{"id":6545,"date":"2019-07-07T10:00:50","date_gmt":"2019-07-07T09:00:50","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=6545"},"modified":"2025-12-08T15:02:42","modified_gmt":"2025-12-08T15:02:42","slug":"factory-of-the-future","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/factory-of-the-future\/","title":{"rendered":"How Industry 4.0 can help create the factory of the future"},"content":{"rendered":"
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\n\t\t\t\t\t\tHow Industry 4.0 can help create the factory of the future\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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Through digital transformation, your manufacturing firm can take advantage of productivity and efficiency gains via Industry 4.0.<\/p>\n\n\n\n

You can look ahead to a factory of the future \u2013 connecting information so intelligent machines can collaborate with each other, run by a team of analytical, well-trained workers.<\/p>\n\n\n\n

It’s a centre of innovation\u2014the hub of a supply chain that combines customers, suppliers, distributors and partners with advanced analytical systems. This can lead to “perfect production” with minimal downtime, neglect, waste and inefficiency.<\/p>\n\n\n\n

With Industry 4.0<\/a>, major technologies are coming to fruition into the same time. The manufacturing industry is being disrupted by the integration of the virtual and physical worlds.<\/p>\n\n\n\n

It’s the age of technology where the Internet of Things (IoT), big data, advanced analytics and robotics are emerging. It’s the age of the “smart factory”, where data from connected operations is used to learn and adapt to ever-changing demands.<\/p>\n\n\n\n

In this article, we take a look at what Industry 4.0 is, how you can start using it within your manufacturing firm and how to take the steps towards creating your own factory of the future.<\/p>\n\n\n\n

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Download your free copy of The future of manufacturing<\/a><\/div>\n<\/div>\n\n\n\n

Industry 4.0 technologies to understand<\/h2>\n\n\n\n

Below we explore the key technologies that make up Industry 4.0 and are worth understanding so you can take steps to implement them within your manufacturing firm.<\/p>\n\n\n\n

Internet of Things (IoT)<\/h3>\n\n\n\n

IoT is the fusion of physical objects such as software, sensors and electronic items with the internet and machine-enabled data collection and transfer.<\/p>\n\n\n\n

IoT supports real-time communication, initiating physical systems. It allows traditional supply chains<\/a> to become more digitised and connected\u2014completely integrated ecosystems that are fully transparent to the contributing marketing, product development, manufacturing and distribution departments.<\/p>\n\n\n\n

Examples of IoT in action include the facilitation of applications and production flow in factories, as they can automatically monitor development cycles. You’ll also see them in warehouses and for use in managing inventory.<\/p>\n\n\n\n

Big data and advanced analytics<\/h3>\n\n\n\n

The way businesses read and analyse the massive amount of data that comes with IoT is vital, especially if it involves critical events such as power outages or an attempted data breach.<\/p>\n\n\n\n

In manufacturing<\/a>, the availability of data from product development, production and testing, for example, can add new dimensions, allowing targeted innovation, marketing and decision-making.<\/p>\n\n\n\n

Robotics<\/h3>\n\n\n\n

Robots<\/a> are already used extensively in the manufacturing world\u2014mechanical arms on assembly arms is one such example.<\/p>\n\n\n\n

Industry 4.0 could see the contribution from robots increase. They could take ownership of manufacturing processes and bring products to customers by themselves, due to computing and communication systems linked to physical systems.<\/p>\n\n\n\n

Simulations, 3D printing and augmented reality<\/h3>\n\n\n\n

Already commonplace, goods are virtually modelled and tested, saving time and reducing the materials, efforts and money spent.<\/p>\n\n\n\n

Through 3D printing, we can see the creation of customised, complex and lightweight designs at remarkable speeds. Meanwhile, augmented reality could play an important role where employees are trained on the job far more effectively than via paper or monitors.<\/p>\n\n\n\n

Gain a competitive advantage<\/h2>\n\n\n\n

Only 30% of manufacturers investing in transforming their digital operations will reach their full potential, held back by outdated business models and technology.<\/p>\n\n\n\n

By pivoting your strategy towards smarter analytics and an optimal organisational structure, your manufacturing firm can use Industry 4.0<\/a> to create a competitive advantage and improve your product offering, loyalty and satisfaction among the customer base.<\/p>\n\n\n\n

The four pillars for an effective Industry 4.0<\/a> strategy are detailed below, along with what you need to do to bring them to life in your factory:<\/p>\n\n\n\n

1. People<\/h3>\n\n\n\n

Tasks once managed by people are increasingly being handed over to robots and artificial intelligence<\/a> (AI), but humans will still play a huge part. The adoption of Industry 4.0 means there must be a major shift in skills, recruitment and training to take advantage of new technology.<\/p>\n\n\n\n

Your team will need to blend traditional manufacturing skills with new ones and requirements such as a knowledge of automation, data, analytics, programming and software.<\/p>\n\n\n\n

2. Software<\/h3>\n\n\n\n

Hardware is nothing without software, and it’s the creation of applications by your software partners that will drive Industry 4.0. Leveraging integrated systems that can support all areas of your business\u2014led by inventory, production, sales, accounting and finance\u2014is vital.<\/p>\n\n\n\n

This will provide a single database and core functionality, which allows you to automate your business operations and provide real-time information.<\/p>\n\n\n\n

3. Hardware<\/h3>\n\n\n\n

Software is also nothing without hardware. The increasing value of software is dependent on your hardware getting faster and better. Amid the talk of a virtual factory, your products still actually need to be made\u2014that can’t happen without machinery.<\/p>\n\n\n\n

4. Connectivity<\/h3>\n\n\n\n

To differentiate your business, you need to focus on serving customers. To do this, you must explore new ways of delivering innovative products and services. This might mean cloud connectivity to underpin an Industry 4.0 strategy for optimal efficiency.<\/p>\n\n\n\n

Read more about manufacturing<\/strong><\/p>\n\n\n\n