Companies harness digitisation to herald a new era for industry

1. EASY_COMPANY/ISTOCK
Connecting the
manufacturing
industry

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T
he rapid move towards digitisation – arising from advances in technology
such as ubiquitous connectivity, the internet of things (IoT), big data and
analytics – is being called the Fourth Industrial Revolution, better known in
the manufacturing sector as Industry 4.0.
Manufacturers around the globe are forging ahead with digital transformation,
exploiting technologies such as cloud and the IoT to remain competitive. Theirs is
an industry where the pace of change has increased thanks to globalisation,
fierce competition and growing customer demand and expectations.
The manufacturing industry has been slower than other sectors in its
journey to digital transformation. However, according to Peter Thorne,
director of manufacturing research specialist Cambashi, that is changing
thanks to the emergence of a number of smart connected products and
the use of data to gain insight, improve processes, reduce costs and boost
customer satisfaction.
Thorne says manufacturers that use data to connect with customers and improve
services stand to make huge gains. “Augmented reality and IoT will change the
way services are delivered. Data can be exploited to allow manufacturers to
deliver a dynamic service that reduces the cost of maintenance and transforms
the uptime of machines and the customer experience,” he says.
Companies harness digitisation
to herald a new era for industry
Rapid and transformational change in technology is enabling a new business world in which
organisations are permanently connected to people, devices and assets. Welcome to Industry 4.0
“Data can be
exploited to allow
manufacturers to
deliver a dynamic
service that
reduces the cost of
maintenance and
transforms the
uptime of machines
and the customer
experience”
Peter Thorne, Cambashi
Connected manufacturing: Integrated digital ecosystem

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Connected manufacturing
An integrated digital ecosystem, which can drive insight and innovation from
the plant to processes to products, and which connects people, partners,
customers and consumers, is at the heart of successful digital transformation.
Hewlett Packard Enterprise (HPE) is helping IT leaders to create this
connected manufacturing environment.
Martin Rainer, vice-president and general manager of the manufacturing
segment for EMEA Enterprise Services at HPE, says having the ability to
convert concepts to value faster is key to survival.
“Manufacturing is no longer simply about making and selling products. It’s about
integrating end-to-end operations across the enterprise ecosystem to anticipate
what customers want, quicker and cheaper than the competition,” he says.
The digital revolution is focused on connected manufacturing, where
everything is integrated, creating an environment that enables digital
technology to be connected to business strategy and demand to be created
as well as anticipated (see ‘Integrated digital ecosystem’ chart, p2).
“Powered by transformational technologies, connected manufacturing connects
plant, processes, products and people across the manufacturing ecosystem of
partners, suppliers, collaborators, customers and consumers,” explains Rainer.
Analyst group IDC highlights seven key drivers for digital transformation in its
Manufacturing Outlook 2015 report. These all-important drivers are: complex
dynamic value chains in the search for new business opportunities; emerging
market growth; traceability and transparency; customers demanding better
service; converging technologies that simplify design, the manufacture and
delivery of products; ubiquitous connectivity; and truth in data (see ‘Manufacturing
industry trends’ chart, below).
An integrated digital
ecosystem, which
can drive insight
and innovation
from the plant
to processes to
products, and which
connects people,
partners, customers
and consumers, is
at the heart of
successful digital
transformation
Manufacturing industry trends

