Georgio Stergiou MBA BEng
Industry 4.0 - Is it on YOUR agenda?
Why should Industry 4.0 be on your agenda
Industrial companies in Germany, will invest an average of 3.3 percent of their annual revenue in smart technology solutions, each year, for the next five years. This amounts to an annual investment sum of around 40 billion Euros. Just at the European level, annual Industry 4.0 investment will total 140 billion Euros*.
Currently, 24 percent of industrial companies claim to have a high level of digitization. By 2020, this percentage will have more than tripled to 80 percent* on all businesses who will have digitized their entire value chain.
This trend implies both enormous change and new rising global opportunities resulting from:
Increased efficiency and revenue
Smart Technology will deliver major gains in your efficiency and your cost reductions. Companies expect that digitizing their production will increase efficiency by an average of 18% over the next five years. Digital solutions will also help manufacturing companies cut their costs, on average about by 14% by 2020*.
Industry 4.0 poses a number of challenges for industrial companies. It requires a big investment, companies’ specific business cases are often unclear; no agreed industry-wide standards as of yet, data security, privacy, and IP security, as well as not enough skilled employees for the tasks.
However, these challenges can be overcome. They are outweighed by exciting opportunities, but more important, by the necessity of this technology in order to compete in global and local markets. This necessity is even bigger in developing countries, who aim to increase their business by attracting global partners/clients.
Direct benefits to you
By integrating production planning and control along your value chain, you can substantially increase efficiency and reduce costs. Enhanced traceability and earlier detection will enable you to improve quality and reduce defects. Integrated horizontal planning across partners, will increase flexibility and responsiveness to customer demands. Finally, there is a great potential for increasing sales by incorporating new digital products, services, and business models.
Industry 4.0, is already happening and over the next few years, it will pick up pace tremendously. Value chains of industrial companies all over the globe are becoming increasingly digitized and connected, as are their products and services. Virtually no manufacturing company anywhere in the world will be unaffected by Industry 4.0. This will impact corporate strategies and change companies´ operations.
Be part of the ¨Industry 4.0 paradigm change¨. Achieve optimal quality and efficiency standards and bring your operations to the next level.
Want to know more how your company can benefit from Industry 4.0? Contact me bellow.
* The above figures were taken from Industry 4.0 studies and reports of McKenzie, BCG, Deloitte and academic studies and papers from various German research and academic institutions.