Stages of digital transformation
Digitalization is continuing to provide significant benefits to industry. In its recent report, The Internet of Things: Mapping Value Beyond the Hype, McKinsey sees IoT having a ‘total potential economic impact of $3.9 trillion to $11.1 trillion a year by 2025.
This is highly prevalent in industry, where digital transformation has moved beyond ‘consideration’ to now experiencing significant business outcomes. In fact, 72% of manufacturing companies plan to significantly increase investment into digitalization efforts in 2020. These manufacturers’ combined financial commitment is expected to reach $907 billion in 2020, according to PWC.
Rockwell Automation recently conducted global primary research to explore the roles, perceptions and decision-making involvement of executives involved in digital transformation/IIoT decisions across seven key industries globally: oil and gas, chemicals, metals and mining, life sciences, food and beverage, household and personal care, and automotive.
In the Rockwell Digital Transformation 2020 Report, it became clear that companies have moved beyond the consideration phase for digital transformation initiatives. In fact, 2019 saw a 400 percent growth in digital transformation projects moving post-implementation. Of companies interviewed, 50% are already in rollout or full-scale production, or applying continuous process improvement to initial digital initiatives (Figure 1).
Value of end-to-end solutions
This research revealed that many enterprises lacked the technology expertise necessary for success. Of the enterprises surveyed, less than one-third rated themselves as knowledgeable in technologies critical to their success. Specifically, only 37% of respondents felt they “knew a lot about” AI, while just 33% were knowledgeable about IIoT. It was 29% for augmented and virtual reality, 31% for cloud analytics, and 27% for robotics.
One thing they all agreed on: there is a need to effectively deploy and maintain comprehensive, unified digital transformation initiatives. Given the complexity of IIoT systems, they look to end-to-end partners that can support wide-scale deployments. The solution needs to address manufacturing execution systems as well as analytics, and act as a complete Industrial IoT platform.
Enabling technologies
In recent times, digital transformation technologies have advanced significantly – making now more than ever the best time to assess how these enabling technologies can help you create a smarter and safer workforce.
Augmented reality can help solve complex plant-floor problems and improve workforce productivity and efficiency. Harpak-ULMA, an industry leader in packaging design solutions recently implemented a digital transformation solution with FactoryTalk® InnovationSuite, powered by PTC and its Vuforia augmented reality platform. This new solution expanded the company’s IoT connectivity. With the use of machine learning and predictive analytics, Harpak-ULMA was able to reshape maintenance business models and customer cost structures.
Another common challenge facing the manufacturing industry today is that traditional methods of machine and production line design, commissioning and startup can be costly and impede speed to market. As such, many Consumer Packaged Goods (CPG) manufacturers are turning to emulation as a tool to research, test and validate their process in a virtual space. CPG companies are gaining significant launch-time advantages with emulation technology. Advances in visualization, design software and training are making it easier than ever to employ.
Emulate 3D by Rockwell Automation, develops dynamic digital twin software for virtual commissioning, throughput simulation, and industrial demonstration. Using a 3D model to deliver realistic feedback in place of the real automated system, provides the opportunity to leverage virtual simulation and commissioning to bring your machine and production lines to life while reducing the costs and risks involved.
Digital technologies for OEMs
The demand for smarter, IoT-enabled machines is rapidly intensifying. There is a strong market need for OEMs to reinvent their operations with digital transformation technologies to meet this demand.
Integrating smart machines at the end-user site quickly and cost-effectively is a key challenge for many OEMs. Thankfully, innovative control system design tools can help. At the core of this new functionality are system design instructions that enable you to configure ‘smart objects’ that become part of the tag structure. Smart objects identify what data to collect – and how and when that data is collected. This new approach to smart machine control system design streamlines one of the most arduous parts of the integration process, before your machine reaches the plant floor.
The latest visualization technologies including augmented reality, mixed reality, and virtual reality, can help OEMs by enhancing worker capabilities and creating safer, more productive processes. Visualization technologies provide the capability for equipment-manufacturer intelligence to be streamed directly to the engineer’s device. Together, they examine the machine, gather additional information, identify the underlying cause of the problem and recommend a repair solution in minutes, not days.
Overcoming the road blocks
The benefits of digital transformation for all industries are undeniable but it is important to note that most digital initiatives fail before they are fully implemented. A recent Gartner study estimated that 85% of big data projects fail across all market segments.
There are a number of risks to be aware of when navigating a new digital transformation initiative including: