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The competitive advantage of digitalization in manufacturing
History has repeatedly shown us that companies that introduce new technologies gain a competitive advantage over those who do not. The competitive advantage of digitization in manufacturing is ancient history. In 1913, Henry Ford was the first to implement the automated assembly line process used by the food industry in their workshops. This reduced its 12-hour production capacity to 2 hours 30 minutes and made Ford a household name.
On the other hand, history shows that companies that fail to
restructure their processes to keep pace with innovation risk their bottom
line. Blockbuster Video resisted change and was ultimately buried door-to-door
thanks to DVD and upcoming streaming giant Netflix. The company's reluctance to
adapt its business model to keep pace with emerging multimedia delivery systems
ended with the organization filing $ 900 million in Chapter 11 debt in 2010.
Today, advances such as the Industrial Internet of Things
(IIoT) and Industry 4.0 have brought intelligent machines to the world of
manufacturing that are capable of continuous intuitive communication. We are
truly on the verge of transforming the entire industry as the number of these
devices continues to grow. Manufacturing organizations looking to take a step
forward and leverage this new cognitive computing by integrating their
information technology (IT) and operational technology (OT) systems will be
next industry success stories.
Today's digitalization of manufacturing is no different
from what Ford did in the 1900s.
Mimicking the flour and canning factories, whose assembly
lines were built to improve efficiency and production speed, he was able to
lead the automotive industry. Likewise, manufacturers who support digitization,
which has served other industries so well, will be the ones to come out on top.
The e-book The Power of Machine Intelligence from Stratus
Technologies and the International Society for Automation (ISA) states:
"Machine manufacturers that use on-board computers that support scanning
will be the preferred suppliers." Those in the automation industry to keep
up with the innovations that IIoT and Industrial Internet 4.0 are bringing will
ultimately be sought after and appreciated for their effectiveness.
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