Digitalization of industry

Open Target group: Enterprises operating in the Estonian industrial sector

The industry is an important part of Estonian economy, as it is the largest employer and makes up the majority of the local economy. Estonian economy is undergoing stable growth, yet in terms of effectiveness and added value, we have fallen behind when compared to out neighbouring countries and the European average.

In order to improve competitiveness, the labour-intensive and traditional industry should catch up with the digitalized world.

Getting started with digitalization may be complicated, several relevant events and services are provided in Estonia to facilitate and simplify it.


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:

  • elevate productivity
  • increase profit margins
  • improve competitiveness
  • offer more personal products to clients at better prices and at a higher quality level
  • improve the productivity of employees and minimise periods of inactivity
  • decrease product development costs and cut back on the time it takes to bring a new product to the market
  • gain more trust among clients and thereby grow their client base

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 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