By: John Barcus, Vice President, Oracle Manufacturing
Manufacturers are adopting smart technologies to improve efficiencies in their factories. But many companies are stuck in the early stages of adoption. They often discover that initiating a smart-manufacturing project is labor-intensive, time-consuming and costly. A common hurdle manufacturers encounter is the integration of multiple technologies.
Cloud applications help manufacturers reduce costs related to these challenges and shorten project timelines. In the following sections, we’ll take a closer look at how smart technologies are increasing opportunities for manufacturers and best practices for efficient implementations.
The Smart Factory Opportunity
In the next five years, smart factories may contribute as much as $500 billion in added value to the global economy, according to Capgemini’s Digital Transformation Institute. The reason: Smart factories can produce more with lower costs, according to a recent report. In fact, manufacturers expect smart technologies to drive a sevenfold increase in annual efficiency gains by 2022. Some industries can expect to nearly double their operating profit and margin with smart technologies.
Smart factories increase output, quality, and consistency. Additional benefits include:
Efficient IoT Integration and Implementation
The smart manufacturing transformation begins with the Internet of Things (IoT). IoT-enabled devices send performance-related information via sensors over a network. During the early-adoption phase, many manufacturers struggle to build IoT applications and integrate them with disparate business applications.
According to the previously cited survey from Capgemini’s Digital Transformation Institute, digitally mature manufacturers apply the following best practices to overcome these challenges:
One of the ways Oracle is helping manufacturers address the integration challenge is through a partnership it formed with Mitsubishi Electric. The companies are providing manufacturers with an open platform for developing IoT applications that integrate seamlessly with Oracle cloud apps.
IoT apps developed on the Mitsubishi Electric FA-IT Open Platform collect data from factory equipment for visualization and analysis. Oracle IoT Cloud, which is designed to integrate with other Oracle cloud-based business systems, receives this information from these IoT apps in real time.
“Mitsubishi Electric’s new FA-IT Open Platform is based on edge computing to accelerate IoT utilization for smart manufacturing,” says Toshiya Takahashi, corporate executive group senior vice president, factory automation system, Mitsubishi Electric Corporation. “By adding Oracle Cloud services to this platform, we believe that it will be possible to visualize factories and build an application development environment. To provide the platform to customers early, we will also work with partner companies, including IT companies, to develop applications utilizing the platform."
Seek IoT Expertise to Speed the Adoption Process
Smart technologies offer a significant competitive advantage for manufacturers. But they’re not easy to implement. Manufacturers can overcome early-adoption challenges with the help of experienced consultants. When seeking a consulting firm, it’s important to consider advisors who have significant experience helping factories transition to smart technologies. This will help cut the implementation phase and place manufacturers on the right path from the beginning.
A do-it-yourself implementation is typically costly and time-consuming. Oracle and our partners have the experience and expertise to help manufacturers build a comprehensive cloud-based solution using an efficient, cost-effective process that delivers immediate results. Check out our latest ebook for more information.