Tag: Manufacturing

If you want to gain an edge in today’s dynamic manufacturing world, your organization must be agile, resilient, and sustainable. In this shifting landscape, many manufacturers are investing in innovative solutions to make their products and operations smarter by tapping into advanced technologies such as the Internet of Things (IoT), AI, and digital twins for manufacturing.

Against this backdrop, Microsoft decided to spotlight the manufacturing industry for our August 2022 IoT Signals report. IoT Signals is a series of impactful thought leadership content curated by Microsoft to inform the community about the latest developments and technology trends in the IoT industry. The first report, published in 2019, provided a broad view of IoT across a variety of industries—from manufacturing and energy to healthcare and retail—based on comprehensive, survey-based research.

For this edition of the report IoT Signals: Manufacturing Spotlight Microsoft, Intel, and IoT Analytics surveyed 500 decision makers working on digital transformation initiatives in discrete, hybrid, or process manufacturing across North America, Europe, and Asia Pacific. We conducted more in-depth interviews with some participants to gain a deeper understanding of their transformation strategies, execution plans, and challenges.

Six key findings about digital transformation and IoT in manufacturing

This new IoT manufacturing report reveals insights from real-world manufacturers that have started their digital transformation journey. It also uncovers fresh learnings about the state of industrial IoT devices and technology in manufacturing, specifically in the areas of manufacturing operations and smart products.

During our research, we discovered six key digital transformation and IoT manufacturing trends:

1. Most manufacturers are advancing their efforts to build smart factories. Three out of four survey respondents (72 percent) said they’re implementing their smart factory strategy.
2. Operational improvement is still a top goal for manufacturers. Four out of five survey respondents said they consider overall equipment effectiveness (OEE) to be the most important key performance indicator to measure the success of their smart factory strategy.
3. Organizations are shifting investments to industrial automation-based process control. To date, most manufacturers have focused on quality control and condition-based maintenance for smart factory projects. However, the need for greater agility is leading these organizations to shift their investments over the next three years to industrial automation-based process control—the use of automated control systems, such as IoT and AI, to automate manufacturing processes.
4. Manufacturers face new challenges with scaling smart factory initiatives. Half of the respondents said they face challenges in developing new software applications, and the majority (eight out of 10) said they’re dealing with skills gaps, particularly in data science, AI, and cybersecurity.
5. IT-OT convergence is happening in the manufacturing industry. With 76 percent of manufacturing assets now connected, many manufacturers are moving workloads and applications from on-premises infrastructure to public and private cloud platforms.
6. Manufacturers plan to increase investments in smart connected IoT products. Manufacturing organizations are not only optimizing their own operations with smart connected IoT products—they’re also creating new revenue streams by selling these products to customers. Manufacturers that already sell connected IoT products expect to increase investments from 33 percent today to 47 percent by 2025, with a strong focus on value-added services, such as predictive maintenance and remote support.

Read the IoT Signals: Manufacturing Spotlight to learn more about what’s driving these six key trends and holistic understanding of six key components of digital transformation in manufacturing.

Accelerating digital transformation and embracing IoT with Microsoft Cloud for Manufacturing

All six of the key findings from this manufacturing IoT report share a common theme: Manufacturers across the globe are advancing their digital transformation efforts. These organizations are tapping into innovative solutions to reimagine manufacturing and build a more resilient and sustainable future.

By adopting transformative technologies like IoT industrial devices, AI, and digital twins, your manufacturing organization can:

• Transform your workforce. Eight out of 10 manufacturers report having at least one important skill gap, particularly when it comes to advanced data analysis and IT cybersecurity. In this environment, manufacturers are looking for tools that will help them close the gap and boost employee productivity. Today’s manufacturers can transform their workforce by empowering their frontline workers with digital tools and modern devices that enable real-time collaboration, enhance training, and improve worker health and safety.

• Build more agile factories. The ability to adapt quickly to rapid change is a defining factor between manufacturers that simply survive and those that thrive. That’s why manufacturers across the globe are tapping into advanced technologies to build more agile, smarter factories.

• Create more resilient supply chains. According to the report, 74 percent of manufacturers ranked supply chain resilience as a top priority. This is no surprise considering that, now more than ever, manufacturers are under pressure to prevent and minimize supply chain disruptions. Microsoft Cloud for Manufacturing is already helping manufacturers improve end-to-end supply chain visibility and boost supply chain resilience.

• Engage customers in new ways. If you want to gain an edge in the manufacturing industry, customer engagement is critical. As manufacturers search for innovative ways to engage customers, many are selling smart connected IoT products. Our research shows that 33 percent of manufacturers’ product revenue comes from smart products today.

