A primary mission of Design-Science is to Design & Commercialize New Products. So this is kind of a big deal. The first “product/company” launched by Design-Science!
Since the early ideas of 2021 as a ‘management simulation game’, to the rapid acceleration of AI-oriented computing in 2023, INDUSTRY 5, or ‘i5’ is now a commercially viable Product! (or Services as Software, quite possibly)
In fact, i5 is even its own Company – looking for investment for growth!
You’ve already seen (i5 Demo v0.2) how i5 harmonizes the roles of Human Users, multiple AI Agents, and the INDUSTRY-5.0 platform.
Now, we’ll explore how WidgetCo, a global manufacturer, leverages i5 to orchestrate its supply chain operations.
Start:
To start, on the left we can see all of the capabilities of i5’s AI-Agents; including comprehensive ‘end-to-end’ Processes, and Role-Specific Orientations.
On the right, we see the i5 overview of current financials, operational metrics, AI-driven analytics, and explanations.
Together, i5 can orchestrate updates to demand forecasts, production plans, and procurement.
Let’s explore how i5 brings speed, precision, and intelligence to Demand-Driven Planning.
Demand Forecaster:
The process starts with the Demand Forecaster Agent analyzing WidgetCo’s current demand forecast, inventory levels, and relevant context.
Context includes external influences like market conditions, seasonal trends, or other constraints, each with varying probabilities and confidence levels.
The agent suggests incremental adjustments to the demand forecast based on new information.
After review, the user approves the forecast adjustments – and the agent proceeds to post these forecast updates to i5.
The adjusted forecast is now live, setting the stage for the next step.
Production Planner:
With the updated forecast, the Production Planner Agent evaluates current production plans and identifies incremental requirements.
The agent summarizes findings, proposing adjustments to meet the new demand.
Upon user approval, the agent updates i5 with the incremental production requirements, ensuring transparency and traceability.
Procurement Agent:
Next, the Procurement Agent accesses the Bill-of-Materials to calculate requirements for the updated production plan. The agent determines and specifies the required quantities and delivery dates for each material. On user approval, the agent posts the new material requirements to WIDGET-co’s Demand Graph for procurement.
Explanation:
To conclude the process, the Agents provide a comprehensive explanation of what actions were taken, why they were recommended, and how they were executed.
With i5, you’ll never have to guess, “Why was that decision made?”
Summary:
To summarize, i5 transformed a familiar demand-driven planning process into a seamless flow—from forecast adjustments to production alignment to procurement.
i5 delivers Prescriptive Analysis AND Action, with Precision and full Transparency.
Traditional processes that take days or weeks—characterized by manual workflows, silos, and other inefficiencies—are completed in minutes with i5.
NŪMŪV is a design-experiment exploring the truly autonomous movement of people AND cargo.
The PURPOSE of NUMUV is a comprehensive, anticipatory ‘re-imagining’ of cross-modal transport that could help challenge current assumptions, and prove-out qualitatively and quantitatively what an ideal future could be.
The INTENT of NUMUV is a system that could radically improve how the world moves.
the NUMUV Objective or ‘Job to be Done1see Job to be Done theory‘
By the year 2050, HOW can the world move 3x the volume of people and cargo, and do so…
transparently?
efficiently?
comfortably?
predictably?
safely?
NUMUV Design Hypothesis:
An Autonomous robotic vehicle / transport system is fundamentally different than a ‘Driverless Car’
Just like a modern car is fundamentally different than a ‘horseless carriage’
Decoupling the ‘cabin’ from the ‘conveyance’ enables a completely new system.
The cabin for people does not need to be the same as the conveyance platform / chassis
It can be much lighter and stronger, and most importantly – infinitely customizable.
Make Transfers ‘Transparent’
Transfers between modes are the main ‘value leak’ – waste in time & cost
Orient on the discrete Person / Product being moved
to inform the system, not multiple intermediaries
Remove all complication unrelated to core function
It’s very easy to add-complexity
Should be an ‘open’ design – to enable clear-focused innovation opportunities for existing Companies and Infrastructure (faster, at less cost)
Transport designers can focus on unique new form-factors within the system (removes ‘congestion’), vs unique standalone vehicles (adds ‘congestion’)
Running a NUMUV Simulation to determine VALUE (Cost:Benefit)
To make NUMUV come alive, so we can understand the differences in volume, time, and cost – versus today, our lNDUSTRY 5.0 supply-chain & logistics solution leverages the NUMUV concept in a realistic way, modeling the movement of people & cargo within real-world physical-economic constraints of Cost, Capacity and Time – and of course, the laws of Physics.
NOTE: this example lesson / game-plan was generated by INDUSTRY 5.0
Two teams within a company will compete in a turn-based simulation to optimize the demand-supply network over a multi-year period.
