June 9, 2021

The Future of Digital in Manufacturing

Augmented reveals the stories behind the new era of industrial operations, where technology will restore the agility of frontline workers. In episode 21 of the podcast, the topic is: The Future of Digital in Manufacturing. Our guest is Çağlayan Arkan, VP of Manufacturing Industry at Microsoft.  

In this conversation, we talk about where manufacturing has been in the past, why manufacturing has been lacking a sense of urgency in the sense of industry 4.0 but how everything we know about manufacturing has changed. We also discuss workforce transformation, democratizing operational technology, and the future of industrial innovation.

After listening to this episode, check out  Microsoft's manufacturing approach as well as Çağlayan Arkan's social media profile:

Trond's takeaway: "The future of digital in manufacturing is enormously impactful. Yet, even deep digitalization will not make workers obsolete. Rather, the challenge seems to be achieving a dramatic workforce transformation which also entails empowerment, upskilling, and autonomy through augmentation of frontline operations."

Thanks for listening. If you liked the show, subscribe at Augmentedpodcast.co or in your preferred podcast player, and rate us with five stars. If you liked this episode, you might also like episode 9, The Fourth Industrial Revolution post-COVID-19, episode 4, A Renaissance in Manufacturing or Episode 20, The Digitalization of Körber.

Augmented--industrial conversations.


#21_The Future of Digital in Manufacturing_Çağlayan Arkan_

[00:00:00] Trond Arne Undheim, host: [00:00:00] Augmented reveals the stories behind a new era of industrial operations, where technology will restore the agility of frontline workers. In episode 21 of the podcast, the topic is the future of digital in manufacturing. Our guest is Çağlayan Arkan, VP of manufacturing industry at Microsoft. In this conversation, we talk about where Manufacturing has been in the past.

[00:00:28] Why manufacturing has been lacking a sense of urgency in the sense of industry 4.0, but however thing we know about manufacturing has changed, we also discussed workforce transformation. Democratizing operational technology and the future of industrial innovation. Augmented is a podcast for leaders hosted by futurists Trond Arne Undheim presented by Tulip.co the frontline operations platform and associated with [00:01:00] mfg.works the manufacturing, upskilling community launched at the world economic forum. Each episode dives deep into a contemporary topic of concern across the industry and airs at 9:00 AM us Eastern time, every Wednesday. Augmented the industry 4.0 podcast. Çağlayanhow are you today?

[00:01:24] Çağlayan Arkan: [00:01:24] I am very well. Great to be here. Thank you.

[00:01:29]Trond Arne Undheim, host: [00:01:29] I am alerted to the fact that you are an outdoor person. I wanted to cover that just because a technology discussion in manufacturing is not complete without a little bit of personality. And I, think we should, you said you were a back country skier. I was curious about this.

[00:01:46] Çağlayan Arkan: [00:01:46] I am skiing is my passion, one of them, but probably the one that makes me happiest. The one that I love the most and I like ski touring and I like skiing the back country the, all the [00:02:00] off the style, like the climbing, the physical, I'm a very physical person and on a similar note, I also am a cyclist.

[00:02:08] I'm a sailor, a windsurfer, just love being out. I love the wind on my face.

[00:02:13] Trond Arne Undheim, host: [00:02:13] At one, some point in the future when the pandemic is over and behind us, I think my next podcast with you we will simply go for a hike.

[00:02:23] Çağlayan Arkan: [00:02:23] Let's do it, but doing it with me has the following potential downside for you.

[00:02:28] The other piece of my out outdoors work or kind of world, if you will, is that I love miserable weather. I'm a winter person. I love my rain, my cold, my winter, and people typically, even if they categorize themselves as outsider, like outdoor people, they will just love Fairweather. I don't, I'm not that person.

[00:02:52] I don't like sun on my face. I don't like a lot of people out. I'd like trails to myself. I like mountains to myself. [00:03:00] We'll do it together.

[00:03:04] Trond Arne Undheim, host: [00:03:04] This is probably something you didn't realize, but I grew up in Norway and there are no people and it's we have plenty of bad weather.

