MITSUBISHI ELECTRIC Changes for the Better

Industrial digitalization allows the digital technologies developed over the past decades to propel industries to new heights. It revolves around bridging the physical and digital realms, facilitating enhanced collaboration and access across departments, partners, vendors, products, and individuals.

Digitalization empowers business leaders with heightened control and comprehensive insights into every facet of their operations. It equips them to harness real-time data for increased productivity, process refinement, and growth acceleration.

Digitalization is about turning production data into valuable insights.

Numerous terms are used to describe the realm of industrial digitalization, and this diversity of attributes can sometimes lead to confusion. The lexicon spans from "Industrial Internet of Things (IIoT)" to "Industry 4.0." Nevertheless, irrespective of the terminology employed, digitalization fundamentally revolves around the interconnection of machinery and equipment into a network, thereby enabling the comprehensive collection of data generated by each individual machine. This data encompasses a spectrum of metrics, including machine performance, operational uptime, machine status, quality, and traceability.

The collected data affords a real-time perspective on the functioning of processes. Ultimately, this information is distilled into fresh, profound insights regarding operational dynamics and helps identify areas ripe for enhancement.

In essence, digitalization serves as the conduit for the transformation of production data into valuable insights.

Industrial digitalization and its major impact on the market

Historically, manufacturers have adopted a gentle approach, prioritising risk mitigation and the preservation of mission-critical levels of availability, safety, and security. Progress has been achieved incrementally. However, in the era of the digital revolution, there are unprecedented opportunities to fundamentally reshape industries, businesses, departments, and communities. At an intersection where enhancing manufacturing and operational flexibility is mandatory, and returns must be maximised, an increasing number of companies are turning to industrial digitalization as the means to achieve these objectives.

Significant impact on business

Over the past decade, industrial digitalisation has undergone rapid evolution. In 2010, the focus primarily revolved around showcasing and testing technology, yielding limited direct impacts on companies' operations. A decade later, advancements had been made, yet companies that had embarked on the path of digitising their manufacturing processes were still in the process of identifying best practices for their respective industries. The resultant digital benefits remained relatively modest, and the overall impact on business operations was marginal.

Nonetheless, all indicators point to an imminent exponential growth phase as technology and organisational development become more structured and systematic. With the creation of high digital value, industrial digitalization is poised to exert a profound influence on business operations.

Market drives development

Currently, 91% of European companies are actively engaged in projects aimed at elevating the level of digitalization within their production processes. A significant number of these enterprises are making strategic investments to establish the conditions necessary for sustaining and enhancing their competitiveness. Their objectives encompass greater operational flexibility, the capacity to personalise products, and the ability to swiftly adapt to evolving market demands.

A remarkable 75% of these companies firmly believe that investing in the digitalization of their existing production infrastructure offers a more lucrative proposition than relocating production to "low-wage markets." Furthermore, the majority anticipate that these investments will yield returns within a span of three to five years.