Sustainable Digital Development

Transcription

1 Sustainable Digital Development Benefits and trade offs of the digitalization of fashion supply chains HUGO BOSS 21-Nov-18 1

2 low tech. intensity high Sustainable Digital Development Valuation of investments for sustainable innovation High tech knowledge intensive medium to high-wage countries high information transfer medium to high capital intensity long partnership efficiency driven higher energy consumption fast / higher integration Natural resource intensity helps to create socio-economic benefits (e.g. farming) efficiency, a main driver for natural resource conservation natural resource can be a cost factor knowledge / training is required to reduce the environmental impact destroyed natural resources (air, water, land) lead to increased social costs Low tech labor intensive low labor intensity high low wage countries initial of industrial development low capital intensive start of partnership increased employment investment on basic knowledge risk of social and environmental issues HUGO BOSS 21-Nov-18 2

3 Digital Collection Development Virtualization HUGO BOSS 21-Nov-18 3

4 Virtual design fully digital product development + Improving on early realism + Reduction of development time + Direct development + Reduce or eliminate prototypes HUGO BOSS 21-Nov-18 4

5 Virtual design fully digital product development ready for a digital sale High technical competences and investments required with the benefit to reduce the environmental impact HUGO BOSS 21-Nov-18 5

6 3D Printing from digital product development to a 3D printing Design Modeling Printing Finishing HUGO BOSS 21-Nov-18 6

7 Tokenized value chain management Secured information exchange based on blockchain in collaboration with OECD and ASTRATUM HUGO BOSS 21-Nov-18 7

8 Blockchain smart contracts tokens 1. Blockchain A blockchain is a digitized, decentralized, public ledger of all crypto transactions Smart contracts (as smart contract code or smart legal contracts) A smart contract is a self-executing contractual state, stored on the blockchain (triggered by predefined rules) Tokens Tokens of blockchains like Bitcoin or Ethereum, are part of the incentive scheme (crypto economic incentive). -what-does-it-mean/ HUGO BOSS 21-Nov-18 8

9 Blockchain supply chain visibility and a first integration of CSR requirements into the procurement process Supplier 2 Customer Brand Assembly Weaver Dyeing Spinning Ginning Cotton Supplier n Secured information sharing for dedicated supply chain partners eliminating multiple certification and audit processes Enabling supply chain transparency while offering business related information like stock, capacity and more in real time HUGO BOSS 21-Nov-18 9

10 Blockchain smart contracts product traceability and integration of CSR requirements into the daily procurement process Supplier 2 Customer Brand Assembly Weaver Dyeing Spinning Ginning Cotton Supplier n Customs clearance Customs clearance Traceability through secured and dedicated B2B order information Full supply chain planning and execution including third party service (e.g. audits, customs clearance) HUGO BOSS 21-Nov-18 10

11 Blockchain smart contracts tokens enable financial services for CSR and procurement Loyalty programs Supplier 2 Letter of credit Customer Brand Assembly Weaver Dyeing Spinning Ginning Cotton Supplier n Customs clearance Customs clearance Optimize financial transactions according to agreed rules (triggers) of B2B contracts Enable incentive programs (loyalty, sustainability KPI s and targets, agreed budget, in-time delivery, quality, ) HUGO BOSS 21-Nov-18 11

12 Blockchain cotton value chain concept: including the customer trusted and validated information showing the value of sustainable practices Blockchain Blockchain Blockchain Blockchain Material description Blockchain Transfer date Transfer date Blockchain Blockchain Material description Blockchain Shipment date Material description Blockchain Transfer date Transfer location Transfer location Transfer date Material description Shipment date Location Shipment date Material description Transfer location Ownership transfer Ownership transfer Transfer location Harvest date Location Fabric label Location Shipment date Ownership transfer Smart contract Smart contract Ownership transfer Field location Bale label Amount send Garment label Location Smart contract Amount received Amount received Smart contract Cotton label Amount send Certification Amount send Garment label Amount received Cost of goods Cost of goods Amount received Certification Certification Certification Amount send Cost of goods Cost of goods Amount Certification Blockchain Standards Regular-fit polo shirt in fine piqué Style Pallas % cotton Cultivation Harvest Ginning Transport Spinning Dyeing Knitting Assembly Transport Distribution Transport Retail Purchase HUGO BOSS Center 21-Nov-18 12

