Smart Factory, Smart Supply Chain Are Oracle Applications Smart Enough?

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1 Smart Factory, Smart Supply Chain Are Oracle Applications Smart Enough? PROMATIS software GmbH Ettlingen (Karlsruhe TechnologyRegion), Germany Keywords 4 th Industrial revolution, Industry 4.0, Cyber-physical systems (CPS), Internet of Things (), Internet of Services (IoS), Business process management (BPM), Master data management (MDM), Oracle Cloud (IaaS, PaaS, SaaS), Tactical Planning Abstract The ongoing adoption of cyber-physical systems and the Internet of Things () is accompanied by incredible business process improvements fueled by ground-breaking innovations. Smart factories, smart supply chains and smart customer experience have become reality. And the smart wave is flushing IT innovations into the Enterprise: M2M, Big data, Social BPM and ACM, Social networking. This paper identifies and shows the potentials of smart technologies to achieve Business process excellence. It deals with the question of how Oracle Applications can be used for the transition towards a smart enterprise. 1 Introduction More and more people today can be reached at any time and anywhere in the world via mobile devices and wearables. At the same time, progressive global networking is taking place across organizational, national and cultural boundaries. After all, network users want to communicate more with partners and increase the efficiency of doing so. In addition, they are driven by human curiosity and the desire for consumption of needs-based products and services at the lowest possible cost. The amount of personal data that is submitted when using the Internet is inconceivable. Sometimes it happens involuntarily, but more often it is surrendered voluntarily. This is often driven by the desire to better tailor products to the specific needs, or a product that is actually designated as a free product is paid with the net currency "knowledge" instead. Or shall we name this currency precisely "personal data"? From people's accessibility at all times and in their various roles as citizens, consumers, employees, business partners, opinion leaders, and so on, and from the knowledge of important personal data, including the interests for purchases, preferences and behaviors, companies can obtain immense potentials to improve and extend their supply chains. There is hardly any major company today that does not pursue the goal of developing this potential for itself. Digitization is the magic word that is associated with this development. Companies have long understood that it is not sufficient to tackle only a few processes occasionally, in cases where potentials are assumed for fast conversion, but that there is a need for an enterprise-wide digital transformation that takes all business processes to 2015 PROMATIS software GmbH, Ettlingen, Germany 1

2 the test and checks them with regard to their suitability for digitalization. Critical to the continued success of the transformation program is a holistic perspective on business models, strategies, processes and enterprise architecture, combined with consistent planning and implementation of transformation projects. 2 The 4 th Industrial Revolution and the Internet of Things In a period in which many companies are still in the midst of or only starting to plan complex transformation programs, a new dimension of digitalization opens up: Now objects and machines are digitally addressable anytime, anywhere via sensors and SIM cards, too. Cyber-physical systems (CPS) network in the Internet of Things (), and they are the building blocks of a new industrial revolution. A cyber-physical system (CPS) is a system of collaborating IT elements, designed to control physical (mechanical, electronic) objects. Communication takes place via a data infrastructure such as the Internet. Traditional embedded systems can be considered as a special case of a stand-alone CPS. In a modern CPS, however, networking between multiple interacting elements with physical input and output stands in the foreground. Figure 1 shows an example of a CPS Smart Container Inbin from the Fraunhofer IML in Dortmund, Germany, and on the right we can see the schematic structure of a CPS. The Inbin communicates with both machines and also with people (graphical displays, pick-by-voice...) based on simple questions such as "Who are you?", "Where are you?", "What are your contents?". It is able to make autonomous decisions and to control logistical processes. Thereby it refers to ambient conditions, which it constantly monitors. With regard to the energy supply, the Inbin operates completely independently. Computation Information Systems Figure 1: Smart container Inbin of Fraunhofer IML, Dortmund, Germany 2.1 The Four Stages of Industrial Revolution With the possibilities of networking between people and machines, both within the respective groups and with each other, unsuspected new opportunities open up for collaboration in the context of social networks. This results in disciplines such as Social Manufacturing and Social Logistics, which will be the effects of the 4 th Industrial Revolution. Figure 2 shows the four stages of the Industrial Revolution from the late 18 th century to present day. The 4 th Industrial Revolution opens new potential for the automation of existing production and logistics processes with the application and networking of CPSs, but above all it creates the conditions for completely new processes and services. The revolution is accompanied by an increase in complexity, but on the other hand also by the increasing degree of decentralization and self-organization. As will be seen later, this is precisely what creates the considerable requirements for enterprise applications PROMATIS software GmbH, Ettlingen, Germany 2

