What is the digitalization of industry?
Digitalization: using digital technologies and data for increasing income, building processes that create value and creating a digital business environment.
Digitization: creating a digital version of a physical object; automatization of instructions and paper-based process, thereby enabling digital information about physical objects.
Industry 4.0: digitalization of the vertical and horizontal value chain, automatization and integration by implementing various technological concepts such as Cyber-Physical Systems, the Internet of Things and Smart Factory, which enable communication between products, their environment and the business side.
Smart Factory – a factory in which physical processes are monitored and managed by cyber-physical systems. As a result of this, physical systems will be transformed into the Internet of Things (IoT), communicating and cooperating in real time, over the internet, both with one another and with people.
The Internet of Things – a network of physical objects that is equipped with electronic devices, software, sensors, actuators and connectivity, which enables devices to contact one another and exchange data.
What are the benefits of digitalizing the industry?
Digitalization enables industrial enterprises to:
To find out the Industry 4.0 Readiness level of your enterprise, fill in the self-check test here.
Find out more about the digitalization of the indursty services by contacting Kersti.Kuusksalu@eas.ee or find services on the Estonian page.
Materials for further reading
McKinsey & Company “Industry 4.0: How to navigate digitization of the manufacturing sector”
BCG “Five Lessons from the Frontlines of Industry 4.0”
BCG “Inside OPS: Operating in the Era of 4.0”
BCG “When Lean Meets Industry 4.0. The Next Level of Operational Excellence”
PwC “Industry 4.0: Building the digital enterprise”
To find out the Industry 4.0 Readiness level of your enterprise, fill in the self-check test here.
Kersti Kuusksalu
Project Manager
Kersti.Kuusksalu@eas.ee