Siemens Digitalization User Manual
The Digitalization
Productivity Bonus in Dairy
Products Manufacturing
What value does digitalization offer the
Dairy Products industry?
www.siemens.co.uk/food-beverage-industry
Contents
1. Automation and digitalization: 4
The new imperative
2. The starting point for a business case: 6
The Digitalization Productivity Bonus
3. Financing Industry 4.0 7
4. Sector focus: Dairy Products 8
Siemens Financial Services | Summer | The Digitalization Productivity Bonus: Sector Insights
Management Summary
· Digital transformation – or Industry . - is a widely
recognised imperative in manufacturing. Manufacturing
CFOs, however, require measurable outcomes on which
to base their investment in digital transformation
· Research from Siemens Financial Services has shown
that measurable improvements in manufacturing
productivity are the most reliable starting point for the
digital transformation business case
· In this paper, productivity gains from digitalization and
automation – known as the Digitalization Productivity
Bonus – has been estimated for the Dairy Products
industry in the UK
· Creating an automated, digitized manufacturing
environment requires major investment. Specialist
financing tools – Finance . - are being developed by
expert financiers to enable affordable and sustainable
transition to the smart, digitalized factory
· Industry . Financing is now employing that new mindset to offer techniques which range across:
- Pay to access/use equipment and technology
finance so that precious capital is not tied up
in depreciating equipment
- Technology upgrade and update to take advantage
of the latest innovations
- Software finance to embrace all aspects of an
Industry . solution
- Pay for outcomes to align rate of benefit with rate
of payment
- Transition finance to minimise disruption in the
move to automation and digitization
- Working capital solutions to manage cash-flow
in a digital world
3
Automation and
digitalization:
The new imperative
There is no longer debate about whether the Fourth
Industrial Revolution – Industry . – is under way; the
conversation has moved on to address where, how much
and how quickly it is being implemented. Digitalization
of the manufacturing environment and its processes forms
the foundation of Industry ., adoption of which varies
from country to country and economy to economy. In some
parts of the world and in certain industries, the emphasis
is placed on automating previously manual processes.
Automated systems are, by definition, programmed and
controlled through digital systems; and where automation
is already widespread, further digitalization is taking the
form of the Internet of Things. This development involves
the widespread installation of sensors in the physical
environment and the ability to rapidly enhance production
economics through real-time performance data analysis.
Some digitalization pioneers are using digital controls and
digital data analyses to improve a wide range of processes,
including production capacity, job setup and turnaround,
uptime maximisation, predictive maintenance, supply-chain
logistics and just-in-time distribution. There are even
instances of manufacturers – including those in the Food
& Beverage sector - improving their competitive capabilities
edge through mass customisation, a technique where
tailored products are offered with much the same
economies formerly associated with mass production.
For manufacturers that want to remain competitive in
increasingly aggressive markets, the move to greater
automation and Industry . is not an option – it is a
necessity. But seizing the competitive advantages of
automation and digitalization that lie at the heart of Industry
. requires a substantial investment in new-generation
automated and digital platforms. Responsible business
leaders will therefore need a solid business case that justifies
this kind of significant investment to stakeholders and
shareholders, one that paints a credible picture of the
revenue, margin and growth benefits an investment in
automation and digitalization technology will bring.
Early movers in the manufacturing community (see figure
) are already enjoying many Industry . benefits, yet the
precise commercial gain from each of these benefits can
sometimes be challenging to calculate. To help establish
a more precise starting point for manufacturers embarking
on the automation and digitalization journey, Siemens
Financial Services commissioned research to understand
which of these benefits could be most reliably estimated
and used by most manufacturers to formulate a business
case for investing in Industry . technology.
4
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