• Drive innovation and deliver new services. Manufacturers are investing in advanced technologies to create a more resilient future. According to our research, 28 percent of manufacturers have rolled out digital twins, and four percent of them have fully deployed them in their factories. Another 45 percent of manufacturers are in development and proof of concept (POC) stage for digital twins, and 39 percent are in the same stage for augmented reality (AR).

• Decrease your environmental impact. Most manufacturing board members (59 percent) believe that decreasing their carbon footprint is an important area of focus. Manufacturers are uniquely positioned to drive sustainability while saving costs and improving safety using cloud-based automation, machine learning, and AI.

• Improve security. Security is a top priority for manufacturing organizations, and 62 percent of manufacturers have strict data privacy policies. Over the next three years, manufacturers plan to decrease the mean time to detect cybersecurity incidents by 30 percent.

Build a resilient future with IoT manufacturing

Manufacturing organizations are drawing from the lessons learned during COVID-19 to develop resilience and build a better future. Digital transformation continues to be top of mind for these manufacturers as they work to increase agility, improve customer engagement, and drive growth. To gain insights from the digital transformation journeys of real-world manufacturers, read the IoT Signals: Manufacturing Spotlight report. 

It’s been a long three years since we last invited you to join us at the manufacturer’s primary showcase event Hannover Messe in Germany, where we last mingled in person in 2019 with 220,000 of our manufacturing colleagues from around the world to share and explore the leadership and innovations on display.

In those three years, we’ve seen manufacturing leaders accelerate their digital transformation journeys as they strive with Microsoft and our industrial ecosystem to manufacture a more resilient and sustainable future for us all. So it’s fitting that as we converge on the home of Industry 4.0 in Hannover Germany, we’re pleased to be joining a community of around 2,200 industry exhibitors to showcase customer, partner, and Microsoft Cloud for Manufacturing solutions for this year’s key theme of “Digitalization and Sustainability.” 

Engage with Microsoft at Hannover Messe 2022 

So, what does Microsoft have in store for you at Hannover Messe 2022, from May 30 to June 2, 2022? Here are five things to put on your calendar and to-do list: 

1. Register for Hannover Messe and visit the Microsoft booth Hall 4 Stand E34, where you can join guided tours, and book meetings with Microsoft executives and manufacturing experts on hand to discuss how Microsoft Cloud for Manufacturing brings together Microsoft Azure, Microsoft 365, Microsoft Dynamics 365, and Microsoft Power Platform capabilities that help: 

• Build more agile factories. 
• Transform your workforce. 
• Engage customers in new ways. 
• Create more resilient supply chains. 
• Unlock innovation and new services. 
• Secure manufacturing solutions from edge to cloud. 
• Accelerate your sustainability journey.

Sign-up to tour the Microsoft booth.

2. Learn about the “Oscar for the manufacturing industry,” the Microsoft Intelligent Manufacturing Award (MIMA), and meet with MIMA 2021 winners at the Microsoft booth. 

3. Join us at WomenPower on day four. Manufacturing is undergoing a huge transformation. And that transformation is opening a wealth of new opportunities to bring diversity to the industry. Learn why manufacturing is the place to be for diverse talent, and join our workshop session at WomenPower featuring women leaders from Microsoft, customers, and partners. 

4. Meet Microsoft’s co-innovation partners. Addressing the industry’s need for a platform that enables co-innovation and collaboration, our incredible ecosystem of industry partners expands the value of the Microsoft Cloud for Manufacturing with additional solutions to address today’s most pressing challenges.   

Joining us at Hannover Messe in 2022 are ABB, Ansys, Accenture, Avanade, AVEVA, Blue Yonder, Cognite, C3.ai, ICONICS, o9 Solutions, PwC, PROS, PTC, Rockwell Automation, Sight Machine, TCS, and Tulip. 

5. Accelerate your sustainability journey. Join us at the Microsoft booth to learn how to manufacture a resilient and sustainable future. We’ll be showcasing how the Microsoft Cloud for Sustainability empowers manufacturers to accelerate sustainability progress and business growth. We’re partnering with our customers to advance their progress by bringing together a set of environmental, social, and governance capabilities across the Microsoft cloud portfolio in addition to providing solutions from our global ecosystem of partners, such as ABB, AVEVA, TCS, and Wienerberger, the MIMA winner for sustainability. These integrated capabilities allow manufacturers to gain the transparency and insights they need to manage their environmental footprint, embed sustainability throughout their organization and value chain, and create new value in a transforming landscape.  

Our booth features several customers and partners advancing their sustainability efforts. We’ll also feature Microsoft Circular Centers’ use of the Microsoft Cloud for Sustainability and demonstrate how manufacturers can:

• Unify data intelligence: Gain the visibility required to effectively drive sustainability reporting, sustainability efforts, and business transformation. 
• Build a sustainable IT infrastructure: Identify opportunities to replace tools, systems, or activities with cleaner options and add business value. 
• Reduce the environmental impact of operations: Minimize the environmental footprint of your operational systems and processes. 
• Create sustainable value chains: Facilitate greater transparency and accountability through your value chain, from sourcing materials through the end of use.  

