A SYNITI SOLUTIONS BRIEF

Effective Data Management Your Trusted Data Partner

The Foundation for Industry 4.0 Success

The manufacturing world is moving inexorably towards the fourth era of

industrialization, termed Industry 4.0. This evolution moves us beyond the
digital revolution of the late 20th and early 21st century when computing
and communication technology became tightly integrated in the manufac-
turing and production process. The new era will be highlighted by the de-
ployment of advanced automation technology that will introduce methods
of self-optimization, self-configuration, self-diagnosis and cognition and rely
on the introduction and integration of myriad new technology components
like mobile devices, Internet of Things (IoT), smart sensors, human-machine
interfaces, big data and advanced analytics. These capabilities will allow
manufacturers to achieve a level of interconnection, information collection
and data transparency, decentralized and automated decision making and
technologically driven support that should result in dramatically increased
The main implementation
business flexibility, enhanced production capabilities and millions of dollars
barriers cited by companies
in savings.
were difficulties in coordinating
Already some businesses are making progress towards these goals. Accord- actions across different organi-
ing to PWC, businesses that have Industry 4.0 (I4) projects underway are zational units; concerns about
growing faster than the market and 50% of them expect to achieve double data ownership, challenges with
digit growth within the next five years. However, the promise of I4 is coming integrating data from disparate
into focus slowly as businesses run into implementation challenges. Ac- sources and lack of necessary
cording to a recent report by McKinsey, 6 in 10 companies “admit strong talent, e.g. data scientists.
barriers are inhibiting progress” in their I4 planning. Perhaps the most signif-
MCKINSEY
icant challenge most organizations cite is gathering control of their data to
the level that I4 requires.

Lack of Data Control at the Heart of Industry 4.0 Risk for Most Manufacturers
In a recent report by Intel, 400 manufactur-
ing experts were asked to highlight the top
technology challenges most likely to de-
rail Industry 4.0 plans in the next 2-3 years.
Three of the top five challenges (Data Sen-
sitivity, Lack of Interoperability and Handling
Data Growth) are directly related to struggles
with data, and a case can be made that the
remaining two (Technical Skills Gap and Se-
curity Threats) contain meaningful data-re-
lated challenges as well.
According to Tyler Warden, the VP of Prod-
uct at Syniti, the importance of this data
challenge can’t be overstated. “The bridge
between edge computing, IoT, the cloud,
data from smart devices and an organiza-
tion’s ERP and business operations, is data.
If your data is not consistent, or if a sensor
is saying a part is breaking down, but your
ERP doesn’t have a consistent understand-
ing of the part or can’t order it, the promise
of Industry 4.0 falls apart. This issue is much
more common than you’d think.”
Data challenges that most companies face,
which increase exponentially with multiple
locations in multiple countries, include is-
sues like data ownership, data definitions,
abbreviations, descriptions in different lan-
guages and lack of consistency. The need
to execute effectively on a Master Data
Management project quickly becomes the
foundational project that must succeed for
an Industry 4.0 initiative to pay dividends.
According to Warden, “Data must be syn-
chronized, aligned and consistent across all
diverse supply chain points. For example, an
“18mm hexagonal lug nut” must be recog-
nized by all systems in the supply chain cor-
rectly. It can’t be “18mm hex lug” at another
factory as it won’t be identified correctly.”
CASE STUDY
Start With Quick Wins
Working Capital: Addressing the Industry 4.0 Data Management Challenge
Spare Parts
When initiating a project like Master Regardless of focus, successful I4 data
Customer Situation Data Management (MDM) across management projects can be recognized
• Company with 7 business units and an international manufacturing or- by the following efforts:
25 plants in Europe using SAP
ganization, it can make sense to • Identification
 and focus on relevant data only
• 120k plus spare part materials
• €12.5 million yearly spend on start with an initial area of focus to •R
 apid categorization of data requiring human
spare parts achieve some quick wins and ear- intervention
• €13.5 million current inventory value ly ROI. Many of the challenges, like • Arbitration of data-related decisions across business
of spare parts
data ownership, inconsistent data, locations and operating units
Objectives duplicates, naming, data defini- •U
 tilization of local and global data experts and own-
• Eradicate duplicate stock ers for expedited and realistic data decision making
tions and language issues are go-
• Reduce capital committed and return
it to working capital ing to be similar regardless of initial • Inclusion of data sourced from throughout the IT
landscape, beyond simply an ERP
• Increase central purchasing power project focus, so choose an area
• Reduce unit costs to begin where you know there is • An Agile approach to deploy ongoing sprints of
data improvement
Projected Financial opportunity for cost savings, for ex-
Return on Investment • A meaningful linkage between business and
ample spare parts management or
technical metadata to drive and streamline
• €1.25 million reduced procurement business partner consolidation.
spend each year on spare par decision making
• €2.025 million reduced current
duplicate parts / over inventory
Having a platform like Syniti’s Knowledge Platform in place positions an enterprise to
Projected Workforce
succeed at the ongoing Data Optimization projects critical to any Industry 4.0 initiative.
Return on Investment
• €188k savings from finding, requisi-
Delivering quick wins in a particular location, country or region will provide the momen-
tioning, physical picking / repicking if tum to build and expand the effort across national boundaries and operating units de-
data allows for first time right spare
part selection
livering progressively larger wins and greater cost savings.

Actual Return on Investment

• €2.025 million one off improvement
• €1.438 million yearly on-going
operating savings

Why Syniti is With the Syniti Knowledge Platform and Our comprehensive MDM solution and it-
erative, quick win focused approach will
twenty-plus years of delivering on thou-
The Right Data sands of mission critical data projects for ensure that the key data management
Optimization the world’s leading businesses, Syniti is building blocks are in place and stable
for when the flood of Industry 4.0 related
ideally positioned to partner with you on
Partner for your client’s Industry 4.0 initiatives. Our data (IoT, smart sensors, ML/AI, etc.) comes
flooding in. It is common for Syniti clients
Industry 4.0 software along with our professional ser-
vice professionals help overcome the key
to identify opportunities in Phase One of
Initiatives data-related barriers keeping your clients
a Continuous Data Quality Improvement
project that will pay not only for the project,
from moving forward. but for future project phases as well.

www.syniti.com
Accelerating global and human progress, @SynitiData
one data challenge at a time.

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