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What is Decentralized Finance – DeFi

Raktim Singh
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What is Decentralized Finance – DeFi

What is Decentralized Finance: (DEFI)

Introduction:

A centralized system oversees nearly all aspects of finance, lending, and trading today, which are governed by various banking and financial authorities.

Every financial service, from auto loans to mortgages to investing in stocks and bonds, requires regular consumers to deal with financial middlemen.

A financial transaction cannot be bypassed if banks, exchanges, and lenders earn a percentage of the profit from the transaction.

Because of this, consumers have a difficult time directly accessing financial services. So, what is decentralized finance? How does it remove the middleman and ease our transaction processes?

What is Decentralized Finance:

Decentralized finance is the idea of managing money without large institutions or corporations.

It is established through peer-to-peer transactions, which means that more of the work done by banks and other financial institutions is taken up by individuals.

Decentralized finance is based on Blockchain technology which has enabled financial applications and protocols with programmable functionality.

Transactions on the blockchain are carried out automatically by smart contracts that include deal agreements.

Only 5% of the crypto space is devoted to decentralized finance, according to CoinGecko, but it has seen rising growth in recent years. In June 2021, DeFi assets were valued at $93 billion, up from $4 billion three years earlier.

How does DeFi work?

To function, a finance system must have two key components: a platform on which to operate and a currency with which to do so.

Financial institutions serve as infrastructure in a centralized system, while fiat currency, like the US dollar, serves as currency.

For a full range of financial services to be offered, decentralized finance must replace these components.

Infrastructure:

The Ethereum platform allows developers to write decentralized programs. Their smart contracts can now be created through Ethereum, a code that can be automated for a number of purposes to manage financial services.

You can define how a financial service will operate through smart contracts, and Ethereum can implement the rules. Smart contracts cannot be changed once they have been deployed.

Currency:

Creating a decentralized financial system that is reliable and secure requires a stable currency. Ethereum’s own programmable cryptocurrency is highly volatile, and Bitcoin is incompatible with Ethereum, and Ether cannot be used to buy or sell on the Ethereum network.

Stablecoins are cryptocurrencies whose value is linked to a fiat currency.

Dai ( or DAI) is a stablecoin cryptocurrency which aims to keep its value as close to one United States dollar (USD).

The DAI stable coin is pegged in price to the US dollar – 1 DAI equals $1 USD. DAI is not backed directly by US dollar reserves but rather by cryptocurrency collateral. A decentralized currency like DAI is ideal for decentralized finance due to its stability.

What Are the Benefits of Decentralized Finance?

Blockchain technology provides decentralized finance, which increases financial security and transparency, unlocks liquidity and growth possibilities, and supports an integrated and standard economic system.

  1. Programmability

Smart contracts allow the creation of new financial instruments and digital assets and automate the execution of these contracts.

  1. Interoperability

Using DeFi, developers and product teams can combine established protocols with multiple custom interfaces, as well as integrate third-party applications. As a result, DeFi protocols are sometimes referred to as “money legos.”

  1. Transparency

A public blockchain broadcasts all transactions for other users to verify. In addition to allowing for rich data analysis, this level of transparency surrounding transaction data also ensures that network activity is publicly accessible.

DeFi protocols are also part of Ethereum, and the code for them is available to anyone who is interested in viewing, auditing, and building upon it.

  1. Permissionless

A key characteristic of DeFi over traditional finance is its permissionless, open access: anyone with a crypto wallet and access to the Internet, regardless of geography, is usually able to access applications built on Ethereum with a minimum amount of funds.

  1. Self-Custody

Participants in the DeFi market always keep custody of their assets and control of their private data because they use Web wallets in conjunction with permissionless financial applications and protocols.

DeFi is based on open-source technology. This allows everyone to access the financial using internal connect and apps.

With DeFi market are always open (24/7). There are no centralized authorities who can deny or block access to any product/services. So, DeFi aims to remove the intermediaries between parties in financial transaction

Key Layers of DeFi stack:

  1. Settlement Layer: This the base layer upon which other DeFi transactions are built. It consists of a public blockchain and its native digital currency or cryptocurrency. One example of the settlement layer is Ethereum. It’s native token is ether (ETH), which is traded at crypto exchanges. This layer can also have tokenized versions of assets, such as the U.S. dollar or gold etc.

 

2. Protocol Layer: Protocols are set of principles and rules that all participants in that eco-system have agreed to follow.

These are standards and rules written to govern specific tasks or activities. DeFi protocols are interoperable, meaning they can be used by multiple entities at the same time to build a service or an app.

One example of a DeFi protocol is Synthetix, a derivatives trading protocol on Ethereum. It is used to create synthetic versions of real-world assets.

Other DeFi protocols are ‘Aave’. ‘yEarn’, ‘Curve’ ‘Compound’ & ‘Project Serum’.

  1. Application Layer: Here, consumer-facing applications reside. These applications abstract underlying protocols into simple consumer-focused services.

 

4. Aggregation Layer: This consists of aggregators who connect various applications from the previous layer to provide a service to customers.

 

Final Thoughts

What is Decentralized Finance – Defi ?

Decentralized finance is a term that signifies a system that is interconnected with a blockchain-enabled, decentralized, and immutable ledger.

Defi refers to financial services using smart contracts which are automated enforceable agreements (which don’t need intermediaries like a bank or lawyer) and use online blockchain technology instead.

The Decentralized Finance network is a disruptive technology for organizations and individuals in the finance industry. The evolution of decentralized finance is a reflection of the disruption happening in every sector of society.

Decentralized finance utilizes blockchain technology to build a trustless system where intermediaries are no longer needed. This system promotes transparency and accountability with data hosted on a decentralized database. This database is highly secure through the use of cryptography and erases the need for an institution, such as a bank or broker, to verify transactions.

 

What is CBDC – Central Bank Digital Currency ?

Raktim Singh
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What is CBDC – Central Bank Digital Currency ?

Introduction:

Among the most recent topics in the financial industry are central bank digital currencies (CBDCs). Banks, institutions, and governments are investigating a new form of digital money as an economic and technical innovation. These institutions are preoccupied with CBDCs, which begs the question: why?

Here, we will discuss what CBDCs are, why they matter in digital economies, which countries are exploring their use cases, and how they can be widespread.

Central Bank Digital Currency) CBDCs explained:

CDBC (Central Bank Digital Currency), is a national digital currency or digital form of fiat currency of a country.
CDBC exists purely in electronic form ( & does not have a physical or tangible form, such as a rupee or a coin, and is accounted for or transferred using online systems).

It is the digital representation of the legal currency used by the countries (by the Central Banks of the countries). In short, CBDC is a new form of money created by a country’s central bank, intended to be served in digital form and legally

Central banks are considering issuing digital currencies, or central bank digital currencies (CBDCs), to transform how money is created and managed.

CBDCs would remove the need for central banks to print paper money and replace it with digital money.

CBDCs can potentially transform the practice of monetary policy, making lending more flexible by providing a new tool that makes it clearer to do what’s necessary to foster aggregate demand.

CBDCs are also less risky than physical cash because they are not tangible. A CBDC represents virtual currency issued by the central bank, which is available to citizens for digital transactions and storing value. So, unlike physical cash, no one can ‘steal’ CBDC.

CBDCs are recognized by governments as legal tender within the jurisdiction of the central bank that issued them. This means they can be used for payment by anyone, and merchants must accept them.

Why are countries increasingly interested in issuing their own digital money?

Many central banks are still using outdated technology to process payments. We are now living in a connected global world, where transactions are happening 24/7.

CBDCs are a way to modernize payment infrastructure by enabling faster transactions through more convenient time windows, giving governments and businesses the opportunity to make real-time payments.

Also, in some cases, the cost of managing physical cash is as much as 1% of a country’s GDP. With a CBDC, you can do away with the inefficiencies of printing and moving money.

