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The New Paths in Manufacturing: Real Time Data, IoT/IIoT and Networks Drive the Industry 4.0 Transformation

COGNIZANT's HAMPUS LINDVALL and BIRGITTE VILLADSEN on IoT/IIoT (Industrial IoT) and SMART MANUFACTURING. The rapid development in networking and IoT is driving a change in the manufacturing industry. Production lines, machines and factories are increasingly connected, creating a digital ecosystem where real-time data drives the next phase of smart manufacturing.
This is claimed in today's guest column by Hampus Lindvall, Automation Consultant and Birgitte Villadsen, Director IoT and Engineering, at the global IT and technology consultant Cognizant.
"IoT is an important enabler where physical assets are connected with the digital world. It gives manufacturers increased visibility into operations and promotes efficiency, flexibility and sustainability. From predictive maintenance to intelligent supply chains, IoT enables optimized processes, reduced downtime and customized production,” they write, arguing that business transformation is driven by generative AI (Gen AI), which augments human expertise using machine learning (ML). “Combined with IoT, Gen AI improves decision-making, automates routine tasks and promotes innovation by analyzing data from IoT systems. These technologies form the basis of the smart factories of the future, where human creativity and machine intelligence work together.”
But the current trends in networking, IoT and AI in the manufacturing industry are not only about technology, but also about changing business models and processes and creating a more sustainable and stable industrial future:
"Many organizations lack the ability to take advantage of the new opportunities. Digitization and implementation of connected devices is crucial. Organizations that have been lagging behind are now rushing to catch up and begin their journey towards Industry 4.0. According to Mobica, the IIoT market is worth $865 billion, with projected growth to $33.3 trillion by 2030,” the authors write.

Nordic manufacturing companies are currently using connected and interconnected devices and systems to address various challenges:

Monitoring: Lack of transparency can lead to unnecessary costs and misconceptions about production quality. A Nordic component manufacturer experienced tool failure unexpectedly and discovered, with the help of connected devices, that the cause was deviations in tool quality. It enabled predictive use, reduced repairs and extended tool life, resulting in cost savings.

Control: Effective production management requires robust systems such as SCADA (Supervisory Control and Data Acquisition) and MES (Manufacturing Execution System), which depend on an IoT infrastructure. For a customer who was merging two factories, network usage was essential to enable efficient operations. With more connected devices, automation increased, reducing manual work and improving reliability, while allowing production to scale.

Innovation: Connected devices solve challenges and drive innovation. A strong digitization strategy promotes process development and supports AI models for operations, product development and maintenance. Integrating machine learning (ML) and AI in industry strengthens these capabilities. According to Mobica, however, ML requires technical infrastructure and continuous data analysis to build trust and deliver results.

Making the transition to smart factories scalable
For companies that are ready for Industry 4.0, the first steps can feel overwhelming. A balanced approach that combines strategic goals with short-term investments in key areas facilitates the implementation of connected devices and IoT. In this way, the transition to the smart factory becomes manageable, scalable and in line with the organization’s overall goals.

Connected devices are not just a technological upgrade but a strategic asset that can transform manufacturing operations. By improving visibility, control and enabling innovation, they can optimize production, reduce costs and drive improvements. As the IIoT market grows, so does the potential to create value, making these devices indispensable for forward-thinking manufacturers.

By Hampus Lindvall,
Automation Consultant
Cognizant

and

Birgitte Villadsen,
Director IoT & Engineering
Cognizant

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