And if you can’t make it to Hannover Messe in person, visit the Microsoft Hannover Messe virtual booth where you can explore on-demand videos, showing how Microsoft is helping manufacturers create a more resilient and sustainable future with Microsoft Cloud for Manufacturing solutions. 

Join us in person at Hannover Messe 2022 

Register for Hannover Messe today. 

Follow us on social and visit our website to stay informed about Microsoft Cloud for Manufacturing to learn how you can help manufacture a more resilient and sustainable future. 

With the expansion of IoT across all industries data is becoming the currency of innovation. Organizations have both an opportunity and a business imperative to adopt technologies quickly, build digital competencies, and offer new value-added services that will serve their broader ecosystem.

Manufacturing is an industry where IoT is having a transformational impact, yet which also requires many companies to come together for IoT to be effective. We see several challenges that slow down innovation in manufacturing, such as proprietary data structures from legacy industrial assets and closed industrial solutions. These closed structures foster data silos and limit productivity, hindering production and profitability. It takes more than new software to drive transformation—it takes a new approach to open standards, an ecosystem mindset, the ability to break out of the “walled garden” for data as well as new technology.

This is why Microsoft has invested heavily in making Azure work seamlessly with OPC UA. In fact, we are the leading contributor of open source software to the OPC Foundation. To further this open platform approach, we have collaborated with world-leading manufacturers to accelerate innovation in industrial IoT to shorten time to value. But we feel we need to do more, not just directly between Microsoft and our partners but across the industry and between the partners themselves. It’s not about what any one company can deliver within their operations – it’s about what they can share with others across the sector to help everyone achieve at new levels. It’s clearly a much bigger task than any one organization can take on, and today, I’m pleased to share more about the investments we are making to advance innovation in the manufacturing space by enabling open platforms.

Announcing the Open Manufacturing Platform

Today at Hannover Messe 2019, we are launching the Open Manufacturing Platform (OMP) together with the BMW Group, our partner on this initiative. Built on the Microsoft Azure Industrial IoT cloud platform, the OMP will provide a reference architecture and open data model framework for community members who will both contribute to and learn from others around industrial IoT projects. We’ve set up an initial approach and are actively working to bring new community members on board. BMW has an initial use case focused on their IoT platform, built on Microsoft Azure, in the second generation of autonomous transport systems in one of their sites, greatly simplifying their logistics processes and creating greater efficiency. More information about this and the partnership can be found here.

The OMP provides a single open platform architecture that liberates data from legacy industrial assets, standardizes data models for more efficient data correlation, and most importantly, enables manufacturers to share their data with ecosystem partners in a controlled and secure way, allowing others to benefit from their insights. With pre-built industrial use cases and reference designs, community members will work together to address common industrial challenges while maintaining ownership over their own data. Our news release, shared jointly with the BMW Group this morning, can be found here.

A rising tide that lifts all boats

The recognition of the need for an open approach is taking hold across the industry, as evidenced by SAP’s announcement today of the Open Industry 4.0 Alliance. This alliance – focused on factories, plants and warehouses – between SAP and a number of European manufacturing leaders will help create an open ecosystem for the operation of highly automated factories.

OMP and the Open Industry 4.0 Alliance are complementary visions. Both recognize the need for an open platform for the cloud and intelligent edge on the ground in the factory. Both highlight an open data model and standards-based data exchange mechanisms that allow for cross-company collaboration.

We’ve been working closely with SAP on efforts like the Open Data Initiative and across the industry on a wide range of initiatives including the Industrial Internet Consortium, the Plattform Industrie 4.0 and the OPC Foundation. We look forward to continuing this fruitful partnership and working to align OMP and the Open Industry 4.0 Alliance. Collaboration is the lifeblood of future manufacturing and the more we work together, the more we can accomplish.

Read more here.

Manufacturing has been a driving force for industrial and societal transformation for centuries. Next week, at Hannover Messe—the world’s leading trade show for industrial technology—decades of industrial technology innovation at Microsoft is intersecting with Industry 4.0. As Industry 4.0 ushers in new technological advances to improve operations, competition and customer demands are keeping pace. Customers expect exceptional products and services, without exception, driving a need for greater innovation.

We are joined at the event by dozens of global manufacturers representing industries from automotive to consumer electronics and construction equipment, all using Microsoft Business Applications as a competitive differentiator; intelligent technologies that help transform the entire connected manufacturing ecosystem.

