Industrial manufacturing

Building the digital enterprise

What is industry 4.0

The fourth industrial revolution (also known as the Industrial Internet) - characterized by the increasing digitization and interconnection of products, value chains and business models - has arrived in the industrial sector and offers attractive opportunities. Industry 4.0 not only comprises the digitization of horizontal and vertical value chains but will also revolutionize the product and service portfolio of companies – with the ultimate goal of better satisfying customer needs.

The entire enterprise is transforming

To fully utilize the potential opportunities that Industry 4.0 offers, the implementation of new, often disruptive business models is required. The focal point of this transformation is increasing customer benefits through a growing range of value solutions (instead of products) and increased networking with customers and partners. The required insights for executives to take proper decisions that transform their company will come from the use of the growing amount of data and the analysis of the data.

Investments and new capabilities

Companies will need to master several challenges on the way to become an Industry 4.0 champion. Surveys have shown that industrial companies have recognized this and will invest almost 50% of the planned new capital investments in Industry 4.0 solutions. These investments will have to be used along the entire value chain in order to achieve the optimal customer satisfaction. Furthermore, sufficiently skilled personnel with new capabilities to meet the needs of the digital world must be ensured.

Blueprint for digital success

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"For industrial companies to become true digital champions they need to accelerate in connecting better and faster and actively plan for an ecosystem approach"

Michel Mulders

Companies are getting down to business with Industry 4.0 – all over the world. PwC’s global study “Industry 4.0: Building the Digital Enterprise” demonstrates how far digital technologies will advance by 2020.

Managers from more than 2,000 companies in 26 countries answered questions for the study. The figures and forecasts they provided tell their own story: the average level of digitisation is expected to increase from 33% to 72% within five years. Companies are budgeting annually approximately 5% of their digital revenue for investing in digitisation. This amounts to a total of over $US 900 billion per year – based only on the industry sectors surveyed.

This transition is not only taking place in industrialised countries, but all over the world. The study outlines the benefits companies expect from Industry 4.0 and where they currently see the biggest barriers to its implementation. Companies expect higher levels of digitisation to result in cost reduction of 3.6% and an additional revenue of on average 2.9% per year. Above all, finding sufficient numbers of specialists required for the transition will present difficulties, and companies still have progress to make as far as using data analytics consistently is concerned.

Alongside analysis of the current status of the technological transition, in a second part the study outlines which steps are necessary to incorporate Industry 4.0 successfully into a business, and what the necessary strategy must take into account. Please find more information about the Blueprint for success below.

For more information about industry and regional findings and the data explorer tool, please visit our global webpage.

Blueprint for success

To move forward with Industry 4.0, acquiring and rolling out digital capabilities across your company are all-important. This process takes time, so in order to gain or retain first-mover advantage over your competitors, you will need top management commitment and significant implementation investments.

Industry 4.0 will be a huge boon to companies that fully understand what it means for how they do business. Change of this nature will transcend your company’s boundaries and lead to a complete transformation of your organization.

Based on hundreds of transformation projects with leading industrial companies, we have defined six practical steps your company needs to take to lead tomorrow’s competitive digital landscape.

Learn more

Predict the unpredictable 

In order to find out where companies currently stand regarding predictive maintenance, and where they plan to be in the near future, PwC and Mainnovation surveyed 280 companies in Belgium, Germany and the Netherlands. The report predict the unpredictable presents the results of this research and our approach to successfully implementing predictive maintenance with big data. We presented and discussed the results of our report during our event on June 20th 2017. 

Create and share success stories during PdM 4.0 event

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Contact us

Michel Mulders
Partner
Tel: +31 (0)88 792 31 65
Email

Costas Vassiliadis
Senior Manager
Tel: +31 (0)88 792 29 60
Email

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