e. the possibility of accidents occurring and their impact based on likelihood and severity matrices | |
| Health and Safety Incidents | Digital Twins | Corrective actions can be taken prior to accidents occurring, through real-time simulations. This has the potential to reduce incidents and improve practices by identifying hotspots, root causes and troubleshooting | ||
| Artificial Intelligence | Lloyd's Register has used AI innovatively to perform deep analyses of health and safety data for a professional consulting firm offering services in marine, energy and manufacturing industries. By identifying, segregating and analysing complex datasets, the organisation has been able to generate insights on 78,000 incidents which were previously not categorised, thereby improving health and safety incident data and providing management with better root case analyses and actions | |||
| Internet of Things | IBM, in collaboration with Mitsufuji, developed innovative solutions through their Maximo® Worker Insights which uses IoT devices to constantly measure and analyse employee heart rate, location and related health data to prevent health and safety incidents before they occur. The data collected from the wearable workwear fabric is shared with an employee on their smartphone in case of dangerous situations (e.g. heat stress) to increase awareness of their surroundings | |||
| Social Safety Practices | Big Data Analytics | BDA is useful for collecting, analysing, tracking and forecasting the spread and impact of infectious diseases. BDA can be a source of contact tracing, producing a detailed medical history based on travel and contacts, leading to the reduction of hotspot formation. Hotspots can be predicted and early warnings can be issued to implement the required measures | ||
| Augmented Reality | The use of AR in combination with engineering principles has helped the NHS during the COVID-19 pandemic where experts remotely provided instructions, inspected processes and supported in the manufacture of ventilators. Due to the widespread impact of the virus, these experts could not physically be present on the shop floor; however, they were able to guide the production process remotely, which created and distributed knowledge more efficiently than previously when they relied on paper documentation | |||
| Internet of Things | Libelium, an IoT solutions provider, worked with Equimodal, an organisation specialising in secure access gateways, to implement the Libelium FeverKit which measures employees' temperatures through IoT devices in real-time as they enter and sanitise themselves. This data is then shared with on-site managers to create awareness in case high temperatures are detected, indicating COVID-19 symptoms. Libelium further state that the solution is applicable in multiple other scenarios such as turnstiles and walkways | |||
| Business Practices | Procurement Standards | Blockchain | Blockchain makes it mandatory for each supply chain actor to input transaction details (such as cost, origin, lead time, etc.) throughout the supply chain, from origin to consumer outlets. This enables end-to-end transparency and traceability for safety critical products, mitigating product tampering and counterfeits. It also helps organisations in audits and in checking Code of Conduct conformance for future performance evaluations | |
| Big Data Analytics | SAP deployed their analytics tools to support Air Canada's operations in approximately 220 airports spanning six continents in an effort to streamline procurement spend. In addition to reducing costs and improving agility and automation, Air Canada was able to gain improved visibility of their procurement processes and control spend effectively. This ultimately led to a better experience for suppliers as well, in addition to enhancing procurement compliance | |||
| Partnership Standards | Big Data Analytics | SAP's spend analysis software works in collaboration with Dun and Bradstreet's market intelligence to support customers in obtaining as much insights as possible before contracting a vendor. This information consists of numerous sources such as supplier credit reports and social media news, updated and analysed in near real-time using machine learning algorithms to offer client customers' valuable insights, such as sustainability indicators on prospective and current suppliers | ||
| Artificial Intelligence | Volkswagen, Porsche and Audi have partnered with AI organisation Prewave to analyse supplier related news from public and social media source in more than 50 languages and 150 countries in an effort to proactively identify supplier breaches of sustainability requirements set out by the manufacturers. The AI algorithm monitors over 4,000 suppliers to transparently provide data, which could be helpful in targeting sustainability risks early on before they occur, thereby reducing risk occurrences and improving compliance | |||
| Fair-Trade and Anti-Corruption | Blockchain | FairChain Foundation is working with coffee farmers in Ethiopia to bring about transparency in the coffee supply chain though blockchain. In addition to digitising the supply chain and providing proof of provenance through an immutable audit trail, the organisation is aiming to transparently drive value back to the farmer and provide access to credit which will ultimately aid in improving living standards. Through transparency and traceability, the entire value chain is visible to all stakeholders, ensuring profits are distributed equally |
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