Bringing “Smart” to All Manufacturing Assets
Industry 4.0, the fourth industrial revolution, introduces the concept of smart manufacturing, in which cyber-physical systems monitor the physical processes of the factory and make decentralized decisions. These systems are part of the Internet of Things and communicate with each other and with people via the Internet.
Smart devices and the concept of smart manufacturing is causing a massive shift in industry, but we are just scratching the surface. Currently, only 1 percent of the data being generated by sensors and machinery is being used in any way.
There are a few key reasons companies are adopting Industry 4.0:
- To keep up with demands of globalization—the globalization of industry demands the need for speed to gain access to new customers.
- To achieve optimal operational efficiency—the digital integration of organizations increases organizational operating efficiencies.
- To see a quick return on digital investments—the payback on digital investments for Industry 4.0 is less than two years with a high level of operational cost improvement, which equals higher customer retention rates as well as new customer acquisition.