{"id":855,"date":"2017-11-17T11:17:01","date_gmt":"2017-11-17T04:17:01","guid":{"rendered":"https:\/\/simenteknindo.com\/news\/?p=855"},"modified":"2017-11-17T11:33:07","modified_gmt":"2017-11-17T04:33:07","slug":"the-state-of-the-digital-gap","status":"publish","type":"post","link":"https:\/\/simenteknindo.com\/news\/the-state-of-the-digital-gap\/","title":{"rendered":"The State of the Digital Gap"},"content":{"rendered":"<p>While interest in digital manufacturing remains high and concrete steps are being taken to move toward it, no one would say industry is rushing toward its digital transformation. Could this slow rate of progress translate into stagnation?<\/p>\n<p>As questions roil around General Electric\u2019s (GE) future following the unveiling of the company\u2019s turnaround plan and new CEO John Flannery\u2019s statement that GE will become \u201ca more focused industrial company,\u201d I began to wonder about the questions facing industrial companies in light of the digital trend enveloping industry. Interestingly enough, GE Digital released a report on this very subject just a few weeks ago at the company\u2019s Minds + Machines event.<\/p>\n<p>The report, titled the \u201cIndustrial Evolution Index,\u201d was based on a GE Digital study of 250 IT and operations decision makers in the U.S. across five industries\u2014manufacturing, utilities, power\/energy, transportation and aviation\/aerospace. The focus of the research was on identifying the gap between what GE referred to as \u201cthe possibilities and the possible of the Industrial Internet,\u201d as well as answering the questions: How far are companies from closing that gap and what changes are required to help close the gap?<\/p>\n<p>Results show that, though 80 percent of respondents agree that the Industrial Internet of Things (IIoT) will have \u201cbig, positive impacts on their industry and business,\u201d few have plans in place to take full advantage of it. GE Digital\u2019s report noted that respondents \u201csay they are gradually embracing IIoT\u201d but questioned at what point does \u201cgradual become an excuse to remain stagnant\u201d?<\/p>\n<p>Looking at the responses from manufacturers, it\u2019s clear that these companies see the benefit of IIoT stemming from further automation of processes, improvement to profitability\/growth resulting from the ability to provide higher quality services, as well as increased productivity and operating efficiency. Despite the manufacturing\u2019s industry recognition and acceptance of the upsides to IIoT, 79 percent say they do not have a mature plan related to IIoT.<\/p>\n<section id=\"block-dfp-native\" class=\"block block-dfp clearfix\">\n<div id=\"dfp-ad-native-wrapper\" class=\"dfp-tag-wrapper\"><\/div>\n<\/section>\n<p>Most respondents think it will take, on average, eight years for industry to realize the potential of digital transformation.<\/p>\n<p>One manufacturing CFO respondent said: \u201cI think we\u2019re still on the precipice of technological transformation and I think there will be additional tools within 5-10 years that will be astounding and compelling.\u201d<\/p>\n<p>Reasons cited by respondents for lack of a developed plan around IIoT include the need for organization change, with accessible data playing a key role in the process. More specifically, 66 percent said data analysts will need to be integrated into all departments; 61 percent said IT will need to be part of the central operating functions of company; 46 percent said a chief data officer will need to be created to manage the transformation; and 28 percent said existing silos created by data gatekeepers will need to be removed.<\/p>\n<p>Beyond organizational change, respondents noted that, in addition to the importance of company-wide connectivity for IIoT, 22 percent see a need for an IIoT ready industrial platform to complete the transformation to being a digital company, while 14 percent cite the need for both big data analytics and enterprise IIoT apps.<\/p>\n<p><img decoding=\"async\" class=\"lazyload aligncenter wp-image-856 size-full\" src=\"https:\/\/simenteknindo.com\/news\/wp-content\/uploads\/2017\/11\/geslide1.jpg\" data-orig-src=\"https:\/\/simenteknindo.com\/news\/wp-content\/uploads\/2017\/11\/geslide1.jpg\" alt=\"\" width=\"640\" height=\"420\" srcset=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27640%27%20height%3D%27420%27%20viewBox%3D%270%200%20640%20420%27%3E%3Crect%20width%3D%27640%27%20height%3D%27420%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-srcset=\"https:\/\/simenteknindo.com\/news\/wp-content\/uploads\/2017\/11\/geslide1-150x98.jpg 150w, https:\/\/simenteknindo.com\/news\/wp-content\/uploads\/2017\/11\/geslide1-250x164.jpg 250w, https:\/\/simenteknindo.com\/news\/wp-content\/uploads\/2017\/11\/geslide1-400x263.jpg 400w, https:\/\/simenteknindo.com\/news\/wp-content\/uploads\/2017\/11\/geslide1.jpg 640w\" data-sizes=\"auto\" data-orig-sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>In terms of personnel skills needed most to help companies make the digital transformation, respondents cited:<\/p>\n<p>* Better understanding of digital interfaces and processes;<\/p>\n<p>* Increased understanding of artificial intelligence and machine learning;<\/p>\n<p>* Increased ability to read technical data; and<\/p>\n<p>* Increased ability to think critically about computer generated output.<\/p>\n<p>As for technological expertise, respondents noted the need for specific knowledge of:<\/p>\n<p>* IIoT and IoT concepts;<\/p>\n<p>* Big Data;<\/p>\n<p>* cloud computing;<\/p>\n<p>* edge computing; and<\/p>\n<p>* machine learning.<\/p>\n<p>Respondents from both the IT and operations sides of the business said that, though they and their peers are ready for the digital transformation, daily tasks block their progress. They also noted that, while they believe companies are responsible for transforming the workforce\u2014more so than the government, academia or overall industry\u2014they think that those at the top of their business are the least ready to transform. This is likely the reason why daily task expectations continue to block the way of IT and operations\u2019 ability enact any significant level of digital transformation.<\/p>\n<p>Then there are, of course, the obvious financial constraints hindering industrial progress toward IIoT. \u201cWe want to become more efficient but we don\u2019t have a lot of money to invest into becoming more efficient,\u201d said one respondent. The biggest constraints slowing manufacturing\u2019s transition include legacy systems, operating costs and investment costs. Each of these constraints were noted by roughly a third of respondents.<\/p>\n<p>Summing up the data-based zeitgeist of the study, one CFO respondent said: \u201cEveryone\u2019s job is going to change a little bit. I think that\u2019s just the natural evolution&#8230; Drillers will have to use data differently and make decisions less based on gut instinct and history, and more based on what the data is telling them. So, you\u2019re going to have some retooling and some retraining, particularly at the operator level. People in the field will have to rely more on data and less on their wisdom.\u201d<\/p>\n<p>At the Minds + Machines event in late October, Flannery stated that GE remains \u201call-in in terms of digital.\u201d We\u2019ll see how that translates into available technologies and services from GE once the dust settles around the company\u2019s reorganization.<\/p>\n<p>&nbsp;<\/p>\n<p>Source : https:\/\/www.automationworld.com\/state-digital-gap<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While interest in digital manufacturing remains high and concrete steps [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":857,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,9],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The State of the Digital Gap - SIMENTEK News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/simenteknindo.com\/news\/the-state-of-the-digital-gap\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The State of the Digital Gap - 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