Difference between cryptocurrencies & CBDC

The underlying cryptography in CBDCs is the same as that used in cryptocurrencies, and the same distributed ledger technology drives them as cryptocurrencies.

Though both cryptocurrencies (like bitcoin) & CDBC, work with underlying DLT (distributed ledger technology), these are the key difference between these.

  1. Blockchain networks such as Bitcoin/ Ethereum are a confirmation-free network structure, where participants can access and record transactions at any time.

This structure is not created by a person/group/ institution and is not subject to central management and therefore is not controlled.

CBDCs, on the other hand, are expected to be developed and are under supervision since they are established by the central bank of the country in which they are located.

  1. Although CBDC is connected to the blockchain network such as Bitcoin, Ethereum, it is a formation that requires permission. That means, only authorized persons and entities can enter and make changes.

So, unlike crypto money, in CBDC, authorized person can block transactions that are not deemed appropriate, freeze or block the account.

  1. While cryptocurrencies (like bitcoin…) do not have a reserve to support their value. But in case of CBDC, there will be gold and foreign exchange reserves underlying.

What are the pros and cons of CBDCs?

Among global financial institutions, the use of central bank digital currencies (CBDCs) is increasing due to the rising popularity of blockchain technology and cryptocurrency. Assuming CBDCs are implemented correctly, the financial system can benefit from the following:

Benefits

  1. Analyzing all transactions flowing through the central bank and monitoring in real-time.
  2. CBDC reduces the cost of currency management like currency print, minting of coins, transportation of currency, safe custody of currency and tracking of currency etc.
  3. By using mobile applications, transactions can be made faster and easier. it promotes an efficient way of financial transaction. This will help in increasing ‘Financial Inclusion’.
  4. Note that, as of now also, central banks do already issue a form of digital money but only to banks, which then lend that money to consumers and businesses.

When people currently make payments or move money, it usually goes through a patchwork of systems, often incurring fees for the parties involved and taking a couple days for transfers to be completed.

CBDC could potentially cut out the middlemen, lowering or eliminating fees and making transfers faster.

 

 

 

 

Drawbacks

 

  1. Trust issue:

Increasing digitalization may leave some people behind due to ongoing issues regarding trust and data privacy, digital knowledge, and technology access.

  1. Hacking risks:

Cyberattacks on a general-purpose CBDC system are more likely to occur due to the fact that the number of endpoints is becoming larger than that in wholesale central bank systems.

 

  1. No Boundaries:

CBDCs are able to provide international transfers regardless of work hours, holidays, or time zones. Cross-border payments however face significant barriers due to different legal and regulatory frameworks.

 

Types of CBDCs

There are two types of CBDCs.

  1. Wholesale CBDCs

Central banks offer wholesale CBDCs as a service to financial institutions that hold reserve deposits. In addition to improving payment and settlement processes, wholesale central banks can use digital currencies to help.

With a restricted-access digital token, the wholesale CBDC would replace or supplement central bank reserves. As a bearer asset, a token would be transferred directly from the sender to the receiver, so there would be no intermediary in the transaction.

  1. Retail CBDCs

A digital currency associated with the central bank aims to cater to the general public.

Based on distributed ledger technology, CBDCs based on retail generally provide features of anonymity, traceability, and availability. As well as offering the possibility of applying for interest rates, they can also offer other services. Central banks located in emerging economies are especially renowned for their retail CBDCs.

 

Conclusion

Central banks are dedicating a considerable amount of attention to the development of digital currencies, so we can expect them to become a reality shortly.

As CBDCs are introduced globally, people will gain access to legal tender platforms that will allow them to convert cryptocurrencies into legal tenders. Also, in the future, CBDCs will impact the way digital assets and securities are bought and sold, including the purchasing and trading of digital assets. But when will this happen?

Global governments will be able to issue a digital form of money based on the foundations of a dedicated legal framework. When central banks and regulators enact concrete policies to establish CBDCs, digital currencies will make their way into the mainstream.

What Is Robotic Process Automation (RPA)?

Raktim Singh
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What Is Robotic Process Automation (RPA)?

What Is Robotic Process Automation (RPA)?

Robotic process automation, or RPA, is an excellent answer for a business seeking to cut costs and increase productivity. 

This good innovation, which uses the power of automation in the form of software robots, can be used in various business settings.

Robotic process automation (RPA) is a software technology that builds, deploys, and manages software robots that mimic human actions while working/interacting with various systems and software.

As part of RPA, software robots understand what’s on a screen, execute the right keystrokes, navigate systems, identify and extract data, and perform a wide range of defined actions.

The advantage is that software robots can do all these works, in a faster, consistent way…24/7.

In essence, the software robots package repetitive tasks to allow for quick and efficient automation. 

Businesses can use RPA to reduce the burden on their employees and optimize their day-to-day operations.

Robotic process automation should not get confused with Artificial Intelligence.

While AI is data-driven, RPA is process-driven. RPA can learn/mimic/follow the processes defined by end-user. On the other hand, AI uses machine learning to identify patterns in the data, create models & learn over the period. 

Evolution of RPA

Earlier, we have ‘screen scraping’, which can be called as the first form of automation.

But current RPA is much more extensible, consisting of API integration into other enterprise applications & a lot more.

It combines APIs and user interface interactions to integrate and perform repetitive tasks between various applications. RPA can fully execute, various activities/ transactions across a variety of software systems.

Possible Applications of RPA

There are several applications for RPA.

Simply put, RPA is the process of automating manual, rule-based, or repetitive human tasks using software tools.

RPA occurs when different tasks are processed through software systems. 

Unlike human workers, robots can automate basic tasks using software or hardware. 

A computer program or robot can be taught a workflow with multiple steps and applications. 

Input forms can be entered into a spreadsheet that updates the form and date filed, for example. 

Employees who complete repetitive, simple tasks with RPA software will have fewer burdens.

These are some of the examples of industries/use-cases of RPA

  • Banking and Finance Process Automation
  • Mortgage and Lending Process
  • Customer Care Automation
  • eCommerce Merchandising Operation
  • OCR application
  • Data Extraction Process
  • Payroll processing (relevant for all industries)
  • Form processing (relevant for all industries)
  • Insurance Industry (Claims processing, Underwriting processing, Policy administration & servicing)

RPA’s power lies in these 5 points

  1. Flexibility

A robotic process automation bot can handle almost any repetitive task. Just think of how many daily tasks are repetitive. Either by email or system notifications, workers receive input from robots through automated processes. Then, they take actions, such as making changes to files or programs, based on the rule-based analysis.

  1. Reduces operational risks

Outsider associations are sometimes re-appropriated by some companies to perform busy work, and this can lead to human blunders and failures. Because the work stays in-house and the operational risk is negligible with robotic process automation, it offers superior results over other approaches.

  1. Ease of implementation

Next-generation RPA bots, also known as cognitive or intelligent robots, allow employees’ actions to be learned and automatically implemented. The process of setting up an RPA can be as simple as recording your actions. You can set up automation by dragging and dropping. Good RPA solutions are of low code/no-code nature.

  1. Cost: Robots are cheaper than humans

As automated processes yield better results and require less cost than outsourcing, business process outsourcing solutions are no longer economically feasible. 

BPO firms have also cut costs even further by implementing RPA. The efficiencies that BPOs offer allow some BPO components to compare well with RPA but are also far more efficient as well.

  1. Better accuracy and compliance

Because RPA robots can be programmed to follow specific workflows and rules, they are less likely to make mistakes, particularly when it comes to work that is required to be accurate and compliant, like regulatory compliance. In addition to providing a step-by-step audit trail, RPA makes it easy to monitor progress and resolve issues at a faster pace.  

Myths about What Is Robotic Process Automation (RPA)? 

 Robotic process automation also has some myths that exist around its implementation and usage. Some of them are as follows-

  1. Human supervision is not needed:

That’s incorrect since robots cannot function without human supervision. Since humans are responsible for programming RPA bots, feeding them automation tasks, and supervising them.

