Baryshnikova,, Anastasiia

Taratukhin, Victor

English

AIS Electronic Library (AISeL)

Association for Information SystemsAIS Electronic Library (AISeL)AMCIS 2017 Workshops Special Interest Group on Big Data Proceedings2017Digital Transformation Framework for SmartFactoryAnastasiia Baryshnikova,Higher School of Economics, asbaryshnikova@gmail.comVictor TaratukhinUniversity of Muenster, victor.taratukhin@sap.comFollow this and additional works at: http://aisel.aisnet.org/sigbd2017This material is brought to you by the Special Interest Group on Big Data Proceedings at AIS Electronic Library (AISeL). It has been accepted forinclusion in AMCIS 2017 Workshops by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contactelibrary@aisnet.org.Recommended CitationBaryshnikova,, Anastasiia and Taratukhin, Victor, "Digital Transformation Framework for Smart Factory" (2017). AMCIS 2017Workshops. 7.http://aisel.aisnet.org/sigbd2017/7 Digital Transformation Framework for Smart Factory    1 Digital Transformation Framework for Smart Factory Anastasiia Baryshnikova, SAP Academic Department, Higher School of Economics, Moscow, asbaryshnikova@gmail.com Victor Taratukhin, SAP SE and ERCIS, University of Muenster, victor.taratukhin@sap.com  Introduction Digital transformation is becoming an essential topic for companies across the globe. Especially, this fact is connected to the upcoming fourth industrial revolution that leads to the development of the smart manufacturing [3]. Digital transformation and smart manufacturing are characterized by  increasing digitalization and interconnectedness of products, v alue chains and business models. The industrial transformation is based on Cy ber-Physical Sy stems (CPS) and the Internet of Things, “interconnecting the fabric and its entire production sphere with intelligent environment” [5]. Thus, modern companies have to adapt their businesses and operating models according to the digital transformation principles in order to stay  competitive. However, while the v ision of a future digital production environment is conclusively described and reasoned in respective literature, especially  small and medium sized enterprises are facing challenges concerning the realization of digital transformation [16]. A study conducted by  PWC conveys this assumption, by  stating that 46% of the questioned companies see the biggest challenge  in the vague roadmap and the lack of concrete advice as for fulfilling digital transformation [13].  Therefore, it is necessary  to create comprehensive digital transformation framework which will allow companies to reshape current value propositions using digital technologies and systems properly and effectively [8]. Enterprise engineering as an approach to digital transformation  In this paper it is proposed a solution of problems concerning the realization of digital transformation by  using principles and tools of enterprise engineering. Enterprise engineering is a complex approach to creation, reorganization and transformation of companies that is based on the analysis of company  strategy, business processes and information sy stems as a whole sy stem [21]. Enterprise engineering approach is successfully  used for different kinds of enterprise transformations because it allows determining the directions for the company  development on the basis of strategic goals and identified weaknesses [22].  There are a lot of enterprise engineering methodologies. The most common of them are TOGAF, Zachman Framework, Gartner Methodology [20].  TOGAF was chosen for creation of Digital Transformation framework for Smart Factory  because this methodology  has the architecture dev elopment method and a lot of metamodels that can be used as the basis of digital transformation process [20]. Digital Transformation Framework for Smart Factory  Digital Transformation framework for Smart Factory  was designed by  enterprise engineering appro ach and analysis of leading strategic initiatives in the area of smart manufacturing and digital transformation. Namely, the framework consists of the reference model of Smart Factory architecture and Digital Transformation Realization Method. The referenc e model was developed by the metamodel of the enterprise architecture methodology  TOGAF and digital transformation concepts. Moreover, TOGAF Architecture Development Method was suggested as the basis of Digital Transformation Realization Method.   Digital Transformation Framework for Smart Factory    2 Reference model of Smart Factory architecture Most developed countries conduct research projects and create strategies in the sphere of smart manufacturing. For instance, Chinese strategy  includes such priority  points as the development of “smart” production equipment and the procurement of new age information technology  [9]. In Europe there are a lot of research projects in the sphere of Internet of Things due to «The Seventh Framework Programme for Research» and others [12]. Moreover, a lot of consulting companies carry out different researches in this sphere [19]. However, it is worth noticing that Germany  and the USA pay  special attention to the implementation of digital transformation principles in manufacturing. Namely, the governments of these countries have developed strategic initiatives for the creation of smart manufacturing (“Industry  4.0” – in Germany , “Advanced Manufacturing” – in the USA) [11]. According to these strategic programs, smart manufacturing should combine information, technology and human ingenuity  to bring about a rapid revolution in the development and application of manufacturing intelligence to every aspect of business [7]. It will fundamentally change the way  the products are invented, manufactured, shipped and sold [13]. It will improve employees’ safety and protect the environment by making zero-emissions, zero-incident manufacturing possible [13].  Programms and initiatives that describe main digital transformation principles are general and abstract enough [2]. So in order to provide companies with some kind of a roadmap a reference model of Smart Factory architecture was developed on the basis of these concepts.  