Simply put, we live in a digital world—both in our personal lives and on the job. In manufacturing, challenges abound. Customization, fast-changing business and technology environments, and workforce and talent-pool concerns combine to present challenges for manufacturers of all types.

Among proactive players, this situation is met with unmatched technology advancements that drive innovation much faster and on a truly global scale. Companies need to adapt their business models for sustainability and what’s often called future-proofing, although that concept is another article entirely.

These changing market demands mean rethinking the use of resources in a company. Yet, a recent study found that 86% of all companies often avoid critical projects due to legacy systems. Think about that for a minute. Moreover, 45% of companies of all sizes didn’t know where or how to begin an IoT (internet of things) process or, as we call it, the path toward digitalization. This isn’t some fantasy yellow brick road: It’s a journey of critical importance to the survival, let alone prosperity, of a company today. Finally, the study found that more than 40% of companies say they can’t find suitable partners with whom to begin transitioning to a digital map.

We believe it’s necessary for a company to develop an ecosystem that’s easy to use, flexible, and open to integrating partners that bring skill sets and technology to the company’s products, software, and services.

When assessing your present business condition, it’s important to determine the following about your hardware and software:
• Is it modular?
• Are the cloud connections and edge technology within your machines sufficient?
• Is there adequate API on your standard applications?
• Are your systems open to connecting with third-party resources and specialized hardware products?
• Can you build a sufficient portfolio of products to connect the real and virtual worlds, spanning information technology (IT) and operational technology (OT)?
• Perhaps most important, are your systems fully web deployable?

If you’re now asking yourself what you just read, find a partner and begin answering those questions today.

Before addressing some of the available solutions, consider this reality from the consumer world. The customization of mass-produced products, from automobiles to Apple watches and perfume, means that those of us in industry must be cognizant of consumer needs and buying habits. Driven by digitalization and the commercialization of the IoT space, manufacturers all along the supply chain must bridge the gap from business to consumer to bring original equipment of all types to their customers—and they must do this by using effective digital tools. This is the “holy grail” of digitalization, and an absolute essential for companies to remain competitive and proactive in their markets.

These rapidly evolving consumer tastes and demands for variety in their product selections already are modifying how manufacturers are adapting and changing their approaches to design, manufacturing, production, distribution and—very key—integrating customer feedback into all these facets of operation.

From a financial perspective, it’s interesting to note that since the year 2000 the Top 10 cap value companies are all platform providers. This new reality in business is a direct result of digitalization’s effect on every product we buy, both for ourselves and our companies.

Many of these top companies actually operate in the cloud, connecting products to consumers. Siemens Xcelerator, for example, connects suppliers to users in the manufacturing world in three ways:

1) Easy availability is provided for our own software services or those curated by third-party partners.

2) Next, a transitional and evolving ecosystem of partners, value-added resellers (VARs), and those third-party partners resides in a cloud-based platform.

3) Finally, the entire unified loop of hardware, software, and services is transactional to permit ongoing and uninterrupted commerce.

As a quick example of three services we’ve developed in this space, Analyze MyMachine, part of the hybrid Industrial Edge for machine tools platform, enables users to generate a machine tool’s mechanical fingerprint so potential deviations can be identified at an early stage, machine failures prevented, and machine operation optimized.

Simultaneously, Analyze MyWorkpiece enables online quality monitoring in real-time manufacturing based on high-frequency process data from a SINUMERIK CNC. It applies statistical methods to detect process anomalies and can flag affected workpieces as scrap candidates. In this way, 100% quality control can be achieved at lower costs.

Analyze MyDrives provides data analytic models to reduce machine down times and increase the sustainability of connected systems and applications by analyzing data from SINAMICS variable frequency drives. Integrated solutions like energy efficiency create additional value by increasing system transparency and sustainability for all manufacturers.

Lastly, all of the above pertain to you—whether the output at your company involves metal, composite, or additive substrates. These are but a few examples of the technology tools available to your shop, production facility, or multinational enterprise. Use them on your journey to digitalization and enjoy the ride.