  1. Coding skill is required for RPA software:

For using RPA software, people think that they must learn coding skills. Although it is incorrect since people who are not technically trained also utilize it, but some knowledge of coding will be helpful as it would make it easier for them if they understood the front-end.

  1. RPA is valuable only for software companies: 

Robotic processes automation can create computerized bills, voice services, and other types of invoices, regardless of the software used in the enterprise.

  1. Only large corporations can utilize RPA–

Many people are in error when they think RPA is exclusively for large industries. Robotic Process Automation (RPA) can be used to automate an organization of any size.

What is the Future of RPA?

RPA is on the cusp of great success. Recently, several companies have observed business growth because human resources and software robots interact cleverly. 

RPA market is expected to grow by 10.7 billion by 2027 according to a recent report by Grand View Research, Inc., which also predicts a CAGR growth of 33.6% from 2020 to 2027. 

Approximately $12 billion is expected to be spent on collaborative robotics by 2025, according to Marketsandmarkets. The Forrester research group estimates that revenues from the RPA market will rise to $2.9 billion by 2021, up from $250 million in 2016.

Summary : What Is Robotic Process Automation (RPA)?

What Is Robotic Process Automation 

Robotic process automation is the process of designing, creating, deploying, and executing computer-controlled robots to automate repetitive tasks. The complex algorithms for RPA are built in-house or by outsourced vendors to standardize these tasks.

The benefits of robotic process automation are eliminating repetitive manual tasks, increasing productivity, faster execution of tasks, lower operational costs, and increased accuracy. RPA also reduces the risk of human error.

RPA, as we have discussed in this blog, is on the rise at an accelerated pace. 

RPA is a powerful element of any business process automation platform, whether used to optimize end-to-end automation initiatives or enhance employee productivity. 

Increasing productivity and reducing costs are among the benefits of robotic process automation. 

What is Multi Cloud Environment and What are its Benefit ?

Raktim Singh
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What is Multi Cloud Environment and What are its Benefit ?

What is Multi Cloud Environment?

As per Wikipedia – “Multi-cloud is the use of multiple cloud computing and storage services in a single heterogeneous architecture.

This also refers to the distribution of cloud assets, software, applications, etc. across several cloud-hosting environments.

With a typical multi-cloud architecture utilizing two or more public clouds as well as multiple private clouds, a multi-cloud environment aims to eliminate the reliance on any single cloud provider

“Multi-cloud refers to a combination of various public clouds all functioning simultaneously. 

An organization using multiple public clouds of different companies is called a multi-cloud deployment—businesses with multi-clouds use a variety of cloud providers instead of relying on only one.

What is Multi-Cloud Environment?

In Multi-Cloud, multiple public clouds are integrated. Here high scalability & high availability are key advantages here. Also, it helps in facilitating vendor migration. 

It should not get confused with Hybrid Cloud, which is a computing environment that combines private cloud ( on-premises datacentre) with a public cloud & on-prem infra, allowing data and applications to be shared between them.

With the proliferation of cloud providers, it’s possible to use them in parallel to maximize your infrastructure’s performance. 

It’s also possible for organizations to use one cloud to power core infrastructure and another cloud to power applications. 

The goal is to reduce latency, optimize network performance, save money, and provide more flexibility.

Organizations select cloud providers based on their budgets, technological preferences, geographic locations, and other factors. 

It is possible for a company to use several cloud platforms at the same time, such as Amazon Web Services for disaster recovery, Google Cloud for development and testing, and Microsoft Azure for business analytics.

When to Use Multi-cloud?

Among some of the specific use cases for multi-cloud adoption, organizations include:

  1. Data governance: 

IT systems must be placed in a safe environment for businesses to operate. Hence, backup plans should be prepared for any eventuality. 

A multi-cloud platform allows companies to safeguard their data if one system becomes vulnerable to cyberattack. 

The affected data can then be moved to an alternative cloud quickly in such situations. 

  1. Apps for distantly located users: 

The data center or your headquarters has to be close to your target users when you integrate a single cloud.

 Your multi-cloud strategy should be used if your target market is located distant from a preferred data center or is situated at a remote location. 

Having multiple centers enables it to reach users in remote areas and reduce response times. 

  1. Accelerated development of Modern apps

Developing apps in a modular and stylish manner is the current development trend. 

The creation of functional applications requires the use of modern tools and flexible services. 

This approach allows for the consumption of multiple cloud services. 

  1. High-performance apps: 

Optimizing workloads and making minimum hops between data centers and users are two essential elements to building high-performance apps. Optimizing across multiple clouds is done in an accurate and efficient manner. 

Multi-cloud offers several benefits to the user.

Some of these prominent benefits are:

  1. No Single Points of Failure

Multi-cloud solutions reduce the risk of single points of failure. 

The problem will therefore have a low likelihood of affecting the entire application if it affects just one component.

Also, the risk of DDoS attacks is also reduced when relying on multiple clouds. 

Due to the potential loss of hours resulting from downtime, removing these applications from the network should be a last resort. 

Businesses will not suffer from system outages using cloud computing because it offers redundant storage and resources.

  1. Competitive Pricing

Cloud providers are competing fiercely as they attempt to meet users’ unique resource capacity needs with flexible pricing while maintaining a high standard of service. 

As a result, small businesses can compare IT rates and fees from multiple providers depending on their individual needs. 

Due to the fact that cloud providers do not have mandatory terms, you can choose based on their features, such as capacity customization, licensing flexibility, and payment options.

  1. Flexibility and Scalability

There has been an explosion of data created over the past two years. 

By virtue of proper automation and real-time synchronization, multi-cloud allows businesses to store and process data efficiently.

Businesses that utilize multi-cloud technologies can scale up and down their storage depending on their storage requirements, thereby improving their scalability and storage.

 By utilizing multiple providers, organizations can invest in the level of storage, security, and protection that their business segments require.

  1. Enhanced Risk Management

Risk management is also a benefit of adopting a multi-cloud strategy. In case their vendor’s infrastructure suffers an attack or meltdown, users of multi-cloud services can switch to another cloud provider, including a private cloud. 

In order for us to implement a more robust risk management system, it is important to implement a multi-layered security approach. Cloud providers can mitigate the risk of breaches by implementing redundant, independent systems, consolidating API components, and performing vulnerability testing. 

Conclusion: What is Multi Cloud Environment?

Multi-cloud means several different public clouds are used to support one or more applications, instead of just a single public cloud. 

For businesses that rely on their IT infrastructure critically, the development of a multi-cloud strategy can be extremely beneficial. 

Here, an organization leverages two or more cloud computing platforms to perform various tasks.

Organizations need not depend on a single cloud provider. Also they have the flexibility to use resources from several providers to get the best benefits from each unique service

As more companies implement large-scale multi-cloud strategies, it is imperative that companies ensure they get the best capabilities for application deployment, storage, networking, security, and management. 

Next Article

What is Digital Factory Concept? How do you make a digital factory?

Digital Transformation in Retail: A Must-Have

Raktim Singh
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Digital Transformation in Retail: A Must-Have

Digital Transformation in Retail Sector

Digital transformation has been an ongoing topic that is drawing interest from every sector.

The retail sector has been seeing some of the most drastic changes since the late 1990s.

These changes led to the birth of online shopping and the emergence of mobile commerce.

The birth of mobile devices has changed the way people shop. Take, for example, mobile payments.

They are now available everywhere, with cashless transactions being the new norm in many stores.

The emergence of mobile apps has also changed things- for example, apps like Groupon allow customers to download coupons on their mobile devices.

The growth of mobile is not solely for the consumer- it is also changing the way that retailers are doing business.

One example is the introduction of the virtual dressing room.

Digital transformation has impacted every industry over the past decade, and retailers are no different. 

Consumers have started to shy away from human contact as a result of COVID-19 outbreaks.

