Industrial digital transformation drives productivity and profitability

Sep 19, 2022 | Automation, Development, Nearshoring

Companies that invested in information technology are the ones who best dealt with the crisis caused by the Covid-19 pandemic. Now, the market is recovering, and many organizations realized that digital transformation is no longer a competitive differentiator – it is a matter of survival.   

Industrial digital transformation – what is it, how to do it and what is it for?  

Also called the Fourth Industrial Revolution, Industry 4.0 encompasses a vast ecosystem of modern technologies such as Big Data, artificial intelligence, analytics software, robotics, the internet of things, cloud computing and many others. All are revolutionizing the ways of production and business models.  

However, this can be achieved with the vertical integration of systems which is when information systems integrate all hierarchical levels of the organization. To achieve this, the first step is the digitization of physical objects on the factory floor. Examples include sensors, actuators, and programmable logic controllers (PLC).  

Industry 4.0 - vertical integration of systems - industrial digital transformation

Through Supervisory Control and Data Acquisition, information is collected for production control. At the operational layer, a manufacturing execution system is used to obtain the data already collected, manage and optimize manufacturing workflows and provide information about the production status to the integrated business management systems. This is just one example, but have you seen how everything is integrated into the corporate level?  

 Such great and refined control is only possible with industrial digital transformation. This generates greater visibility of processes and allows for the reinvention of services and products. In general, it is the concept that has driven industrial organizations through technology so that they can achieve their goals.   

 We can say that industrial digital transformation really happens when a company of the industrial sector makes investments in technology in order to build digital solutions that solve challenges. We are not talking about investments that impact isolated areas of the company – we are talking about a planned action that requires a change in culture and constant improvements in the structure and the core of the organization. In other words, the transformation results in a paradigm shift in the use of technological resources, extracting the maximum potential of information technology to generate innovation and accelerate business results.   

 Some examples of technologies used with high success rates in the industry to achieve strategic goals: 

Advantages of investing in digital transformation in the industrial sector 

The substantial increase in the use of collaboration tools (driven by the remote work model) has led to a new landscape where projects can be carried out safely and productively outside the physical environment of companies. This transformation, which is cultural and structural, has provided great advantages for the industrial sector. It allows companies to hire technology partners in a much more agile way, with lower costs and higher ROI. Below, see some advantages that digital transformation brought to industrial organizations. 

  1. Overall visibility and instantaneity of information 

With mapped, redesigned, and automated processes, it is possible to have an overall visibility of the organization. As companies in the industry tend to have long and complex processes, the orchestration and automation of workflows generates great visibility, which allows each step of each task to be viewed individually and changed. 

  1. Time optimization to focus on strategic objectives 

One of the main practices that the largest organizations in the industrial sector have adopted to achieve better results is to hire technology partnersIT outsourcing companies. The digital solutions market is very competitive, and there is a high demand for professionals in this area. Companies in segments face even more difficulties in recruiting and retaining professionals specialized in the technologies they need. Thus, some companies in the industrial sector quickly understood this challenge and began to hire IT outsourcing partners. After all, these tech companies know how and where to look for the best technology professional. Leaving this task to your IT partner, your company can focus on activities related to the organization’s core business. 

  1. Higher product quality 

The use of modern technological platforms and tools has led to the development of better products on the market. This occurs largely not only because of the hardware, but because of the customized software that operates on the machines and systems that help in the Backoffice. Investing in innovation and digital transformation has allowed the industry to reach unprecedented levels of  growth. 

  1. Cost reduction 

Implementing the technological tools that best suit your company can greatly reduce expenses in several areas. Thanks to the optimization of operations, with monitoring tools and intelligent cost projection in all areas of the company, waste is reduced, and resources are efficiently used. 

  1. More agility in operational tasks 

There are several ways in which industrial digital transformation helps to do tasks quickly and optimizes work time. An example of this is process automation, which we have already mentioned. Another is task robotization (RPA), which automates repetitive activities and allows employees to act smarter and less robotically. 

Process Automation
  1. Integration and interoperability 

With the help of artificial intelligence and the internet, communication takes place at high levels of efficiency, involving people, machines and systems, so that the best of each aspect is integrated. Furthermore, all systems that people and machines operate on are available 100% of the time, even when some of their features need some repair or upgrade.  

How to choose the ideal technology partner for the industrial sector? 

Your IT outsourcing partner must be able to deliver IT talents quickly and engage and guide them to solve your company’s business challenges. This not only guarantees greater agility in the delivery of IT resources, but also allows them to support your business, which generally guarantees a high ROI. 

IT Nearshoring

At NTConsult, we are a Nearshore IT company with almost 20 years of experience in the digital solutions market, with clients in 8 countries working with companies from all markets. We can help you to make digital transformation a reality in your company! 

As we work with nearshore LATAM-based IT professionals, we offer competitive pricing and English-speaking IT specialists who work in your time zone and are aligned with your country’s culture ensuring real-time communication without language barriers and greater synergy with your teams working on your projects. Nearshoring with Latin America-based professionals is a great choice for North American companies.   

Get in touch with us in the quick form at the bottom of this page, and let’s talk about your business challenges. We are always ready to help your company achieve its goals through technology. 

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