[00:03:09]Admittedly, I don't live in Norway, so that could give you a clue, but there is something there. All right, we're on.  So having said all that I wanted to ask you this question, no, we're going to talk about I guess the future and the current state presence, state of manufacturing, but where has manufacturing been in the past?

[00:03:27] And by the way, when you think past, how far do you go back? Is this just pre COVID or because I've heard you talk a little bit about that, Manufacturing traditionally, and I want you to just give us a quick sense of where you think the industry was just a few.

[00:03:43] Çağlayan Arkan: [00:03:43] Me personally, let me personalize Manufacturing for me.

[00:03:47] I'm an industrial engineer with an MBA and so my whole education was like in, in plants and, like in the manufacturing environment and I studied from operations research to metallurgical engineering, [00:04:00] to electrical engineering, to construction, to electrical.

[00:04:03] Do you just name it? And and so that has been something that I've really liked the systems thinking the optimization I've done a lot in, or back in today, linear and multiple so maybe too much detail for now but why was manufacturing?

[00:04:17] Manufacturing has been mostly manual siloed with  a separation between information technology and the data state that brings to the table and operations technology that brings to the table technology has never really been from  a, particularly from an it standpoint as top of mind, digital transformation.

[00:04:44] Has has not really been a sense of urgency in manufacturing because things worked yet people at the shop floor and things were working until the pandemic hit. So pandemic question, slap on the face, where manufacturers business [00:05:00] continuity, none, you can't send people to the shelf floor. You cannot operate, you don't see your inventory.

[00:05:05] You can't see your suppliers. You don't even know whether they're surviving or not financially or otherwise. So it was a huge problem and, but the silver lining of all of this is now there's acceleration in terms of transformational manufacturing. Look why is Manufacturing important.

[00:05:23] Let's spend a minute on that. Manufacturing, unlike many other industries. And I make fun of my peer kind of industry leaders at Microsoft as well. Manufacturing is very real manufacturing creates employment, manufacturing creates growth builds economy, built capacity. Manufacturing is about innovation.

[00:05:43] Manufacturing is about competitiveness. So it is core. to populations countries it's core to politicians, to business leaders. And it's just phenomenal. And so if you do that, if you do things right in [00:06:00] manufacturing, things work, including like climate change and sustainability and a lot of other stuff.

[00:06:06] And if you do things wrong, actually you can you can see a lot of damage done, it collapses economies with collapses grids and, stop some creates a lot of disruption. It is very real and so I'm sorry, I'm providing a long answer, but you can tell I'm passionate about it's very personal for me , but by and large, I am actually excited where we are. We are at an inflection point and we'll see a lot of xceleration coming out of the the pandemic, the the the crisis and stuff we're working on is actually ensure business continues you and resiliency. Those are the things that, that are the conversations like going forward.

[00:06:45] Trond Arne Undheim, host: [00:06:45] Çağlayan I wanted, you took me in a, in an interesting direction. I was just thinking, as you were speaking right before we go to the, in the inflection is actually not just a little bit surprising, but actually quite surprising that there haven't [00:07:00] been any reported, massive disruptions due to the pandemic.

[00:07:05]If you think about that, all of these mission critical systems that we have around the world in every manufacturing related industry. How do you explain, because you, as you were saying, historically, and some of these silos are still there, although, obviously we are at this inflection point, so some have already transitioned, but.

[00:07:27] How do you explain that we haven't had more horror stories and by horror stories, operations completely collapsing, or I guess grids falling apart, or, that one manual worker couldn't go in. So X happened that they had never thought about why haven't we heard anything like that?

[00:07:44] Are those stories going to come out? Do you think, or did nothing seriously happened?

[00:07:50] Çağlayan Arkan: [00:07:50] It happened. I know for a fact, because once the Sez started, I started calling him and down on my customers how are you doing buddy? You need for one, [00:08:00] I think at that, at the kind of, from a table stakes stump point that, we've seen massive  teams deployment because people wanted to communicate. And what they wanted to continue with in terms of being able to talk to one another, being able to work and then work from home, of course, because they couldn't go to to their plants or to their offices. There was a lot of there was a lot of I'll say a pain. There was a lot of disruption.

