The fourth industrial revolution (or Industry 4.0) is here. The promise it brings with it is appetising to say the least: greater flexibility and efficiency in industry, better connectivity and improved economic performance. It is too tempting to pass up, but are we really ready to take on the changes that this new industry requires?
The challenge facing industry
The reality is that the Industry 4.0 sweet comes with a wrapper that will not be easy for all companies to open. Yes, there are opportunities out there, but for change to happen, it is necessary to start from a solid base: robust processes, IT infrastructure in line with operations (IT-OT), technological maturity, strategic digitalisation objectives, staff capacities, etc.
Moreover, a characteristic of this new industrial revolution is that it is brought about by the convergence of different technologies that create synergies between them, such as process automation and virtualisation, improved connectivity (thanks to 5G and IoT), cloud and edge computing, artificial intelligence (AI), etc.
There is such a wide range of technological options that it will be necessary to analyse the state of each company and consider where and how to invest in order to obtain the greatest benefits. There is no single technological solution for industry. Investing in and developing the right technologies will revolutionise organisations at both a strategic and operational level.
Industries that integrate the right technologies first will gain an advantage over their competitors that will be difficult to win back.
This is the first challenge to tackle: choosing the right technologies. Industries that integrate the right technologies first will gain an advantage over their competitors that will be difficult to win back. Investing late or poorly (not on key technologies) could mean being left behind in this new industrial revolution. Consequently, many companies will have to ask themselves to what extent a certain technology is important for them, or which particular technological options are most likely to improve their competitiveness.
The next step is no easier: how do they integrate these technologies? Not all companies are ready to undertake this process on their own. Therefore, having a partner that specialises in technology and understands the needs of the sector and its industrial processes is essential. It makes it possible to implement the most suitable technological solutions by integrating the IT and operational layers.
From the present to the future of industry
The goal we want to achieve is clear: industry that is more productive and of higher quality, with information from every stage of production in real time that is more flexible, connected and streamlined. What everyone fails to talk about is how to get there.
Digitalisation is not something that can be achieved by working only in the engineering area. It needs to take various areas of business into account.
All revolutions bring great benefits, but also risks. Successfully moving to Industry 4.0 will require a high level of coordination at a strategic and operational level. Implementing partial improvements to activities or not using the right tools could result in failure.
Consequently, getting ready for this move is a responsibility for all organisations that want to be at the forefront in the years to come.
Steps to take towards industry of the future
Digitalisation is a process that requires a holistic approach, taking various areas of business into account: product, supply chain, company culture, etc. In other words, it is not something that can be achieved simply by hiring an executive with IT experience or working only in the engineering area.
In order to put the organisation on a sound footing for this transformation, a number of steps need to be taken as soon as possible:
- Analyse what the problems are: an internal review to identify, analyse and prioritise problems is the basic starting point for any company.
- Identify which technologies can help you solve your problems: artificial intelligence, machine learning, process virtualisation, IIoT… How do each of these technologies affect you? How do your competitors use them? What do your customers want?
- Improve the integration of IT and OT: IT and OT are inseparable concepts in smart industry. While the IT layer tends to be more developed, the pace of digitalisation of OT is typically slower. The more integrated and aligned these fields are, the more ready your company will be for Industry 4.0.
- Promote cultural change in your organisation: new technologies will need staff with new skills and knowledge. This includes CEOs and business managers, who will even have to think about ideas they have never thought of before (such as their main strategies or even business models) so that they can identify the lines of investment with the greatest potential for their organisation.
- Raise awareness: of the great opportunity you have before you, but without forgetting that this change requires a commitment at many levels within your organisation.
- Forget partial approaches: the fruit of implementing changes at all levels, including operational and strategic levels, will be achieving strong results. Initiatives at a local or sub-functional level will not achieve the change required.
Technology as a workhorse
In recent years we have learned (the hard way) the consequences for industry of not being agile and flexible enough to deal with change. The COVID pandemic hit many companies hard when they were still recovering from the previous economic crisis.
Being more agile and flexible at an operational level seems to be a good strategy for dealing with an uncertain future. We will achieve this by investing in digitalisation and taking our industries to the level 4.0 we are talking about.
Therefore, it must be understood that digitalisation is not an end in itself. The tools we have at our disposal are a means of reaching new levels of productivity more securely and competitively and, consequently, achieving increased profitability. It is important not to lose sight of this goal so as to avoid being sunk under this new sea of technologies.
The time for change is now
This will not be a one-time opportunity, but we can be sure that those who take it up first will go the furthest. It is time to be ambitious, because, as we have seen, this new industrial revolution requires courage and change from the highest levels of organisations.
Digitalisation is not a one-time opportunity. But those who take it up first will go the furthest.
The Industry 4.0 transformation is already underway and will happen whether you are part of it or not. It is inevitable. If you do not want to miss the boat, you need to get organised, map out a plan and, if necessary, look for partners to help you achieve your goals.
There is work to be done, but it will be worth the effort. Not all organisations will be starting from the same point of technological maturity and means, but there is one thing they all need: the desire to integrate digital and analogue (IT and OT) and to commit to change.
At SMARTPM we are well aware of how complicated this process can be for some companies. That is why we are committed to a smart automation process adapted to each case and always focused on improving quality, productivity and adaptability in an ever-changing environment. New technologies have emerged to change the way we do things. If you would like us to talk to you about how we can help you, please do not hesitate to contact us.
