For a long time, firms have been seeking ways to improve their factory performance and efficiency. Getting insightful business information by just looking at their production lines is a tough task. Connecting production-line data to strategic business objectives has been a big challenge since many systems require large investments, machinery updates and, worse, binding contracts with proprietary manufacturing systems, and suppliers were mostly frustrating.
Even with the support from competent technology executives, operational and business leaders have feared proposing investments in the field. Understanding both the objectives and the business case has been difficult as the investment used to always be large and ROI was not always reliable. The question frequently asked has been: Would I receive any payback for my leadership and stewardship journey?
Smart factory concepts are nothing new, but industry clouds are finally achieving simplicity, allowing industrial enterprises to collect data and connect it to strategy and business. Modern smart factory concepts are more accessible than ever due to developments in sensor technology and cloud-enabled data management.
Connectivity is essential in order to collect the real-time data required for actions and to make a quick reaction. Smart factories are all about gaining access to real-time manufacturing data and using it in myriad ways to gain insights into the operation.
Structuring data is fundamental in order to reap the full benefits of real-time data collection. Data only delivers value through a well-organised and structured visual representation, such as dashboards providing real-time alerts and visualisation, the analysis of complex machines, predictive planning and data-driven actions. Finally, better strategic decisions in regard to the supply chain, sustainability and more are backed by meaningful insights from operational data.
The smart factories revolution
Smart factory initiatives improve asset and process efficiency, optimise operating expenses and increase operational safety and sustainability. Typically, such initiatives have a ROI of up to 20–25%, depending on the firm, operation and chosen use cases.
Technological advances have made data gathering not only possible but also economically viable. Public cloud technologies enable agile brownfield IoT solutions, which are nimbler and involve less intrusive machinery.
Delivering a transformation that works
Deloitte works together with its clients throughout the Smart Factory Fabric initiative. We bring a global industry knowledge and relevant experience to ensure a solution that fits the clients’ needs. We demonstrate real case examples, learned from of hundreds of clients, and our clients embark on real-life experiences at our Deloitte Smart Factories plants in Germany, Japan and the USA. Ready to test, explore and experiment.
Think big, start small. The Deloitte Smart Factory initiative starts with a detailed understanding of the current state, setting transformation objectives and demonstrating the value of experimentation. We help our clients to develop the business case details in concrete and measurable ways to scale. We help them to define the objectives, levers and KPIs for the initiative.
The technical Smart Factory Fabric solution is built in agile sprints. The build leverages existing reference architecture, reusable core implementation and an experienced team that has delivered the solution to other clients.
Along with the implementation of modular solutions, change management needs to take the centre stage. Deloitte supports its clients in delivering training and communication to the relevant teams. The teams need to understand how the solution helps their everyday life and how practices change. Closed-loop feedback feeds into improvements whilst KPI development validates your progress.
Contact us to assess your Smart Factory Fabric readiness.
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Jaakko Kontiainen
Jaakko Kontiainen vastaa Deloitte Suomen konsultoinnissa pilvitransformaatioliiketoiminnasta. Hän auttaa liiketoiminta- ja teknologiajohtajia suunnittelemaan ja toteuttamaan muutoshankkeita, joissa julkipilvi on keskeinen mahdollistaja. Jaakolla on laajaa kokemusta julkipilven hyödyntämisestä ja keskeisten julkipilven toimittajien kanssa toimimisesta. Jaakon portfolioon kuuluvat julkipilven liiketoimintavetoiset muutoshankkeet, pilven mahdollistama digitalisaatio, julkipilven hankinta ja kustannusoptimointi sekä julkipilvi yritysjärjestelyissä. Briefly in English: Jaakko Kontiainen leads cloud transformation offering in the Deloitte Finland Technology Strategy & Transformations Consulting. He advises technology and business leaders to plan and execute public cloud enabled transformation programs. Jaakko has extensive experience on leveraging public cloud in transformations and working with the leading public cloud providers. Jaakko’s offerings cover public cloud transformation, cloud driven digitalization, public cloud sourcing and cost optimisation as well as public cloud in M&A.