Over time, gradually, organizations become matured, and ERP and various IT systems come into the picture. Enterprises have started to interact internally among various internal departments, and the organizational barriers got removed. At the later stage, when organisations are trying to integrate with external enterprise, they are trying to implement API and related technologies for integrating and exchange information among various supply chain partners like suppliers, customers, and other stakeholders. Industries started moving from Integrated Enterprise to Extended Enterprise.
Industry 4.0 framework extrapolates the concept of Extended Enterprise by breaking barriers of communication among the enterprises. Through the cyber-physical systems, this enables the collaboration initiatives and visibility in the extended enterprise to a higher level, including OEM and its supply chain partners. Digitization levers integrate the organization’s value chain. Digitalization levers like Cloud, Analytics, IoT, Blockchain, and other enablers enable business models for services and products.
Supply Chain Control Tower further strengthens the concept of extended enterprises. In the new paradigm, partners & OEMs form a network and interact with each other. The fundamental difference between the traditional & new paradigm is that in the new paradigm partners interact among themselves and also with the OEMs, while in the traditional paradigm each partner used to interact with OEM alone. In the new approach, all of them use a common digital platform for mutual interaction for sharing selected pieces of information and transactions.