[00:08:26] I've talked to some of my customers and they're like, billions of dollars are tied in inventory and we have no idea where that sits. Again, they're disconnected from suppliers as well as their customers. And so that was disruption, but luckily we've had some some leaders actually having maybe four,  seen want us to come or they were disruptors or at least early adapters.

[00:08:50] And they have taken pre COVID pre crisis steps for a digital transformation. And I love my examples are partnerships with [00:09:00] Erickson who started work. Pre COVID in terms of digital manufacturing, auto kumu, I'm a leader in steel manufacturing significant progress, including during the pandemic Airbus Unilever.

[00:09:14]Those are like leading examples, only some of them. You look at the world economic forum, global lighthouse network. There are so many lighthouse factories that are just. Like literally land houses for people to look at and look up to that work started years ago.

[00:09:31]So there are some extremely, encouraging examples. There are some like very dark the stories in terms of like complete stoppage and and horror stories. But by and large, we are at a good place in terms of we understand the issues and we understand how to deal with them. And I think most important thing.

[00:09:51] Time to value that notion of time to value is accelerated in manufacturing. We're coming from prohibitively [00:10:00] expensive. We're talking like hundreds of millions of dollars of it projects that never end to now. , negligible cost and 10, 12 weeks, a couple months and then you stand up a digital factory capability.

[00:10:13] You have visibility into your supply chain by standing up a control tower and then you in the case of Airbus, you can or or Alstom, you can have your 2000 engineers. Still keep doing design engineering, work from home, examples go on. But it is it is we understand the issues.

[00:10:34] We have very quick ability to to build capability to  show that, stuff works and you can operate remotely, et cetera, et cetera. But yeah.

[00:10:45] Trond Arne Undheim, host: [00:10:45] That this is the definite end to, what you were alluding to is this pilot purgatory, is that the, is COVID to definite end to pilot purgatory, or is it just that this particular situation was so serious that everybody [00:11:00] kind of scrambled and most of them got it. Or would you say that, possibly, because once you have made this transition, that's, that is the hard work. Do you think that These pilots that were everyone was waiting for w will that problem disappear? Cause you have people have learned that, this is not the way to introduce technology it's you learned it the hard way.

[00:11:23] Çağlayan Arkan: [00:11:23] My view is if you take a step back Trond th here's how I see it a hundred years ago, we were by and large and agricultural society today. And we had 50% of the workforce in agriculture. Right today, we are by and large and industrial society. And we have 2% of the workforce in agriculture.

[00:11:45] And we're we brought everyone along in terms of the industrial age today, we are at the next junction, some call it industry 4.0 some, call it other names, but we are as a society as humans [00:12:00] like humanity, we're moving from industrial to digital. Okay. So that's the higher order now, what is that pandemic?

[00:12:09] What's the role of the pandemic in deciding instead of acceleration? So in any major shifts that are, there are behaviors and categories of of actors or players, there are the disruptors. There are  those who go and make a market, build a trend and We have seen those and we're still seeing them they're the early adopters.

[00:12:34] We talked about some of them as well, and then there's going to be the slower adopters and the laggards and then some of the laggards will lot, see a lot of day or will not maybe exist in the after  the, we transitioned to the new reality neuron or that, that notion of like digital society.

[00:12:54]So what I'm saying, I guess is it was going to happen. Those pilots [00:13:00] are people's way of some like slow adapters way of touching it putting their toes in the water for, sorry. It's like proving value and acceleration pandemic again, with that kind of disruption is going to accelerate and bring more to the table.

[00:13:15]It certainly has a role to play, but the higher level Audrey's we were moving to a so a very different reality for manufacturers and supply chains and even as a society.

