The services, such as a diagnosis suggestion. Compared

The term Industry 4.0
was introduced by the government of Germany that relates to a new industrial
revolution. Industry 4.0 stands for the fourth industrial revolution. After
mechanization (Industry 1.0), mass production (Industry 2.0) and automation
(Industry 3.0), the Internet of Things and Services is now moving into
production. Industry 4.0 technologies enable outstanding growth opportunities
and competitive advantages for Germany as a business location. Forecasts assume
that companies can increase their productivity by about 30 percent by means of
Industry 4.0. Industry 4.0 does not end at the factory gates. After all,
intelligent products not only actively control their own production process,
but after delivery to the customer, they are also a platform for new business
models. In the future, there will be billions of intelligent products that are
connected to the Internet during their lifetime and that store huge amounts of
data (Big Data) about their own operating and product status in a data cloud.
Thanks to the data obtained, products can be optimized. In addition, learning
algorithms link the delivered data to new information (smart data). They
provide the basis for offering the customer, in addition to the physical
product, individual data-based services (Smart Services).1
For example, an operator of diagnostic devices can collect and evaluate data on
the entire inventory of the equipment in his or her responsibility and generate
new services, such as a diagnosis suggestion. Compared to current business
models, the underlying database will be many times higher. Also, SAP has also
come up with its new products to greet the challenges of Industry 4.0. The S/4
HANA software is a ticket to entire new world of Warehouse Management Systems
after SAP EWM and ERP.

 

1.    
The road
to revolution for Logistics

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Logistic has come a long way. The markets for,
and the marketing of, goods and services have undergone profound
transformations over the past 30 years. Logistics has played an important role
in such transformation. Before 1950s logistics was thought in military terms
only. The aim was to transport weapons, person-nel and food. Logistic
activities were not quite organized which led to conflicts between the provider
of the services. Understanding the past and acknowledging the present enables an
extrapolation to what may be in store for logistics/SCM later on. The pattern
toward expanded globalization, free trade, and out-sourcing all add to a
proceeded and developing enthusiasm for coordination’s/SCM. According to a
McKinsey & Company study,

 

“by the year
2020, 80% of the goods in the world will be manufactured in a country different
from where they are consumed compared with 20% now.”2

2.    
SAP: The
best IT brand for logistics

With 22.06 billion
euro profit every year SAP is the world leader providing business related
applications in terms of software and software – related service revenue. Based
on market capitalization SAP is the world’s third largest software
manufacturer. The companies vision quoting from SAP website “Is to help the
world run better and improve people’s lives.”

The 45-year-old
company is making big in the market and is coming with new products to enhance
and fasten the business process. Back in 1972, the company was founded by 5
German entrepreneurs who had the vision for business potential of technology.
Starting with one customers and a handful of employees, today the company has
more than 345,000 customers all around the world and is stronger with more than
87,800 employees.3

SAP also provides
software’s to run real-time supply chain for their customers. From planning the
demand to managing the inventory the software supports all the functions
necessary to run an efficient and effective supply chain. The company is coming
up with many new software systems that will help to optimize the supply chain
network even more.

Focusing and
delivering services to almost all industries from customer sector to chemical
to finance to aerospace and defence. SAP is making its pathway open for all by
providing beneficial services.

1 Clemens Otte (2015)

2 Ballou (2016)

3 SAP Website

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