{"id":50585,"date":"2024-10-22T10:34:17","date_gmt":"2024-10-22T09:34:17","guid":{"rendered":"https:\/\/www.elixirr.com\/en-gb\/?p=50585"},"modified":"2025-10-31T10:16:03","modified_gmt":"2025-10-31T10:16:03","slug":"embracing-industry-4-0-3-guiding-principles","status":"publish","type":"post","link":"https:\/\/www.elixirr.com\/en-gb\/embracing-industry-4-0-3-guiding-principles\/","title":{"rendered":"Embracing industry 4.0: three guiding principles"},"content":{"rendered":"\n<p>Since the mid-2010s, we have entered the age of Industry 4.0. Also known as smart manufacturing, Industry 4.0 is driven by innovative manufacturing solutions<strong> <\/strong>enabled by disruptive technology trends in data and connectivity. Despite the industry slowdown during the COVID-19 pandemic, <a href=\"https:\/\/www.hfsresearch.com\/research\/it-spending-in-manufacturing-makes-a-comeback-in-2022\/\">manufacturers\u2019 IT spend has bounced<\/a> back since 2022, with a particular focus on operations digitalisation and supply chain management. Although smart manufacturing promises cost cutting and efficiency improvements in the future, the costly upfront investment often <a href=\"https:\/\/www.gartner.com\/en\/digital-markets\/insights\/2024-tech-trends-in-manufacturing\">leads to buyer\u2019s regret<\/a> amongst manufacturers and requires a keen business case. In <a href=\"https:\/\/www.elixirr.com\/en-gb\/2023\/12\/18\/2024-trends-manufacturing\/\">Elixirr\u2019s 2024 Manufacturing Trends Report<\/a>, it is emphasised that these technological improvements are cost-intensive for manufacturers and corporate teams need to begin plans for future implementations immediately.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenge of the Fourth Industrial Revolution: How to invest in technology that will maximise return for value?<\/strong><\/h2>\n\n\n\n<p>In this digital industrial revolution, manufacturing executives are constantly bombarded with trending new technologies from industrial internet of things to artificial intelligence. Facing tension between the pressure to cut costs during economic downturns and delivering new products to meet changing customer demands, CTOs of leading manufacturers need to make strategic investment decisions on technology in manufacturing that will impact the whole organisation. This begs the question: what kind of smart manufacturing company can emerge? What technology should be invested in to achieve that?<\/p>\n\n\n\n<p>Here are three principles we have seen from leading global manufacturers that will help answer these critical questions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>1. Let the customer guide your decision<\/strong><\/h2>\n\n\n\n<p>Technology investment should directly translate to the value which can be brought to the customer. For example, these are technology that can be prioritised:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Technology that can help understand the customer better<\/li>\n\n\n\n<li>Technology that allows an organisation to become more adaptive (rather than reactive) to changing customer demand<\/li>\n\n\n\n<li>Technology to innovate products solving key customer pain points<\/li>\n<\/ul>\n\n\n\n<p>The appetite for initiatives with longer pay-back periods is low in manufacturing, as any incremental cost needs to be either absorbed (not an appealing prospect for many in todays environment) or passed to the client (who typically will say they were happy with the previous product at a lower cost). This means, the technology investments which are successful are the ones with the highest impact in a short-period.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. Combining physical and digital manufacturing capabilities<\/strong><\/h2>\n\n\n\n<p>Whether it\u2019s an FMCG or a race car engine manufacturer, business depends on the physical production facility. To integrate physical and digital environments, digital tools need to be compatible with the characteristics and constraints of physical machinery. An example of the physical and digital disconnect is a facility that collects large amounts of data on its machinery via physical sensors but lacks the appropriate digital tools to transform physical data into insights. <a href=\"https:\/\/media.mercedes-benz.ca\/releases\/release-c0cb899bf0911f20b01ae662da00f0cf-mercedes-benz-and-microsoft-collaborate-to-boost-efficiency-resilience-and-sustainability-in-car-production\">Microsoft and Mercedes-Benz<\/a> partnered starting October 2022 to connect passenger car plants to the Microsoft Cloud, providing real-time feedback to solve supply chain bottlenecks and track sustainability metrics to manage energy use. In less than a year, <a href=\"https:\/\/media.mercedes-benz.ca\/releases\/release-c0cb899bf0911f20b01ae662da00f0cf-mercedes-benz-and-microsoft-collaborate-to-boost-efficiency-resilience-and-sustainability-in-car-production\">Mercedes\u2019 cloud investment<\/a> has paid off as their data platform provided the foundation to rapidly