The structure of the reference model was created by  the TOGAF content metamodel. The basic elements of the model are business architecture, information architecture and technology  architecture. For each type of architectures clear criteria, to describe the ideal state of Smart Factory  architecture, were formed on the basis of digital transformation principles explained in government programs, initiatives and consulting reports.  Business architecture  The Smart Factory ought to have customer-oriented culture [5].  IT and business departments should work together in order to react on changes immediately [16].   Operation business processes should be automated. Employees ought to focus on strategic and creative tasks [3].  All decisions should be made on the basis of deep and operational analytics [19].  The Smart Factory should increase digital channels [13].   The Smart Factory ought to diversify product lines by digital products and services [13].  Marketing should be predictive. Namely, marketing decisions should be based on analy tics and forecasts [19].  The Smart Factory  should use globalization advantages to reduce costs, improve efficiency and increase market share [7].  The Smart Factory should create and develop the innovation culture [10].  Information architecture  The Smart Factory should have a centralizing information sy stem that gathers and analy zes customer interconnection history from all channels [6].  Data from all business processes ought to be integrated in one information sy stem [11]   The Smart Factory should provide employees with digital communication channels [4].   The Smart Factory ought to use cloud computing in order to analyze big data gathered from different dev ices and sensors effectively [18].  The Smart Factory should have capabilities towards Big Data processing [12].   The Smart Factory  ought to establish high level of cyber security. It is connected with the need o f stronger protection for Internet-based manufacturing [9]. T echnology architecture  A manufacturing system ought to be smart [15]:  Digital Transformation Framework for Smart Factory    3 1. Cy ber-physical systems; 2. Full automation; 3. Totally  interconnected systems; 4. Machine-to-machine communication.  A manufacturing sy stem of the Smart Factory should be based on sensors. Sensors ought to have the following properties [4]: 1. Zero default/deviation; 2. Reactiv ity; 3. Traceability; 4. Predictability.  The Smart Factory  should use autonomous vehicles that allow to optimize the flow and  to reduce costs [11].  The Smart Factory should use robots with the following characteristics [18]: 1. Real-time autonomy; 2. Full transparency  (contextualization, comprehensiveness, collaborative robot) on data reporting.  The Smart Factory  should produce smart products. Smart products are products that meet the following conditions [12]: 1. Products can be tracked during each stage of the lifecycle; 2. Products include the information about production process; 3. Products can manage the production process autonomously.   The Smart Factory should use smart materials. Namely, materials ought to be connected with all participants of the product lifecycle in order to create smart value-added products [12].  The Smart Factory should use 3D printing for mass customization and rap id prototyping [18].  The Smart Factory  should use the v irtual simulation for launching new products and processes in order to optimize costs and time [11].  The Smart Factory  ought to focus on mass customization. Mass customization has the following features [14]: 1. Customer and marketing intimacy; 2. Flexibility; 3. Perfect match of customer's needs with mass production efficiency; 4. On-demand manufacturing. The main goal of this reference model is to describe the ideal architecture of the Smart Factory  with t he highest digital maturity level [19]. Therefore, companies can choose some of the criteria that are the most suitable for them and use it for digital transformation realization.  Digital Transformation Realization Method TOGAF methodology  includes Architecture Development Method (ADM) that can be used as a basis for digital transformation process. But for the implementation of digital transformation in Manufacturing it is necessary to adapt ADM by  using the reference model of Smart Factory architecture.   So the process of digital transformation in Manufacturing can be the following:  Step 1. Describing basic components of the current enterprise architecture. According to the TOGAF methodology, basic elements are business architecture, information architecture, technology architecture. Step 2. Analy sis of the current architecture state for identifying advantages and weaknesses. Step 3. Designing a goal state of the architecture by  the adaptation of the Smart Factory  architecture reference model. Step 4. Creating a digital transformation roadmap including necessary  steps for switching from current architecture state to goal state. Framework validation The developed framework was successfully  tested on the Russian manufacturing enterprise in timber ind ustry. Namely, the digital transformation roadmap was created by using Digital Transformation Realization Method  Digital Transformation Framework for Smart Factory    4 and the adapted Smart Factory  architecture reference model. The paper includes brief results of the framework validation. According to the Digital Transformation Realization Method, the current enterprise architecture was described for the first time. Analy sis of the business architecture consisted of the strategy  analysis, product line analysis, organizational structure analysis and analysis of business processes. For example, in this paper the results of company business processes modeling are shown. COMPANYCA00Customer SupplierA00OrderCompletionT00RegistratorA01ProducerA02UtilizatorA04PlannerA05ProductionT02PurchasingAgentA06RawDeliveryT04UtilizationT06PlanningT07Payment for OrderT01Payment for RawT05DelivererA07Order DeliveryT08SorterA08ControllerA03QualityControlT03Sorting of ProductT10Sorting of Veneer SheetT09 Fig.1 Core business processes of the m anufacturing enterprise in timber industry  T ransaction  Result  T00 Order Completion R00 Order O has been completed T01 Pay ment for Order R01 Order O has been paid T02 Production R02 Product P has been produced T03 Quality  Control R03 Quality  control of Product P has been done T04 Raw Delivery  R04 Raw R has been delivered T05 Pay ment for raw R05 Raw R has been paid T06 Utilization R06 Utilization U has been done T07  Planning R07  Plan P has been done T08 Order Delivery R08 Order O has been delivered T09 Sorting of veneer sheet R09 Veneer sheet S has been sorted T10 Sorting of product R10 Product P has been sorted T able 1. Results of the transactions Furthermore, all corporate information systems and technology infrastructure were described.   