The company is the main live cell of value added at productive, economic and social ecosystems. Therefore, the company-business cell is the key model of transformation and contribution for value added. It is made of a: central governance nucleus, productive processes, labor, resources, money flow, inputs and other subsystems interconnected and a synchronized way, that can manufacture products, goods and services of value added to the marketplace. These products, goods and services offered, is evaluated on price, quality, delivery and tangible sense by the client, which if it meets the desired profit expectation, it pays to acquire it. This is the essential cycle of value and remuneration progression. The enterprise value cell, it has a continuous change, based on internal or external factors, generated for the environment and the value chain location where it is situated. Therefore, the business value added cell is the transformation substance and spirit of productive, economic and social progress.
In research, mapping and analysis of value added business cell behavior, conducted by Admexus for many years, it was found that 50% to 70% are “non-value-added” activities and 25% to 47% are “value added” activities. The remaining difference between these factors in percentage, corresponds to inefficiencies and waste elements.
In reference to company value and non-value economic impact activities, the study developed a specific indicators according to different processes. For production process case, the mapping integrate a productive profit margin indicator. This indicator consists in a specific function which integrates production expenses and costs related to productivity, effectiveness, efficiency, competitiveness, availability, performance, quality, labor, materials, cycles, supplies, depreciation, energy, among others factors. The metric use data and algorithms in real time from shop floor production processes, based on value and not value added activities levels.
In the case of administrative internal indicators, the same methodology is extended with some small differences. The total value of all these internal indicators determines the business cell value added degree.
On the external factors subject, the business value cell suffers differently. The threat factors can drastic eliminate or set in crisis the company value added level. One of these crisis factors are related to: competition, technological innovations, financial events, social events, natural events, health circumstances, unstable or broken supply chains, human resources, scarce resources, value chains metamorphosis, among other factors.
All these factors, whether internal or external, impact the company's value-added result. When one element generates enough imbalance in the company structure, the company enters into a value added activities and processes instability, creating a catastrophic total crisis.
Faced with this crisis condition, the Divirtualigente I4.0 Model establishes a series of tools and processes that strengthen the internal situation and reduce the external negative impact. These technological and digital transformation tools and processes applied via Divirtualigente maturity level map; generate immediate solutions and specific actions to increase values added, reduce chaos, decrease inefficiencies and eliminated waste from the business cell. At the same time, it assesses external conditions by analyzing the concurrency and divergence vectors, creating smart strategies, adequate actions and appropriate procedures to reduce company crisis and eliminated instability. Divirtualigente methodology is the appropriate and proven tool for the continuous generation of business cell value added in any condition o crisis situation.
The results obtained in short term after implementing Divirtualigente model on companies with crisis, where successful. One first achievement are: the continuous reduction on money flow loss and diminished the external financial resource support. Moreover, productivity increases (+ 45%), reduction of unnecessary costs and expenses (+ 70%), elimination of waste and inefficiencies (+ 75%), rise value added at all levels (+ 55%), restore communication and governance (+ 77%), upturns customer satisfaction (+ 95%) and other executive key metrics.
This Divirtualigente Smart Model has developed and improve for +7 years. It includes a series of methodologies, procedures, processing, smart data information in real-time, analysis, algorithms, data science, deep learning, visualization, artificial intelligence and smart business, among other technological and digital strategies that use high speed and reliable processing techniques in one application tool.
The new actual era of wing of changes, productivity, economic and social disruptions requires an immediate technological and digital transformation implementation for long term company value added existence. Today is the time to prepare ourselves and implementing innovations and technological knowledge strategies for future sustainable, productive, economic and social progress.
Author: Octavio Fernández Divirtualigente I4.0 President Mexican Association I4.0