Industry is a pillar of the European economy. The manufacturing sector includes 2,000,000 companies and 33,000,000 jobs. However, in the face of strong competition from the Far East, production must be modernised and become more competitive to ensure sustainable growth.
Advanced digital technologies today have a key role to play. These are technologies that drive so-called fourth Industrial Revolution or Industry 4.0. This technological revolution can transform the entire industry, stimulate sustainable economic growth and fill a competitive gap.
Next generation information technologies, such as the Internet of Things, cloud processing, Big Data and data analyst, robotics and 3D printing, have the ability to move industry to a new level. These technologies can make industry more efficient by improving processes and enabling companies to develop innovative products and services.
Industry 4.0: benefits
Recent research estimates that digitisation of products and services can bring more than 110,000,000,000 EUR Annual revenues in Europe over the coming years five years (PwC, Opportunities and challenges in the industrial Internet (2015) and Boston Consulting Group: the future of productivity and growth in the manufacturing industry (2015)).
A recent EU company survey shows some positive signs: 75% respondents see the industry 4.0 as an opportunity, and 64% companies that have invested in this activity can show positive results. 4.0 Observatory.
Most EU governments have made the industry 4.0 priority by adopting specific policies to increase productivity and improve competitiveness. Although these countries may have the same overarching objective, their approaches vary in terms of design, funding and implementation.
Germany, the UK, the Netherlands and France focus on research, project financing and tax incentives for hi-tech start-ups. In other EU countries, the priority is to accelerate the implementation and use of Industry technology 4.0, Italy has more emphasis on research and development of new technologies to address innovation challenges 4.0..
There is much evidence throughout Europe about the benefits of using digital technologies. According to Strategy & (PwC, Industry 4.0: Building the digital enterprise. 2016 Global Industry 4.0 Survey’, 2016), 10% growth in digitalisation results in GDP per capita growth by 0.5% to 0.62% and reduction of unemployment 0.84%.
At business level, the projected cost reductions are significant, with an average reduction in operating costs by 3.6% and improving productivity by 4.1%. Most companies expect a quick return on investment, 55% expects return within two years and only 8% assumes it will wait longer than five years.
There is also a strong belief that investing in technology will increase export growth.
Italian Experience
In Italy there has been a rapid increase in industry awareness over the last few years 4.0. In 2015 40% Italian companies did not realize the existence of Industry 4.0. Now it's just 2.5%, 15% actively explores this area, and 55% Industry technology has already been implemented 4.0. With tax incentives, the overall size of Industry technology industry 4.0 increased to around 2,400,000,000 EUR, of which 84% focuses on the Italian market, and 16% On export.
Implementation of solutions in the area of, among others, the Internet of Things, industrial analytics and cloud production led to development third areas of innovation that have influenced business processes most:
- • smart product life cycle (product development, life cycle management and supplier management)
- • smart supply chain (planning of physical and financial flows)
- • intelligent factory (production, logistics, maintenance, quality, safety and compliance with standards).
Challenges
The challenge for companies is now to match Industry solutions 4.0 to their business strategy, rethink processes and organizational models while maintaining the balance between operational management, continuous improvement and innovation.
Comparing initiatives across the EU shows that strategic plans for industrial development 4.0 are based on third Pillars:
- • tax incentives for the use of new technologies,
- • facilitate access to loans for investments for companies with a low credit rating,
- • national and international partnerships between public and private sectors.
Translated by: Luca Borella, Fabio Corno, Industry 4.0 – changing business now and in the future [in:] Business World Russell Bedford International, September 2018, p. 12-13