This has made retailers prioritize their digital transformation strategies. 

This trend of transforming Kirana/Retail stores started before the pandemic even broke out.

There have always been advantages to retail stores because they are more accessible, more flexible in their approach, accept credit cards, and often have quick supplies to many buyers. 

Although today’s shoppers are all about convenience and experience, there is still a gap between their experience and their awareness.

The retail stores can nevertheless bridge the gap and gain a competitive edge in the market by consistently pushing forwards and taking little steps daily toward digitalization.

Challenges faced in transforming the digital industry:

  • Complexity

Retailers cannot handle everything on their own due to the complexity of digital transformation.

Retailers must carefully select their outsourcing partners to ease the burden.

Establishing digital journeys that enable all stakeholders, customers, and enterprise entities to work together definitely requires a different type of partnership. 

  • Technology

An accurate picture of orders, products, inventory, customers is crucial to a successful digital transformation.

Another significant challenge is choosing the appropriate technologies that can bring value. 

To evaluate which new equipment and technology will be most suited to an organization, it is important to take calculated risks.

  • Digital Disruption

According to IDC, Indian e-commerce will reach $99 billion by 2024 and will experience a 27% growth rate.

It is common for customers to conduct online and offline research before buying a product. 

Price, availability, user-friendliness technology, and most importantly, recalls playing a huge role in the overall process.

Keeping customers hooked on a product or service is as important as visibility in the market for corporations.  

  • Supply Chain Management: 

To meet the demand of its customers, the company had to rethink its delivery model in response to the pandemic.

To ensure a low cycle time, retailers need to ensure that the products are defect-free and are constantly moving.

Benefits of Digital Transformation in Retail Store

  1. Omnichannel holistic experience: We can provide, a uniform experience from the start of the shopping journey till the time the purchase is complete in a manner with minimal human intervention.
  2. Smart experience: A smart experience can be offered, with a combination of
    • Smart mirrors
    • Chatbots
    • Voice-based search
    • Virtual showroom
    • Data-driven personalization of product
    • Virtual Product Trial: AR/VR to help customers try before they buy
    • Virtual Store Tour
    • Interactive Store wall
  1. Better Supply Chain, Inventory & shelves management: With Smart Shelves, all products can be placed at the correct place.

Using smart shelves, you can get to know when you have fewer items on the shelves or when items are not placed correctly on a shelf.

Also, chances of in-shop theft, as well as product lying on floor, can be avoided. Deep learning ( by analysing customers’ data and behaviour…in-shop experience), products can be placed at correct places so that customers don’t have to ‘search for a product’. Also, better inventory management can be done, along with making right product available at shop.

  1. A friendly robot can help the customer. Customers can talk with robot (Instead of talking to a salesman. Less human interaction ensures no risk of spread of the infection post-COVID-19 outbreak.
  2. Good experience during checkout: An automated Checkout can help customers in avoiding long queues as well as make a contactless payment.

Technologies used in the Digital transformation process:

  1. Data Analytics

Optimizing business processes is crucial for corporations operating in a competitive retail market. 

Data analytics is useful in identifying customer requirements, predicting future performance, pricing adjustments, forecasting demand, picking out the highest ROI opportunities. Therefore, providing highly customized products or services.

  1. Artificial Intelligence

Making customer service better and more effective is assisted by AI, which enables online shopping, as well as promotes products based on customer behaviour. 

With the widespread use of chatbots, the customer’s query response time has been dramatically reduced, keeping them satisfied and happy. 

Using AI has improved retailers’ ability to deliver fast and personalized service to customers, improving customer loyalty as well as deeper brand engagement.

  1. Internet of Things

To improve their marketing and sales strategies, retailers are making smart moves.

Smart technologies such as automation, smart shelves, automated checkouts, and layout optimization in stores are becoming increasingly common. 

These all improve customer service, boost sales, increase customer loyalty, and boost inventory management.

 

  1. Supply Chain Digital Twin (SCDT) : With real-time data & snapshots, SCDT, performs a detailed simulation model of an actual supply chain. From this, one can understand a supply chain’s behavior, forecast supply chain dynamics, predict abnormal situations, and work out an action plan.

Conclusion on Digital Transformation in Retail Sector

How digital transformation is helping the retail sector

In our society, the retail sector is an essential part of the economy. Since the 1980s, retail stores have been steadily closing down across the country. However, now with the recent transformation to digital, these stores are opening back up again. The retail sector is now seeing more growth than ever before.

By properly blending online & offline experiences, one can offer a good personalized omnichannel experience to customers.

What is Digital Factory Concept? How do you make a digital factory?

Raktim Singh
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0
What is Digital Factory Concept? How do you make a digital factory?

Digital Factory: Introduction

A Digital Factory is a manufacturing facility in which people, machines, raw materials, and products are connected to each other & share real-time data (about all stages of the production process) with each other & corrective actions are taken, almost in a near real-time basis.

It is an environment in which physical things are made to interact with the digital world.

It uses digital technology for modeling, communications, and operating the manufacturing process.

As all the players (people, machine, raw material, inventory…) are connected with each other, it helps in collecting relevant data, which in turn helps in making better decisions.

Armed with real-time data, factory managers can take better decisions to configure, design, assess & evaluate various processes & with a continuous feedback loop, focus on continuous improvements.

In the digital factory, the IoT is used to allow machines to work in sync with one another, and when combined with virtual reality and human imagination, it can be used to create a tangible future for manufacturing businesses. 

According to a recent Forrester report, over 90% of industrial decision-makers feel that digital transformation is crucial for the success of their firm, just 12% claim they have provided digital transition programs throughout their business.

As manufacturers look to keep up with competitors making similar advancements to theirs, integrating legacy systems is a challenge that can be a pain point. 

Digital factories are now making it easier for manufacturers to scale in today’s disruptive landscape.

Find out how digital factories transform the whole manufacturing process by its successful implementation.

What is a Digital Factory?

In a digital factory, information from equipment, staff, and machinery is shared automatically throughout the process using technology. 

With near-real-time data (Operational data, inventory data, data related to the shop floor, the overall process including input & output, work-in Progress…), one can improve the control of manufacturing workflows, remove bottlenecks & redundant/inefficient processes.

These are the key components of Digital Factory

  1. Cloud storage
  2. Big Data analytics
  3. AR & VR
  4. Digital Twins
  5. Robotics
  6. Industrial Internet of Things & Smart sensor

Digital production depends on an interconnected system made up of computation technologies, machinery, tools, and equipment.

Analog factories cannot be converted into digital factories by a single technology. In addition to the common technology and characteristics, digital factories have many other features as well, and the most likely manufacturers to be considered “digital factories” are those that blend multiple technologies.

Digital factories require one to undertake a complete digital journey (and this is not just a one-time investment).

For a successful digital factory, it’s important that all processes/aspects across the business are digitized.

This means, assessing, reviewing & transforming

  1. Sales group: Sales teams should have insight into production data, current production capabilities, etc. This will help them in taking better decisions while discussing with prospects & customers.
  1. Production group: They should be able to get a full view of the production process, along with robotic processes to ensure efficacy.
  1. Also, the quality control group, along with the production team, should be able to exercise quality control and quality testing.

(by reviewing the real-time data & doing deeper & quicker analyses).

  1. All teams (warehouses, shop floor, field services, sales team, procurement team, purchase department …) should have access to updated and in-depth insights into inventory, items in transit, and more.

A digital factory focuses on the following:

  1. A more efficient and effective & standardized planning process
  2. On-time-Delivery of the finished products
  3. Better control on various cost items such as Capex & Inventory, logistic, labour cost, transportation. Enhanced adoption of highly modern supply chain systems brings down operational costs and streamlines production.
  4. Go-to-market time is shorter
  5. Transparency in communication
  6. Small manufacturers are able to customize products, giving them a chance to compete with larger organizations.
  7. Managing knowledge effectively
  8. Increase in overall productivity
  9. Heightened forecasting capabilities and inventory optimization utilize existing capabilities for current market requirements.
  1. An automated & controlled process also helps in the creation of a safe environment (safety for shop floor workers, reduction in environment hazardous output..)

