Based on and inspired by the PWC survey on Industry 4.0
The principles that drive business, any business, are still very much the same: cost minimization and revenue maximization. Industry 4.0 with its digital connectivity and digital innovation finds basis in these exact principles & offers them as the driving forces. It provides massive cost reductions coupled with much higher revenue streams, which put together translate to much higher profitability, for all industry segments globally.
Back in 2013-2014 Industry 4.0 was more of a buzzword, which was being used to attract higher investments, or create boardroom banter. It was more of a notion than palpable reality which would actually drive business strategy. However today things seem to be very different: companies leading their industries in innovation and growth have already committed large part of their investments in the next 4-5 years towards making their operations, product offerings and value chains fully digital.
THE NUMBERS DON’T LIE AND THEY ARE STAGGERING.
Based on the recent survey results from PWC it becomes quite evident that first movers towards I 4.0 (nearly 4% of the companies which took the survey) are already seeing huge benefits both in cost reduction (30%!) and in increased revenue (similar 30%). Already about 40% companies which took the survey believe that their product development, engineering and vertical value chains are already benefiting from the advanced level of digitization and integration. Another interesting stat points towards the number of companies which expect to double their current level of digitization in the next 5 years - 72%, which clearly indicates the massive drive at the top management level to digitize the operation and value chains.
Having highlighted the immense drive towards digitization, it is also important that we mention where and how to begin. Based on the findings from the survey, most first movers and innovative disrupters concentrate on making their internal operations integrated and their product more digital based on analysis of the needs their customer segments portray. Why, you ask. Well, because it is easier.
All organizations which would like to pursue their Industry 4.0 dream should begin doing so by understanding the big picture. Now, how do we go about providing this by modifying our operation, our product and related services? Simply put, product innovation and vertical digital integration seem to be the initial choice for most first movers in I 4.0. It is easier to implement and control as changes being made are within the realm of control of the organization.
The principles that drive business, any business, are still very much the same: cost minimization and revenue maximization. Industry 4.0 with its digital connectivity and digital innovation finds basis in these exact principles & offers them as the driving forces. It provides massive cost reductions coupled with much higher revenue streams, which put together translate to much higher profitability, for all industry segments globally.
Back in 2013-2014 Industry 4.0 was more of a buzzword, which was being used to attract higher investments, or create boardroom banter. It was more of a notion than palpable reality which would actually drive business strategy. However today things seem to be very different: companies leading their industries in innovation and growth have already committed large part of their investments in the next 4-5 years towards making their operations, product offerings and value chains fully digital.
THE NUMBERS DON’T LIE AND THEY ARE STAGGERING.
Based on the recent survey results from PWC it becomes quite evident that first movers towards I 4.0 (nearly 4% of the companies which took the survey) are already seeing huge benefits both in cost reduction (30%!) and in increased revenue (similar 30%). Already about 40% companies which took the survey believe that their product development, engineering and vertical value chains are already benefiting from the advanced level of digitization and integration. Another interesting stat points towards the number of companies which expect to double their current level of digitization in the next 5 years - 72%, which clearly indicates the massive drive at the top management level to digitize the operation and value chains.
Having highlighted the immense drive towards digitization, it is also important that we mention where and how to begin. Based on the findings from the survey, most first movers and innovative disrupters concentrate on making their internal operations integrated and their product more digital based on analysis of the needs their customer segments portray. Why, you ask. Well, because it is easier.
All organizations which would like to pursue their Industry 4.0 dream should begin doing so by understanding the big picture. Now, how do we go about providing this by modifying our operation, our product and related services? Simply put, product innovation and vertical digital integration seem to be the initial choice for most first movers in I 4.0. It is easier to implement and control as changes being made are within the realm of control of the organization.
