Factors related to data characteristics in the context of DT
| Illustrative quotes on data sharing practices | ||||
|---|---|---|---|---|
| Factor | [A] Data sharing practices related to process connectivity | [B] Data sharing practices related to asset/equipment connectivity | [C] Data sharing practices related to product connectivity | |
| Core-relatedness Data related to a firm’s competitive advantage in its core business | High core-relatedness Data revealing: – product performance – innovation know-how – decisions/expertise in production Data that: – are used for service orchestration and the provision of distinctive services | Production planning [A3] Manufacturers are usually interested in keeping in-house the control of planning and related data. It is something they have always done; they do not need to look for external capabilities for that. Most commercial software solutions are designed for this – Software corporation, Chief Marketing Officer | Quality [B7] Product quality is what differentiates us, it is part of our know-how. We don’t need or want to share data with our suppliers. It is enough to share the outcomes of our analysis with them – Supplier 1, Head of R&D | Service access/provision [C1] Servitization opportunities are out there. We started off saying: my sensors, my data. But OEMs were not seeing it this way – Supplier 2, General Manager |
| New product development [A8] [A9] Our data and methods are part of our distinctive know-how – Plastic equipment, CIO Some customers have now greater expertise, so they increasingly want to verify our work. Before it was like: “Our suppliers are the experts, they told me it works.” Now, they want to verify and keep the data – Supplier 1, Head of R&D | Process optimization [B8] It is difficult to convince customers that “sharing their secrets” will make them save time and money. … Truth is, that the goal of all manufacturers is to increase productivity and quality … they obviously hold on to any data or information that constitutes a source of competitive advantage – Metal equipment, Head of Project Management | Quality/new product development [C7] There are issues that OEMs manage depending on the context, they might avoid recall procedures if the parameters fall within certain limits. These are choices every company makes daily and are confidential. Should we be able to access sensor-generated data, we might also see into these issues … – Supplier 2, Managing Director | ||
| Low core-relatedness Data related to: – already outsourced activities – basic traceability information – services not related to core value proposition | Logistics [A4] [A5] [A6] Inbound logistics of materials have long been outsourced, so we have always been sharing the sequence of production within our supplier park. Now this is happening in real time – Mass market OEM, Production Manager We have no issue in sharing data to access a better service not related to our core activities – Supplier 1, Supply Chain Manager | Logistics [B1] [B4] Again, sensorized assembly lines only increase the accuracy and the timeliness of data we were already sharing to enable our suppliers to work in a JIS environment – Mass market OEM, Production Manager The supplier did not see any risk in sharing data on the temperature and humidity in the containers, it is not related to something they are doing – Supplier 3, Head of Purchasing | Product use [C2] Should we access connected vehicle data, then we would need to offer a service level that is beyond our capabilities – Dealer 1, Marketing Manager | |
| Traceability [A7] We share the code of the material, the date of production, the time of production, quantity, and machines used. Our internal traceability system includes machine data, such as control tests, process variables, and machine setting. … We would have seen too much risk in giving away data related to decisions we make in our core activities – Supplier 1, ICT Director | Maintenance [B9] Machine builders access the data: controlling machine failures are their business – Supplier 2, Production Manager Machine data are shared for troubleshooting or preventive maintenance, it is not sensitive – Supplier 1, Head of Purchasing | Service access/provision [C3] [C4] [C5] [C6] When it is about services that are commodities, we have no issues – Premium OEM 2, Head of Innovation We have partnerships for insurance services – Commercial OEM, Head of Digital Transformation Sharing connected vehicle data is hard for those OEMs who have invested in their own services and data infrastructure. If you are a smaller OEM or offer a different class of products, that’s not where you are competing. Even if you look at [Name of OEM], they go very deep with the Google experience, having put their money into electromobility. They are sharing more data with Google than is needed – Premium OEM 1, Director of Connected Vehicles | ||
| Fungibility Data that are specific to a project/supply agreement, not to be used otherwise | High fungibility Data revealing: – efficiency – customer prioritization – machine parameters – product performance | Production planning [A2] Suppliers are hesitant … They fear that we can calculate their efficiency and leverage this in price negotiations – Supplier 3, Head of Purchasing We’re still facing some resistance because we will know if our suppliers are not producing for us but for a competitor – Premium OEM 2, Head of Industry 4.0 | Process optimization [B8] Once you customize a machine, you can achieve higher efficiency levels and want to keep this advantage for yourself. As you connect the machine for process optimization, the provider can see into your configurations – Supplier 1, Head of R&D | Quality/new product development [C7] If we had access to connected vehicle data, we could improve future design based on the operating conditions and reduce overdesign. This visibility reveals many other engine parameters not related to our systems and components. … I understand that the customer doesn’t like this – Supplier 2, Managing Director |
| Low fungibility Data specific to: – the interorganizational collaboration activity – a limited timeframe | Production planning [A1] Thanks to the cloud, we can open up specific portions of our ERP to share how much materials we have in–house. Working with [OEM], suppliers know when their materials are being assembled – Supplier 2, Production Manager | Logistics [B2] [B3] The tracking starts as the supplier loads the truck – Supplier 2, ICT Director We developed the RFID solution for incoming boxes. It is specific to delivery – Premium OEM 2, Head of Industry 4.0 | Service provision [C3] Dealers have access to data of the vehicles they sold, so that they can plan an intervention and order spare parts – Commercial OEM, Head of Connected Vehicles | |
| Logistics [A5] We can visualize flows that relate to our business, like when you monitor the status of a parcel that is delivered to you at home – Premium OEM 1, Head of Production | Traceability [B5] When they produce parts for us, we can see through an app the uptime of the machine – Supplier 3, Head of Purchasing Vendor tooling agreements imply that suppliers use their capacity exclusively. We access the data of a machine that is basically operating just for us – Commercial OEM, Head of Industry 4.0 | Quality/new product development [C7] In case of specific issues, OEMs select the data so that we can analyze them. Similarly, should we need to work with our suppliers, we can select what we want to share—just the relevant parameters—so that we have a lower risk. This is costly, that’s why it is not done on a steady basis – Supplier 2, Head of R&D | ||
| Quality [B6] [Name of OEM] wants to know for every component what bolts are screwed because this impacts their product quality. We have connected working stations to share these data – Supplier 2, Production Manager | ||||
| Process optimization [B8] Think of an assembly line with ten production processes in sequence that produce a defective result. It is difficult to identify the root cause. In this case, machine producers can see into our data, for example, the last 12 hours of production – Supplier 1, Head of Purchasing | ||||
| Illustrative quotes on data sharing practices | ||||
|---|---|---|---|---|
| Factor | [A] Data sharing practices related to process connectivity | [B] Data sharing practices related to asset/equipment connectivity | [C] Data sharing practices related to product connectivity | |