3 Figure 2: The four stages of Industrial revolution (cf. [DFK11]) 2.2 The Digital Economy and Society - Industry 4.0 The following is an excerpt of the new High-Tech Strategy for Germany as defined by the German Federal Government (cf. [Ger14]): Information and communications technologies (ICT) now pervade all areas of life and economic activity. New challenges are emerging: How do we want to live, learn and work in the digital world? How can we exploit the opportunities that digital technologies present for industry, administration, society and political participation, and how can we master the relevant challenges? How can we improve security in use of such technologies? What requirements is demographic change creating with respect to digital technologies? What strategies should people be using in order to juggle their family and workplace responsibilities? What new opportunities do digital technologies open up in this connection? Successful development and integration of digital technologies within industrial application sectors plays a decisive role in Germany s competitiveness, since ICT are important drivers of innovative value creation chains and products in many economic sectors. Media literacy and education oriented to secure, resource-efficient and responsible use of ICT, and strategies for managing social interaction, are acquiring growing importance in a world of digital technologies. The central areas of action within the key task digital economy and society are as follows: Industry 4.0, Smart services, Smart data, Cloud computing, Digital networking, Digital science, Digital education, Digital life environments. In the following we will focus on Industry 4.0. Industry now stands at the threshold of a fourth industrial revolution. Via the evolution of the Internet, the real world and the virtual world are increasingly converging, to form an Internet of things. Industry 4.0 is a future-project in the High-Tech Strategy of the German Federal Government, which promotes the digitalization of traditional industries such as manufacturing and logistics. Especially for an export-oriented country in which the manufacturing sector continues to be of paramount importance there are very significant potentials for innovation. This applies to both the production itself, but also for logistics and retail. Against this background, a new high-tech strategy has been framed, which is now being implemented (you will find further information about this in [Ger14]). Technological basis are Cyber-physical systems (CPS) and the Internet of Things (). The key characteristics of the industrial production of the future will include production of 2015 PROMATIS software GmbH, Ettlingen, Germany 3

4 extensively individualised products, within highly flexible production environments, early-stage integration of customers and business partners within design and value-creation processes, and linking of production and high-quality services to yield hybrid products. In [Ger14] the following potentials of Industry 4.0 are compiled and described: Meeting individual customer requirements: Industry 4.0 allows individual, customer specific criteria to be included in the design, configuration, ordering, planning, manufacture and operation phases and enables last minute changes to be incorporated. Flexibility: Engineering processes can be made more agile, manufacturing processes can be changed, temporary shortage can be compensated for and huge increases in output can be achieved in short space of time. Optimized decision-taking: Industry 4.0 provides end-to-end transparency in real time, allowing early verifications of design decisions in the sphere of engineering and both more flexible responses to disruption and global optimization. Resource productivity and efficiency: delivering the highest possible output of products from a given volume of resources (resource productivity) and using the lowest possible amount of resources to deliver a particular output (resource efficiency). Moreover, rather than having to stop production, systems can be continuously optimised during production. Creating value opportunities through new services: Industry 4.0 opens up new ways of creating value and new forms of employment, for example through downstream services. Responding to the demographic change in the workplace: In conjunction with work organisation and competency development initiatives, interactive collaboration between human beings and technological systems will provide businesses with new ways of turning demographic change to their advantage. Work-Life-Balance: The more flexible work organisation models of companies that use CPS mean that they are well placed to meet the growing need of employees to strike a better balance between their work and their private lives and also between personal development and continuing professional development. An introduction to the fundamentals of Industry 4.0 is offered by a range of publications from the Fraunhofer IML, Dortmund, Germany: [HCK13, BHV14, HCM14, HKN14, PNH14, SCW15]. [Sch14a] deals with the application of Industry 4.0 in the product development process. 3 Applications for the 4 th Industrial Revolution Does Industry 4.0 now imply the end of the business applications used in companies today? Will they, most of which date from a period in which a new technological revolution was not even apparent, be washed away to a certain extent by the smart wave? Before we look into this question, we first want to show how technical processes are connected to enterprise applications today. In addition to the ad hoc querying of sensors of simple embedded systems (e.g. query the level of a reservoir for the calculation of replacement timing and quantity), this is restricted mostly to the integration of Production Data Acquisition Systems (PDA) and Manufacturing Execution Systems (MES) to the Production Planning components (PPS) in the ERP System. But the control authority always remains with the parent PPS and does not go over to the shop floor. The systems used there do not have the intelligence of cyber-physical systems, which is necessary for an autonomous agent-based control. They simply execute the control provisions given by the PPS and report information about their state back to the PPS, which in turn processes this in its planning algorithms PROMATIS software GmbH, Ettlingen, Germany 4

