Talk to any manufacturing executive and odds are they have heard of Industry 4.0. Originally coined in Germany through a technology project to computerise manufacturing, Industry 4.0 has now launched into a worldwide initiative to transform this sector. Japan and China have even coined their own ‘Industrial Value Chain Initiative’ and ‘Made in China 2025’ to emphasise their dedication to this strategy. And there is good reason for why Industry 4.0 projects are popping up at every manufacturing company. According the McKinsey Global Institute, operations and equipment optimisation in the factory setting can generate up to $3.7T of value in 2025. IBM can help UK Manufacturers with this journey.

1. 12 © 2015 IBM CorporationIBM Confidential11 October 2016
Overview of how to climb the Industry 4.0 Ladder in manufacturing
M2M data-based
manufacturing and
product differentiation
Monetized
Product-based
Services
Smarter, Flexible
Business ModelsPersonalized
Design/Manufacturing
Service
Transformation
IoT Manufacturing
Differentiated
Manufacturing/
Products
• Sensor based systems
• Smart Connected
Products
• IoT Centric Sensors/
Controllers
IoT Manufacturing
• Quality Optimization
• Predictive Maintenance
• SCM/ Manufacturing
Control Optimization
Efficient Service
• Remote Services
• Workforce
Optimization
Personalized
Design/
Manufacturing
• Lot size 1
manufacturing
New Services
• Factory in a box
services
• Premium maintenance
services
• Data analytics as a
service
New Business
Models
• Consumption-based
IoT solutions (e.g.
Smarter Car,
SmarterCare)

2. 15 © 2015 IBM CorporationIBM Confidential11 October 2016
Shop Floor Integration
Solution:
Maintenance, human-machine
integration and data capture in a
real time
1. Production & Integration
Horizontal Integration- IOC
Solution:
Real-time collaboration across
the entire complex supply-chains
4. Supply Chain Visibility
DP036
Detection of security
breaches in real-time and
prevention of cyberattacks
Solution:
Preemptive detection of security
breaches in real-time and
prevention of cyber-attacks.
5. Security
Reducing energy
consumption in Manufacturing
Solution:
Use of Cloud, Big Data and Deep
Machine Learning to forecast,
manage and reduce energy costs.
6. Energy Management in
Smart Factories
7. New Services &
Business Models
Solutions:
Use of IoT and Industry 4.0 to
provide new services and solutions
to clients, address new markets
.
Selling new value with
existing products.
Developing new offerings
Industry 4.0
Big Data &
Analytics
Cloud
Security
Collaboration across the
design cycle and customer
2. Engineering &
Software development
Solution:
Management of complex
Development and Manufacturing
Projects.
3. Intelligent Operations
and Manufacturing
Detection of failure patterns
from disparate sources
Solution:
Detection of failure patterns on
equipment from disparate
sources
With each section being able to be independently selected…
Climbing the ladder requires 7 major Industry 4.0 capabilities