17 may

Industry 4.0 - When the future happens in the present

Industry 4.0 is on everyone's lips. Or so you might think if you follow the media or at least many specialised publications. At the same time, however, there is already talk of two speeds, with SMEs taking on the role of the cautious ones. German SMEs, in particular, are even missing out on the digital transformation and thus the core of the fourth industrial revolution.

After all, this digital transformation essentially has to do with data and its processing. However, German SMEs are best at high-quality production and machine innovation. However, innovation in data processing is the preserve of the Americans.

Versino Financial Suite for SAP Business One Finance

The present instead of science fiction

For small and medium-sized companies, Industry 4.0 scenarios often sound like unattainable science fiction. In their companies, according to the idea of Internet of Things (IOT)machines and products will be networked with the outside world and ensure unimagined data exchange. This (for the time being) mind game is made possible by technical innovations that are already taking place. For example, the expansion of the address space on the Internet. Since the advent of IPv6, there have been so many addresses available that every single atom on earth could be given an IP. After that, there would still be a considerable supply for one planet or another. Ergo everything, really everything can be given a unique Internet address. True to the motto "what can be done, will be done", we are in the middle of science fiction, which is called the present.

The business models that this opens up could revolutionise the economy.

Business software is well prepared for the digital transformation

All dreams of the future? Not necessarily! In terms of business applications, we are well equipped for such models. Because they have been around for a long time - no, not in the sense of IOT. But processing data from distributed sources is the bread and butter of many ERP systems. Because if you take a closer look, networking has been an important part of the added value of these software systems on the business application side in recent years, without any revolution. The good old EDI Format is a pioneer, the various retail and e-commerce integrations have long been part of everyday life and the mobile applications have raised networking with the human interface to a new level. Even with "smaller" business software packages, such as SAP Business OneThe main challenge is no longer the fear of the data volumes resulting from "total" networking. The real new challenge in terms of IOT is the amount of data and the (near) real-time processing required. However, high-performance technologies such as SAP Hana those involved just shrug their shoulders even when data overkill is imminent.

Wait for what?

What is stopping us then? The sources of all this data are still being developed. Not every machine and even less every product has an in-built data unit for communicating with the network. But this is also changing rapidly. For example, Windows 10 is already available in a space-saving IoT version and already some pioneers are experimenting with the system on the mini computers. Rasberry Pi (whose acquisition cost is between 5 and 35 US dollars). This is happening NOW.

The business models based on this technological change are missing! And many things are conceivable. Buzzwords here are machine dialogue (m2m), smart homes and wearables. It doesn't always have to be the famous refrigerator that orders itself. Why not the machine that requests consumables or orders a service technician? The shelf that knows what is stored on it? Why not the Digitise logistics?

Everything is possible today or in the near future. Even in the SME sector - without any since fiction.

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