With the recent popularization of the term, Brazil still has a long way to go toward Industry 4.0. Considered the Fourth Industrial Revolution, it is characterized by the widespread use of technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) to improve production processes. We increasingly have processes performed by machines and fewer by humans. The interconnection of various systems, interacting with each other using internet protocols, allows companies deep and assertive data analysis in record time.
Currently, Brazilian industry accounts for 10% of the country’s GDP. We rank 69th in the Global Innovation Index, which makes clear the great challenge we still face in pursuit of competitiveness.
Application of Digital Transformation in Industry
The application of integrated systems, the use of robotization, and the analysis of data collected across the entire production floor and sent in real time to management areas are still not a reality in most companies in the country. Factory operations still leave something to be desired compared to developed countries, which compromises our productivity and, above all, our competitiveness against developed nations.
The result of the lack of investments in technology is worrisome: we have become a less competitive country, and our industries fail to keep pace with the global evolution. Between 2006 and 2016, industrial productivity in Brazil dropped by more than 7%, according to IBGE.
Culture of Innovation in Industry
To enter the era of Industry 4.0, it is first necessary to have a deep understanding of your own company’s business processes. Companies with a low degree of maturity and management will have a harder time adopting the principles of Industry 4.0, as they involve interoperability among diverse business processes, decentralization of operational decision-making, real-time monitoring of the production environment, and a high degree of modularization across all environments.
Read also: 4th Revolution: see the impacts and new opportunities for Brazilian industries
Therefore, the company’s first investment must be in management maturity. From there, a series of possibilities can emerge to expand productivity through the optimization and automation of the manufacturing process. One example is the installation and configuration of smart systems and sensors that inform machines of the best way to operate. This type of action is based on feedback obtained at each stage of the manufacturing process.
We will increasingly see an organizational culture geared toward digital, where data analysis will be a key resource. The results of these investments are visible: according to the Brazilian Industrial Development Agency, the annual estimate for the reduction of industrial costs in Brazil, resulting from the migration of industry to the 4.0 concept, will be at least R$ 73 billion/year.
There is a long and important path to travel before Brazil truly enters Industry 4.0, featuring an economy much more focused on innovation. But there is no doubt that technology is the best solution for survival in an increasingly competitive, connected, and automated market.
Written by: Aloisio Arbegaus — Sales Director at Teclógica