[00:13:26] Trond Arne Undheim, host: [00:13:26] Super interesting. Shelly, and I've heard you talk earlier, and I guess we talked a little in the prep about,  whether this is a different wave of technology, because I know you have some views on the democratization of basically operational technology, because there are different waves of technology in manufacturing and, traditionally, like you said, The industry has been siloed, but one of the reasons the industry was siloed is that the technology then also turned into silos.

[00:13:54]Arguably. And what is it about the technology these days? Is it [00:14:00] getting simpler or are you for instance, in Microsoft spending more time on user interfaces than you were before? Or I guess even the introduction of your company's so deeply into manufacturing is in and of itself. A bit of a novelty, right?

[00:14:16] That that tech players, that weren't specialists are now going deep into industry segments, give you a sense of how, why this is happening and what exactly is this? Democratisation that's that? That's the Gardner calls it citizen developers.

[00:14:33] Çağlayan Arkan: [00:14:33] Yeah. There's, that's one aspect of it the way I see it as okay.

[00:14:38] Very shortly technology now works. Honestly I throw, I don't know, five years ago, it just didn't, like it was so hard to for implementations, for integration, et cetera, it not works. There's virtually nothing. Technology can not deliver it today. It's up to the leader leaders, vision leaders, [00:15:00] ability to execute and, magic happens.

[00:15:02] There's so much at play right now. That's one. Secondly, technology is the business right now. Technology was in, it was isolated. Trond you will remember those days, not too distant past, like we had our own language. The CIO was it's like the, they elect from Mars in the organization and they were not mainstream in you as an executive in the company, company did their work and CIO did that stuff that nobody really understood. Now technology is the business. You look at any research, you will see that the mainstream business leader, whether it's the CML, the chief marketing officer, chief digital officer to finance books or whatever those may be, they're making more technology decisions.

[00:15:51] And have bigger technology budgets stand than the technology people themselves. So that's the other piece that business is technology is business. The third [00:16:00] piece is that the siloed nature of not only manufacturing, so many different industries was because it was an application led a view into into Enterprises or into business.

[00:16:12] Now it's a data-driven work and so data dictates everything and data is actually end to end. So to the extent that you have a data architecture, enterprise level, data architecture, and a system level approach to things it's a completely different world and bring those three together.

[00:16:34] As a business there's you have to forget more than you remember, and then you have to reinvent yourself. And as you do that, everybody knows the cliche examples here, but then you find yourself as a completely different company or a services company or a or actually at the risk of being disrupted or or, by my competition and like in ways that were not.

[00:16:57]Thought of or unprecedented. So [00:17:00] that's what's happening. So what we'd like to approach this whole kind of, I like to call this opportunity. It's a major opportunity. It's a huge inflection point. It's all about reinventing your business. It not, none of that is about technology.

[00:17:16] Technology is a tool is a powerful tool. It's a tool that works. It's very capable, but it's about the business outcomes, because we said you have to reinvent your entire enterprise, your culture, starting from your culture, how you operate your value proposition, all of that. It is, where you start, should be dictated by which outcome is most important for you or the highest value for you or the most burning for you about whatever your drivers are focused on the outcome.

[00:17:48] Going back to where to find the relevant data for it and get to that in weeks, literally seriously in weeks and get to the next outcome. And don't forget the people and culture. It's all [00:18:00] about the people piece. And we can talk about that later. I think we should , but that, that, those are the things that I will say to your technology question.

[00:18:10] Focus on data and lead with culture and and always major prioritizations on the outcomes you want to drive.

[00:18:16] Trond Arne Undheim, host: [00:18:16] You said lead would culture. But it's not just company culture, I guess it's the whole nature of the skills that are now needed in this new workplace. A lot of people are saying that is changing and that the workforce needs are changing. So you initially said technology now works. So that's true, but what are the skills that then are needed? Okay. Technology is easier. But what are some of the tasks that are, less relevant because of this influx of call it industry four type technologies and what are some of the skills that are more relevant and  the worker, the frontline worker of the future, what should they be focused on?

