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A Roadmap for Exploiting Digital Information in Manufacturing

The manufacturing sector has rarely been an early adopter of new technologies, but digital pioneers in the industry are now seeing the benefits of exploiting data about customer preferences and the supply chain. They are preparing for a future where trends such as the industrial internet of things (IIoT) and analytics are set to explode.

However, digital transformation and data management maturity vary greatly across the sector, and for many manufacturers the first challenge is to understand all the data they hold and introduce governance procedures to make it a valuable decision-making tool.

With huge challenges and opportunities ahead, getting a grip on data is key, but there are trailblazers that are showcasing just how data, analytics and the IIoT are creating huge opportunities.

For example, Accenture estimates that IIoT could add $14.2tn to the world economy by 2030 by improving productivity and reducing operating costs. The consultancy recommends three actions to capitalise on IIoT: reimagine industry models; realise the value of data to generate new insights from physical objects and share them with supply chain partners; and prepare for the future of work by investing in new skills and processes that enable human and digital labour to work effectively together.

A report by Tata Consulting Services reveals that businesses in the manufacturing sector stand to gain the most by investing in the internet of things and the data it can generate. Those that have already invested have seen an average 28.5% revenue increase compared to a cross-sector average of 15.6%.

Integrating machines and data
Taneli Tikka, head of industrial internet at Tieto Corporation, is focused on strategic advancement based on exploiting data and IIoT, which the Nordic IT services company defines as the integration of physical machinery with smart processes, big data and advanced analytics.

Tikka believes that industrial internet applications will spur growth and points to the example of Finnish welding equipment manufacturer Kemppi, whose machines can reveal the end-to-end manufacturing process of a single weld as they gather data on who did the welding and when, the wire used and its supplier. The insight the data offers reduces risk as defects can be immediately identified and located.

He encourages manufacturers to explore how IIoT can help exploit data from sensors and systems for a proactive approach to all areas of the business.

“Companies should think of the industrial internet as a major strategic issue. The pie is now being cut and it is up to the companies to decide what kind of slice they are after,” says Tikka.

He predicts the industrial internet will be the norm by 2020 and manufacturers must start building for their digital future, or risk being left behind as value networks are restructured and some operations and tasks disappear.

New cloud platforms with the economic scale required for advanced analytics to deliver insight and increase productivity can help ensure that manufacturers are not left behind. For example, Amazon Web Services (AWS) is at the heart of a new industrial internet platform created by GE to process real-time data from machines.

“Every industrial company will creep into analytics, because that will be the only way to be successful,” says Jeff Immelt, chairman and CEO of GE.

The firm’s ability to analyse and capitalise on machine-based data in real-time will be used for predictive maintenance on jet engines and healthcare systems.

GE’s customers’ business operations will improve as the analytics are made available through a new service, GE Predictivity, to enable airlines, railway operators, hospitals and utilities to manage GE-based machines.

   

Reactive to predictive
Moving from a reactive to a predictive industrial operating model is a major goal for many manufacturers to cut costs, improve efficiency and customer service. Data transparency and the ability to pursue agile projects are critical in staying ahead of the competition.

Further digitisation is on the roadmap for Finnish lift and escalator manufacturer, Kone Corporation, says its CIO, Antti Koskelin.

He believes that data and analytics must respond to the needs of new digital services and ensure that customers get the latest information.

“When you roll out digital services, transparency rises to a new level. For example, if we don’t have relevant data on our equipment and service, when a customer gets access to the information through a new portal or mobile app they will see straight away if the data is not up to date,” he says.

However, he believes that for many manufacturers, data and analytics is not the challenge - it is ensuring they are put into operational use.

“Can the operational organisation learn new things as fast as the technology is changing? Include people in the early stages and give them time to adjust,” he says.

Another potentially transformational development for manufacturers is virtual reality, which also relies on harnessing huge amounts of data.

Early pioneers include Ford which is using virtual reality to understand how change impacts the design of its cars without having to build one; and BAE Systems which introduced a product development virtual reality system to assist in planning the construction of submarines.

It’s clear that manufacturers are set to gain by exploiting data from emerging digital technologies – the likely benefits include increased efficiency and agility; becoming proactive rather than reactive; getting the right information to the right people at the right time; and improving customer service.

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