Polycrisis and a Connected Enterprise

Polycrisis and a Connected Enterprise

The world is living through what is already a trending topic called “poly-crisis”, the interaction of crises. This includes such vectors as climate change, geopolitical tensions, economic volatility, and pandemic, all of which are ramped up at one time. This complex web of crises raises a critical question: Given the current poly-crisis, is it possible for the Connected Enterprise, a primary component of modern industrial policy, to not only stably exist but also successfully develop?

Today, Connected Manufacturing, or Industry 4.0, employs IoT, AI, and Analytics to generate a symbiotic flow of information across the manufacturing value chain. This integrated system optimizes performance, output, flexibility, and facilitates a decision-making process by utilizing data in real time. Whereas a crisis can be defined as a singular event or multiple events that worsen an already existing situation or an independent event with cumulative negative implications on a system, there is an overlap of negative effects in a poly-crisis situation making the impacts of the individual crises more destructive and with multiplying effects.

Historically, world events like the oil crisis, the financial crisis, and the pandemics are perfect examples of how poly-crises can significantly affect manufacturing prospects and cause organizations to reconsider their production outlooks, and risk management contingencies. The present poly-crisis, brought about through the Russia-Ukraine war, war in the Middle East, and changing political scenarios elsewhere in the world, affects the functioning of integrated systems within organizations, as a result of economic uncertainty, escalating cost of energy and disruptions to global supply chains.

Still, Connected Manufacturing can become an invaluable tool during the poly-crisis now threatening various industries and enterprises. Here are three strategies to manage the poly-crisis now and in future situations:

• Enhance Supply Chain Visibility and Agility: The recommended technologies include Big Data and AI to enable a cognitive supply chain that preempts disruptions globally, receives notifications, as well as gains information about other supply chain sources. This consists of exploring regionalization and near-shoring strategies that are helpful in staying away from elevated risks with long and intricate supply networks.

• Embrace Digital Twins and Simulation: Introduce digital representations of actual tangible assets that can be used in order to simulate various scenarios and to evaluate the stability of the supply chains. It in turn helps the business better forecast or predict possible risks, armor production timings, and minimize the occurrence of long lost-time.

• Prioritize Cybersecurity: Employ multiple tiers of cyberspace security, performance reviews, as well as measures in order to protect important resources from hackers and cyber terrorists. This includes having some sort of shield, often in the form of code meant to protect an organization’s base from potential intruders, constant assessment of the security risks, and proper enforcement of security awareness across all human resources in an organization.

One can thus conclude that though the contemporary poly-crisis poses a great threat to manufacturing operations, if organizations learn to integrate efficient digital technologies, build the supply chain for flexibility, and master the importance of cybersecurity, there is an escape. Not that this is a problem solely in the field of technology. It is about making businesses more robust, changing the ways in which things are done, and potentially, improving the elasticity, versatility, and overall sustainability for a truly Connected Enterprise.

About the author

Sachin Kotasthane is a Senior Director at HCLTech, specializing in E&A Strategic Sales. With over 25 years of rich and diverse experience in driving manufacturing transformation globally, Sachin has played a pivotal role in helping organizations adapt to evolving challenges in the industrial landscape.

 

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