Trans4mation Forum: technology is a key driver of efficiency in Industry 4.0 Era

In the era of Industry 4.0, technology is emerging as a driver of efficiency, so global leaders are increasingly focusing on digital transformation, says IT-Enterprise press release on the Trans4mation Forum.

"The planned annual investment in Industry 4.0 in Germany is €40 billion. Additional growth caused by the introduction of Industry 4.0 is expected to reach €150 billion. Due to the use of new technologies, the cost of production in the US and Germany will be lower than in developing countries," – said Oleh Shcherbatenko, CEO of IT-Enterprise.

Industry 4.0 makes it possible to create more personalized products, reduce lead time and ultimately increase revenue.

"On average, 36% of customers are interested in purchasing individual products or services. Every fifth customer is ready to pay 20% of the overall cost for this," – admitted Andrzej Soldaty, President of the Board Foundation Future Industry Platform.

The impact of Industry 4.0 on economic growth is confirmed by international examples of digital transformation.

"McKinsey estimates that operating costs are reduced by 10-12%, productivity is increased by 7-12% and net profit is increased by 10-15%," – revealed Yannick Fourastier, Airbus and Bombardier Digital Transformation Project Manager.

One of the brightest examples of significant changes in technology and business model is Netflix.

"Over the last ten years, Netflix has changed its business model, not once or twice, but three times," – said Dominique Piotet, CEO at UNIT.City.

He reminded the audience that Netflix started out as a 'television killer' and was selling DVDs at that time.

"But who watches movies on DVDs now? So, Netflix changed the business model again and started to stream videos. And then, when they realized they were paying millions of dollars to Hollywood producers, Netflix decided to create their own videos. In 2019, the company plans to spend $6 billion on it. In three years, Netflix became the world's second-largest film producer, after Walt Disney. After all, if you do not change, you lose touch with your customers, you stop providing value to them and you will be overtaken by those who understand their needs," – Mr Piotet added.

According to Denis Morozov, board member and CFO of Interpipe Group, Industry 4.0 approaches and technologies increased the company's sales by 62% in Europe and 22% in the US. Energy costs for steel production were reduced by 45%, while the idle time of motor transport decreased by three times.

"Without Industry 4.0, competition in international markets is impossible," – Denis Morozov assured.

Full-scale transformation is also in progress at Ukrnafta oil company.

"A single ERP system instead of a mixed bag of more than 48 individual systems gives us a huge synergy effect. We have the opportunity to save on human resources and unify all business processes that were standalone before," – reported Artur Kravets, Director of Ukrnafta Business Transformation Department.

Experts and practitioners at the Forum also discussed the role of the state in implementing digital transformation.

"Industry 4.0 is not just about IoT or AI. It is about responding to global changes and forming a new culture of cooperation," – said Oleksandr Yurchak, CEO at the APPAU industrial association.

According to Mr Yurchak, there are 76 innovative companies in Ukraine, one-third of which work outside the country. To compare, there are 150 innovators in Israel focused on 9 major industries.

Read more in Industry 4.0: How 7 global tech trends will change our world.