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May, 2021


Weighing the Cost and Benefits of Digitalization in Manufacturing


By Dipl. -Ing. Jakob Dück, Global Industry Segment Manager, HARTING


the world how digitalization can be used to improve online trade and logistics as well as mediate the use of existing physi- cal resources. Now, OEMs of capital equip-


C


ment are asking themselves how they can apply this new strategy to see similar success. However, when embarking on a strategy of digitalization, many manufactur- ers are often unsure about where to begin.


Defining the Goal First the goal should be


defined and narrowed down. This means considering which steps along a typical machine lifecycle, and specifically those that relate to end products, can be digitalized. However, some experts ques-


tion whether digitalization and industrial IoT technologies in mechanical or plant engineering have the potential to change business models at the fundamental level. One study, “Digitalisation in Mechanical Engineering,” by the Hans Böckler Found -


Benefits of adopting digital strategies in manufacturing aside, competitive pressure may eventually leave OEMs


of capital equipment no other choice than to adapt to emerging digitalization.


ation in 2018 suggests that competitive pres- sure in the industrial, technological and financial sectors will eventually leave OEMs of capital equipment no other choice. The study quotes one expert from a


German company who is currently wrestling with this issue, “We will definitely remain mechanical engineers and not become a soft-


HARTING’s Han-Modular® hybrid power and data interface for industrial applications.


and we want to leverage the digital potential to ensure that no one comes between us and our customers.” This is a forward-looking strategy that


hedges against a future where the tech giants, like Amazon, Google and Microsoft can not end up alienating OEMs from their customers. It is not a question of whether, but a question of how.


Key Trends It is important to identify the players in


the field of digitalization and consider their individual capabilities and interests. These include OEMs, suppliers of automation com- ponents, software providers for production control, platform providers for new business models, industry associations for digitaliza- tion, and operators of machines and plants. Digitalization in the field of capital


goods must be aligned with key current trends. First, end users now expect greater variability in manufacturing systems. It


ompanies like Amazon and Uber are oft-cited examples of successful digital- ization strategies, demonstrating to


ware house. But, we need software and net- working to sell our machines better and make sure that they remain attractive,” he says. “Based on digitalization, we want to help customers to solve their problems better


must be possible to manufacture the widest possible range of products in small-to-medi- um quantities. Production plants must be scalable and offer options for cost-effective expansion of existing systems in both capaci- ty and output. Next, declining OEM margins


on new installations, combined with high-end user expectations for maintenance and service, make the expansion of business models based around lifecycle costs (LCC) more economical for OEMs. Finally, users’ expectations of


the interoperability of machine modules and subsystems are grow- ing. Machines and modules from different manufacturers should be as easy as possible to combine in a single production line. Only with modular networked


machines will manufacturers be successful over the long term. It is the modularity and expansion of possibilities and scalability of existing systems that is the key to


the success of digitalization. Today’s industrial PLC, CNC and HMI


systems are modular in nature. The hard- ware and development environment is designed for each application according to the rule of “as much as necessary.” These can be designed for subsequent upgrades, largely software-based. The scalability of high-performance


drive systems that consist of a servo-inverter and a servomotor is often not realized by the user’s experience with the hardware itself. Through the software, the functionality of high-end products at the customer’s site is effectively “tuned.”


Implementing Digitalization Evaluating the experience of HARTING


customers in different segments of the mechanical engineering industry, three aspects must be considered.


First, the functions and existing software Continued on page 61


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