IoT & Industry 4.0 in 2021

We are starting today's blog article with some really good news: Many industry insiders expect significant growth in all industries in 2021 and beyond. The reason for this is a new level of maturity in digitalization, based not least on stronger, meaningful networking of cloud-enabled systems with edge computing.

The resulting ideal technical infrastructure is the basic prerequisite when it comes to reliability and scalability - and it is precisely on this foundation that successful digital business models emerge and grow. More and more industrial companies have evaluated their learnings in the digitalization process, drawn appropriate conclusions and consistently implemented necessary changes and adjustments.

Edge computing and cloud computing: a true love marriage

In this context, the question often comes up: "Edge computing or cloud computing?" This often ignores the fact that the optimal solution lies exactly in the middle: The two technologies are by no means mutually exclusive, but complement each other perfectly. The increasing networking of machines and systems generates enormous amounts of data. Used and analyzed sensibly, this data serves as the basis for new, innovative business models.

Edge computing is well suited for processing large amounts of data close to machines and factories. It is independent of network connections and is not limited by the lack of bandwidth expansion. At the same time, it allows data to be preprocessed where it is generated. The advantages include fast response times and real-time data processing.

Cloud computing, on the other hand, is easily scalable; both computing and storage capacity can be added depending on the need and application. Not to mention: Data from different sources - whether machines, plants or even locations - can be quickly linked together. The strength of the cloud lies not least in its ability to react flexibly and store very large volumes of data, in contrast to the edge.

Edge and cloud computing are therefore not opposing methods; on the contrary, they complement each other very well. Cloud computing is becoming more and more prevalent in industrial applications, while edge computing is currently much more common - and it is seen as an enabler for cloud computing: If machine and plant data is pre-processed locally by edge computing and then only the relevant data is transferred to the cloud, then Big Data really becomes Smart Data with significant added value. In other words, the right combination of edge computing and cloud computing is the key to economically and technologically sensible end-to-end applications for the Industrial Internet of Things (IIoT).

The trend in 2021 is therefore logically a "hand-in-hand" of both storage options: This enables the right "storage tool" for each application and ensures real-time requirements as well as system security.

The future of digital business models - 10 theses for Industry 4.0

Even if the topic of the Corona pandemic still seems omnipresent at the moment - it is worth thinking about the time after that. The “Industry 4.0 platform” has done just that: It is the central network in Germany for advancing the digital transformation in industrial value creation. In 2013, it was founded as a joint project of the German trade associations BITKOM, VDMA and ZVEI to further develop and implement the future project Industry 4.0 of the German government's high-tech strategy.

It has now published a paper with ten theses on the "Future of digital business models for Industry 4.0 in the post-Corona economy" - created on the premise that the pandemic requires "above all the development of strategic options for action for the future". According to the report, competitive advantages will be gained above all by those new business models that respond to changed economic and social behavior patterns and new demands. The following theses can be more than just an inspiration for the future strategic actions of many companies that are already part of Industry 4.0 or want to become so:

Boost for digitization and digital business models - scalable digital infrastructures and high-performance communications networks are gaining in importance.
Flexibility and agility become the basis for competitiveness
Resilience of value creation networks as a new business case
Adaptation of design and value creation to more local production
New ecosystems and marketplaces are emerging
Innovative revenue models are being expanded
Competence requirements are increasingly changing
Remote services become more important ("physical distancing" of production)
Work is becoming more flexible: new forms of work and learning are emerging
Digitalization as an enabler for sustainability