[00:18:56] And what do your clients, whether they starting to [00:19:00] teach their workforce?

[00:19:02] Çağlayan Arkan: [00:19:02] Great question. I will say at the highest level Trond it is a data driven culture. In many factoring, maybe other businesses and industries as well we operate on the basis of past successes habits.

[00:19:17] This has been no delivering for me. This has been working for me, et cetera. Or, ex experience, listen to stuff, you watch stuff, you anticipate stuff. Yeah. And you're like, Hey, I've been doing this for 25 years. None of this has anything to do with data because again, we established that we were using lists on one person of our data, at least in manufacturing. Now the biggest cultural change is data-driven. And then once you go to data telling you what to do, data, giving you predictions, gate data, giving you systems of intelligence, like the insight style in terms of what you know, what to do and when to do it and how to do it, et cetera.

[00:19:58]Then. That [00:20:00] dictates actually two things. Again, I'm trying to stay at calm down to it from upload in terms of a hierarchy Manufacturing had a skills gap, has a bigger skills gap in the face of digital. All right. And we're not at an attractive industry. The young generation does not see career opportunities in manufacturing.

[00:20:21] Actually manufacturing is fantastic. It's again, it's real. It's innovative. It's you know so we have to change that and so we're working on it. And secondly the existing jobs, even if they may still be the most important jobs in manufacturing, they, those people have to learn new skills in terms of  doing their jobs, using technology.

[00:20:45]Let's say in a couple of examples, right? You talked about the frontline workers, FirstLine workers, or your shop floor, like the real the very people who get the job done. They typically did not use any technology. They were all mostly manual what we called [00:21:00] HMI, like human mission interfaces, all, like very antique equipment, if you will, blue screens and you might think, I think anyone who's close to manufacturer will know that use a lot of paper, et cetera.

[00:21:14] The today's frontline worker is actually acting on data, acting on predictions, double clicking on the modern interface and responding to traffic lights, responding to alerts. You gotta be able to do those right wearing, like augmented or virtual reality devices. We call it mixed reality with the unique technology that we have in terms of whole lens and our, and timing shot to platform.

[00:21:40] But you come to a job and then you don't need to learn to do the job. You just wear your whole ends and that makes you out your platform will actually teach you like, how to do it with your two hands free. If you're in the field service, someone at the back office with, through remote connections on remote assist capabilities can actually guide you through as [00:22:00] to how to deal with that.

[00:22:01] I don't know, grid asset, or extruder or  packaging line because they know how to, and you don't need to, and then this is the way you learn how to do stuff. So I guess the gist of it is some jobs will no longer exist. Most of the repetitive, low value added jobs can be automated.

[00:22:19] Robots artificial intelligence and other means in terms of process automation, et cetera. Most of the jobs, if not all of the jobs will be re-skilled in terms of technology. And and then the highest level at the highest level, probably 75 million jobs will go away.

[00:22:36] Again. This is a World Economic Forum study. 135 million new jobs will be created. What are those jobs, data, jobs that are dual job software jobs. And then  how you do your like design and engineering, you have to be able to understand Alec generative, design, editor, manufacturing, 3d printing, to be able to be successful.

[00:22:56]And so all of that is a call to action for [00:23:00] universities, policy makers, cob corporate learning officers for all of us and and cultural partnerships to to lean in. And again, I use the agriculture example, bring everyone along from the industrialization of digital age.

[00:23:14] Trond Arne Undheim, host: [00:23:14] It's a fascinating challenge. And it's a big one. I was just curious, there's a lot of talk about middle jobs, meaning, jobs that are somewhere between more than high school, but less than traditional college. But then you also have an astral on above that, of course, which traditionally, certainly Microsoft was hiring into, which is more high level cognitive jobs, obviously with the, which required bachelor's and master's and PhDs in traditionally in computer programming, but I'm guessing now is certainly in your field in sort of hybrid engineering studies, where engineering plus it. The metal jobs is is a big challenge, even just from an operational point of view. It's hard to educate a billion people worldwide or whatever it is that we have to continuously [00:24:00] keep, to keep the lights run and, lights up.

