{"id":16355,"date":"2019-09-18T11:00:04","date_gmt":"2019-09-18T19:00:04","guid":{"rendered":"http:\/\/www.palada.net\/index.php\/2019\/09\/18\/news-10096\/"},"modified":"2019-09-18T11:00:04","modified_gmt":"2019-09-18T19:00:04","slug":"news-10096","status":"publish","type":"post","link":"http:\/\/www.palada.net\/index.php\/2019\/09\/18\/news-10096\/","title":{"rendered":"Business Transformation in the New Digital Industrial Economy"},"content":{"rendered":"

Credit to Author: Sophie Borgne| Date: Tue, 17 Sep 2019 19:01:44 +0000<\/strong><\/p>\n

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During Industry 4.0, or the Fourth Industrial Revolution as we often call it, companies who rethink the way they do business<\/a> and how they make money are ones who will succeed. At Schneider Electric we\u2019re no strangers to this. As our CEO Jean Pascal Tricoire points out Schneider Electric has transformed its business<\/a> many times over since starting out in iron and steel 180 years ago.<\/p>\n

But what does business transformation mean in practical terms, apart from increasing efficiency and profitability? What are the completely new business opportunities now possible in this new digital industrial economy?<\/p>\n

And how much of this can you do NOW?<\/p>\n

We\u2019ve identified 3 main types of business transformation that might interest you, both now, and in the future.<\/p>\n

Servitization: Remote Monitoring and Pay-Per-Use Models<\/strong><\/p>\n

Servitization is a trend that\u2019s commonplace in our daily lives and gaining more traction in Industry. Thanks to the Industrial Internet of things<\/a> (IIoT), plants can enter into remote monitoring and maintenance contracts, helping them access the expertise necessary to improve operational efficiency and reduce downtime.<\/p>\n

This also has implications for other future challenges such as the changing workforce. With 50% of all manufacturing workers to retire by 2029, training a new generation of workforce<\/a> will be a big cost. By combining these types of support contracts with other technologies such as Augmented and Virtual Reality (AR and VR), training time and efficacy plus subsequent operational errors are also reduced (which in turn reduces downtime).<\/p>\n

Right now, we already support our customers in this way by embedding capabilities like remote monitoring, AR, and VR in our IIoT solutions.<\/p>\n

Pay-per-use models for plant assets<\/strong><\/p>\n

In the future, we see \u2018pay-per-use\u2019 models for process equipment coming into play. Under this business model plants could rent an asset with a service and maintenance contract, paying for usage rather than owning it outright. Considering 75% of the capital invested in a new plant typically goes into production assets<\/a>, it\u2019s easy to see the appeal. Not to mention the cost of ongoing maintenance and operational costs. It also allows you to better tie costs to production volumes.<\/p>\n

Market Exposure: Finding the Right Expertise for your Digital Transformation<\/strong><\/p>\n

Another way to enable business transformation is by creating a digital marketplace<\/a> of \u2018prosumers\u2019 to trade know-how and services. Market Exposure is important because it creates a place where businesses can find the expertise they need for their digitalization projects. Digital projects can fail if they don\u2019t have the right expertise from the beginning. This includes other aspects of digitization such as organizational issues (e.g. change management).<\/p>\n

A company likely doesn\u2019t have all the specialists necessary under the one roof, so it will need to bring more people in, start collaborations, or even partner with other companies \u2013 as we do here at Schneider electric. This is also why we created the Schneider Electric Exchange\u2026<\/a><\/p>\n