Study by Siemens affirms annual productivity increase of up to 9.8 percent due to digitalization

Press Releases | By Siemens | 04 December 2017

Manufacturing companies around the world are facing the challenge of financing the digital transformation, in some cases involving significant investment. The enormous gains in productivity made possible by digitalization are outlined in a new study entitled "The Digitalization Productivity Bonus: Sector Insights" from Siemens Financial Services (SFS).

According to the paper, manufacturers can generate an annual increase in productivity through decreased manufacturing costs adding up to as much as 9.8 percent of total revenue. This is achieved by automating and digitalizing their production systems and so improving manufacturing productivity.

Companies can use this released liquidity to invest in other areas such as new technologies and also to finance them over time. Under its "Financing 4.0" scheme, 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. 

Increasing demands by consumers for individual, high-quality products at favorable prices are posing new challenges for industrial enterprises which can only be resolved by digitalization.

"With the Digital Enterprise portfolio, the technical conditions have been created for Industrie 4.0. To ensure successful implementation of Industrie 4.0, what we now need is an extended model for cooperative partnership based on mutual respect: Large-scale corporations supply platforms and components, medium-sized enterprises develop their own solutions and business models on this basis, and end customers integrate these into their digital value chain," explained Klaus Helmrich, Member of the Managing Board of Siemens AG at the SPS IPC Drives.

Siemens showcased a range of innovations at the event, designed to shorten the time to market and to improve flexibility, efficiency and quality in the process and manufacturing industries. They ranged from the new Version 15 of the Engineering Framework TIA Portal through the IoT concept for motors Simotics IQ to the new Version 3.0 of the open cloud-based IoT operating system MindSphere. Siemens is also offering financing services such as pay-per-use models designed to simplify the implementation of digital solutions, aimed in particular at medium-sized enterprises.

Digitalization is already helping small and medium-sized enterprises boost their competitive standing today. Making this possible is the company's Digital Enterprise offering, comprising solutions for the digital twin over the entire value chain, the open cloud-based IoT operating system MindSphere and the world's leading automation portfolio.

The SFS study "The Digitalization Productivity Bonus: Sector Insights" is available as a free download at the Siemens website.

Last modified on Monday, 04 December 2017 12:00
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