[00:24:02]How is all that going to happen and what sort of effort does this require? Is it, can we use the existing institutions? We have to do this, or do you foresee that it's going to be a lot more like on the job type of training and digital.

[00:24:16] Çağlayan Arkan: [00:24:16] I'll say all of the above in the following way for one, we're already working with Purdue university of Wisconsin and many universities and education institutions.

[00:24:26] So for one, many factoring related jobs were graduate. Jobs. We're trying to bring that to the curriculum to undergrad, if not high school. So there's that. So vocational training, et cetera, all of this is important. Secondly, we partner with the national association of manufacturing in Dux.

[00:24:45] MXD says me Mobby C Tulip.co and many others in terms of, Call to action and doing institutionalize it programmatize it at, a very important for all of that. Thirdly, I talked deliberately talked about [00:25:00] corporate learning officers because because a lot of people. Tens, if not hundreds of thousands of people in large corporations actually have to learn new skills.

[00:25:09]And it is happening as we speak in multiple ways and many leading enterprises, but as a huge part of  the whole equation. And then the I talked about word economy forum and the global lighthouse network, programs like that actually bring it.

[00:25:24] Bring it to everyone's attention in terms of what is possible and how it works and how some kind of leading institutions deal with now, which brings me to this notion of what I like to call our top possible. I think. Leadership at large political leaders, enterprise leaders any institution education like leadership at large has to understand what I call the art of possible.

[00:25:51] And that is how technology has already transformed everyone's lives. And why do, what is it that for [00:26:00] leaders to do differently? Starting from communication, setting new standards to building the new curriculum, to encouraging everyone, bringing everyone along and all the rest of it from culture change to change management and defining the new normal.

[00:26:15]But by and large, it's like bringing everyone along. And and so that is really important that we start that education and understanding what the leadership, because it's all about leadership, it's all about them having the right vision and being able to execute to that.

[00:26:31] Trond Arne Undheim, host: [00:26:31] What is the role of actors such as startups? You mentioned Tulip.co what are startups is role in the emerging manufacturing and sort of frontline operations ecosystem, Tulip.co thinks of itself a little wider than manufacturing, but what is it that startups can do?

[00:26:46] Because clearly this is a game technology overall and also industries, right? It's a industrial game. It's mean the industrial companies are massive traditionally, the juxtaposition traditionally in the old world would [00:27:00] be between the industrial conglomerates and then the SMEs and the game was to get the SMEs to be useful providers and suppliers into the supply chain ecosystem was an educational challenge, but.

[00:27:13] You now have startups somewhere in this picture as well. Can you address how you think these startups function in the ecosystem going forward?

[00:27:24] Çağlayan Arkan: [00:27:24] I think the example that I would use is startups are like Tesla for automotive air Airbnb for hospitality. They're the disruptors. They have zero legacy and we're talking major change, major transformation. What happens in change? Lots of the legacy will drag their feet. They will want to protect status quo there'll be slower. What startups do is they teach you the new normal they teach you are possible and they go on and do it.

[00:27:55] This is how you carry from like years of implementation time, [00:28:00] two weeks. This is how you go from hundreds of millions of dollars to pennies and cents. And Tulip.co and many others that I'm so excited to work together with, they defined a new normal. They make it happen, they go and make stuff.

[00:28:13] And then, and actually they are the ones who bring that, what I call out to possible to life like Ted let's take tulips example. Again, they go into the shop floor and they look at that local no-code citizen developers a term that you used in this very conversation and then they bring it to life in the context of manufacturing, operations.

[00:28:35] And suddenly the human machine interfaces are modernized the legacy heavy applications that do not, necessarily connect the enterprise. It's changed and there's a new workflow in place. And people just act on data and intelligence. The job is much easier to do, et cetera, and then you can build on it.

