- \n
- What is industry 4.0?<\/a><\/li>\n
- What is digitalization?<\/a><\/li>\n
- Digitalization use cases<\/a><\/li>\n
- How can supply chain managers benefit from digitalization?<\/a><\/li>\n
- How can brand and marketing managers benefit from digitalization?<\/a><\/li>\n<\/ol>\n<\/div>\n\n
According to\u00a0a PwC report<\/a>, Industry 4.0 is \u201cabout companies orienting themselves to the consumer through e-commerce, digital marketing, social media, and the consumer experience [\u2026] through the vertical integration of research and development, manufacturing, marketing and sales, and other internal operations, and new business models based on these advances.\u201d<\/p>\n
A report by Deloitte<\/a>\u00a0states that Industry 4.0 will change:<\/p>\n
- \n
- How we make things<\/li>\n
- How those things transit (through autonomous logistics and distribution)<\/li>\n
- Consumers interacting with them<\/li>\n
- The experiences they expect to have as they interact with companies<\/li>\n<\/ul>\n
Many businesses are, slowly but surely, pushing towards deploying new technologies to accelerate traditional industrial and manufacturing practices. In part, making Industry 4.0 a reality.<\/p>\n
However, many are digitizing rather than digitalizing \u2014 two terms that are commonly thought to be interchangeable (they\u2019re not).<\/p>\n<\/div>\n\n
According to\u00a0Gartner<\/a>, digitization is \u201cthe process of changing from analog to digital format.\u201d This process creates digitized data \u201cwithout any different-in-kind changes to the process itself,\u201d which can then be used for business purposes.<\/p>\n
That\u2019s where\u00a0digitalization<\/strong>\u00a0comes in, which\u00a0happens when<\/a>\u00a0\u201cdigital technologies [are used] to change a business model and provide new revenue and value-producing opportunities.\u201d<\/p>\n
Anti-counterfeiting is one of the benefits of digitalization. Some companies are more plagued by counterfeits than others.<\/figcaption>\n <\/figure>\n\n What happens if they decide to digitalize the tracking process? For example, the company might place\u00a0secured QR codes<\/a>\u00a0on the tags of their items, which would allow consumers to authenticate the product in question simply by scanning the code with an app.<\/p>\n
Read here to learn about:<\/p>\n
- \n
- Five Steps To Digitizing Your Product<\/a><\/li>\n
- Strategies For Optimizing Your Supply Chain With Data<\/a><\/li>\n
- How Marketing Managers Can Improve Customer Loyalty Through Digitalization<\/a><\/li>\n<\/ol>\n<\/div>\n\n
The QR code we mentioned previously is, in fact, one of our core Scantrust products. Here, we strongly believe that secure digitalization has immense benefits for any company dealing with physical goods. But, again, this is regardless of the industry that you are in.<\/p>\n
As you probably know, product deliveries tend to follow a very standardized process. For example, the aforementioned PwC report outlines it as such:<\/p>\n
- \n
- The marketing team will analyze consumer demand, and based on their findings, attempt to predict sales for the coming period.<\/li>\n
- With those numbers in mind, manufacturing will order raw materials, components, and parts to prepare to meet that demand.<\/li>\n
- The distribution team accounts for upcoming changes in the amount of product from the pipeline and updates consumers when they can expect their deliveries.<\/li>\n
- If all goes well, the gap between demand and supply throughout the system is as small as possible.<\/li>\n<\/ul>\n
Naturally, the report continues, this \u201crarely happens,\u201d largely due to the lack of transparency between teams and departments. As a result, none of the \u201clinks in the supply chain really understand what any other link is doing. Or needs.\u201d<\/p>\n
The vision of Industry 4.0 is to build a digital supply chain. One that would break down the walls and cause it to be fully transparent to all players involved. This would require companies to not only digitize but to digitalize.<\/p>\n
The rest of this article will dive into examples of how digitalization can improve your business processes. Whether you\u2019re in charge of overseeing the supply chain, selling your brand, or marketing products.<\/p>\n<\/div>\n\n
If your company deals with physical goods, you\u2019ll know that the supply chain is the heart of your business.<\/p>\n
According to the same report by PwC, companies with \u201chighly digitized supply chains and operations\u201d can expect efficiency gains of 4.1%, as well as a 2.9% increase in revenue annually.<\/p>\n
In\u00a0another study by PwC<\/a>, a third of respondents also say their companies have started to digitalize their supply chains, with another 72% expecting to have done so five years from now.<\/p>\n
<\/figure>\n<\/div>\n\n \n ![\"shutterstock_135189911-1024x683\"\n](\"https:\/\/cms.scantrust.com\/wp-content\/uploads\/2022\/07\/shutterstock_135189911-1024x683-1.jpeg\"\n)
