How IIoT drives operational profitability improvements
IIoT gives manufacturers the ability to control their business performance in real-time and extend real-time control across their value chain. It is eliminating many of the constraints traditional technology has imposed on automation systems, particularly those that limit the ability to deliver operational profitability improvements. In a white paper Peter Martin of Schneider Electric explores ways it can also drive safely and sustainably thereby increasing profitability.
Today’s real-time process and logic control systems focus on improving the efficiency of a manufacturing or production process. But is that their only real value? Shouldn’t these systems and the processes they control create tangible financial benefits? Improving efficiency is important, but it is far from the only real-time business variable.
Customer expectations are changing, and this creates challenges affecting all businesses. To be successful, things like safety risk (including security risk and environmental risk), reliability risk and, most crucially, profitability, all of which were traditionally managed daily, weekly or monthly, must now move to real-time. This is the true promise of IIoT.
It means users can simplify their engineering and application of strategies, making control automation systems easier and cheaper to implement. They can move from maximising process efficiency to controlling all those other important real-time business variables too. Martin argues that when companies can control the safety, reliability, and profitability of every asset within the enterprise in real time, all those assets will be continually optimised. This is the Profit Engine, and it will change the future of automation forever.
Operational profitability improvements
Schneider Electric technology and IIoT expertise enables companies to go from controlling only efficiency to controlling key business variables. Wider connectivity and computing power, smarter, connected products, e.g., pumps, are now able to control, monitor and secure themselves to become autonomous assets. This better, automatic real-time control can then extend all the way to the value chain asset sets. Referred to as Smart Control, it revolutionises how companies drive real-time operational profitability improvements (OPI) safely.
Another area that is changing is reporting cycles. Industrial companies that are still trying to manage their operational profitability using outmoded monthly reporting cycles are failing. IIoT presents business managers and plant personnel with new opportunities to measure and improve the operational profitability in real time.
Driving OPI starts with optimising the performance of each industrial asset. This ensures it performs its prescribed work in the safest, most environmentally sustainable, reliable and efficient manner possible. Increased connectivity, computing power, and technology mean it is possible to put real-time control, interoperability and communication at every level.
Empowered with the ability to control every asset in real-time, even intangible assets like energy, raw materials, and production, companies are now able to conduct business, especially the business functions that have been historically transactional, not according to any set schedule, but whenever it is most profitable for them.
Read Peter Martin’s full article Igniting the Industrial Profit Engine
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