I4MS 2015: Enhancing digital transformation in manufacturing SMEs I4MS 2015 will explore the progress achieved by the I4MS initiative and the impact participation has had on SMEs. To date I4MS has achieved over 80% industrial participation. An initial participation of 80 SMEs has now grown to 150 as momentum continues to build. Success is also evident with SME participation in projects leading to the adaption of new technologies and approaches. I4MS phase two will take this success further through additional projects supported by a budget of approximately EUR 35 Mn. At I4MS 2015 participating SMEs will present their experiences, results achieved and impact made. They will explain how they have benefited and what the adaption of innovative ICT has meant for their business. European support does not just exist at EU level. Action at regional level supported through programmes such as Smart Specialisation present the good opportunity to reach out to and involve the diverse landscape of European SMEs. At I4MS 2015 participants will be introduced to a new activity designed for such outreach – digital innovation competence centres – and an outlook towards the next stage of I4MS. I4MS is a EUR 77 Mn initiative of the 'Factories of the Future' partnership designed to support the adaption of innovative ICT by SMEs. Through seven integrated projects in four key areas, I4MS brings manufacturing SMEs directly into research and innovation projects, introducing them to innovative technologies and supporting the adoption of such technologies.

1. Enhancing Digital Transformation
in Manufacturing SMEs
22nd of May
Brussels
2015
Nick Davis
Hobsons Brewery
Gary Pattison
Saker Solutions

2. INDEX
1. WHAT WE ACHIEVED
2. HOW WE DID IT
3. HOW I4MS HELPED
4. HOW WE WILL TAKE IT FORWARD

3. WHAT WE ACHIEVED
1. Quality is the key to success
• All beer has unique characteristics
• Each beer is at its best within a specific age window
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
• Client sites consume casks at different rates
• Some much faster than others
• Need to ensure that casks will be opened at the optimum time
so beer is consumed when it is neither too young nor too old

4. WHAT WE ACHIEVED
2. Craft brewers embrace benefits of simulation modelling
• Corporate brewers are long standing proponents
of simulation
• High capital investment
• Strategic business change
• Less than 20 large breweries in the UK
• Most of which have used simulation
• In contrast, craft brewers:
• c. 1,350 in the UK
• Estimated 15,000 across the EU
• Simulation enables
• Better operational decisions
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

5. • Assuming a 15,000 HL/PA production with a spoilage rate of 0.5% eliminates
the following negative economic effects:
• Loss of beer sales revenue c. 18,000 Euros / PA
• Extra energy requirements 5,000 Euros / PA
• Barrel utilisation costs 3,000 Euros / PA
• Increased carbon footprint
• Reputational costs, HUGE
• C. 15,000 European craft brewers, multiplying the losses creating significant
deficit to the industry and creditability.
WHAT WE ACHIEVED
3. Economic Impact
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

6. • Traditionally all stock was picked on an
‘oldest used first basis’
• Approach did not take into account:
• The age at beer is at its best
• When beer will be consumed
• Application generates:
• Delivery schedule – which casks are to be delivered to whom today
• Are future deliveries covered (considers future orders & forecast)
• Simulation used to test robustness of allocations:
• Variations in consumption times
• Variations in demand forecasts
HOW WE DID IT?
Application
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

7. HOW I4MS HELPED
Removal of barriers and opportunity to embrace benefits
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels
• Removal of all barriers preventing
craft brewers making use of leading edge,
simulation based decision support tools.
• Simulation was seen as
• Too costly
• Software
• Services
• Skills
• However, benefits and value of decision support are highly desirable
• Qualitative
• Quantitative
• Off-the-shelf decision support tool to allow Craft Brewers to maximise quality
and leverage sales.

8. HOW I4MS HELPED
Application User Interface
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

9. • Hobsons ‘Case Study’ / Reference site
• Initial targeting of specific key craft brewers through Hobsons
• Wider proactive marketing campaign through SanderWerbung GmbH
• Potential already identified for uptake in other food and beverage industries – strong
analogy with diary industry
• Further initiative underway through InnovateUK to extend capabilities.
HOW WE WILL TAKE IT FORWARD
Exploitation
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

10. • For the same size 15,000 HL / PA brewery
controlling quality a 50% reduction in spoilage is
attainable.
• Saves 13,000 Euros annually in production costs,
energy and loss of sale revenue.
• Improves carbon footprint.
• We believe that within year three 10% of the UK
breweries (130) will adopt the simulation
template saving approximately 1.7M Euros per
year.
• Additional sales will also accrue along with a
stronger reputation.
• Beer Duty
HOW WE WILL TAKE IT FORWARD
Economic Benefits
I4MS 2015: Enhancing Digital Transformation in Manufacturing SMEs · 22nd of May · Brussels

11. THANK YOU
FOR YOUR ATTENTION
Nick Davis
Hobsons Brewery
Gary Pattison
Saker Solutions