\n <\/picture>\n Digitalization has already made its way into many factories. The difference today is that new technology, like secure QR codes and serialization, have created more benefits for business and end consumers alike.<\/figcaption>\n <\/figure>\n\n For instance, consumer products company Colgate-Palmolive\u2019s\u00a0recent adoption of Smart Manufacturing<\/a>\u00a0has allowed them to \u201caddress complex problems and further achieve operational excellence\u201d:<\/p>\n
This level of transparency enables\u00a0supply chain traceability<\/a>, allowing you to analyze all the moving parts in your chain at a more granular level. Ideally, each of your physical products would have a \u2018digital identity\u2019\u2014 their unique data and content \u2014that you can follow through the chain. This, in turn, allows you to fine-tune your processes to accommodate important consumer needs and wants.<\/p>\n
- \n
- Tag individual products based on their unique data and attributes, giving them \u2018digital identities which can be tracked and traced throughout the supply chain<\/li>\n
- Early detection of anomalies occurring anywhere in the chain that might affect supply and demand<\/li>\n
- Set up automated alerts when anomalies are detected and easily identify affected products<\/li>\n
- Authenticate products by tracing them back to their provenance<\/li>\n
- Increase efficiency and lower costs by optimizing and automating such processes<\/li>\n<\/ul>\n<\/div>\n\n
Previously, we discussed how today\u2019s consumers want to be as informed as possible.<\/p>\n
This applies not just to luxury goods but even day-to-day consumables such as coffee and wine. Modern consumers want to know that their consumption choices are socially responsible and environmentally friendly\u2014and they are willing to put their wallets where their mouths are.<\/p>\n
According to\u00a0a survey<\/a>\u00a0conducted by data and measurement company Nielsen, 66% of respondents indicated that they\u2019re willing to pay more for products and services that come from companies that are committed to positive social and environmental impact.<\/p>\n
This is especially so when it comes to food\u2014at least, for Americans. A\u00a0recent study commissioned by the USDA<\/a>\u00a0(U.S. Department of Agriculture) found that more than half of Americans were concerned about bioengineered food.<\/p>\n
In the case of food, many brands are interested in using QR codes on packaging \u201cto disclose GMO and other food information [which] provides a couple of major benefits to food manufacturers.\u201d Already, Austrian grocery chain SPAR \u00d6sterreich has taken a more direct approach,\u00a0deploying over a hundred iBeacons per store<\/a>\u00a0which would allow them to \u201cissue tailored messages about promotional campaigns to customers.\u201d<\/p>\n
Brand marketing efforts of businesses benefit from digitalization in these ways:<\/p>\n
- \n
- Increase brand loyalty by assuring end-consumers that products are socially and environmentally friendly and authentic by providing proof that tracks them back to their provenance.<\/li>\n
- Encourage consumers to follow, re-engage, and advocate for your brand and products through gamification, loyalty programs, and storytelling campaigns.<\/li>\n
- Maximize conversions by providing relevant information at the right moment in the consumer journey<\/li>\n
- Sell more units by bundling products that consumers tend to buy together with a discount in the right season<\/li>\n<\/ul>\n
Read other articles in this series:<\/p>\n
- \n
- Five Steps To Digitizing Your Product<\/a><\/li>\n
- Strategies For Optimizing Your Supply Chain With Data<\/a><\/li>\n
- How Marketing Managers Can Improve Customer Loyalty Through Digitalization<\/a><\/li>\n<\/ol>\n<\/div>","protected":false},"excerpt":{"rendered":"
Digitalization, through the fourth industrial revolution, more widely known as Industry 4.0, is the link to the future and providing more of what today’s end consumers want from products.<\/p>\n","protected":false},"author":3,"featured_media":1435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"editor_plus_copied_stylings":"{}"},"categories":[9],"tags":[],"acf":[],"yoast_head":"\n
What is digitalization? The core of Industry 4.0 - Scantrust<\/title>\n<meta name=\"description\" content=\"With growing digitalization and the upcome of industry 4.0, businesses are experiencing a digital shift in numerous business activities.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is digitalization? The core of Industry 4.0\" \/>\n<meta property=\"og:description\" content=\"With growing digitalization and the upcome of industry 4.0, businesses are experiencing a digital shift in numerous business activities.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cms.scantrust.com\/what-is-digitalization\/\" \/>\n<meta property=\"og:site_name\" content=\"Scantrust\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-27T19:08:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-07T10:20:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cms.scantrust.com\/wp-content\/uploads\/2022\/07\/scantrust-digitalization-snippy.