THE DIGITAL REVOLUTION REACHES THE INDUSTRY

We are facing a world in constant change. Especially in the field of manufacturing and distribution. Today we have unimaginable opportunities very recently. It is estimated, for example, that additive manufacturing will account for 5% of the world’s manufacturing capacity before 2020, which will make 3D printing an industry of $ 640 billion. We are also witnessing the tremendous progress in quantum computing to develop extremely fast computers, which will make calculations, simulations or analyzes that are now not viable.

industrial digitized plant

The case of the digital twin – which reproduces virtually not only the design of a product, service, factory or system but also analyzes its behavior from different points of view to reduce analysis times and avoid errors – is a clear example. In addition, the increasing incorporation of drones in the activity will contribute to increase productivity. And above all these phenomena, the Industrial Internet of Things and Artificial Intelligence will be the integrating elements of all the change enablers – multiplying the connectivity through the implementation of sensors connected to networks -, which will allow to deploy the potential of the models analytical and predictive or advanced robotics. Thanks to all this we will also have, for example, more efficient public services – traffic or collection of waste; more productive and autonomous factories – able not only to predict problems, but to make payments or order supplies on their own; or the controversial autonomous car, which will have huge regulatory, labor and even urbanistic implications. Siemens, for example, just acquired a few days ago the company TASS, leader in automated driving software to not stop moving in this permanent race that is digitization.

However, there is still a long way to go. According to Mckinsey, less than 40% of the industries are fully digitized. And by areas, the most digital tasks are related to the marketing and distribution of products and services, as opposed to those related to supply chains and production. This is largely because, as this study points out, companies are more focused on marketing activities to the detriment of enhancing the digitization of their value chains or even the products and services themselves. In this way, they put their businesses potentially at risk, as they can stop applying changes that in the future will be crucial for their survival.

Leading the digital environment

The study also reveals that successful companies have been able to analyze all areas of their business model looking for both weaknesses and opportunities. These companies, when they identified the opportunities, were able to react in time and link their digital strategies to their corporate strategies. Ensuring, in turn, that its corporate culture was always aligned to drive change from within. To achieve this, they reconfigured their internal organization to be agile enough to execute this new strategy at the pace of digitalization. But what steps do companies have to take to not only digitize their ‘periphery’ but also their ‘core’? Here are some ideas:

Analyze vulnerabilities and opportunities to add new business models
Align leadership, corporate culture and strategic vision
Focus on understanding your customer perfectly and being willing to look for partners to encourage open innovation
Know how to select, promote and cooperate in your organization to the best talent
Reorganize the company to increase agility
Invest in technology to make each process, including the productive, more efficient and effective
At Siemens, we are aware of the need to bet today on this transformation to move towards a connected industry and, in this way, guarantee our future. As a company that has contributed to the development of society and industry in Spain for more than a century, we remain faithful to our commitment: to make our country lead the change in the industry

THE DIGITAL REVOLUTION REACHES THE INDUSTRY

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