deploy advanced technology including digital twins in three major production facilities across the globe. Mercedes\u2019 \u201cDigital First\u201d production approach has enabled them to scale EV production in accordance with market demand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>3. Change how your organisation works and nurture existing talent to drive innovation<\/strong><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.paconsulting.com\/newsroom\/ml-journal-what-got-you-here-wont-get-you-there-1-june-2023\">The World Economic Forum\u2019s Future of Jobs Report<\/a> states that due to the growing technology automation, half of all employees will need reskilling by 2025. The manufacturing industry is directly impacted due to the increased automation of repetitive manual tasks. New technology requires new ways of working. When manufacturers invest in technology, it can be disruptive to roles and responsibilities from assembly line workers up to executive leadership. Manufacturers need to update organisational design and invest in talent and skills (such as manufacturing machine learning programming) that match the new ways of working. However, this is particularly challenging due to the industrial brain-drain. <a href=\"https:\/\/nam.org\/2024-second-quarter-manufacturers-outlook-survey\/\">In the 2024 Q2 Manufacturers\u2019 Outlook Survey<\/a>, 67% of manufacturers cited \u2018inability to attract and retain employees\u2019 as their top concern, over market conditions such as \u2018unfavourable business climate\u2019 and \u2018weaker domestic economy\u2019.<\/p>\n\n\n\n<p>The difficulty in acquiring new talent can be offset by turning attention to upskilling existing workforce. The new <a href=\"https:\/\/www.themanufacturer.com\/articles\/80-of-employees-in-manufacturing-want-to-upskill-this-year\/\">Censuswide<\/a> survey of over 4,000 of the UK\u2019s workforce showed that 80% of workers in the manufacturing and utilities industries are interested in learning new work skills in 2022, more than the national average of 70%. Equipping long time workforce with digital skills not only alleviates the stress caused by the brain drain, but also helps preserve the institutional and technical knowledge that may otherwise be lost due to the aging workforce. Ford Motor Co, Liberty Steel and Heineken all launched their own <a href=\"https:\/\/www.themanufacturer.com\/articles\/80-of-employees-in-manufacturing-want-to-upskill-this-year\/\">apprentice program<\/a> focused on upskilling employees as their industries increasingly move towards automation and connected technologies. Upskilling existing workforce is the pathway to resolve the manufacturing brain drain. As upskilled workers transform production sites with new tech and processes, they are creating a workplace attractive to the new generation of graduates, who are excited to work with the latest technology available.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Getting started&#8230;<\/strong><\/h2>\n\n\n\n<p>To drive innovation in manufacturing, manufacturers must let their customer guide their strategic direction, invest in technology that can weave together physical and digital capabilities, and turn to their existing workforce to operate the smart manufacturing facility.<\/p>\n\n\n\n<p>If you are ready to embrace industry 4.0 and tap into the growth opportunity technology can offer, reach out today!<\/p>\n\n\n\n\n\n<p><a id=\"_msocom_1\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since the mid-2010s, we have entered the age of Industry 4.0. Also known as smart manufacturing, Industry 4.0 is driven by innovative manufacturing solutions enabled by disruptive technology trends in&hellip;<\/p>\n","protected":false},"author":6,"featured_media":50645,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"[]"},"categories":[116],"tags":[102,298,299],"related_service":[],"related_industry":[56],"class_list":["post-50585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-innovation","tag-innovation-in-manufacturing","tag-innovative"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Embracing industry 4.0: three guiding principles - Elixirr<\/title>\n<meta name=\"description\" content=\"Drive manufacturing innovation by following customer needs, integrating 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https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2024\/10\/Manufacturing-article-1640x984.jpg 1640w\" sizes=\"(max-width: 2400px) 100vw, 2400px\" \/>            <div class=\"wp-component-card__preview-icon\">\n                <span class='edwp-svg '><svg width=\"47\" height=\"47\" viewBox=\"0 0 47 47\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g>\n<path d=\"M23.4141 0.539062C36.1232 0.539183 46.4258 10.8416 46.4258 23.5508C46.4257 36.2599 36.1231 46.5624 23.4141 46.5625C10.7049 46.5625 0.402465 36.2599 0.402344 23.5508C0.402344 10.8415 10.7048 0.539062 23.4141 0.539062ZM23.4141 1.68945C11.3606 1.68945 1.55273 11.4974 1.55273 23.5508C1.55286 35.6041 