Why Establish Digital Factories?

Through continuous feedback in digital factories, manufacturing processes can be continuously optimized, enabling greater innovation and increases in production efficiency. 

With a more collaborative process of thinking, easier and faster product development, and faster production, the entire production process optimizes while catering to customer needs. 

By maximizing the power of the digital, organizations can gradually introduce new processes and instill a new digital culture in a phased fashion.

Introducing smart factories into the global economy would add $500 billion to $1.5 trillion to the global economy, according to the Capgemini report. 

Also, the usage of various technologies like digital twins and co-bots are helping businesses become more agile and efficient. 

Moreover, digital factories are predicted to boost efficiency by about 12% over the next five years, according to one analyst report.

A digital factory will lay the foundation for an innovative, creative work environment in an organization if it is successfully implemented and allows for collaboration and co-creation.

It means that production is much faster than it currently is. Products can be available within weeks. As a result, it is drastically reducing the product’s time to market.

Ways to Ensure Success of a Digital Factory:

Here are a few principles that will ensure success for the digital factory 

  • Clear vision and mission.
  • Smooth collaboration between different functions.
  • Smart and thoughtful leadership.
  • Aligning business needs with the development process.
  • A proactive team.

Challenges in the establishment of Digital Factories:

With Industry 4.0, digital factories have played a key role in revolutionizing the manufacturing sector. 

In the process of digitizing their processes, manufacturing businesses may face several challenges. Some of the important challenges are listed below

  1. Data source reconciliation:

With Industry 4.0 and the Industrial Internet of Things (IIoT), a lot of data is getting generated (related to the overall manufacturing process). But the power of this data isn’t really harnessed to make improvements.

A key challenge for manufacturers setting up a digital factory is the wide variety of data sources. Converging IT, siloed groups and operational technology also poses challenges for organizations. 

It can also be challenging to discover the right strategy solution platform that balances fast response time, flexibility, and scalability. 

To find a solution that is most effective for the business, it must seek innovations that address each of these issues.

  1. Talent Acquisition:

Talent is the key to successfully implementing digital factories. Businesses often find it difficult to find the right candidate because the talent of the expert must be domain-specific. 

We can address this by identifying different demographics and talent pools and creating talent initiatives. 

To hire the right talent early, businesses must cooperate with the right educational institutions.

  1. Right Strategies Implementation.

Platforms that cover all possible risks can facilitate the creation and implementation of digital factories.

Manufacturing strategies of the future will be digital factories. They can add a dynamic touch to the products and the people of your organization, regardless of where you are in the world.

  1. Innovation: For digital factories to be successful and perform better, innovation is essential. 

This means, reviewing the existing process, un-learning/dropping current practices wherever applicable & adopting new processes.

It can be difficult to choose the right innovative catalyst, as there are so many options currently available.

 Here, by leveraging the right innovative technologies, businesses can leverage real-time digital performance management.

Final Words: Digital Factory

A digital factory uses digital technology to connect, collect & correct the overall manufacturing process.

Factory floors have already been transformed by digital manufacturing. Ten years from now, these factory floors may hardly be recognized because of rapid technological advancements.

Manufacturing operations are continuing to be transformed by the digitization of every step of the process to optimize every element along the supply chain. 

The holistic and real-time data generated by digital factories increases efficiency, productivity, safety and environmental compliance.

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What is Digital Manufacturing and What are the Advantages of using it?

What is Industry 4.0 and what are its Driving Forces?

Raktim Singh
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0
What is Industry 4.0 and what are its Driving Forces?

What is Industry 4.0?

In order to face the challenges of the digital age, Industries from all over the world are embracing Industry 4.0.

As per Wikipedia

The Fourth Industrial Revolution is the ongoing automation of traditional manufacturing and industrial practices, using modern smart technology.

Large-scale machine-to-machine communication (M2M) and the Internet of things (IoT) are integrated for increased automation, improved communication and self-monitoring, and production of smart machines that can analyze and diagnose issues without the need for human intervention

This new Industrial Revolution is a paradigm shift that is transforming businesses across all sectors and countries, upgrading the production process from the old, linear thinking to a smarter, more effective way to work. 

The term “Industrie 4.0” was first used publicly in 2011 as “Industrie 4.0” as part of an initiative to improve competitiveness in Germany’s manufacturing Industry by combining representatives from different industries (such as business, government, and academia). 

The term “Industrie 4.0” was publicly introduced in the same year at the Hannover Fair.

Renowned German professor Wolfgang Wahlster is sometimes called the inventor of the “Industry 4.0” term.

Industrie 4.0 describes manufacturing management and chain production in a new way. Similarly, the fourth industrial revolution is referred to by this term.

Rise of Industry 4.0

It’s essential to understand the evolution of manufacturing in the past 150 years before going into what, whys, and how of Industry 4.0.

A world that has experienced four distinct industrial revolutions or is experiencing them at present is called the Industrial Revolution.

First Industrial Revolution:

During the late 1700s and early 1800s, the first industrial revolution occurred.

As the manufacturing industry evolved, humans began to use water and steam-powered engines, and other types of machines to perform more efficiently manual labour and assist with an improvement in labor efficiency.

Second Industrial Revolution:

In the early 20th century, steel and electricity were introduced into factories, and the world entered a second industrial revolution.

Electrical power permitted manufacturers to increase their efficiency and increased the mobility of factory equipment.

During this period, mass manufacturing ideas such as the assembly line were developed to increase productivity.

Third Industrial Revolution:

The Third Industrial Revolution, occurred in the late 20th century, after the end of the two world wars.

As manufacturers began to integrate more electronic technology into their factories by the mid-1950s, a third industrial revolution slowly emerged.

Manufacturing companies began putting more focus on automated technology and digital technology during this period, leading to a shift away from analog and mechanical technology.

The production & usage of computers (Z1 computer to supercomputer) led to extensive use of computer and communication technologies in the production process.

Fourth Industrial Revolution:

The fourth industrial revolution, Industry 4.0, has emerged within the past few decades.

Cyber-physical systems that take advantage of Internet interconnection (IoT), real-time data are integral to Industry 4.0 and thus extend the reach of digital technology from the latest decades. 

Industry 4.0 proposes a more integrated, interconnected, and global production strategy.

It physically interacts with digital technology and enables improved cooperation and access across departments, partners, providers, goods, and individuals. 

Industry 4.0 helps business leaders to control, analyze and use immediate information to raise efficiency, enhance procedures and drive development in every area of their operations.

Driving Forces of Industry 4.0

Generally speaking, Industry 4.0 is an approach to technology and processes with an emphasis on automation, data exchange, and other digitalization.

These are the key pillars of Industry 4.0

  1. Cyber-physical systems (CPS): Cyber-physical systems refer to systems where software and hardware components are seamlessly integrated towards performing well-defined tasks.
  2. Smart factories: In the smart factory, production facilities and logistics systems are organized without human intervention.
  3. Internet of things (IoT): IoT is a name for the aggregate collection of network-enabled devices, excluding traditional computers like laptops and servers.

With IoT, now, it is possible to collect, analyze, and exchange a large amount of valuable data.

  1. The industrial internet of things (IIoT): The industrial internet of things (IIoT) is the use of smart sensors and actuators to enhance manufacturing and industrial processes.
  2. Cloud computing: Cloud computing is the delivery of computing service (or computing power), over the Internet. Computing services includes, servers, storage devices, database, networking, software, analytics & much more….

To fully implement intelligent manufacturing, engineering, supply chain integration, production, sales, and service integration are all required. 

This is made possible by cloud computing. 

In addition, the cloud allows for more cost-effective and efficient processing of large amounts of data that are typically stored and analysed. 