5 3.1 Evolution of Open Enterprise Applications An industrial revolution will not take place in one day, but takes place over a period of years or even decades. This is also true for the 4 th Industrial Revolution. And it will not only take place in industrial manufacturing, but also extends across the entire value chain. It is revealed by the more and more increasing collaboration across organizational boundaries, to the establishment of virtual organizations in which the value creation process is implemented consistently by a global network of highly specialized companies. And it does not end in business networks, but increasingly involves consumers, too, directly or through their social networks. Modern enterprise applications, which up the cause of their architecture's openness, have evolved in the direction of such business scenarios. Figure 3 illustrates a business scenario, as it can be found in the context of Oracle Applications such as E-Business Suite (EBS) or JD Edwards (JDE) with many clients worldwide. Business Partners Employees Authorities Self-Service (B2E) Field Sales Self-Service (B2B) Develop Contracts Market Suppliers Self-Service (B2B) Projects HR Finance Customers, Suppliers, Products, Sell Order Plan Maintain Service Fulfill Make Procure Manufacturing Execution System Self-Service (B2B/B2C) Customers Field Service Transportation (inbound) Manufacturing & Intralogistics Transportation (outbound) Figure 3: Evolution of Open Enterprise Applications With the illustration above it becomes clear that the Oracle Enterprise Applications are the lynchpin of the business scenario. They control the entire value chain that extends from procurement through production to delivery to the customer. The complete supply chain is included, including all intra- and extra logistical transport processes. And for Oracle Application clients, all standard technologies and protocols for the realization of B2B interfaces, from EDI and XML to UCCnet and RosettaNet, are available, enabling organizations to achieve very significant advantages in terms of competition and cost when collaborating with customers, suppliers and other business partners. High beneficial effects also arise from convenient self-service portals that Oracle Application clients can provide for their customers (ireceivables, istore, isupport, Oracle Commerce) and suppliers (isupplier Portal, Sourcing Portal), but also for their employees (iprocurement, Self-Service Expenses, Self-Service Human Resources). And with the Oracle Enterprise Cloud Services, Oracle provides even more functionality that the Oracle Application clients can provide for their business partners in self-service portals. In addition to the Talent Management (HCM, Taleo) we would like to point out specifically the Customer Experience (CX) portfolio - especially CX for Social, for Service and for Commerce - with which Oracle reaches not only business clients, but also the consumers in their social networks PROMATIS software GmbH, Ettlingen, Germany 5