Your company’s i5 Admin may act as a ‘Facilitator’ for innovation and experimentation activities by constructing various scenarios with unexpected disruptions.
The game will be facilitated by an instructor who introduces variability and volatility events. The winning team will be the one that achieves the best comprehensive design and demonstrates superior anticipatory skills.
Game Setup
Team A
Focused on efficiency and cost reduction.
Team B
Focused on sustainability and resilience.
Facilitator
Configures and introduces unexpected events (environmental, political, economic changes).
Game Rounds
Each round represents a multi-month period, resulting in multiple rounds over a multi-year period.
Initial Setup
Baseline Data
Current state of the supply chain network (inventory levels, supplier contracts, logistics providers, market conditions). Initial KPIs (efficiency, sustainability, resilience metrics).
Objectives
Improve overall supply chain performance. Anticipate and respond to unexpected events. Balance efficiency, sustainability, and resilience.
Round 1: Initial Assessment and Strategy
Team A:
Analyze current inventory levels and supplier performance. Identify cost-saving opportunities – e.g., renegotiate supplier contracts, optimize logistics routes
Team B:
Assess sustainability practices of suppliers and logistics providers. Develop plans to improve resilience. – e.g., diversify suppliers, invest in renewable energy sources
Facilitator:
THEN, BEFORE NEXT ROUND – INTRODUCES AN UPCOMING ENVIRONMENTAL REGULATION CHANGE THAT WILL TAKE EFFECT IN 12 MONTHS.
Round 2: Implementing Initial Strategies
Team A:
Renegotiate contracts with key suppliers to secure lower prices. Implement a new inventory management system to reduce holding costs.
Team B:
Begin transitioning to suppliers with better sustainability practices. Invest in renewable energy projects for key facilities.
Facilitator:
ANNOUNCES AN UNEXPECTED SURGE IN DEMAND DUE TO A NEW MARKET TREND. TEAMS MUST ADJUST THEIR STRATEGIES ACCORDINGLY.
Round 3: Responding to Demand Surge
Team A:
Increase production capacity to meet the surge in demand. Expedite shipping schedules with logistics providers.
Team B:
Scale up production sustainably, ensuring minimal environmental impact. Strengthen partnerships with logistics providers to ensure timely delivery.
Facilitator:
INTRODUCES A GEOPOLITICAL EVENT THAT DISRUPTS SUPPLY CHAINS IN A KEY REGION.
Round 4: Managing Geopolitical Disruption
Team A:
Identify alternative suppliers to mitigate the impact of the disruption. •Increase safety stock levels to buffer against supply chain uncertainties.
Team B:
Evaluate the resilience of current suppliers and logistics routes. •Implement contingency plans for supply chain continuity.
Facilitator:
ANNOUNCES AN ECONOMIC DOWNTURN THAT AFFECTS CONSUMER SPENDING.
Round 5: Adapting to Economic Downturn
Team A:
Adjust production schedules to align with reduced demand. Implement cost-cutting policies across the supply chain.
Team B:
Focus on maintaining sustainability initiatives while managing costs. Explore new markets to offset the decline in consumer spending.
Evaluation and Scoring
Winner Announcement:
The facilitator announces the winning team, highlighting their strategies and how they effectively anticipated and managed unexpected events.
Debrief:
Teams discuss their approaches, what worked well, and areas for improvement. The facilitator provides feedback and insights into how the game mirrored real-world supply chain challenges and opportunities.
Conclusion
Metrics:
Efficiency: Cost savings, inventory turnover, order fulfillment cycle time. Sustainability: Carbon footprint, energy consumption, waste reduction. Resilience: Supplier risk score, logistics risk score, ability to recover from disruptions.
Final Scores:
Each team’s performance is assessed based on the metrics, and points are awarded accordingly. The team with the highest overall score wins, demonstrating the best comprehensive design and anticipatory skills.
By following this step-by-step approach, INDUSTRY 5.0 by Design-Science provides a dynamic and engaging way for participants to develop and apply advanced supply chain management strategies, leveraging both predictive analytics and real-time decision-making.
The exciting near-term potential of INDUSTRY 5.0 is a game-like experience for teams to experiment and innovate.
Imagine a platform where your teams can simulate real-world scenarios in a safe and controlled environment. While the long-long term goal is for i5 to be powerful tool for optimizing supply chains. In the near-term, it’s an innovative sandbox for your teams to play, experiment, and explore new strategies without any real-world risks.
Experimentation and Innovation
Safe Experimentation: Teams can use i5 to run ‘what-if’ scenarios, testing out different supply chain strategies and seeing the potential outcomes in real-time. Whether it’s adjusting inventory levels, experimenting with new suppliers, or trying out different transport routes, the platform provides a risk-free environment to innovate.
