Factors related to network-level dynamics in the context of DT
| Illustrative quotes on data sharing practices | ||||
|---|---|---|---|---|
| Factor and analysis | [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 | |
| Network governance structure Coordination and attribution or responsibilities | Consistency with current network governance structure Data from connected process and asset/equipment shared consistently with the tiered structure of automotive Connected product data flows orchestrated by OEMs | Planning [A1] [A2] [A3] Especially in the premium segment, the margins are high, and OEMs don’t need to work with suppliers. Instead, when I was working at [name of first-tier supplier], we had to cooperate with suppliers to improve our results; we gathered data – Premium OEM 1, Head of Supply Chain We have a higher competitiveness if we are Industry 4.0 not only inside, but also with suppliers. […] We bear the cost of the technology; we work on data formats – Premium OEM 2, Head of Industry 4.0 The true potential of SCM is still untapped, there is limited interest, starting from the OEMs. We should minimize the working capital in the system, but the contrary is happening – Supplier 3, Head of Purchasing | Traceability [B5] Since these projects have a cost, we are interested in implementing them only for large and critical suppliers – Supplier 2, General Manager We carry the costs of the technology and made available the data for suppliers to carry out their own analytics – Commercial OEM, Head of Industry 4.0 | Service access/provision [C1] [C2] [Name of first-tier supplier] tried to commercialize an app, the customer had to install a box in the car. It was a failure: the relationship is with the car brand – Luxury sports OEM, Head of Connected Vehicles Those who are doing the business are the automakers. If they shared the data, they would share the profit – Supplier 2, Head of R&D We must be owners of the data if we want to build customer-centric value propositions – Commercial OEM, Head of Digital Transformation |
| Quality [B6] [B7] The tiered structure in automotive foresees a strong role of first-tier suppliers in coordinating and monitoring product quality. We must support our suppliers, who are usually smaller companies – Supplier 2, Head of R&D From a technical point of view, we could always share data from our connected working stations, but OEMs do not ask this – Supplier 2, Head of Production | Quality/New product development [C7] The responsibility is with us. We are the ones who translate what you get out of data into a product – Premium OEM 2, Head of Innovation We don’t share data. The more we analyze them, the more we can […] find patterns, isolate the causes, alert the customer, and have them come back in – Premium OEM 1, Director of Connected Vehicles The interdependencies among the various systems need to be considered – Commercial OEM, Head of Connected Vehicles | |||
| Environmental complexity and dynamism Interrelated and rapid environmental changes | High environmental complexity and dynamism Data shared because of: – high demand/supply variability – high pace of innovation | Planning [A2] [A3] We can confirm customer orders in real time, as we can determine the feasibility considering [supplier visibility]. This is important in the face of more frequent demand variations – Supplier 1, Supply Chain Manager There is more supplier visibility working on a make-to-order basis – Mass market OEM, production manager More and more we face SC disruptions, as during the Covid outbreak. This prompted us to look for visibility, so that we can see what parts can be pulled ahead to guarantee continuity – Supplier 3, Head of Purchasing | Process optimization/maintenance [B8] [B9] We feel that we need to be faster, technology is evolving so rapidly. That’s why we have data-based collaborations with external players – Supplier 2, ICT Director Data sharing depends on the sense of urgency around a specific topic. Whenever the customers feel that the industry is moving fast, they are more willing to share – Metal equipment, CIO | Service access/provision [C4]Question is who is going to be faster. We chose to run both strategies. We work with big tech to be fast and share data with them, with the risk of being decoupled from the customer. The market is developing very fast, but we try not to sell our soul – Premium OEM 2, Head of InnovationSlowly but alone is a nonsense in these days – Supplier 1, Head of R&D |
| Traceability [A7] Just ten years ago, our product was made of 20 parts, now up to 70, 50 are purchased. In the case of quality issues, we need to report OEMs within 24 hours. We need new ways of handling a staggering amount of data – Supplier 1, Head of R&D | ||||
| Low environmental complexity and dynamism Data not shared in stable environments | Planning [A2] We don’t have real-time visibility on suppliers. As far as they comply with our requests, we have no interest – Premium OEM 1, Head of Production | |||
| Assimilation of technological/communication standards Definition and adoption of common technical specifications | High assimilation Data shared when: – there are standards/common data formats – digital platforms and the blockchain allow to overcome the issue | Logistics [A4] [A5] Since a few years, our system has been based on GTL, Global Transport Labels. We can involve both suppliers and customers. It is also possible to change the label through electronic links reported in a cloud-based system – Supplier 3, Head of Purchasing | Service access/provision [C1] [C5] [C6] Large fleet operators own trucks of multiple brands. They have their own systems and access raw data agnostically – Commercial OEM, Head of Connected vehicles We agreed to data exchange for mixed fleets through aggregation platforms and by making our API available – Commercial OEM, Head of Digital Transformation «Platforms can share and store data to be processed in large volumes and that are not specific to any OEM – Premium OEM 1, Director of Connected Vehicles | |
| Traceability [A7] The blockchain creates an interoperability layer between the information systems of the different firms – Supplier 1, Supply Chain Manager | ||||
| Low assimilation Data not shared in the absence of standards/common data formats | Planning [A1] [A2] [A3] One problem is the lack of standards and technologies for SC data exchange beyond dyadic level – Supplier 2, General Manager Data sharing in SC is only going to work if we have standards. […] This is why we are working with [Supplier 2] on a platform and we joined industry initiatives – Commercial OEM, Head of Digital Transformation People talk much about process integration along the SC. It is a bit naïve today. You can define formats for data exchanges with your suppliers, but then you are “married” to them. It is a non-sense in today’s business environment, where everything is changing so fast. The other possible strategies are collaboration platforms and interoperability standards; in this case, it might work – Supplier 1, ICT Director | Process optimization/maintenance [B8] [B9] There are many firms that would like to share data, but the press manufacturer has its own idea, the mold-maker its own… and so on. There have been attempts to standardize data exchanges, but there is no top-down direction – Plastic equipment, CIO «Machines have different connectivity technologies and data formats, which prevent data sharing even within the group – Supplier 1, ICT Director Usually, manufacturers do not collaborate on data projects with every machine producer they bought from. Greenfield investments have already started off with this logic. One provider is building the whole plant. Whenever the plants have adopted different technologies over the years, the best thing is to work with system integrators – Metal equipment, Head of PM To enable data sharing, we have worked on a common ontology and semantic – Metal equipment, CIO | Service access/provision [C3] [C4] [C5] [C6] Most cars are still not connected. We discussed many times with OEMs about getting the data through data ports and Bluetooth connectivity with the user’s cell phone. However, this is not easy. There is no standard – Supplier 2, Head of R&D As regards to vehicle-to-vehicle communication large groups are doing it on their own, but until there is a standard for everyone this is not going to fly – Luxury sports OEM, Head of Connected Vehicle I doubt the industry will move towards a complete standardization of connected vehicle data. There are significant customizations of on-board devices and services. There are already some standards; there will be more going forward. However, this will not cover all possible data and parameters – Luxury sports OEM, Head of Connected vehicle | |
| Logistics [A4] [A5] We are collaborating with large logistics providers. They have their own systems; they will always object to the system of their customers – Supplier 3, Head of Purchasing | ||||
| Illustrative quotes on data sharing practices | ||||
|---|---|---|---|---|
| Factor and analysis | [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 | |
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