Today, less than 1% of objects are connected to the Internet, but there are likely to be almost 6 billion Internet of Things (IoT) connections within the EU in 2020. The IoT blurs the lines between products, services and industry sectors. It means new innovative services or applications; better products with built-in services or applications; more efficient processes; improved energy and resource efficiency; better understanding of customers’ needs; increased flexibility and more possibilities for sharing.
From Industrial Revolution to Digitalization of Industry
We all remember the process of change from an agrarian and handicraft economy to one dominated by industry and machine manufacturing.
Blast from the past
The main features involved in the Industrial Revolution were technological, socioeconomic, and cultural. These technological changes included the use of new basic materials, chiefly iron and steel, the use of new energy sources, including both fuels and motive power, such as coal, the steam engine, electricity, petroleum, and the internal-combustion engine, the invention of new machines, such as the spinning jenny and the power loom. Such advancements permitted increased production with a smaller expenditure of human energy along with a new organization of work known as the factory system, which entailed increased division of labour and specialization of function. At the same time, important developments in transportation and communication, including the steam locomotive, steamship, automobile, airplane, telegraph, and radio are proof of the increasing application of science to industry. That brings us to today.
What we need to know about digitalization?
Cloud computing, the Internet of Things and big data are transforming the current industry, both manufacturing processes and services, increasing efficiency in all sectors.
Just as the advent of computers transformed our world in previous decades, the combination of big data and cloud computing is changing our economy and society and bringing about major industrial and social innovation.
Digitization of everything that can be digitized…let’s see in what terms we can talk about an industrial digitalization as such matter is believed to change the future of manufacturing.
Digitalization of industry is based on a growing ecosystem of advanced computing, data analytics and communication devices, new levels of connectivity and IT applications over the Internet. This makes industrial value chains shorter and more vertically integrated than in the past.
Traditional sectors and SMEs are particularly lagging behind in their digital transformation. Recent studies estimate that the digitisation of products and services will add more than €110 billion per year in revenue for European industry in the next five years.
In April, the European Commission unveiled its plans to help European industry, SMEs, researchers and public authorities make the most of new technologies. While many parts of the economy have been quick to take up digital technologies and processes, European industry across sectors and regardless of a company’s size must fully take advantage of digital opportunities if it is to be globally competitive.
The goal of the EU’s first industry-related initiative of the Digital Single Market package is to ensure that Europe is ready for the growth in the emerging markets for future digital products and services. This will require sustained and coordinated investment from the public and private sectors.
Furthermore, a flagship initiative to be launched this year will explore quantum technologies, which promise to solve computational problems that are beyond the capacity of current supercomputers. The leading element of this initiative will be a European Open Science Cloud, which will offer a trusted, open environment for the scientific community to store, share and re-use scientific data and results across borders and across disciplines.
For further information: Digitising European Industry