6 Oracle Application clients also benefit in their collaborative business processes through the plurality of mobile components that are available now for many functional areas. They support the tasks that mobile workers have to complete on the road, in sales and in customer service, but also directly on-site, when working for customers. But even with this wealth of collaboration functionality and the immensely high rate of evolution, the question remains whether the evolving enterprise applications are actually able to keep up with the requirements of the 4 th Industrial Revolution? Or does the upcoming industrial revolution also call for a new generation of smart enterprise applications? 3.2 CPS-Collaboration around Enterprise Applications Let's look at a business scenario in Figure 4, as it can be found in large parts in reality already. And with the expected progressive spread of Industry 4.0 we will already be able to speak of a typical business scenario in a few years. In the figure, intelligent CPS communicate with each other and with conventional IT systems based on the Internet of Things (). Business Partners Employees Authorities Field Sales Customers Suppliers Transportation (inbound) Manufacturing & Intralogistics Transportation (outbound) Field Service Figure 4: CPS-collaboration around Enterprise Applications The figure shows -based communication along the value chain, i.e. that between supplier and carrier, then between shipper and producer, and finally between the producer and his customer. Already by this type of communication a digital transformation of the value chain takes place that results in enormous improvement potentials. However, perhaps even more important are the newly emerging communication channels such as between supplier and customer, which give the supplier an insight into inventory of salable products directly on the shelf at the point-of-sale, so that he can pro-actively respond to the producer's anticipated needs to his own pre-products. In this example, a new form of collaboration arises from the digitization, which eventually results in a transformation of the value chain itself. The improvement potential of such a transformation is obvious. However, to exploit this potential conditions have to be created that are not of a technical nature, but mainly of sociological nature. To discuss them at this point is beyond the scope of this paper. We only want to point out the trust among business partners, which will have to gain a whole new quality. In addition, issues such as governance, risk, security, and compliance (cf. [SVO12]) must be considered PROMATIS software GmbH, Ettlingen, Germany 6

7 But when suddenly autonomous agents interact with each other and operate, will the Oracle Applications be left out? The figure appears to mediate this. And, in fact, the applications currently in use - and this applies not only to the Oracle Applications, but also the applications of competitors - are not ready for the challenges they will encounter in Industry 4.0. What is the significance of a centralized operational Manufacturing Resource Planning (MRP II), when autonomous agents on the shop floor agree on the production program in a decentralized manner? Or how to deal with sophisticated scheduling in procurement framework contracts, when the supplier can query the requirements directly in real time via sensors at the point-of-sale? Such examples can be found endlessly. And so it may seem surprising that the major manufacturers have so far mainly reacted with simple cloud embassies as well as with greater and more flexible computing power (SAP HANA, Oracle Engineered Systems...) to the challenges that the 4 th Industrial Revolution will bring. At least, the Oracle technology products (Oracle Java Embedded) for the Internet of Things and machine-to-machine (M2M) communications and Big Data point in the right direction. 3.3 Fundamental Changes ahead of us Before we take a closer look at the characteristics of enterprise applications for the 4 th Industrial Revolution and Industry 4.0, we want to shed some light on the most fundamental changes along the entire value chain, which we will be facing, or that in many cases are already taking place directly in front of us: Self control: Things (e.g. CPS) will operate and interact autonomously. Self organization: Agents will negotiate with each other on the global. This will lead to a decentralization of decisions. Less complex decentralized algorithms: Complex algorithms for centralized supply chain planning have to be replaced by less complex decentralized algorithms. Tight integration of customers, suppliers, and business partners along the value chain. Responsiveness: Transparent decisions in decentral control cycles enable fast reactions to changes and disruptions. Intelligent products: Here, intelligent production systems will create intelligent products that can be identified at any time and that can be localized. They will know their current status and they will be able to submit this information as well as their entire history, so all states that they have been in as part of their life cycle. Important for the self-organization is that they know their options on the way to completion, i.e. to a certain extent, they carry their own production plan within themselves. New qualifications: Although primarily technical aspects have been considered so far, it is to be expected that the 4 th Industrial Revolution will also bring about a revolution in the working world. [BrM14] postulated a technological unemployment that arises when jobs are replaced by intelligent machines. But it will also create new jobs and other jobs will change considerably. 1 But what all changes have in 1 A detailed discussion of the effects of the 4 th Industrial Revolution on the world of work, even on our entire economic system and onto society is urgently needed to create the right conditions. However, this would be beyond the scope of this paper. Instead, we would like to refer to two interesting publications and recommend reading them: [BrM14] and [Rif14]) PROMATIS software GmbH, Ettlingen, Germany 7

