Industry 4.0 is here, and it’s revolutionizing how manufacturing companies build.
Companies have moved to a digitized method of building products. It’s been a long haul from using manual processes to PLC-driven machinery to advanced digital technologies enabling connected machines, automated lines, and automated processes.
In many ways, Independent Software Vendors (ISVs) are enabling Industry 4.0 by building products to automate processes, improve efficiency in operations, and increase ROI for companies.
In Industry 4.0, interaction is not restricted to humans-to-humans or humans-to-machines. Interactions can happen at a machine-to-machine level — manufacturing machines send data to other devices, and technologies like AI help complete the tasks. Devices and machines are connected through smart technologies like the Industrial Internet of Things (IIOT) that continuously exchange data.
That’s why data could rightly be called the raw material for industries. Data may not be a tangible thing such as steel, plastic, or other materials, but it is crucial for companies to build products and meet customer demands in the age of smart manufacturing.
Let’s look at how this raw material can help companies grow and thrive in Industry 4.0.
Role Of Data in Industry 4.0
1. Prevent downtime
A company can lose millions of dollars and 5% to 20% of its productivity due to downtime. No wonder downtime is a nightmare for every company. Downtime can happen due to wear and tear, external conditions, and unpredictable changes. Data can help companies prevent such downtimes and ensure business continuity.
Take Bosch, for instance. They have connected over 250 plants worldwide using RFID, wireless connections, sensors, tablets, and smartphones. The sensors in the connected devices exchange data related to processing times, machine wear and tear, etc. This helps them predict issues and take preventive measures to ensure continuous operations.
ISVs can support companies with predictive maintenance solutions that analyze asset data, identify issues, and resolve them before they lead to unplanned downtime.
2. Respond to market demands
Whether it’s Starbucks or Netflix, every company is trying to retain its customers through personalization — and this is driving exciting changes in manufacturing too.
Earlier, a company would manufacture one-size-fits-all products. Shoes, for example, were available in limited colors and sizes. However, Adidas introduced extreme customization in shoes using their Speed Factory in Germany. They created digital twins of shoes to analyze and test them virtually before production — enabling customized footwear based on real customer input.
Customer expectations evolve rapidly. ISVs can help manufacturing companies design flexible production systems to support customization and maximize market relevance.
3. Improve production efficiency
Adidas shortened the time between designing and commercializing the shoe by 30% with digital twin technology — enabling faster market response and producing over 300 million additional shoes.
Similarly, Bosch analyzed testing data from 30,000 hydraulic valves and eliminated 21 out of 90 testing steps — reducing inspection time by 17.4%.
These examples showcase how data can improve efficiency at every stage — from ideation to prototyping, testing, and production. ISVs are key enablers of such innovation.
4. Improve supply chain
The supply chain is the fuel of any successful manufacturing company. Real-time visibility into inventory is essential to meet customer demands.
Technologies like big data, cloud, IIoT and augmented reality (AR) help companies gather supply chain data across locations. For example, BJC Healthcare uses RFID-based tracking to manage supplies in 15 hospitals across the U.S., reducing waste and preventing expired inventory losses.
Manufacturers going global can leverage ISV-built solutions to optimize supply chain management and ensure timely deliveries.
5. Reduce costs
While cost savings once meant offshoring, modern savings also come from efficiency and proactive risk mitigation — such as avoiding downtime and reducing unused inventory.
ISVs can help companies design predictive maintenance strategies and save millions in operational expenses.
Conclusion
As manufacturing becomes connected and intelligent, companies will generate more and more data. Data is the new oil — and its value lies in how it is used to reduce waste, improve operations, and boost business outcomes.
Calsoft is helping product companies and ISVs build data-driven products with innovations across AI/ML, cloud, IoT, and data analytics, including:
- Holistic solutions for embedded systems
- Assistance in shifting from traditional PLM to digital twin systems
- Support in digital mobility of applications, knowledge, and products
- Digital transformation of processes, logistics, and supply chain
- Tools and product modernization for Industry 4.0 adoption
To know more about how we can support the shift to Industry 4.0, contact us.