Optimize manufacturing operations and deliver new services

At Hannover Messe, we are showcasing how we empower manufacturers to connect Internet of Things (IoT) sensors on key business-critical assets to business transactions in Dynamics 365 for Finance and Operations. It’s a transformative solution to manage production and stock in real-time and proactively resolve issues, optimize manufacturing operations, maximize the value of assets, and take business performance and customer satisfaction to new heights. Read more about the solution here.

Annata, a leading Microsoft Partner for automotive, heavy equipment, and industrial machinery industries, helped Iceland’s largest vehicle importer and distributor, Brimborg, rapidly expand into the commercial fleet rental market in response to the 2008-11 Icelandic financial crisis. Booth visitors will learn how Annata first unified Brimborg’s business of importing, distributing, selling and servicing cars and construction equipment, with a solution that could cover their entire business with Dynamics 365 for Finance and Operations along with the Annata 365 solution.

When the crises hit, Brimborg deployed the extensive Rental module that enabled them to manage this new part of their business. Brimborg is using IoT data flowing from its rental cars with the service scheduling capabilities of the Annata solution to optimize and ensure timely servicing of the fleet. All rental cars are automatically called in for service and inspections, which is highly important for keeping the fleet healthy. Brimborg is continuing to automate and innovate using IoT, Dynamics 365, and the Annata solution to run its business more efficiently, but also to open new business models and opportunities with customers in other areas of its business. Targeting four-minute car deliveries and 30-second customer returns—and planning new innovative business models based on Microsoft and Annata solutions.

Make the leap to intelligent, connected field service

Attendees at Hannover Messe are getting a glimpse into the future of field service for manufacturers, powered by Microsoft IoT Central, Dynamics 365 for Field Service, and Dynamics 365 Mixed Reality for HoloLens and mobile devices.

Dynamics 365 Connected Field Service transforms field service organizations with solutions to detect and resolve issues remotely before the customer knows of an issue, and drive efficiency and cut costs in the business cost center. The solution leverages connected devices and machine learning capabilities to combine remote monitoring, digital services, and predictive maintenance.

As recently announced, Dynamics 365 Remote Assist for mobile devices brings the HoloLens experience to mobile devices, allowing floor operators and field technicians to collaborate with remote experts and troubleshoot issues in context, without leaving the job site.  Dynamics 365 Guides is a new mixed reality tool that allows employees to learn by doing, with interactive, step-by-step guidance presented on heads-up, hands-free displays in real work situations.

Toyota’s North America Production Engineering team uses Dynamics 365 Layout and Dynamics 365 Remote Assist on Microsoft HoloLens in their North America manufacturing centers. Dynamics 365 Layout can improve business processes in valuable ways, such as the layout of digital twins of equipment on the manufacturing floor for safety and process verification, and creating innovative AR training practices through the use of holographic equipment instead of physical equipment in space. Dynamics 365 Remote Assist is in the early phases of being used to improve safety and reduce costs through the use of remote experts for equipment verification and incident response.

At Hannover Messe, Microsoft Partner Hitachi Solutions will showcase how they are helping global organizations create outcome-driven, connected field services with IoT and mixed reality to support maintenance work by field workers to increase uptime and service continuity.

Empower Your Changing Workforce

Start a conversation about Industry 4.0, and inevitably the topic lands on the workforce problem.

As a generation of highly-skilled, specialized workers eye retirement, manufacturers are in a bind to recruit young engineers and operators with the right skillset while adjusting to a new workforce, challenging traditional work culture.

Dynamics 365 for Talent helps HR teams at manufacturing organizations to solve the skills gap, offering intelligent tools to find, attract, and onboard skilled candidates. By automating many manual, time-consuming HR processes, Dynamics 365 for Talent lets HR professionals spend less time on the mundane, and more time on strategic initiatives that grow the business.

New this month, Dynamics 365 Guides allows employees to learn by doing with step-by-step instructions that guide employees to the tools and parts they need and how to use them in real work situations. Guides represents a new way to improve workflow efficiency. Now employees can learn while staying hands-on with their work. With the accompanying PC app, it’s possible for managers and frontline workers to create interactive training content by attaching photos, videos, and 3D models to information cards that stay with them while they work. When employees use Guides, information is collected to help managers understand how they’re doing and where they need help, further allowing people to improve the process.

Check out the video below to learn how PACCAR is exploring Guides and HoloLens to improve productivity and employee onboarding.

Get the full story at Hannover Messe

These solutions and customer stories are just a peek at how Microsoft Business Applications are helping transform manufacturing. If you are attending Hannover Messe, visit our booth to experience Dynamics 365 and Mixed Reality solutions firsthand, as well as chat with customers and partners.

Find more information about our location and sessions in this schedule, and be sure to check out the resources below.