Technology transformations for industrial companies is inevitable in order to achieve performance improvement and growth. Between 2017 and 2020, the number of connected devices in use is expected to more than double. In order to meet their desired objectives, it will require for manufacturers to holistically address their current situation and select technologies that serve a precise strategy or business goal. A successful implementation can drive significant value to businesses through revenue growth and margin expansion. But where is this value captured and what enablers are required to capture it?
Here's an overview of where companies can gain this value.
Valuable production insights derived from real time data collection can be gathered, allowing manufacturers to make more enlightened business decisions and benefit from opportunities otherwise left behind. Furthermore, automated productions paired with data sharing open up the possibility to cut costs, increase yield and support innovative initiatives such as the shift to smart manufacturing.
As previously brought up, once you've singled out on a smart factory technology, the proper facilitators must be set in place. A thorough data strategy will need to be defined. Such calls for an identification of the required data sets need to drive insights, understand the origin of this data and create partnerships with those who provide a mean for manufacturers to access those data. Then, data analytics tools will enable a capture of value derived from the insights obtained.
How to get started?
Analyze every aspect of the business - Decision makers and executives must take a step back and establish exactly what is to be achieved.
Reimagine your business model and aspirations - Don't use technology as a temporary mean to slightly improve your efficiency. It must be adopted as an integral part of redesigned business model. Treat it as a program rather than an incremental initiative.
Understand how new technologies affect working processes - New technologies don't simply work on their own. To be successful, it is important to understand how it harmonizes with legacy systems and current workflows.
Understand where your are and build your transformation roadmap - It is fundamental to be realistic in your approach. When setting a basic standard, it must be true and representative of your starting point and digital maturity.
To get more detailed information on how to extract value from technology, click here to read the very interesting article from McKinsey & Company.