13 Additional benefits of blockchain smart contracts tokens the digital face to your partners in the fashion world using mobile technology Supply chain dashboard Tokens enabling incentives for responsible projects or individuals An ecosystem based on information sharing, order management and financial transactions supporting responsible business HUGO BOSS 21-Nov-18 13

14 Advanced digital manufacturing Industry 4.0 HUGO BOSS 21-Nov-18 14

15 Digital production scheduler & controller Delivery advise blockchain Order Simulation Production parameters Scheduler Controller + Improved production efficiency through simulation of predictive models for the production parameters + Dynamic elaboration of raw material warehouse situation, single production place capacity, other production constrains and the order promises + Real time production update (RFID) versus plan + Better cost control per single production step + Reliable customer feedback on delivery Improved efficiency with a limited investment helping to optimize workload without jeopardising workforces HUGO BOSS 21-Nov-18 15

16 Speech recognition + More concentrated work + No interruption due to manual input + Ideal for documentation work + Helps to reduce risk of accidence - Investment Improved efficiency for specific workplaces at a limited investment without jeopardising workforces HUGO BOSS 21-Nov-18 16

17 Automation / Robotics / RPA for manufacturing + High preciseness + High efficiency + Reducing work complexity + Work automation (perfect when high repetition rate) - High competence - High investment Improved efficiency for special workplaces requiring investments and specific competences but impacts on the workforces HUGO BOSS 21-Nov-18 17

18 OFFICE MANAGEMENT ROBOTIC PROCESS AUTOMATION MACHINE LEARNING ARTIFICIAL INTELLIGENCE Automation / Robotics / RPA for administration Office Management is a profession involving the design, implementation, evaluation, and maintenance of the process of work within an office or organization, in order to maintain and improve efficiency and productivity. In HBTI, Office Management is finalized to Product Development, Operations and Business Services activities, mainly. Robotic Process Automation (RPA) is the discipline to develop and implement software Robots to handle high-volume, repeatable tasks that previously required humans to perform. In HBTI, RPA is finalized to increase the efficiency and quality for the office management activities. MACHINE LEARNING is a subfield of artificial intelligence. Its goal is to enable computers to learn on their own. A machine s learning algorithm enables it to identify patterns in observed data, build models that explain the world, and predict things without having explicit preprogrammed rules and models. ARTIFICIAL INTELLIGENCE is the study of agents that perceive the world around them, form plans, and make decisions to achieve their goals. Its foundations include mathematics, logic, philosophy, probability, linguistics, neuroscience, and decision theory. Many fields fall under the umbrella of AI, such as computer vision, robotics, machine learning, and natural language ARTIFICIAL INTELLIGENCE is the study of Office Robotic Management Process is a Automation profession involving (RPA) is the agents that perceive the world around them, the design, discipline MACHINE implementation, to develop LEARNING and evaluation, is implement a subfield and software artificial form plans, and make decisions to achieve maintenance Robots intelligence. of to the handle process Its goal high-volume, of is work to enable within repeatable computers an their goals. Its foundations include office tasks or organization, to that learn previously on their in order own. required to A maintain machine s humans and learning to mathematics, logic, philosophy, probability, improve perform efficiency algorithm and enables productivity. it to identify patterns in linguistics, neuroscience, and decision. observed data, build models that explain the theory. Many fields fall under the umbrella of In HBTI, In HBTI, Office world, RPA Management and is predict finalized things is finalized to without increase to having the AI, such as computer vision, robotics, Product efficiency explicit Development, pre-programmed and quality Operations for rules the and and models. office machine learning, processing. and natural language Business management Services activities, activities. mainly. processing. from through passing by to HUGO BOSS 21-Nov-18 18

19 Continues improvement Digital learning HUGO BOSS 21-Nov-18 19

20 Digital learning On the job + Improving the specific skills for better quality, efficiency and much more like security + Self explaining + Very precise For general skills, e.g. sustainability management + Offline training, at the trainees convenience + According to the speed of trainee + Supported by face to face (short and intense) + Good cost benefit ratio for training organisation and trainee Helps to raise knowledge (specific / generic) which is important to prepare the workforces for the next competence level HUGO BOSS 21-Nov-18 20

21 Short HB Izmir movie The smart factory HUGO BOSS 21-Nov-18 21

22 Thank you More information HUGO BOSS 21-Nov-18 22