Small and medium-sized businesses can also reduce their start-up costs by leveraging cloud computing, which can help them tailor their needs as their businesses grow.

  1. Smart manufacturing: It is technology-driven approach that encompasses fully integrated, collaborative manufacturing systems that employ internet-integrated machinery to monitor manufacturing processes in real-time.  
  2. Cognitive computing: Cognitive computing includes technology platforms that combine machine learning, reasoning, natural language processing, speech, vision, and human computer intervention that mimic the human brain, and solve problems without human assistance
  3. Artificial intelligence & Machine Learning: In addition to leveraging information generated by the factory floor, manufacturing organizations can use AI and machine learning tools to take full advantage of information generated across their business units and even from partners and third parties. 

Through machine learning and artificial intelligence, operations and business processes can be predicted and automated, providing visibility and predictability. 

Machines used for manufacturing are prone to breakdowns during production. Machine learning algorithms may be applied to the data collected from these assets to provide businesses with more uptime and more efficiency.

Benefits of Industry 4.0:

Product life cycles and supply chains are covered by Industry 4.0, including design, sales, inventory, engineering, etc.

 A better understanding of the production and business processes is shared at every level, which enables much more comprehensive and timely analytics.

This is a fast, in-depth summary of some of the advantages of adopting a 4.0 model for your company:

  • The younger workforce finds you more appealing because of this. Investing in innovative Industry 4.0 technologies makes businesses more competitive and more likely to retain and attract new employees.
  • The ability to communicate directly with clients means a better understanding of customer needs.
  • Having the prototypes tested effectively and optimizing the assembly lines will reduce defects and shrinkage in factories.
  • Product design and marketing time are reduced in the production of new products.

Things to watch out for

  1. Cyber Security:

Cybersecurity or cyber-physical systems is now an important topic for all companies.

 In addition to the efficiency of manufacturing processes made possible by operational equipment (OT), this connectivity also exposes new access points for malicious attacks. Cybersecurity approaches that encompass IT and OT equipment are essential to consider when undergoing a digital transformation to Industry 4.0.

  1. Skilled Taskforce: To compete & succeed in Industry 4.0. we will need a team, which is trained on new technologies. This may mean, unlearning old things & learning new skills.

The pillars of technological advancement must be actively embraced by producers and system suppliers for the transformation to be actively shaped. 

To address the need, we need to focus & create a good ecosystem ..which invests the required money & effort in the infrastructure and education.

The Way Ahead:

The adoption rate and manner of Industry 4.0 will differ between industries and countries. 

Automotive and food-and-beverage industries, for example, have a high degree of product variants, which can take advantage of a greater degree of flexibility. 

And semiconductors and pharmaceuticals, which demand high quality, will benefit from data-analytics improvements that reduce error rates.

Conclusion 

Industry 4.0 is a system of smart factories that integrate computer systems and robots to make the Industry more efficient. 

It’s the next phase in Industrial advancement that focuses heavily on interconnectivity, automation, machine learning, and real-time data.

The significant change in the system of Industry 4.0 is that it integrates several things that were not integrated into the old system. 

In Industry 4.0, smart factories operate with a system that gives greater control over production, overall workflow and takes the help of smart monitoring and communicating technology.

 

What is Digital Manufacturing and What are the Advantages of using it?

Raktim Singh
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0
What is Digital Manufacturing and What are the Advantages of using it?

What is Digital Manufacturing :
As per Wikipedia – What is Digital Manufacturing

“Digital manufacturing is an integrated approach to manufacturing that is centered around a computer system.

The transition to digital manufacturing has become more popular with the rise in the quantity and quality of computer systems in manufacturing plants.

As more automated tools have become used in manufacturing plants it has become necessary to model, simulate, and analyze all of the machines, tooling, and input materials in order to optimize the manufacturing process“

We can say that Digital manufacturing is the application of computer systems to various manufacturing services, supply chains, inventory management, products, and processes.

Here, we connect systems and processes across all areas of production.

This helps in creating an integrated approach to manufacturing, which includes, a better procurement process for input parts, design, effective execution of production process & servicing of the final products.

For digital manufacturing to be effective, one must have the correct information, at the right time, at the right place. 

During this process, all departments and functions within the value chain must be linked together, and procedures must be spanned across them.

This impacts the whole product lifetime from design, manufacture, and maintenance of the end product(s).

The fourth industrial revolution is fuelled by the digitization of almost all stages in manufacturing. Software system enables manufacturers and users to build both big and tiny digital representations of items. 

These goods may be viewed in enhanced and virtual reality and evaluated.

The pieces of the goods are wirelessly supplied through a cloud service internationally—the supply chain tracks and monitors all products and their utilization.

Digital Manufacturing Main Areas:

In the context of digital manufacturing, there are three dimensions:

  1. Product Life Cycle
  2. Smart Factory
  3. Value Chain Management

1. Product Life Cycle:

An engineering design is the starting point of the Product Life Cycle, and this leads to sourcing, production, and customer service.

All revisions that have been incorporated into the process, any deviations from specifications that have been approved, and how these happen across the lifecycle are digitally documented for every step.

  1. Smart Factories

Smart factories use smart machines and tools to provide accurate process and manufacturing technology feedback in real-time.

Digital manufacturing that integrates operations technology and information technology opens the door to greater visibility and control of factory processes, as well as a more efficient and effective way to optimize factory performance.

  1. Value Chain Management

It aims to optimize resources and reach value along the chain by minimizing costs and eliminating waste.

The result is enhanced customer satisfaction, optimal process integration, and decreased unnecessary inventories.

What is Digital Manufacturing and Benefits of Digital Manufacturing:

As digital technology evolves across us, companies are increasingly at a crossroads: the proven, tried, and tested ways are being transformed, developed, or stuck with.

The long-term advantages of digital transformation include:

  1. Data Optimization:

In the context of digital transformation, operational data is optimized, and manufacturers can use data more efficiently, including B2B eCommerce, ERP, CRM, finance, storage, and more.

With digital manufacturing, manufacturers can create a factory that is a connected, networked and fully integrated environment, enabling them to use real-time data analytics to optimize the entire manufacturing process, take better decisions and improve productivity ( by elimination the waste or redundancy).

By automating data exchange, efficiency is increased.

Also, we can prevent costly mistakes by avoiding data mistakes or misinterpretations.

  1. Enhanced Processing:

The possibility of digital transformation is revolutionizing the operation process.

To improve the life cycles of machinery, for instance, real-time information can assist in monitoring, resolve and even forecasting problems.

This helps in keeping the process error-free and prevents interruptions/breakdowns.

Digital manufacturing enables manufacturers to eliminate bottlenecks, reduce inventory, improve quality, shorten time to market, pivot quickly to meet customer needs, and expand the number of products made.

Now, Process, equipment, systems, or component changes are measurable in real-time.

This helps in designing an optimized & enhanced process, which in turn helps in increasing the turnaround time in the overall value chain.

  1. Innovation Enhanced:

An integrated optimization approach is enabled by a digital transformation strategy.

For example, using smart plant features in your ERP can help you enhance the efficiency of the organization and the distribution network.

  1. People-Centric

Companies can gain a presence among their customers by launching B2B online platforms with a dedicated portal for each region, brand, or client.

Furthermore, companies may utilize sales data, which precisely forecast and modify according to consumer consumption.

Benefit for small and medium-sized companies

Production has traditionally been the domain of large organizations with the financial means to invest in heavy machinery and sophisticated systems.

As a consequence of digital manufacturing, there are now more opportunities for SMEs to manufacture customized products.

With today’s digital technologies, small and medium businesses can do what they do best: offer specialist services and niche products.

Mass production is not king anymore; customization and agility are. Now with digital manufacturing, one can even achieve mass customization/ personalization & quickly roll out products as per each customer’s need.

