Industry 4.0 will revolutionise industrial production
Digitisation brings enormous benefits.
Industrial companies expect to generate 3.6% p.a. in cost reductions over the next five years, driven by internal improvements and by working more closely across value chains. They’re also expecting to generate 2.9% p.a. in increased revenues by digitising products and services and developing new digital service offerings, all the way through to hosting platforms for industrial ecosystems.
Getting there won’t be easy.
Companies will need robust data analytics capabilities; that will mean making significant changes. They’ll need to focus on developing the people and culture to drive transformation.
And it won’t come cheap.
Investments in Industry 4.0 capabilities are expected to reach around 5% of annual revenues p.a. The good news: more than half of companies expect a return on investment within two years. And the payoff will potentially be enormous, as competitive landscapes get redefined.