Gamified Learning: The game-like interface of i5 makes learning engaging and fun. Teams can compete to optimize their supply chains, earn points for efficiency, and even participate in friendly competitions. This gamification helps to foster a culture of continuous improvement and innovation.
Collaborative Problem-Solving: i5 allows for multi-party collaboration, where different departments or even different companies can work together to solve complex supply chain challenges. This collaborative approach not only enhances problem-solving skills but also encourages the sharing of best practices and innovative ideas.
Real-Time Feedback: The real-time data and feedback provided by i5 are invaluable. Teams can instantly see the impact of their decisions, allowing for quick adjustments and iterative improvements. This immediate feedback loop accelerates learning and innovation.
Scenario Planning: With i5, teams can simulate various future scenarios, from sudden spikes in demand to unexpected supply chain disruptions. By preparing for these possibilities in advance, companies can build more resilient and adaptive supply chains.
Driving Innovation
Strategic Decision-Making: The insights gained from experimenting with i5 can inform strategic decision-making. Companies can identify the most effective strategies and scale them up in the real world, driving significant improvements in efficiency and competitiveness.
Continuous Improvement: The platform’s continuous learning environment encourages teams to constantly seek out new ways to optimize and innovate. This culture of continuous improvement is crucial for staying ahead in a rapidly evolving market.
Cross-Functional Innovation: i5 facilitates cross-functional innovation by breaking down silos and enabling collaboration across different parts of the organization. This holistic approach ensures that innovations are aligned with overall business goals and can be implemented seamlessly.
Conclusion
INDUSTRY 5.0 is not just a tool for managing supply chains—it’s a powerful platform for fostering innovation and driving continuous improvement.
By providing a game-like, collaborative, and data-driven environment, i5 empowers your teams to experiment, learn, and innovate like never before.
Since 2021, I’ve had a bold, audacious vision to re-imagine, and re-invent how ‘supply chain’ is done – to meet the anticipated capabilities, needs, and demands of 2050.
With nearly three decades of experience designing supply chain solutions based on the technology and business constructs of the 20th century, I believe there is a better way forward.
Can we achieve the promises of Industry 4.0 with mid-20th century approaches? In my opinion, no way.
So, we designed a completely new system and method from the ground up. This new approach is faster, easier, inherently resilient, and still delivers on the business goals and objectives you expect – but with incredible efficiency for a prosperous and sustainable future.
Sooner the better, right?
Our approach is to leapfrog the Industry 4.0 hype and start from scratch. To reach that goal, we have to start somewhere, and that ‘somewhere’ is crucial.
Complexity is good; complication is not. So, we discarded the layers of accumulated complications first.
Unfortunately, in the meantime, companies will continue throwing time and money at doing the same things the same way, hoping for better results. Will adding AI on top of these old systems actually improve anything? If past ‘bolt-on’ approaches are any indication, it may ‘check a box’, but the long-term answer is likely no.
We want to go further, faster. This can only be accelerated by companies that want to be part of this vision to achieve real results sooner.
We would love to hear your ideas and vision for the future and explore how we can get there together, faster.
Here is a ‘packaged’ version of the INDUSTRY 5.0 v0.2 Demo in July 2024.
i5 Demo v0.2 July 2024
Imagine a dynamic, game-like environment for planning, managing, executing, and visualizing demand, supply, and movement.
Today, we’ll see multiple entities in a demand : supply network, interacting in real-time, represented by ai agents for sales, purchasing, and booking.
The agents listen to i5 Supply : Demand Graph updates, negotiate based on their company policies, and aim to match new demand with available supply, and autonomous transport capacity1see NŪMŪV.
Once all conditions are met, the Purchasing-Agent commits to the purchase and generates a Smart-Agreement in i5, securing each multi-party transaction.
The buyer controls the transaction. Each company has visibility into respective aspects of smart-agreements.
As new agreements are made, i5 continuously updates projected inventory forecasts, viewable anytime and utilized for planning future demand-supply scenarios.
NŪMŪV (i.e. ‘new move’) is an experimental multi-modal transport system-simulator – one that moves both people and cargo ‘autonomously’ – orchestrated by supply & demand, in time & space via the INDUSTRY 5.0 game.
INDUSTRY 5.0 is a ‘serious game’ that enables you to envision business models, supply chains and logistics of the future – based on anticipated capabilities, where autonomous robotics are manufacturing & moving people & cargo – even in space!
Search for any type of business object and its related objects. Search by key references and other methods such as partners, places, and products. Visualize Physical & Financial Flow, Geographic / Map, and Time-Oriented views. Ex: View an Order + all related transactions past present, and future.