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Product cycles are being compressed to meet growing customer
expectations, and this pressure will only grow. Gartner predicts that, by 2020,
70% of all customer contact points will be digital, leading to new customer
experience metrics.
“Manufacturers’ customers vary according to sector, but many now expect digital
information to be delivered alongside the product – it is part of the value chain and
of understanding how everything fits together,” says Cambashi’s Thorne.
Smart factories
At the heart of Industry 4.0 is a vision of “smart factories” that will modernise
information and communication technology across the supply chain and
production line to deliver a much higher level of automation and digitisation.
A smart factory vertically integrates flexible and reconfigurable manufacturing
systems within businesses so machines can understand each other and
provide, consume and interact with digital services. Smart factory equipment
includes software logic and secure communications so operations and services,
such as handling and component routing, can be coordinated more efficiently.
Manufacturing industry customers and plant owners are already achieving
outcomes from the plant operation projects and pilots they are running with
HPE. For example, in a Carl Zeiss factory, HPE performed manufacturing
process analytics from real-time sensor data and SAP HANA to an Industry 4.0
cloud solution at Fraunhofer IPA. This resulted in process improvements that are
reducing repeat-product processing, cutting costs and ensuring that delivery
time commitments are met.
HPE and Carl Zeiss were able to deliver this manufacturing process improvement
in just eight weeks by connecting to the Industry 4.0 cloud solution that runs on
HPE Converged Plant Infrastructure. Unlike general internet of things systems,
HPE’s Smart Factory solution connects plant equipment with industry-specific
security, offers a range of interoperable services for Industry 4.0 and integrates
operational technology and IT in a single unified-operations management system.
HPE manufacturing solutions
HPE can help with this challenge by providing connected manufacturing
solutions enabled by four transformational areas – infrastructure, security, data
analytics and workplace productivity (see ‘HPE’s four transformation areas’
chart, p5) – to create an IT infrastructure fit for today’s digital economy.
By creating a hybrid infrastructure supported by a cloud-based stack, HPE’s
Rainer says manufacturers can gain greater flexibility and agility to allow them
to adapt quickly. They can rely on proactive security to protect their digital
enterprise and a data-centric security model to ensure compliance and greater
product traceability.
Data-driven manufacturers can exploit analytics to make better and faster
decisions, allowing them to stay ahead of the competition by providing
valuable information to customers and, ultimately, a better service. “A data-
driven organisation not only streamlines manufacturing operations through
data sharing, but also automates the processing of unstructured data so any
impending issues can be identified, such as those affecting plant performance
or customer satisfaction,” says Rainer.
Satisfying customer expectation is vital, and Cambashi’s Thorne says that by
providing the relevant digital information about a product, manufacturers can gain
competitive advantage.
HPE works with
manufacturers to
create an integrated
digital ecosystem.
The outcome is a
productive
workplace and a
collaborative
environment
that increases
innovation, product
quality and
efficiency, and
reduces time to
market

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“They can offer improved customer service as digital information can be used to
offer customisation to meet individual customer needs. Customers can also use
digital information to try out ideas,” he says. “Manufacturers need a network of
suppliers who co-operate and share information about specific requirements for
better outcomes,” he adds.
HPE works with manufacturers to create an integrated digital ecosystem. The
outcome is a productive workplace and a collaborative environment that increases
innovation, product quality and efficiency, and reduces time to market.
“It’s our job to guide companies through their digital transformation and deal with the
technical complexities so they can focus on running their business,” says Rainer.
Solutions and services include converged plant infrastructure, product lifecycle
management, manufacturing execution systems, enterprise resource planning,
customer relationship management, high-performance computing, and additive
manufacturing, which make 3D, solid products from a digital file.
“Our solutions around IoT make use of this key emerging technology. IoT is set
to increase the levels of automated processes, product innovation and customer
experience driven by the value derived from the instantaneous connection of
sensors, machines, mobile devices and people,” says Rainer.
As a manufacturer itself, HPE knows what it takes to become an agile and
progressive business and its ethos is “further together”. But transformation
won’t happen overnight and manufacturers are embracing a hybrid environment
on their digitally driven journey.
The rewards are worth it. The networking efficiencies and opportunities created
by new technologies, such as the IoT, may have a potential value of $1.3tn for
manufacturing, according to the McKinsey Global Institute Report.
“By choosing the right partner, they can embark on their digital journey with
confidence,” says Rainer. “We combine collaborative people; empowering
technology and transformative ideas, so manufacturing businesses can thrive in
today’s modern world.” n
“Our solutions
around IoT make use
of this key emerging
technology. IoT is
set to increase the
levels of automated
processes, product
innovation and
customerexperience
driven by the value
derived from the
instantaneous
connection of
sensors, machines,
mobile devices
and people”
Martin Rainer, HPE
Connected manufacturing and HPE’s four transformation areas