Digital Transformation Framework for Smart Factory    5 As a result of the current enterprise architecture analysis advantages and weaknesses were identified. For instance, the main strength of the current state is ERP sy stem including data from all automated business processes. The next step was to design the goal enterprise architecture on the basis of the reference model of the Smart Factory  architecture. The reference model is some kind of general and universal model; thus, it is worth modifying this model before using for some company. For example, the criterion connected to the creation of smart products has been excluded because the company  products are characterized by  low level of science linkage. Moreover, the point about creation of the integrated and automated value chain was excepted because it is impossible to realize this criterion in conditions of the current country infrastructure. Fur thermore, some points were added in the reference model according to the identified problems and company  goals. For instance, one of the company  strategic goals is an implementation of lean production concepts. So the adapted reference model includes the key directions for the company development. Finally, a digital transformation roadmap was developed. The roadmap consists of local improvement suggestions that allow reaching the goal state of enterprise architecture and realizing the digital transformation. Some steps from the created roadmap are: an automation of the production process, an expansion of IT department, an implementation of the innovation culture and others. Conclusion In this paper research results towards digital transformatio n realization are shown. Namely, Digital Transformation framework for Smart Factory  was designed based on the enterprise engineering approach and analysis of leading strategic initiatives in the area of smart manufacturing and digital transformation was carried out. The framework consists of the reference model of Smart Factory  architecture and Digital Transformation Realization Method. The reference model was developed by  the metamodel of the TOGAF enterprise architecture methodology  and digital transformation concepts. Modified TOGAF Architecture Development Method was suggested as the basis of Digital Transformation Realization Method. The developed framework was successfully tested at the Russian manufacturing enterprise.  References 1. Report to the president accelerating U.S. Advanced manufacturing. October 2014  2. Schuh, G; Potente, T.; Wesch-Potente, C.; Hauptvogel, A. (2013) Sustainable increase of overhead productiv ity  due to cyber-phy sicalsystems. In Proceedings of the 11th Global Conference on Sutainable Manufacturing – Innovation Solutions, pp. 332-335. 3. Brettel, M.; Friederichsen, N.; Keller, M.; Rosenberg, M. (2014) How Virtualization, Decentralization and Network Building Change the Manufacturing Landscape: An Industry 4.0 Perspective. In International Journal of Mechanical, Industrial Science and Engineering 8 (1), pp. 37 -44. 4. Imtiaz, J.; Jasperneite, J. (2013) Scalability  of OPC-UA Down to the Chip Level Enables “Internet of Things”. In 11th IEEE International Conference on Industrial Informatics. Boc hum, pp. 500-505. 5. Kagermann, H.; Wahlster, W.; Helbig J. (2013) Recommendations for implementing the strategic initiative Industrie 4.0. Acatech. pp. 13-78. 6. Edwards, Lawrence, and Robert Z. Lawrence. 2013. Rising Tide: Is Growth in Emerging Economies Good for the United States? Washington, DC: Peterson Institute for International Economics.  7 . Wagels, C.; Schmitt, R. 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Digital Transformation Framework for Smart Factory    6 13. L. Wang and H.-Y. Feng, Adaptive manufacturing, Journal of Manufacturing Systems, vol.30, no. 3, Elsev ier, p.117, 2011 14. E. Abele, J. Elzenheimer, T. Liebeck, and T. Meyer, Reconfigurable Manufacturing Sy stems and Transformable Factories, Chapter 1 :Globalization and Decentralization of Manufacturing, World Trade, pp.4–13, 2012. 15. Kurz, C.: Work in industry  4.0 - Better then cheaper as a sustainable design perspective: Information Management and Consulting. Ed.3, p. 56-60. Imc, Saarbrücken 2012 16. Piller, F. T. (2007) Observations on the Present and Future of Mass Customization. 19, International Journal of Flexible Manufacturing Sy stems, pp. 630-636. 17 . Passiante, G.: Evolving towards the Internetworked Enterprise. Springer Sc ience and Business Media (2010) 18. Anderl, R. (Hrsg.): Smart Engineering – Interdisziplinäre Produktentstehung (acatech Diskussion). Springer, Heidelberg (2012) 19. Digital transformation: a roadmap for billion-dollar organizations, MIT Center for Digital Business and Capgemini Consulting, 2011 20. http://pubs.opengroup.org/architecture/togaf9-doc/arch/index.html 21 . ISO/IEC/IEEE 42010:2011(E) — Sy stems and software engineering— Architecture description 22. ISO 15704-2000 Industrial automation systems — Requirements for enterprise-reference architectures and methodologies.    

Digital Transformation Framework for Smart Factory

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Digital Transformation Framework for Smart Factory

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