Small-scale businesses are still capable of offering an optimized business operation even with a smaller workforce by implementing technology that can help better plan resources, manage supply chain operations, maintain customer relationships with a CRM, and utilize a BI dashboard (Business Intelligence).

In addition to the technology choice presented to SMEs, the need to invest in technology is also a challenge.

And not only this, but many small and medium-sized enterprises have no luxury to ‘pause’ when they create new systems.

It is undoubtedly a balancing act and may focus primarily on business needs and on whether technology will assist the company in achieving these objectives.

Key Pillar of Digital Manufacturing

These are the key pillars of Digital Manufacturing.

  1. Industrial Internet of Things (IIoT)

IIoT broadly refers to a series of internet-connected sensors and devices that provide real-time data from across the factory floor, allowing for improved visibility for machine performance.

IIoT is helping in supply chain logistics. It is helping in reducing waste (either in terms of identification of redundant processes or products). This, in turn, is helping in saving time, energy & money.

This can be deployed/used for almost everything (shop floor machinery, lights, heating, ventilation, security systems, heavy equipment, and more. 

2. Big Data and Analytics Tools

The increased number of connected devices in a manufacturing setting produces massive amounts of data.

Data analytics tools like artificial intelligence and machine learning help translate big data into actionable insights that are then used to project demand forecasting and predictive maintenance schedules. 

Real-time data helps in taking better & accurate decisions.

3. Cloud Computing

Cloud services work as the backbone of many of these technologies. This provides flexibility.

One can get big computing power on rent, at any point of time & they need to pay only as per the actual usage.

No need for upfront investment. So, you can convert CAPEX to OPEX.

4. Advanced Robotics

Robotics plays an important role here. They help in the automation of repetitive tasks.

This results in improved efficiency, better worker/human safety & an overall better environment (by reducing the generation of unnecessary toxic waste).

Also, now with advancements in robots, we can look for the automation of increasingly sophisticated tasks.

5. Additive manufacturing

In factory settings, 3D printing, also known as additive manufacturing, allows for specialized production of unique or customized products and components

6. Digital Twins

The digital twin/thread is a 3D model of physical assets, operational systems, and structures throughout the factory space.

This virtual representation provides a holistic view of the entire factory floor & various machinery.

This helps in doing proactive & just in time, maintenance of various equipment.

7. Augmented Reality

With AR (which can include display tools such as internet-connected glasses), we can transform the manufacturing experience. AR helps in getting accurate, useful information for each machinery/asset ( It’ status, performance, real output or work/ task-specific information).

The Future Ahead:

Increasing automation of production processes is leading to a continued and growing use of digital manufacturing.

It is critical, however, to keep an eye on changes in the digital world.

Manufacturers must keep in mind that, even though digital transformation will occur in the manufacturing industry, it should not be viewed as a solution for a particular problem. 

The intense global competition is forcing manufacturers to consider new business models while simultaneously committing to our existing money streams and finding innovative approaches to outwit the competition.

Conclusion : What is Digital Manufacturing

Digital manufacturing is the process by which companies design and produce parts and products using computers to take into account factors such as material availability, cost, and manufacturing process.

 

What is Industrial Automation & Types of Industrial Automations?

Raktim Singh
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0
What is Industrial Automation & Types of Industrial Automations?

What is Industrial Automation

According to the dictionary, Industrial Automation (IA) is the use of technology to control processes in the industry.

Industrial Automation is the process of running/operating machines and other industrial equipment with the help of computers & software programs.

Note that, here, “Machine” can refer to anything from a motor to a drill to a conveyor belt.

IA reduces/eliminates human intervention in various decision making and machines as well as overall engineering process execution.

It is helping manufacturers in responding better to various issues, like labor supply, machine execution & predictive maintenance.

Also, it is helping in overall supply chain consolidation resulting in a good balance between quality and cost.

With powerful data analytics and the associated insights, manufacturers can integrate automation solutions seamlessly into their industrial processes to help reduce costs, improve efficiency, enhance safety, and boost productivity.

What is Industrial Automation:

Industrial automation allows manufacturers to increase productivity through computerized technologies and applications.

So, the, repetitive/mechanical tasks associated with one person in production and manufacturing processes are replaced by automation.

Automated devices can be programmed to control processes.

Automating industrial processes involves the use of robots, control systems, and computers.

In addition to saving time and effort, Automation also improves the accuracy of a task.

An industrial automation system uses established technologies and automatic control devices to automate industrial processes.

This leads to reduced human involvement, resulting in improved performance over manual control.

Background of Industrial automation

Earlier, in factories/ industrial plants, the overall production process was dependent upon shop floor factory workers (in terms of execution of a machine, coordinating the output of one machine as input to next machine, overall machine maintenance etc.).

Though earlier, the implementation of automation in a production process was focused on replacing a human worker with an independent machine, these independent machines required a human supervisor for a smooth production process.

So, in this phase, Industries implemented automation to increase productivity and reduce costs related to employees, their benefits, and other associated expenses, while increasing precision and flexibility.

With the Industrial Revolution came mechanization, which brought cheaper and more plentiful goods.

Generally, the mechanical processes in industries were faster and produced greater quantities of goods but still required skilled workers.

But now with technological developments in analog and digital control systems, microprocessors and PLCs (Programmable Logic Controllers) and various sensors, it has become very easy to synchronize several independent machines and processes.

Recent advancements in automation in industrial production are focused on flexibility and quality.

Industrial automation allows for monitoring and controls locally & remotely.

With these increasingly advanced control mechanisms, industries can operate 24 hours a day.

Industrial automation provides, lot of flexibility to manufacturers.

This flexibility helps in bringing out more product types.

Also, it allows, consumers to order customized products that are automatically produced.

So Industrial automation is helping us achieve a lot more, by harnessing the power of sensors, actuators, computers, data & analytics.

Types of Industrial Automation:

An automated system’s level of complexity and degree of human engagement vary depending on the application.

 Even though industrial automation systems have many uses, they all fit into one of these categories: fixed, programmable, flexible & Integrated automation.

Each of these forms of industrial Automation is described in greater detail below.

1.     Fixed Automation –

Fixed Automation is an automation that is set up to do the same tasks over and over again, with little to no variation in what it does. Imagine installing a cash register at a store.

The cash register will do the same thing every time someone comes up to it.

It will take the customer’s money, scan the product, tell the customer how much they owe, and give them their change.

The register does this over and over again. The cash register has very little variation in what it does.

Fixed Automation is very common in many different industries.

This type of Automation is less versatile than others; it is typically used to automate repetitive operations using dedicated equipment in order to enhance production efficiency and throughput rates.

2.     Programmable Automation – This sort of Automation is ideal for batch production. When the system’s instruction set changes based on what’s being made, a new control program may be created for each batch based on the supplied requirements and processing tasks.

It is frequently used for medium volumes, although it may also be utilized for low or high volumes where economics justify it.

3.     Flexible Automation– As with programmable Automation, it allows for product changes. But this is much more than ‘programmable automation’

Inflexible Automation, it is possible to change products rapidly and automatically via the control system, which eliminates the need to reconfigure the equipment between batches.

4.     Integrated Automation – This method does not require human involvement in comparison to the other three.

A single control system handles and synchronizes all connected machinery, processes, and data with this technology.

Advantage of Industrial Automation:

The main benefits of industrial automation are

  1. Streamline equipment and processes for greater efficiency and increased quality
  2. Reduction of human interaction from production lines. This, in turn, increases productivity, output, accuracy, and safety.
  3. Reduction in cost. This is achieved by reducing human cost as well as reducing the waste/slack in the system.
  4. Efficient use of raw material, input material as well as better utilization of energy.
  5. Ability to maintain consistency in quality (and continuously improve the quality of output).
  6. Now, Human interaction is shifted to new areas of expertise in design, operations, installations, and maintenance of automated machinery, robotics, equipment, and plant operations
  7. Creation of a safe environment for all. Also, reduction in environmental pollution. Automation can avoid harmful manufacturing conditions with severe temperatures, pollutants, intoxicating elements, and radiation-containing materials
  8. Reductions in system failure and downtime
  9. Greater flexibility as well as control over the manufacturing process. This helps in quick adaption/ customization of processes as per the need. New innovative & improved designs can be quickly introduced & integrated in the current system.

