What value does IIoT offer industrial companies?
Industry 4.0, the Fourth Industrial Revolution, is inexorably gathering strength. Industry 4.0 introduces the digitalization of processes, the Internet of Things, the installation of widespread sensors in the physical environment and the ability to rapidly enhance production economics through real-time performance-data analysis.
The new generation of digitalized, automated technology now available is enabling manufacturers around the world to improve overall performance and reduce time to market through virtualized product and process development, improved productivity, increased manufacturing plant and equipment uptime through remote monitoring and predictive maintenance as well as improved competitive capabilities through mass customization, where tailored products are offered with much the same economies formerly associated with mass production.
Five benefits of implementing IIoT, identified by early adopters
Industry 4.0 represents a significant opportunity for manufacturers to offer their customers enhanced product ranges and quality in tandem with more competitive pricing. Drawing on original research and a variety of published sources, this paper summarizes the key points of value that digitalization and automation have been delivering to those pioneering companies that have already started to invest in the new wave of digitalized technology. These key points of value are summarized in the diagram below (figure 1).
Benefits, case studies & financing opportunities for digitalization
As the world becomes increasingly connected, IIoT is a critical differentiator that will enable industrial players to remain competitive. Digitalization promises lower costs, improved production quality, flexibility, efficiency, shorter response time to customer requests and market demands, and new IIoT business opportunities.
For instance, according to this research, in the global plastic-products and packaging manufacturing industry, it is estimated that conversion to digitalized technology could deliver a Digitalization Productivity Bonus of between $34 billion and $53 billion.
In the global food & beverage manufacturing industry, it is estimated that conversion to digitalized technology could deliver a Digitalization Productivity Bonus of between $290 billion and $450 billion.
The Digitalization Productivity Bonus white paper also contains IIoT finance arrangements that tend to be offered by specialist providers that have a deep understanding not only of how the digitalized technology works but also of how that technology can be practically implemented to deliver the Digitalization Productivity Bonus as well as other benefits of digitalization, case studies from different industries etc.
1. See, for instance: McKinsey, “Industry 4.0,” (2015); Strategy&, “Industry 4.0” (2014); McKinsey, “Manufacturing’s Next Act” (2015); PricewaterhouseCoopers, “Industry 4.0” (2014); Control Engineering Asia, “The dawn of the new industrial era with the Smart Factory” (January 2017); ABB, “The new age of industrial production” (2016); Assembly Magazine, “Industry 4.0” (2016); Accenture, “IIoT – a game changer” (2015); Roland Berger, “Industry 4.0” (2016); VDMA and McKinsey, “The future of German mechanical engineering” (2014); Oliver Wyman, “Digital industry” (2015); Manufacturing Technology Center, “Industry 4.0” (2016)