11.3607 45.4111 23.4141 45.4111C35.4673 45.411 45.2743 35.604 45.2744 23.5508C45.2744 11.4974 35.4674 1.68957 23.4141 1.68945Z\" fill=\"currentColor\"\/>\n<path d=\"M19.2841 33.6992C18.9579 33.6986 18.6374 33.6111 18.3543 33.4454C17.7167 33.0759 17.3203 32.3585 17.3203 31.5797V15.8189C17.3203 15.0379 17.7167 14.3227 18.3543 13.9531C18.6442 13.7827 18.9735 13.6951 19.3078 13.6994C19.6421 13.7037 19.9692 13.7998 20.2548 13.9776L33.4237 22.0406C33.6981 22.2166 33.9244 22.461 34.0812 22.751C34.238 23.0409 34.3203 23.3668 34.3203 23.6982C34.3203 24.0295 34.238 24.3555 34.0812 24.6454C33.9244 24.9353 33.6981 25.1798 33.4237 25.3558L20.2527 33.421C19.9604 33.6017 19.6256 33.6979 19.2841 33.6992Z\" fill=\"currentColor\"\/>\n<\/g>\n<\/svg>\n<\/span>            <\/div>\n                        <\/figure>\n        <div class=\"wp-component-card__content edwp-row-load\">\n                                    <p class=\"wp-component-card__eyebrow\">\n                Articles            <\/p>\n                <a href='https:\/\/www.elixirr.com\/en-gb\/embracing-industry-4-0-3-guiding-principles\/' class='wp-component-card__title'>\n            <h2>\n                Embracing industry 4.0: three guiding principles\n            <\/h2>\n        <\/a>                                    <div class=\"wp-component-card__description\">\n                    Since the mid-2010s, we have entered the age of Industry 4.0. Also known as smart manufacturing, Industry 4.0 is driven by innovative manufacturing solutions enabled by disruptive technology trends in&hellip;                <\/div>\n                                                    <div class=\"wp-component-card__meta\">\n                                            <p class=\"wp-component-card__date\">\n                            22 October 2024                        <\/p>\n                                                                <div class=\"wp-component-card__terms\">\n                                                                                                                                                    <div class=\"wp-component-tags edwp-component\">\n                        <div class=\"wp-component-tags__tag\">\n                Manufacturing            <\/div>\n                <\/div>\n                        <\/div>\n                                    <\/div>\n                                                    <div class=\"wp-component-card__button-wrapper\">\n                    <button class=\"btn btn--link arrow wp-component-card__button\">\n                                                                            Read more                                                                            <span class='edwp-svg '><svg width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g id=\"Lg\">\n<path id=\"Vector\" d=\"M1.12509 9.50162H15.8648L9.43259 3.06941C9.374 3.0113 9.3275 2.94216 9.29576 2.86599C9.26403 2.78981 9.24769 2.70811 9.24769 2.62559C9.24769 2.54307 9.26403 2.46137 9.29576 2.38519C9.3275 2.30902 9.374 2.23988 9.43259 2.18177C9.54971 2.06535 9.70814 2 9.87328 2C10.0384 2 10.1969 2.06535 10.314 2.18177L17.8151 9.6829C17.8737 9.74101 17.9202 9.81014 17.9519 9.88632C17.9837 9.96249 18 10.0442 18 10.1267C18 10.2092 17.9837 10.2909 17.9519 10.3671C17.9202 10.4433 17.8737 10.5124 17.8151 10.5705L10.314 18.0717C10.1975 18.1871 10.0404 18.2522 9.87641 18.2529C9.79414 18.2534 9.71259 18.2376 9.63643 18.2065C9.56027 18.1754 9.491 18.1296 9.43259 18.0717C9.374 18.0135 9.3275 17.9444 9.29576 17.8682C9.26403 17.7921 9.24769 17.7104 9.24769 17.6278C9.24769 17.5453 9.26403 17.4636 9.29576 17.3874C9.3275 17.3113 9.374 17.2421 9.43259 17.184L15.8711 10.7518H1.12509C0.959309 10.7518 0.800312 10.686 0.683084 10.5687C0.565857 10.4515 0.5 10.2925 0.5 10.1267C0.5 9.96093 0.565857 9.80193 0.683084 9.68471C0.800312 9.56748 0.959309 9.50162 1.12509 9.50162Z\" fill=\"#1D0F25\"\/>\n<\/g>\n<\/svg>\n<\/span>                                            <\/button>\n                <\/div>\n                                            <\/div>\n<\/article>\n","_links":{"self":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts\/50585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/comments?post=50585"}],"version-history":[{"count":1,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts\/50585\/revisions"}],"predecessor-version":[{"id":57754,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts\/50585\/revisions\/57754"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/media\/50645"}],"wp:attachment":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/media?parent=50585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/categories?post=50585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/tags?post=50585"},{"taxonomy":"related_service","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/related_service?post=50585"},{"taxonomy":"related_industry","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/related_industry?post=50585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}