Points to watch out for:

1.     It’s quite expensive to install an automated system from the beginning.

2.     For maintenance and servicing, it is always necessary to have a team of skilled individuals.

Conclusion: What is Industial Automation

Industrial Automation is an economical, efficient, and flexible process, which has been used in industry to achieve higher-quality standards, lower production costs, and the removal of labor.

It’s is the control of machinery and processes used in various industries by autonomous systems through the use of technologies like computer software & Internet of Things, cloud & robotics.

The need for automated devices, software, and equipment will stay strong as long as the industrial automation industry develops.

Globally, this technology has proven to be a helpful tool for organizations, especially in an age when consumers have become used to fast transactions.

 

What is Smart Manufacturing and Why does Industries need it now?

Raktim Singh
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0
What is Smart Manufacturing and Why does Industries need it now?

What is Smart Manufacturing? Let’s Understand

Smart manufacturing is a manufacturing strategy that uses advanced technology and data to create products and services more efficiently and with less waste.

 As part of this, manufacturing companies use data and technology to

  1. Monitor production and monitor shopfloor, warehouses, machineries, equipment & robots.
  2. Make adjustments as per the need to optimize performance and production.
  3. Identify potential equipment issues.

Smart manufacturing is a significant game-changer that can reshape the market environment of the modern-day and generate a new group of leaders.

What is Smart Manufacturing? Another way to understand it …

Smart manufacturing means we can automate as many activities as possible in a working environment that uses smart manufacturing principles to be performed with maximum efficiency.

The National Institute of Standards and Technology (NIST) defines it as fully integrated, collaborative manufacturing systems that respond in real-time to meet changing demands and conditions in the factory, in the supply network, and in customer needs.

This means that systems are built in factories where the machines are connected to one other & based on usage data, manufacturing processes are getting optimized & can scale, as per the requirement.

Smart manufacturing aims to ensure quality and profitability at a lower cost, faster than ever.

Key points of Smart Manufacturing

  1. Use of ACID (Artificial Intelligence, Cloud, Internet of Things, Data).

The whole manufacturing process makes use of computer controls, big data, and other automation, with the aim to improve manufacturing efficiencies.

  1. With Internet-connected machinery, monitor the production process & identify opportunities, which can be automated.
  2. Industrial Internet of Things: With smart machines (machines having embedded sensors), now data related to operational status, overall productivity, performance for each machine/device can be collected & analyzed.
  3. This can help in proactive maintenance as well as effective utilization of each machine.

These smart machines operate autonomously and can communicate directly with manufacturing systems & shop floor.

 Collaborative Robots: These are smart machines/robots, which can also work with humans for co-assembly tasks.

For example, a smart machine, can observe what a human operator at an assembly line is doing, learn the human’s task, and autonomously start performing that same task with the exact same kind of precision. asks. 

By evaluating sensory input and distinguishing between different product configurations, these machines are able to solve problems and make decisions independent of people.

These smart machines can do the task beyond what they were initially programmed to do.

With artificial intelligence, they are able to learn based on experience/scenarios/data.  

As a next step, with help of AI, smart machines are able to change their actions according to the situation on a real-time basis.

  1. Digital twin: This is another important concept in the ecosystems of smart manufacturing. Here, we create the virtual model of an asset, process, or system by using the data obtained from sensors in the systems or asset.

The benefits of digital twins include potential reduction in time and cost of product development and elimination of unplanned downtime.

Major adopter of Digital Twin includes industries like Aerospace, automotive & transportation, electronics & electrical/machine manufacturing, and energy & utility.

Advantages & Points to watch out for smart manufacturing

Advantages:

Improved Productivity : 

With smart manufacturing, one can have smooth visibility into bottlenecks, machinery performance, and other operating inadequacies.

These manufacturing processes offer increased access to data over a whole network of the supply chains.

This data allows producers to carry out required modifications to boost yields, improve quality and reduce waste. 

Real-time data describes what the manufacturer wants and makes things easier for suppliers( and also, helps them to adapt to new requests).

They deliver the products only which is necessary, nothing more or less.

Cost-efficient

When the operating system and business systems are connected, manufacturers can uncover waste and improve production accuracy. 

Due to the data provided by these smart machines, users have a better understanding of supply chain problems such as inventory levels, delivery status, and cycles of demand. 

This helps them in minimizing costs in connection with excess stock or unforeseen production volume with this knowledge.

Adaptability

Smart machines, which are embedded with sensors & powered by artificial intelligence, are showing elevated levels of adaptability.

They are able to handle rapid design changes, increase production based on demand, optimization of the supply chain.

Things to watch out:

 

High Initial Investment:

The costs of incorporating automation and technology in their manufacturing facilities are astonishing for many enterprises. 

To establish whether the initial implementation costs will be worthwhile, it is vital to thoroughly assess the long-term benefits of introducing various kinds of technology inside your business.

High Need for skilled labor:

Manufacturing and the overall sector continue to rely on people to facilitate production. 

However, there is a higher need for highly skilled work in digitally linked systems, which may lessen the necessity for low skills.

Cybersecurity concern:

The whole model of smart manufacturing is dependent on the internet. While this allows for the user to have better access to data across systems, it offers hackers the possibility of hacking the network access.

Example of Smart manufacturing

I have mentioned below some companies, which have adopted Smart Manufacturing

  1. Whirlpool: It has put in place various analytical tools & uses various data to
    1. Eliminate waste that it sends to landfills.
    2. Monitor usage of electricity, water, and other parameters.
    3. Check the sustainability performance of its plants worldwide.
  2. Siemens: Apart from many other things related to Smart Manufacturing, Siemens have developed Mindsphere. MindSphereis part of Siemens Industrial IoT. 

As per WiKi

“MindSphere is a leading industrial IoT as a service solution developed by Siemens for applications in the context of the Internet of Things. MindSphere stores operational data and makes it accessible through digital applications (“MindSphere applications”) to allow industrial customers to make decisions based on valuable factual information. The system is used in applications such as automated production and vehicle fleet management.”

  1. Hirotec : Hirotec is a global auto parts manufacturer.

Hirotec has employed a mix of IoT and cloud-based technologies, along with small, robust servers on its factory floors. This generates analytics data, which helps the company to reduce downtime, predict & prevent system failures.

Also, It was able to significantly reduce the time, which was earlier spent on manual inspection.

Other notable examples include, Hewlett-Packard, ABB, Honeywell, Emerson, Rockwell Yokogawa, ABB, Honeywell, Schneider, Cisco, Huawei and AT&T, IBM, Microsoft, Oracle and Intel.

Some of them can be classified as “product and control solution providers,”( Rockwell Yokogawa , ABB, Honeywell, Emerson, and Schneider ), “IT solution providers” ( IBM, HP, Intel , IBM, Microsoft,  Oracle) and “connectivity solution providers.” (AT&T, Cisco, Huawei).

Final Thought: What is Smart Manufacturing?

The term “Smart Manufacturing” is used to describe the use of technologies to integrate information, people, and processes to make better decisions throughout the manufacturing process. 

The use of technology in the manufacturing sector is to enhance worker efficiencies, optimize product quality, reduce waste, and promote sustainability. 

As part of Smart Manufacturing, one gets access to Big Data and Advanced Analytics.

This helps manufacturers in identifying the processes, methods & services, which are costing too much or too little, or products that are selling well or less, products that are falling short of input supply, products or processes which are creating a lot of waste.

Armed with this smart data, manufacturers can take decisions, which can help in improving the overall top-line as well as bottom-line of a company.

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