McKinsey: Eight Industry 4.0 Value Drivers
With 94% of manufacturers reporting that the pandemic has had a long term effect on their business, many as a result have turned to Industry 4.0 capabilities to mitigate the impact from the disruption. And it's not slowing down.
The Industry 4.0 market expected to reach US$337.1bn by 2028, we look at McKinsey & Company’s ‘Digital Compass’, a diagnostic framework designed to help manufacturing organisations identify and prioritise optimisation opportunities along the digital thread.
The framework identifies eight value drivers that have a significant impact on the performance of a typical manufacturing organisation.
“Industry 4.0 enables a more flexible and more modular production through flexible production equipment and automation technology. This will allow manufacturing companies to react faster to changed demand, covering both production volumes and a variety of products. Machinery companies will extend their current competences in order to optimize their customers’ businesses. This will allow them to unlock vast new potential. Industry 4.0 requires the convergence of business IT and manufacturing IT systems. Applications and different engineering disciplines have to grow together and collaborate in an interdisciplinary way to create additional value through better usage of data,” says Dr. Jan Stefan Michels, Head of Standardization and Technology Development at Weidmüller.