Transforming Manufacturing: The Power of Connectivity and IoT in Industry 4.0

The manufacturing sector is experiencing a profound transformation, driven by the rapid evolution of connectivity and Internet of Things (IoT) technologies. Today, production lines, machines, and entire factories are increasingly interconnected, enabling seamless communication across devices, systems, and platforms. This heightened connectivity is creating a digital ecosystem where real-time data flows continuously, fueling the next generation of smart manufacturing.

IoT has emerged as a critical enabler in this space, connecting physical assets to the digital world. It provides manufacturers with unprecedented visibility into operations, fostering new levels of efficiency, agility, and sustainability. From predictive maintenance to intelligent supply chains, IoT empowers companies to optimize processes, reduce downtime, and meet the growing demand for customized, on-demand production.

The business transformation doesn’t stop here. Generative AI (Gen AI) is beginning to make its mark in the industrial sector, augmenting human expertise with powerful machine learning capabilities. In tandem with IoT, Gen AI enhances decision-making, automates routine tasks, and unlocks new opportunities for tangible innovation by analyzing vast amounts of data generated by IoT systems. Together, these technologies are laying the foundation for the smart factories of tomorrow, where human creativity and machine intelligence work side by side.

As we delve into the current trends shaping connectivity, IoT, and AI in manufacturing, it becomes clear that these innovations are not just about technology—they are about transforming business models, reimagining workflows, and building a more resilient, responsive, and sustainable industrial future.

It is not uncommon for organizations to be unequipped to take advantage of these new capabilities. Digitalization and the implementation of connected devices are essential prerequisites. Organizations that have been lagging are now rushing to catch up and starting their own journey to Industry 4.0. According to Mobica  (a Cognizant company), the Industrial Internet of Things (IIoT) market is valued at $865 billion, with forecasts suggesting exponential growth to $33.3 trillion by 2030. This underscores the significant push towards smart factories and Industry 4.0.

Nordic manufacturing companies are currently using connected devices to tackle various challenges:

• Monitor: Visibility issues often lead to unnecessary costs and misconceptions about production quality. For instance, a Nordic parts manufacturer faced tool breakage issues. Initially, defects in the working material were blamed. However, after deploying connected devices to monitor and analyze data, it was discovered that tool quality variance was the real culprit. This insight allowed for predictive tool usage, reducing repairs and increasing tool life, leading to cost savings.
• Control: Effective production management requires robust controls. Systems like SCADA (Supervisory Control and Data Acquisition) and Manufacturing Execution Systems (MES) depend on connected services and IoT infrastructure. For a client merging two factories into a larger plant, connectivity was crucial. Without it, efficient line operation wouldn’t be possible. As more devices connect, automation increases, reducing manual labor and boosting reliability. The client could leverage the larger production scale while managing increased complexity.
• Innovate: Connected devices not only solve existing challenges but also drive innovation. A robust digitalization strategy fosters process innovation. Insights from new data streams are invaluable for process development and powering AI models that support operations, product development, and maintenance. Integrating machine learning (ML) and artificial intelligence (AI) within industrial environments can further enhance these capabilities. According to Mobica’s white paper “Integrating Machine Learning Within Industrial Environments,” ML is an exciting development that organizations worldwide are eager to invest in. However, ML is not a plug-and-play technology; it requires a broad set of skills to install the underlying technological infrastructure and perform ongoing data analysis to build trust in the results.

Conclusion

For companies ready to embark on their Industry 4.0 journey, the initial steps can seem daunting. A balanced approach, combining long-term strategic objectives with iterative, short-term investments in key areas, facilitates the effective implementation of connected devices and IoT. This method ensures that the transition to a smart factory is manageable, scalable, and aligned with the organization’s overarching goals.

Connected devices are not just a technological upgrade; they are a strategic asset that can transform manufacturing operations. By addressing visibility, control, and innovation challenges, these devices enable manufacturers to optimize production, reduce costs, and drive continuous improvement. As the IIoT market grows, the potential for connected devices to add value will only increase, making them indispensable for any forward-thinking manufacturing enterprise.

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Authors:
Hampus Lindvall, Automation Consultant, Cognizant, LinkedIn 

Birgitte Villadsen, Director IoT and Engineering, Cognizant, LinkedIn