What value does digitalization offer manufacturers?
Digitalization Productivity Bonus: Sector Insights
New-generation digitalized technology (also known as Industry 4.0) is enabling manufacturers to improve performance. A global qualitative study by Siemens examines the potential value digitalization offers manufacturers and the significant role Industry 4.0 financing plays in helping manufacturers to achieve digital transformation.
Manufacturing companies around the world are facing the challenge of financing the digital transformation with – at times significant – investments. The kinds of enormous gains in productivity that digitalization makes possible are outlined in a new study titled “The Digitalization Productivity Bonus: Sector Insights” from Siemens Financial Services. According to the paper, manufacturers can generate an annual increase in productivity through decreased manufacturing costs amounting to up to 9.8% of total revenue. This is achieved by automating and digitizing their production systems and through the corresponding improvementin manufacturing productivity.
Companies can use the freed-up liquidity to, for example, invest in new technologies and/or to finance them gradually. Under the title “Financing 4.0”, SFS offers tailored pay-per-use models and financing for software solutions that allow companies to make the long-term transition to new-generation digital technologies.
The study surveyed over 60 international industrial enterprises, management consulting experts and science specialists from eleven countries. It provides an assessment of the potential financial gain which results from increased manufacturing productivity through digitalization – the digitalization productivity bonus.
The paper explores the financial gain from digitalization and automation in four different industries:
• printing, packaging and paper,
• machine building and