[00:28:54] And so they're what they do is just extremely important, actually much bigger [00:29:00] than their sizes of the number of people that they employ. The role that they play is actually what is going to change economies and this is one reason why we embrace. And work very closely with with the likes of Tulip.co at Microsoft, through multiple tools and investments that we have from Marshall, for startups to M 12 and to many others.

[00:29:22] Trond Arne Undheim, host: [00:29:22] Yes, I understand. That's fantastic. However, it does remain the case that right now you are a gorilla in, in the big space and you do have a privileged position to analyze what you think is happening. So if you use that sort of futurist hat that you have from your vantage point of a, large player that does work with everyone, where is this now heading, you said this it's a disruptive time. It's an inflection point you were using, big sort of revolutionary words. We're talking about industry revolutions. There's also some uncertainty and we have been dealing [00:30:00] with resilience issues. But you pointed out, simplicity has improved.

[00:30:04] Where is all this taking us? All of these bits and pieces altogether, where is the manufacturing industry? Heading

[00:30:13] Çağlayan Arkan: [00:30:13] Manufacturing is very complex and it's actually not one industry, it's so many industries are manufacturers, so let's break it down and simplify to maybe customer facing systems, sales services, et cetera, design and engineering, making stuff, which is really manufacturing, supply chains.

[00:30:32]And then maybe you I'll look at people and the customer systems, particularly pandemic taught us that online sales and delivery, Omni channel strategies profit optimization pricing, contract, life, lifecycle management, all of that is here to stay connected to field services or field services at large is going to be changed forever.

[00:30:51] Again, we've talked about mixed reality, remote assistant, remote capabilities, all of that. So that is a, that is what, where that is headed. [00:31:00] In terms of the design and engineering piece. We talked about AI let's turn to design where AI engines actually designed stuff like modern nature. They don't have corners, they're not straight lines.

[00:31:13]So the existing manufacturing paradigm, so not like welding and bending and et cetera, they can go away nd 3d printing actually is very revolutionary in that. It's the only way to actually make the stuff that is designed by AI engines, which is faster, stronger, lighter, cheaper, et cetera.

[00:31:33] But again, you can only build them with the new nude, 3d or additive paradigms and so there's that and obviously from our design and engineering, that whole design supply chain is moving to a virtual environment so that you do not have to send, like designs and paper when it comes to you will look at Boeing, they have 6 million suppliers. You look at rolls Royce to same deal and then what they do [00:32:00] now is they send electronic drawings. You can validate, you can verify the sources, correct. Do you know that then you can just keep building in the virtual environment. Then you can run simulations and tests. I can go on and on, but that is completely disrupted and changed forever manufacturing as we know it is moving to some, call it a lights out manufacturing. But this whole remote capability this, being able to like business continue to, without the people at the shop floor, being able to remotely operate, manage, and monitor your assets, get predictions on them. Manage actually have predictions I have visibility into your suppliers and be connected to their environment. Digital twins, digital threads are actually huge enablers from that from that perspective. So this whole kind of lights out manufacturing conversation can happen again technology is capable of delivering it.

[00:32:53]You have to optimize or rationalize for your own integrated supply chains, completely moving to a, to an autonomous [00:33:00] and sustainable fashion. And then finally at the highest level, why we're seeing the, perhaps the largest opportunities go from your, even your own enterprise was siloed.

[00:33:14] Let alone your enterprise go and reinvent the whole value chain that you operate in. We tend to think about industries, but actually value chains are made up of multiple adjacent indices. Look at food. It starts with perhaps the farmer, but the farm equipment manufacturer, the likes of John Deere class Mahindra, et cetera, do play a huge role.

[00:33:38] There's a lot of data there. Dan you then Dan, you look at warehouses, Daniel, look at mills and processors and packagers and shippers, and then all you go all the way to retail. I talked about seven different industries.  The notion of, I call it lead with opportunity, as opposed to leading with risk, share your data for the greater good [00:34:00] new value creation at the value chain level.

[00:34:02] We haven't even begun starting that journey really. And Just some of the examples of how everything we, we know it is already disrupted again, do all the leaders know, do all the leaders and I had to deal with it or where to take that enterprises, their people, their cultures, their businesses. And so that's the conversation.

