Impact of Digitalisation in Factories

  • Significantly reduces energy use: Tracking the energy use of each piece of equipment helps make significant process changes and save money on energy costs, boosting profit margins. Technologies adopted include IIoT, big data and AI.
  • Boosts efficiency: By removing inefficient human decision-making processes, factories can produce more in less time and with fewer material resources, malfunctions and scrap parts. Technologies adopted include humanoid robots and drones.
  • Reduces overall costs: Digitalisation could result in lower labour costs and direct costs, such as capex and logistics- and inventory-related costs. Technologies adopted include IIoT, big data, AI, automation, humanoid robots and drones.
  • Reduces production time: Connected systems, data-driven and strategic processes, and real-time tools and data points lead to less production time. Technologies adopted include automation, humanoid robots and drones.
  • Provides additional time for innovation: With digitalised systems and real-time analytics, factories have more room to experiment and find solutions to new problems and test ideas at scale without spending unnecessary resources. Technologies adopted include IIoT, big data and AI.
  • Increases ROI: A 2017–20 survey conducted by Kantar Emnid found that if a company invests in a digital factory and adopts most of the key technologies highlighted above, its ROI is likely to increase by 48% in four years, with an average increase in ROI of 11% in the first year, 12% in the second and 22% in the third.
  • Lack of integrated strategic planning
  • Technology not fully considered
  • Implementation of technology
  • Need for technical talent
  • Assess digital readiness
  • Discover new businesses and revenue streams
  • Be ready for and accept culture change
  • Implement, scale and optimise

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Acuity Knowledge Partners

Acuity Knowledge Partners

We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/