Is the lack of knowledge and uncertainty about the benefits of Industry 4.0 technology prohibiting IIoT adoption in the UK manufacturing sector? Alan Sookrah of Cimlogic explains further.
Industry 4.0 has been widely reported and celebrated across news reports, trade articles and exhibitions, but the focus has often been on the high-end tech, such as robotics, artificial intelligence, virtual and augmented reality.
Industry 4.0 can seem daunting, expensive and possibly irrelevant to SMEs, as larger organisations take centre stage - being more likely to deploy relevant Industry 4.0 technologies. Although interesting to SMEs, they do not see it as being a part of their immediate future or within reach and so enthusiasm declines, and focus is returned to the task in-hand.
According to the Penton IoT research in 2016, amongst the top deterrents to leveraging IIoT technology is: not enough knowledge about available solutions; a perceived high cost of implementation and uncertainty about what the IIoT benefits are.
Breaking down the barriers to adoption - High implementation costs
Industry 4.0 technologies are often received with caution as the economic benefits are sometimes unclear. The number of available IIoT technology solutions are on the rise, but often start with a hefty price tag. Which is a predicament, rather like any new technology, the more people adopt it, the cheaper it becomes, rather like the iPhone.
There is also a perception that to gain maximum benefits, manufacturers won’t be able to purchase just one new system or implement one new process, they will need to overhaul their entire production line. This is not necessarily the case, as simpler, low cost alternatives are steadily becoming more accessible for the SME market. Regardless of the level of monetary investment made in a solution, manufacturers of all sizes need to invest more time and resources exploring the business case for implementing Industry 4.0.
A recent research report by the Manufacturer ‘Connected and intelligent – The route to smarter manufacturing for SMEs’, suggests that nearly two-thirds of SMEs claim that implementing Industry 4.0 simply isn’t a priority for their business. Why is Industry 4.0 so low down on their priority list? Could it be the combination of not fully understanding the connectivity requirements of smart manufacturing (54 per cent of respondents) and that initial development costs are deemed too high (25 per cent of respondents)? Are these barriers to adoption causing SMEs to not see the true value and benefits that can be gained from Industry 4.0, and subsequently causing them to fail to invest?
Industry 4.0 is certainly here to stay, and it’s not just for large multinationals, SMEs can benefit too. The sooner manufacturers get to grips with the available Industry 4.0 technology solutions, the sooner they can plan and implement with confidence, to gain tangible benefits.
Increasing knowledge of available IIoT solutions in a crowded marketplace
When manufacturers begin their Industry 4.0 journey they should consider whether they have the correct knowledge to keep on top of the evolving nature of Industry 4.0 technologies. Employees from the CEO to the Production Manager and Machine Operator should have a good understanding of how Industry 4.0 technologies can enhance their existing systems and processes. This could be achieved through training or employment of additional staff with the correct skill set and experience to implement an Industry 4.0 business model. Understanding the available IIoT solutions is an essential part in evaluating them against existing production processes and systems, before taking steps to develop a clear and effective Industry 4.0 implementation strategy.
There is a clear demand for data collection, with 65 per cent of SMEs currently collecting digital data from manufacturing processes via shop floor data collection devices or manufacturing execution systems. The remaining 35 per cent are possibly being held back by a lack of knowledge and understanding about how best to adopt Industry 4.0 technologies, what solutions are available, what they can do with them, and what they can get out of them.
This uncertainty is also backed up by the findings in the Manufacturers Annual Manufacturing Report (AMR) 2018, where 38 per cent of manufacturers said there are too many solutions in the marketplace and they remain confused about what will work for them. Most companies are showing a willingness to explore digital technologies, but only 10 per cent say they are completely confident that they have found the right solutions.
The growing number of IIoT devices and digital solutions are perhaps disrupting the marketplace, clouding judgement and making the decision process a very challenging one. What needs to happen to eliminate this lack of knowledge and confusion? IIoT solution providers should step up and give manufacturers more resources and better use cases of their technologies, highlighting the tangible benefits and ROI with an operational focus. The high-end tech is fascinating and impressive, but perhaps, at this early juncture, in a day-to-day setting with operational goals to meet – it is a little premature to believe that manufacturers see it all as a part of their immediate future.
An effective IIoT implementation strategy to future proof operations
SMEs generally lack a comprehensive IIoT strategy as management don’t often have the necessary resources to assess the technological maturity of the relevant solutions. This could explain why four out of ten SMEs do not have an Industry 4.0 strategy compared with two out of ten larger companies. As larger manufacturers make head way with Industry 4.0 through the execution of digital transformation strategies, smaller businesses are being left behind. Industry 4.0 is a journey and it won’t happen overnight, but if it is not planned for, it won’t happen at all, leaving SMEs struggling to compete. Everyone within an organisation needs to get on board to realise its full potential.
Manufacturers of all sizes must approach Industry 4.0 uniquely and answer some key questions such as; do we have the appropriate knowledge and expertise to implement it effectively? What investment does my company need to make? What technology solutions are available that can integrate with existing production systems and assets to achieve our goals? Does the solution meet our own business model? Is it easily scalable? Is it well supported? Is it fit for purpose? What benefits can my company gain from Industry 4.0?
Utilising the expertise of a systems integrator (SI) to assist with an IIoT technology roadmap will help manufacturers increase their knowledge and confidence of the available Industry 4.0 technologies and help them choose the very best solution for them. An SI could also help develop an effective IIoT implementation strategy that details recommendations for future system requirements, technology changes and process improvement opportunities for increased productivity.
Sources:
Penton IoT research, 2016: Top 11 Deterrents to Leveraging the Industrial IoT
Annual Manufacturing Report (AMR) 2018 by The Manufacturer
https://www.themanufacturer.com/articles/factory-connectivity-what-are-manufacturers-chief-concerns/
Christian Schroder – The Challenges of Industry 4.0 for Small and Medium Sized Enterprises, 2016 http://library.fes.de/pdf-files/wiso/12683.pdf
https://valuechain.com/blog/what-is-industry-4.0%3F
PWC – Industry 4.0 – opportunities and Challenges of the Industrial Internet https://www.pwc.nl/en/assets/documents/pwc-industrie-4-0.pdf