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"802\" \/>\n\t<meta property=\"og:image:height\" content=\"802\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nestor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nestor\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What is digitalization? The core of Industry 4.0 - Scantrust","description":"With growing digitalization and the upcome of industry 4.0, businesses are experiencing a digital shift in numerous business activities.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_GB","og_type":"article","og_title":"What is digitalization? The core of Industry 4.0","og_description":"With growing digitalization and the upcome of industry 4.0, businesses are experiencing a digital shift in numerous business activities.","og_url":"https:\/\/cms.scantrust.com\/what-is-digitalization\/","og_site_name":"Scantrust","article_published_time":"2022-07-27T19:08:27+00:00","article_modified_time":"2022-10-07T10:20:06+00:00","og_image":[{"width":802,"height":802,"url":"https:\/\/cms.scantrust.com\/wp-content\/uploads\/2022\/07\/scantrust-digitalization-snippy.jpg","type":"image\/jpeg"}],"author":"Nestor","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Nestor"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/cms.scantrust.com\/what-is-digitalization\/#article","isPartOf":{"@id":"https:\/\/cms.scantrust.com\/what-is-digitalization\/"},"author":{"name":"Nestor","@id":"https:\/\/cms.scantrust.com\/#\/schema\/person\/308ecf021e95660c56a8e40d24b9a32b"},"headline":"What is digitalization? The core of Industry 4.0","datePublished":"2022-07-27T19:08:27+00:00","dateModified":"2022-10-07T10:20:06+00:00","mainEntityOfPage":{"@id":"https:\/\/cms.scantrust.com\/what-is-digitalization\/"},"wordCount":7,"commentCount":0,"publisher":{"@id":"https:\/\/cms.scantrust.com\/#organization"},"articleSection":["QR codes"],"inLanguage":"en-GB","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/cms.scantrust.com\/what-is-digitalization\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/cms.scantrust.com\/what-is-digitalization\/","url":"https:\/\/cms.scantrust.com\/what-is-digitalization\/","name":"What is digitalization? The core of Industry 4.0 - Scantrust","isPartOf":{"@id":"https:\/\/cms.scantrust.com\/#website"},"datePublished":"2022-07-27T19:08:27+00:00","dateModified":"2022-10-07T10:20:06+00:00","description":"With growing digitalization and the upcome of industry 4.0, businesses are experiencing a digital shift in numerous business activities.","breadcrumb":{"@id":"https:\/\/cms.scantrust.com\/what-is-digitalization\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cms.scantrust.com\/what-is-digitalization\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/cms.scantrust.com\/what-is-digitalization\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/cms.scantrust.com\/"},{"@type":"ListItem","position":2,"name":"What is digitalization? The core of Industry 4.0"}]},{"@type":"WebSite","@id":"https:\/\/cms.scantrust.com\/#website","url":"https:\/\/cms.scantrust.com\/","name":"Scantrust","description":"QR code solutions for global brands","publisher":{"@id":"https:\/\/cms.scantrust.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/cms.scantrust.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/cms.scantrust.com\/#organization","name":"Scantrust","url":"https:\/\/cms.scantrust.com\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/cms.scantrust.com\/#\/schema\/logo\/image\/","url":"https:\/\/cms.scantrust.com\/wp-content\/uploads\/2023\/04\/Logo-Full-color-on-blueblue.png","contentUrl":"https:\/\/cms.scantrust.com\/wp-content\/uploads\/2023\/04\/Logo-Full-color-on-blueblue.png","width":600,"height":60,"caption":"Scantrust"},"image":{"@id":"https:\/\/cms.scantrust.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.linkedin.com\/company\/scantrust\/"]},{"@type":"Person","@id":"https:\/\/cms.scantrust.com\/#\/schema\/person\/308ecf021e95660c56a8e40d24b9a32b","name":"Nestor","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/cms.scantrust.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/3780aa3b341165f6f4867f4174a878ae?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3780aa3b341165f6f4867f4174a878ae?s=96&d=mm&r=g","caption":"Nestor"}}]}},"_links":{"self":[{"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/posts\/1329"}],"collection":[{"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/comments?post=1329"}],"version-history":[{"count":23,"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/posts\/1329\/revisions"}],"predecessor-version":[{"id":2571,"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/posts\/1329\/revisions\/2571"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/media\/1435"}],"wp:attachment":[{"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/media?parent=1329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/categories?post=1329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cms.scantrust.com\/wp-json\/wp\/v2\/tags?post=1329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"shutter3_1135304483-1024x679\"\n](\"https:\/\/cms.scantrust.com\/wp-content\/uploads\/2022\/07\/shutter3_1135304483-1024x679-1.jpeg\"\n)
\n <\/picture>\n ![\"shutter2-1024x683\"\n](\"https:\/\/cms.scantrust.com\/wp-content\/uploads\/2022\/07\/shutter2-1024x683-1.jpeg\"\n)
\n <\/picture>\n <\/figure>\n\n