The steady evolution of technology is leading to the closer integration and automation of activities that is making it easier than ever for organizations to do business today. With this shift that impacts all industries, including manufacturing processes and supply chains, self-enabled technologies will allow people to concentrate on value adding activities rather than the technology itself.
In line with this trend, Yokogawa is now advocating Synaptic Business Automation for a new age of industry automation with our customers. Through this concept, Yokogawa contributes to the realization of digital transformation, including smart manufacturing and intelligent decision making, and the creation of a better future for our customers.
The term digital transformation has been around for a while, but what is digital transformation?
Digital transformation is a concept that Erik Stolterman, a professor at Umeå University in Sweden, first came up with in 2004. In simple terms, "penetration of IT improves people's welfare on all fronts".
Much progress has already been achieved in the digitization, network connection, integration of activities, and the transformation of all this into a form that is user-friendly. Is this digital transformation? The answer is yes and no.
One aspect of Digital Transformation is to decide “what we let technologies do" and then implement it. However, what we should determine is not “what we let technologies do" but “what we ourselves must do”. The ultimate goal is to distinguish what human beings alone can achieve from our customers’ daily operations, and organize them into easy and accurate forms.
Digital transformation is not an end in itself. It is the structuring of tasks to put enterprises on a firm footing for the future.
The pace of digital transformation has drastically accelerated in recent years, and this has the potential to significantly change how companies do business. Per a report from International Data Corporation (IDC), a provider of business intelligence, “Worldwide, digital transformation could be worth $18 trillion in additional business value.”
In manufacturing industries, major potential benefits of digital transformation are increased profitability, reduced costs and higher productivity. According to research conducted by McKinsey & Co., the estimated effects are as follows:
|Sized Applications||Annually Low Estimate
|Annually High Estimate
|Potential Value Gain|
|Operations Optimization||633||1766||5-12% cost reduction|
|Predictive Maintenance||240||627||10-40% cost savings|
|Health and Safety||65||226||10-25% savings|
|Human Productivity||69||160||10% productivity improvement
3-5% productivity gain
Potential Economic Impact Per Year in 2025 （Reference: McKinsey & Co.）
Digital transformation can thus bring great benefits to any organization.
There is no one single application or technology that enables digital transformation. A digital transformation can be realized by integrating a wide variety of applications and technologies in line with a company’s aims. We offer an optimal portfolio of solutions and services to meet our customers’ needs.
IIoT is one of key technologies in digital transformation. For more information about Yokogawa’s IIoT solutions for the industrial automation, please click here.
The value of digital transformation in process manufacturing is realized as smart manufacturing, intelligent decision making, and operational excellence.
With its wide knowledge of and expertise in process manufacturing, Yokogawa can help bring about the realization of a digital transformation through the Synaptic Business Automation that will lead to a better future for its customers.
Yokogawa has a long history of co-innovation in process control and safety. Combined with recent strategic know-how and IP-rich acquisitions, the company can now apply its deep domain expertise to create a differentiated offering in the industrial automation space. From analog or manual data being digitized to the complete digitalization and improvement of work process, with recently-acquired KBC, Yokogawa is helping industrial organizations transform their businesses to help meet both current and future challenges.
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