Vertical digitization, on the other hand, is associated with securing a consistent flow of information and data from Sales through Product development to Manufacturing and Logistics. Quality and flexibility can be increased and costs reduced by means of optimal connection of manufacturing systems, the prevention of system failures and better analytical abilities.
For example, a leading manufacturer of electronics components has already achieved a very advanced level of digitization in some plants. This was realised by implementing various processes and value chain optimisations, including:
• Vertical availability and integration of all development, manufacturing and supply chain data• Effective data management and improved data analysis in real time• Individual IP addresses for all components and systems in the plant• Automation of all important process steps in a one-piece flow• Continuous measurement and optimisation of all process steps and parameters
This produced notable increases in performance at the plant level and significantly reduced the error rate in manufacturing.
The majority of the companies identified a clear added value in the digitization of the value chain. Industry 4.0 or the industrial internet is more than just hype. It will become reality in most of the industrial companies in the next five years.