8 common is the need for a generally high level of education by all concerned walks of life. And the 4 th Industrial Revolution demands - just like all the revolutions before it - new skills that were previously have not necessarily promoted in our current education systems, but perhaps even inhibited: advanced requirements for working independently and self-organized ability to collaborate intensively and effectively with external partners business transaction processing is replaced by approval, monitoring, planning, simulation tasks 3.4 Replacement of Monolithic Applications From the consideration of the changes that lie ahead, it can be derived without any doubt that monolithic enterprise applications in the 4 th Industrial Revolution will be a thing of the past. In the future, application functionality will not only be used in the own company, but specifically decentralized where decisions are made, including business partners, customers, suppliers, in short all partners in the value chain. For this, the functionality must be provided much more fine-grained than existing application modules would be capable of today. If we add security, risk and governance requirements to this functional deterministic requirement, then it becomes obvious that Web services deployed in a cloud are the most logical solution (cf. Figure 5). In addition, more and more functionality will be used on mobile devices, which can serve more effectively in a transformed worker reality with an increase in mobile work than stationary devices. Contracts Develop Market Projects HR Finance Customers, Suppliers, Products, Sell Order Plan decentralization Maintain Service Fulfill Make Procure Cloud deployment Figure 5: Replacement of monolithic applications 3.5 Orchestration of Standards-based Business Processes Industry 4.0 comes along with intensified corporate-wide collaboration, which presents businesses that operate in a global context with many different partners with an unprecedented challenge. How can such businesses prevent continually spiraling costs when they try to meet the system requirements of their business partners, while the potential benefits of collaboration are reversed? The answer is standardization, which is also driven by the Cloud deployment, which is technically simple and does not cost much. Companies will - as consumers always have - focus more on standardized services that they receive from an Internet of Services (IoS) and pay based on usage (cf. Figure 6). At the same time global industry standards prevail for cyber-physical systems PROMATIS software GmbH, Ettlingen, Germany 8

9 Standardized Cloud services Service provision Internet of Services (IoS) Best practice Business processes Process orchestration Communication Custom Business Process configuration Service provision Standardized CPSs Internet of Things () Figure 6: Orchestration of standards-based Business processes Does this mean that due to the ongoing standardization of the used business services there will no longer be any competitive advantages in business processes? Does Industry 4.0 lead to less competition or a competition, which preferably is decided in the price war? This suspicion is justified, but can be easily dispelled, because it will show that for economic success, in addition to a highly qualified staff, the intelligence in the design of business processes will be crucial. And in this business process intelligence, the competitors will differ considerably in conjunction with the ability to quickly and economically adapt business processes to the rapidly changing market requirements. In Figure 6 it is shown that companies do not differ in the use of standardized services, but use it in the way they configure their business processes and services in these processes. In the sense of speed in the orchestration of processes and the quality of the process configuration, we recommend proven best practice business processes, which can then be reused in future process configurations. Techniques for the creation and reuse of best practice business processes are described in [Sch14] and [SVO12]. 3.6 Oracle-based Applications Core System In the context of Industry 4.0, enterprise applications can be understood equally as "top-down" virtualization of the Internet of Services as well as "bottom-up" virtualisation of the Internet of Things. But what must the architecture of an Industry 4.0-appropriate enterprise applications be like? From the foregoing statements on the requirements for Industry 4.0 follows that Oracle Application Suites, such as EBS or JDE are unable in their present form to meet all the requirements. This is also true for the current Oracle Software as a Service (SaaS) offerings. However, they can be used as a building block in an Industry 4.0 application architecture, mainly to cover in-house back-office functions (cf. Figure 7). In addition, a powerful master data management is essential, which forms the core of data integration of different Web services from the cloud. Practical experience shows that in spite of decentralization no efficient processes can be made without harmonized master data PROMATIS software GmbH, Ettlingen, Germany 9

10 Top-Down Virtualization Center of Engagement for the Business Community Corporate Business process- & rules management Corporate Master data management Best practice processes Application- & Data integration Back-office applications products suppliers customers sites Bottom-Up Virtualization Figure 7: Sketch of an Oracle-based Applications core system The company-specific patch business processes require a powerful platform for business process management (BPM), as provided by the Oracle BPM Suite. The BPM Suite offers the advantage that it builds on the industry standard and widely used process language BPMN 2.0 and offers a rich repertoire of technologies for the integration of Web services, but also conventional B2B interfaces. Integrated management of business rules, Adaptive Case Management (ACM) and business activity monitoring (BAM) complement proven BPM functionality. A key role for the usability of the application platform is reserved for the Web-based Engagement Center, in which the user are provided with processes, activities, documents and data in a contextsensitive form, which he needs to fulfill his tasks. The Oracle WebCenter can meet these requirements in full. It reflects the fact that through Industry 4.0 requirements will increase regarding the process intelligence of the user and change his job profile fundamentally in a great many cases, as will now be shown in the following chapter. 4 The New Role of Application Users The statement that the Engagement Center has an important role in the application architecture may seem surprising at first. Is Industry 4.0 not characterized by decentralization with self-control and self-organization through independent agents? Would this not lead to the presumption that the application user withdraws from the operating business transactions and focuses on a supervisory role? This question is the subject of this chapter PROMATIS software GmbH, Ettlingen, Germany 10

