Technology Integration as a Competitive Edge
According to McKinsey & Company, “nearly half (44 percent) of top-performing companies in all industries have adopted product- or platform-centric operating models.” Although the industrial sector lagged behind this trend, the report noted that there is still a concerted effort to shift toward these digital models. You can see this move toward tech integration and automation in other stats such as the projection for the industrial automation and control systems market, which is expected to reach $85.3M by 2030. While one reason for this rise is that tech integration is inevitable, the rise also speaks to the competitive edge operators are realizing.
Improving Convergence and Communication
As Deloitte summarized, “Digital tools and technologies are being explored across the value chain to enhance productivity, streamline operations, bolster safety, and improve the customer experience.” One of the key benefits for industrial teams is that these technologies offer a way to connect their operations with overall operations. This improves communication, especially when considering IT and OT convergence. It also improves data analysis, which is essential to running efficient operations in today’s environment.
Preventing Disruptions
Technology integration is also critical to preventing disruptions. When surveying 300 manufacturing professionals, a SME study concluded that one-third of respondents experienced disruptions “several” times a week. By streamlining data and data sharing between systems, it is simpler and faster to identify potential problems and make informed, yet in-the-moment decisions. This quick response both safeguards processes and production and helps operators lower their risk of having to face costly events. In all, tech integration is creating smarter, more streamlined operations that give companies the competitive advantage they need to keep up with demand.
Sources:
● “Taking industrial sector tech from cost center to competitive edge” - Giulietta Poltronieri, Giulio Romanelli, and Sverre Fjeldstad, with Joel Hagentoft, Øyvor Haldorsen, and Vilde Haslund, McKinsey & Company
● “Industrial Automation Q4 2024 Report” - Association for Advancing Automation
https://www.automate.org/news/industrial-automation-q4-2024-report
● “2025 Engineering and Construction Industry Outlook” - Michelle Meisels, Misha Nikulin, Kate Hardin, Matt Sloane, Kruttika Dwivedi, Deloitte
● “Upskilling to Adapt to Industry 4.0” - Rajat Sharma, Automation.com
https://www.automation.com/en-us/articles/december-2024/industry-4-0-means-automation-professionals
● “How AI can transform a burdensome and complex manufacturing environment” - Grace Nam, Smart Industry