Sofia Business School

Digital Transformation

November 8-10, 2019

NBU
DEVOTED TO DIGITAL TRANSFORMATION
Manufacturing SME Challenges
 Bulgaria is significantly lagging behind in adopting
digital technologies
 Lack of awareness among companies from non ICT
sectors
 Underestimation of complexity of digital
transformation, frequently considered as purchase
of machines with ML, AI capabilities
 Lack of necessary skills and competences of the
employees
 Reluctance to change
 Digital transformation was not among topics in
current period 2014-2020 planning, there is no
strategy and as a results there are no tools to
support it; lack of financing
 The infrastructure is available but companies do
not have information about it and how it could be
used for prototyping, testing and validation.

DEVOTED TO DIGITAL TRANSFORMATION

Bulgarian Technology and Innovation Center – DigiTech 4.0
 Founded in 2017 in Sofia, Bulgaria
by ICT Cluster (coordinator),
CETUS and MOVE.BG

 22 supporting organization

 Acts as an one-stop-shop, serving

companies to digitize their
business

 The competitive advantages -

knowledge, expertise, network
and access to the necessary
facilities and infrastructure for
prototyping, process
improvement, product
development and testing.

 Part of European Network for

Advanced Manufacturing

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ADMA - Factory of the Future transformation methodology

European Advanced Manufacturing Support Center -

http://www.adma.ec

• Develop a uniform SME transformation methodology

• Certificate advisors through train-the-trainer sessions
• Test the ADMA transformation methodology across EU
• Create peer-to-peer learning networks for champions
• Organize a Factory of the Future showcase event

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Eligibility criteria for Manufacturing SMEs

• Basic Lean principles are already applied in the company

• CEO/owner has innovation mindset
• 1st innovation breakthroughs already realized within the company
• Agility towards changing customer demands and expectations
• Fully committed management team is already present

DEVOTED TO DIGITAL TRANSFORMATION

 ADMA transformation process
Phase 1 Phase 2 Phase 3 Phase 4 Factory of
Vision & Factory of the Future Transformation Implementation the Future
ambition scan plan plan assessment

Description of the Interview and Results of the FoF SMART challenges and matching
ambition level with company visit, scan putting the objectives for each transformation
regards to all analysis (SCAN) will focus on step
stakeholders: clients be performed to change List of “identified solutions” to
(product), individual highlight the opportunities meet the challenges and objectives
employees, company’s within specific
shareholders, transformation transformation Analysis of investment, impact and
society, etc. maturity areas risk

Multi-annual plan for implementing

the “selected solutions”

Combination of direct
implementation, R&D and
feasibility studies
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6
The 7 Transformation Areas

1. Advanced Manufacturing Technologies

2. Digital Factory
3. ECO Factory
4. End-to-End Customer Focused Engineering
5. Human Centred Organisation
6. Smart Manufacturing
7. Value Chain Oriented Open Factory
DEVOTED TO DIGITAL TRANSFORMATION
The 7 Transformation Areas

T1 – Advanced Manufacturing Technologies

This transformation is based on deploying state-of-the-art manufacturing
devices. Given the high wage level, manufacturing SME's cannot afford to
manufacture using machinery that is outdated and hampers productivity.
Factories of the Future develop their own devices for key components in
production, and thus boast machinery that is globally unique.

T2 – Digital Factory
All employees are supported by digital and integrated processes. Integral
control of the digital information flow ensures the simulation of virtual
scenarios before actually implementing the activities. The digital factory
guarantees the accuracy of the data at any given moment in time. Each data
item is only entered once into the system and all other systems retrieve the
data item automatically to create new information, a so-called Single Source
of Truth.

DEVOTED TO DIGITAL TRANSFORMATION

The 7 Transformation Areas
T3 – Eco Factory
The production system is aimed at a drastic reduction in energy consumption,
raw material usage, risk and cost and the use of renewable energy sources,
closing the material cycle in order to optimize their efficiency and to improve
social responsibility images

T4 – End-to-End Customer Focused Engineering

Manufacturing SMEs use customer expectations as the key driver and
starting point for all new developments and processes.
Robust, high-quality product, manufacturing and service creation processes
are the result of a cross-functional and cross-departmental design approach.
Supported by the use of virtual models and simulation tools where possible,
this transformation optimized processes to create maximum value
throughout the design, manufacturing, usage, servicing and disposal part of
the company’s value chain.

DEVOTED TO DIGITAL TRANSFORMATION

The 7 Transformation Areas
T5 – Human Centered Organization
Employee involvement in the future development of the company is crucial.
Individual factory workers need to be transformed to a group of employees
with the autonomy and space to channel their talent, creativity and initiatives
within the context of an innovative organization. The best fitting leadership
style (servant, inspirational, coaching, …) should enable competence and skill
development. Sustainable employability is about motivating and supporting
individual employees to continue to contribute to a(ny) labour process,
through continuous/repetitive evaluation of their skills and update of their
competencies through training, coaching, etc

T6 – Smart Manufacturing
Smart Manufacturing can be defined as the combination of the smart use of
people’s capabilities, the smart use of technology and the deployment of a
(self-) learning production system.
The purpose is to create maximum efficiency, flexibility and value creation of
machine operators and employees on the shop floor.

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The 7 Transformation Areas

T7 – Value Chain Oriented Open Factory

 Innovations of the highest quality and using complex technologies are
increasingly being carried out by self-organizing networks. Networks are
interlinked organizations that generate, acquire and integrate specific
knowledge and skills to co-create new solutions, products and/or
technologies. Self-organization refers to the ability of these networks to
combine/recombine learned skills based on flexible and de-centralized
management.
 In a world of exponentially increasing technology developments and fast
changing customer demands, companies can no longer depend exclusively
on proprietary research and resources. They develop their products,
manufacturing processes and services with the complete value chain in
mind. Co-creation expands innovative capabilities of individual
companies. Factories are evolving from solo-players to networked
organisations that share both risk and capital.

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 Factories of the Future are future-oriented manufacturing
companies embracing Industry 4.0 opportunities to their full
extent.
Can you improve your manufacturing?

>>> START THE SCAN >>>

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First Bulgarian SMEs testing the methodology

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DEVOTED TO DIGITAL TRANSFORMATION

00 359 2 489 97 44

office@ictcluster.bg

„Tsarigradsko Shosse” Blvd., 7th km

BIC IZOT, Floor 2, Office № 290,1784 Sofia

www.ictcluster.bg