11 monitoring Are Oracle Applications smart enough Decentralization of Transaction processing Today's enterprise applications, in the core, assume a central transaction processing through the application user, as shown in the top area of Figure 8. Through the increased use of mobile devices and by increasing the provision of self-service portals, described above as evolutionary process, there will be a certain amount of decentralization. However, the responsibility for business transactions still remains with the business user. For the overall management of the business process, a business manager is responsible, who is also the disciplinary superior of the business user in general. This two-stage model in the figure may be, of course, of more stages in practice. As part of the operational implementation of business processes transaction data arise (structured and unstructured, e.g. documents) that are compressed for analytical processing in the context of litigation and often for faster Slice & Dice access, and are stored in multidimensional data marts and data warehouses. Business Manager Business User business process management business transactions analytical data Central Transaction processing and Process management transactional data business transactional process data management Decentral Transaction processing and central Process management approving big data Figure 8: Decentralization of Transaction processing In Industry 4.0, the central transaction processing will still be found in the back-office area, e.g. in financial accounting or sales office. However, in areas that will be dominated by CPS it will be a matter of the past. There it will be replaced by a distributed processing by self-organized and selfcontrolled agents. They produce and process the transaction data, but also generate a wealth of additional sensor data, which will mostly be stored in so-called NoSQL 2 Databases. Sensor data are an interesting class of big data (cf. [Vos13, Dav14]), from which valuable business knowledge can be extracted with a suitable instrument (e.g. Oracle Big Data Analytics). In this model and in the context of management responsibilities, the distributed transaction processing business process management is focused on the monitoring of business activities including the measurement of business performance as well as on approving of operations and results. 2 The term NoSQL stands for "Not only SQL" and is used for data models that do not use the tables common for storage and retrieval of structured data PROMATIS software GmbH, Ettlingen, Germany 11

12 monitoring Are Oracle Applications smart enough Transfer of the Application user s efforts In the central model of transaction processing, the activity area of the business user includes operational planning, for which enterprise applications provide the respective capabilities. However, the operational planning functions (e.g. MRP II) require a central controlling, which is not the case with Industry 4.0. In this respect, the operational planning shifts away from business users to self-organizing agents. Operational planning is done there according to decentralized algorithms based on negotiations between the independently operating agents. In this respect, central planning algorithms will become obsolete. Relieving the user of usually pretty extensive operational planning tasks creates valuable open spaces that can be used for tasks in strategic and tactical planning. The prerequisite for this is that the user also has the qualifications to carry out such planning tasks, which underlines the importance of training for Industry 4.0 again. Figure 9 shows the effort minimization for operational planning and the displacement of effort toward the longer-term planning disciplines. That in Industry 4.0 the importance of strategic, but especially the tactical planning increases, can easily be illustrated with the example of a production: Due to the decentralized production control it can be very difficult to determine forecasts for the actual needs of precursors. But if the procurement terms for the intermediates are high, inaccurate forecasts can very quickly lead to critical production shutdowns, or at least to uneconomic production programs. In this respect, a lot of care has to be taken and usually the time and cost efforts for long-term strategic and mediumterm tactical planning will be high. Transfer of the Application user s efforts Strategical Planning Tactical Planning business transactional process data management approving Operational Planning big data Figure 9: Transfer of the Application user s efforts 2015 PROMATIS software GmbH, Ettlingen, Germany 12

