6min. reading time; Author: Ruxandra Ionescu

Digitization plays an essential role in the transformation to Enterprise 4.0. Entrepreneurs have therefore recognized the need for digitization measures to promote agility and efficiency in companies. However, this raises the question of the best planning and strategy. What is my current digitization status and how do I continue to digitize my company in the best possible way?

• The degree of digitization can vary greatly depending on the size and structure of a company. Reasons for this can be:
• Fear of complexity in terms of digitization measures
• Large selection of software solutions with different functions.
• Compatibility of the solutions with the given IT landscape.
• Insufficient overview of the current state due to outdated, non-scalable systems

The planning and initiation of digitization steps can be greatly inhibited as a result. In order to get this problem under control, the German Academy of Science and Engineering, acatech, has created an innovative solution. The so-called acatech Industry 4.0 Maturity Index. The six-stage maturity model is intended to support the categorization of the current digitization status in order to be able to develop optimally tailored digitization strategies.

With its help, business processes should gradually become more networked, automated and more economical. The aim is for the company’s profitability to increase as digitization matures.

Therefore, based on the Maturity Index, we will name 5 decisive factors that will transform your company into a profitable 4.0 company.

1. Networking

Networking is basically about building a uniform networked IT landscape from isolated IT units, which represent the relevant core business processes of the company. By integrating suitable interfaces and / or technologies such as IoT, an optimal interdisciplinary communication basis should also be created so that complex process chains become more transparent and various communication paths can be shortened in the event of impending problems. Concrete examples for the use of networking would be:

• Networking of machine parks with the purpose of connecting people, machines and products for an improved overview of the processes and reducing the potential for errors
• Integration of cloud systems for optimized data management and more efficient communication
• Creation of more efficient warehouse management through the networking of individual business areas
• More adaptable energy supply through networking of people, hardware and software in the energy sector

2. Visibility

Visibility is an important driver in company 4.0. The focus is on the question “What is happening?”. Visibility is about using suitable sensor technology to record any processes in their entirety relatively promptly. A combination of sensor technology and intelligent business intelligence tools, such as real-time monitoring systems, can contribute to faster and more accurate information provision and thus ensure greater efficiency in the company. The following examples of the relevance of visibility should be mentioned here:

• In the transport sector, data can be transmitted through sensors in control centers and evaluated in controlling
• Faster detection of errors by controlling with the help of sensors in, for example, automation chains / machine parks (signs of wear, measuring techniques)
• Signs of wear and tear on the motorways can be viewed more quickly using sensors based on the determination of driven cars.
• Physical performance records in the sports area. Sensors record the movement sequences or vital signs and provide essential data.

3: Visualization

Another notable factor is visualization. The question here is “Why is something happening?” This means understanding and interpreting processes and interdependencies. Depending on how data is processed in the company, whether using an Excel sheet or more advanced solutions, the cause analyzes are often difficult, so that outside personnel cannot do much with the “cryptic” evaluations. When it comes to visualization, it is therefore important to use given data to create easily understandable information that is easy to see and interpret. When implementing IT structures, attention should therefore not only be paid to the optimal software solution, but also to suitable dashboard systems that can clearly and easily visualize the evaluated data. A concrete example of this would be:

• By using optimal analysis tools, the data collected can be interpreted more easily and quickly.

4. Predictability

The forecasting ability deals with the question “What will happen?” This is important in order to be able to take optimal measures promptly, or at best before, in the event of impending problems. This not only avoids costs caused by imminent failures, but also, among other things, extends the lifespan of the systems. Predictive maintenance, or predictive maintenance, and predictive analytics represent such a prognostic approach that should by no means be ignored when planning digitization strategies. (If you want to find out more about predictive maintenance, you can read our article here … Link to the article). Concrete examples for the prognostic use would be:

• Predictive analytics tools can be used in the finance sector to predictively determine potential key figures
• The predictive maintenance in machine parks leads to the optimization of the machine service life and to cost savings
• By using predictive analytics, better tailored customer offers can be created in e-commerce.

5. Automation

The basic question of automation is “How can you react autonomously?” The prerequisite for automation in a company is the ability to forecast. Based on this, networked IT systems can react automatically and, in addition to many other advantages, contribute to far-reaching relief for staff. In addition, automated IT systems can react to changes much faster and more efficiently than a human being could. This also minimizes the potential for errors and processes become more agile and economical. Examples are:

• In road traffic, autonomous driving can reduce the rate of traffic accidents due to human error, but it can also lead to driving that conserves resources.
• An automated machine park acts more independently and minimizes personnel expenditure and time, which maximizes profits.

Conclusion

The transformation to Enterprise 4.0 requires clear plans and strategies with regard to the optimal implementation of digitization measures. In advance, however, it is necessary to determine the current status of the degree of digitization. The acatech Industry 4.0 Maturity Index offers tangible support. On the basis of the above 5 factors, the digitization level can be advanced by taking appropriate measures. That makes companies of today into companies of tomorrow. Agile, autonomous and profitable.