[00:34:25] Trond Arne Undheim, host: [00:34:25] Indeed. It is disruption at the value chain level. That seems to be at the core and then I guess my last question for you really is to take this back to the human being. Cause I know you think that fundamentally this is not really about the technologies or even just the various industries at the same, at the center and maintaining and constructing is the human being, the augmented human capabilities that these new structures and technologies enable. What does that look like? If you think augmented reality and mixed reality, holo lens is like a beginning of that [00:35:00] vision, but it seems we're arguably going from a day where it was, the idea was automate, but you have a vision of more augmenting meaning you're so you're supplementing the human as opposed to replacing them. How do you see the human being in this picture? What, what is going to be the role of the human worker?

[00:35:18]Çağlayan Arkan: [00:35:18] There's, it's going to be a combination of vision and maybe aspiration, but I'll say Augmented society first because diversity and inclusion, let's start there. Let's bring everyone along. Let's not leave one person behind wherever. They may be whatever background and let's bring everyone along. And as a society, let's elevate everyone. Let's make everything accessible technology and data and education and health and water and safe food.

[00:35:48]All of that, accessible to everyone, the new set of paradigms actually. Create might create value at such a level in which we can give [00:36:00] people more free, time, more fulfillment provide better work-life balance, provide other means of seeking a reason and a purpose in life and communicate and work together at very difficult levels.

[00:36:14] And so all of that is just Again I think the sole kind of leader article possible, and what technology is capable of today, you feel put the people in the front in the center and and go from that, go from there. I think we can see we can remember these days as a, as some of the best kind of inflection points in history.

[00:36:40] Trond Arne Undheim, host: [00:36:40] Wow. That's a great way to end. I thank you so much. This was a whirlwind of a of observations. I thank you very much.

[00:36:48] Çağlayan Arkan: [00:36:48] Thank you.

[00:36:50] Trond Arne Undheim, host: [00:36:50] You have just listened to episode 21 of the Augmented podcast with hosts Trond Arne Undheim. The topic was the future of digital in manufacturing and our [00:37:00] guest was Çağlayan Arkan VP of manufacturing industry at Microsoft.

[00:37:05] In this conversation, we talked about where Manufacturing has been in the past workforce transformation, democratizing operational technology, and the future of industrial innovation. My takeaway is that the future of digital in manufacturing, because they're enormously impactful yet even deep digitalization will not make workers obsolete.

[00:37:29] Rather, the challenge seems to be achieving a dramatic workforce transformation, which also entails empowerment, upskilling and autonomy through augmentation of frontline operations. Thanks for listening. If you liked the show, subscribe at Augmented podcast.co or in your preferred podcast player view our YouTube channel and rate us with five stars.

[00:37:55] If you liked this episode, you might also like episode nine, the fourth industrial [00:38:00] revolution, post COVID-19 episode for a Renaissance in manufacturing or episode 20, the digitalization of Körber augmented upskilling the workforce for industry 4.0 frontline operations.


Çağlayan Arkan

Vice President of Manufacturing Industry at Microsoft

- As Vice President of Manufacturing Industry at Microsoft, Çağlayan Arkan is currently responsible for managing the digital transformation, growth and compete strategies across all manufacturing industries and supply chains. This includes businesses within High-Tech and Semiconductor, Industrial, Aerospace, Chemical/Process Manufacturing, Agriculture, Pharmaceuticals and Life Sciences, Consumer Goods, Defense, Smart Buildings/Smart Spaces and more.
- Arkan is passionate about empowering customers to position themselves as first movers or fast followers in today’s disruptive era. By empowering organizations with new digital capabilities, strategies and insights, Arkan and his team are helping businesses drive sustained growth, agile innovation and operational excellence.
- Prior to his current role, Arkan held several leadership roles at Microsoft and Siemens, successfully spearheading new strategic growth, market penetration and business development initiatives.
- Arkan is currently based in Bellevue, Washington with his family.