13 Data Integration Are Oracle Applications smart enough Key Success factor: Tactical Planning An effective tactical planning is one of the key factors for the successful implementation of Industry 4.0. This statement can be proven by experience from practice. And it is not only valid for the production area, but for all other planning areas affected by Industrial 4.0, too: Sales planning, demand planning, maintenance planning, transportation planning, workforce planning, investment planning, to name just a few of the most important. Experiences also show, however, that the tactical planning can only be carried out efficiently and with good quality results when the right tools are available. Industry 4.0 and "intuitive planning from the gut" are, after all, a very odd couple. Figure 10 shows how a professional tactical planning should look for Industry 4.0. Tactical planning lives of a high quality and extensive data base. As part of the data acquisition and in addition to the transaction data and the analytical data from the business processes, big data sources must be exhausted as well. This includes the sensor data generated as part of the activities of the CPS first. However, big data collected in social networks will become increasingly important. Their importance for Industry 4.0 might not be obvious at first glance. However, if one bears in mind how meaningful consumer opinions are, for example when it comes to sales forecasts or the early detection of future product quality issues, social data becomes essential for reliable tactical planning. These various data are suitably integrated and made available for use under the tactical planning. Depending on the application, this may happen in a multi-dimensionally organized planning data mart, or in a hybrid format with additional penetration on the respective detailed data. In many cases, the data are kept in different formats, depending on the nature of the proposed use. Data Acquisition Big data (social data) Analytical data Transactional data Transactional data Tactical Planning Analysis Statistics Data Mining Simulation Predictive Analytics The forward-thinking perspective of Smart X: To be well prepared for smart business processes. Big data (sensor data) Planning Data Figure 10: Progress of professional tactical planning for Industry PROMATIS software GmbH, Ettlingen, Germany 13

14 In tactical planning, both the environment (environment, market etc.) and the expected results of the decentralized controlling must be anticipated. To this end, different instruments haven proven themselves suitable, often in combination. In addition to proven business analytics (cf. [Lie14]), statistical analysis, simulation (cf. [SVO12]), data mining (cf. [Lie14]) as well as modern predictive analytics solutions (cf. [Sie13]) and Big Data Analytics (cf. [Vos13, Dav14]) are used. It is important not to lose sight of the goal: A high-quality tactical planning in order to create the conditions for an efficient decentralized controlling in line with Industry Summary and Conclusion In the present work it was first shown what the conditions and the drivers are for the 4 th Industrial Revolution and what changes arise for the people, businesses and finally society. Based on this, the steps of Industrial revolution were presented in which the 4 th Industrial Revolution will become a reality. It focuses on the application of the Internet of Things and its implementation in the digitization of traditional industries such as the manufacturing industry and logistics. The core of the work is provided by comments on the requirements to be met by the enterprise applications for the Industry 4.0. It was analyzed the extent to which Oracle Applications, Enterprise Cloud Services and technologies meet these requirements. One result is that nowadays used Application Suites in back-offices can still be used, but that they have to be supplemented by modern master data management and business process management tools for Industry 4.0. It was found that the users in the Industry 4.0 play a new role in which they have to care less about operational matters rather than tactical and strategic planning tasks. To this end, effective training programs must be established. For the usability in the fulfillment of the new task portfolio, a Webbased Engagement Center is used, in which the relevant processes, activities, documents and data are provided in a context-sensitive manner. Smart factories, smart supply chains, smart customer experience have now become a reality - at least in the form of pilot projects and they have arrived in practice. In this respect, future-oriented companies are well advised to prepare for the smart wave with potential assessments, pilot projects, qualification programs up to overall digital transformation. Undoubtedly, Oracle with play an important role in the 4 th Industrial Revolution. Oracle can also become the market leader in Smart X in the future. For this purpose, there is still a lot of homework to be done in order to make the product portfolio "smart ready". 6 Outlook The present work is based on practical experience of Oracle consulting, solutions and systems integration projects, which PROMATIS software GmbH has carried out in recent years. Here, Oracle Applications - preferably E-Business Suite, CRM On Demand and Hyperion - were used, as well as the entire Oracle Middleware stack. In addition, research results from Horus Innovation Partners have been incorporated, a research alliance bringing together PROMATIS software GmbH and Horus software GmbH (cf. Figure 11) PROMATIS software GmbH, Ettlingen, Germany 14

15 The Horus Innovation Partners work in research and development projects on various topics related to the 4 th Industrial Revolution. For these projects, interesting and actionable results can be expected for the coming years: Best Practice Reference Models for business processes in smart factories, smart supply chains, and smart customer experience Social BPM and Social Innovation Labs Gamification for modeling and execution of smart business processes Governance, risk, security, and compliance in smart factories 100% process flexibility with schema-less Business processes Figure 11: Horus Innovation Partners 2015 PROMATIS software GmbH, Ettlingen, Germany 15

16 References [BHV14] [BrM14] [Dav14] Bauernhansl, T.; ten Hompel, M.; Vogel-Heuser, B. (Eds.): Industrie 4.0 in Produktion, Automatisierung und Logistik. Springer Heidelberg Dordrecht London New York, (in German) Brynjolfsson, E.; McAfee, A.: The Second Machine Age Work, Progress, and Prosperity in a Time of Brilliant Technologies. W. W. Norton & Co., Inc., New York, NY, USA, Davenport T. H.: Big Data at Work: Dispelling the Myths, Uncovering the Opportunities. Harvard Business School Publishing Corp., [DFK11] DFKI (German Research Center for Artifical Intelligence), News, [Ger14]: [HCM14] [HCK13] [HKN14] [IIC15] [Lie14] [PNH14] [Rif14] [Sch14] The New High-Tech Strategy: Innovations for Germany. Publication of the German Federal Ministery of Education and Research, Berlin, Germany, ( ten Hompel, M.; Clausen, U.; Meier, J. F. (Eds.): Efficiency and Innovation in Logistics (Lecture Notes in Logistics). Springer Heidelberg Dordrecht London New York, ten Hompel, M.; Clausen, U.; Klumpp, M. (Eds.): Efficiency and Logistics (Lecture Notes in Logistics). Springer Heidelberg Dordrecht London New York, ten Hompel, M.; Kamagaew, A.; Nettstraeter, A.; Prasse, C.: Survey on Infrastructure Reduced Logistics the Way to a Hub to Move. In Proc. of 7th Int. Scientific Symposium on Logistics: Logistics in the Network Industry (2014), pp Official website of the Industrial Internet Consortium, a global nonprofit partnership of industry, government and academia, ( Liebowitz, J.: Business Analytics An Introduction. CRC Press, Taylor & Francis Group, LLC, Boca Raton, FL, USA, Prasse, C.; Nettstraeter, A.; ten Hompel, M.: How will Change the Design and Operation of Logistics Systems. In Proc. of 4 th Int. Conference on the Internet of Things (2014), pp Rifkin, J.: The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism. Palgrave Macmillan, Basingstoke, Hampshire, UK, Schoenthaler, F.: BPM is Not for Programmers It s a Business Tool and Makes your Business Processes More Excellent. In Proc. of COLLABORATE14 Technology and Applications Forum for the Oracle Community (Las Vegas, NV, USA, April 7-11), [Sch14a] Schoenthaler, S.: Theoretische Potenzialanalyse der Auswirkungen von Industrie 4.0 auf den Produktentwicklungsprozess. Diploma Thesis, Technical University of Kaiserslautern, Germany, (in German) [ScO13] [SCW15] Schoenthaler, F.; Oberweis, A.: Social Innovation Labs Generation and Implementation of Innovations. In Proc. of the DOAG 2013 Applications Conference (Berlin, Germany, Oct. 9-11), Scientific Computing World: Germany to Open up Industrial Data Space. Europe Science Ltd., Cambridge, GB, ( PROMATIS software GmbH, Ettlingen, Germany 16

17 [Sie13] [SVO12] [Vos13] Siegel, E.: Predictive Analytics The Power to Predict Who Will Click, Buy, Lie, or Die. John Wiley & Sons, Inc., Hoboken, NJ, USA, Schoenthaler, F.; Vossen, G.; Oberweis, A.; Karle, T.: Business Processes for Business Communities: Modeling Languages, Methods, Tools. Springer Heidelberg Dordrecht London New York, Vossen, G.: Big Data as the New Enabler in Business and other Intelligence. In Vietnam Journal of Computer Science (2013). Available online: Contact PROMATIS software GmbH Pforzheimer Str Ettlingen, Germany Phone Fax: mailto:info@promatis.com Date of documentation: April PROMATIS software GmbH, Ettlingen, Germany 17