Factors Influencing Industry 4.0
Once the COVID-19 has been either eradicated or the business world finds its groove working within these new parameters, organizations will find themselves on one of two sides: fighting to catch up with Industry 4.0 or leading the charge. This isn’t much different than the business landscape of the Internet of Things before coronavirus sent most of us to our homes for indefinite remote work. This time, however, the haves and have-nots will become thriving or surviving instead.
The following are a number of factors influencing the way organizations are handling IoT during the coronavirus pandemic and what the outcomes may be:
- Track and trace solutions – As supply chains are disrupted and demand patterns change, real-time supply chain visibility is increasingly important. Providers of IoT technology are making use of their data and updating the public on what’s happening in their IoT networks.
- Increase in easy-to-install IoT retrofit solutions – Companies not digitally connected may find it beneficial to use a retrofit solution that is easy to install but doesn’t provide the same benefits of a completely engineered IoT solution.
- Paused projects – The consensus is there is a decline in technology budgets as many projects are put on hold or slowed down. Research by ETR assumes a 4 percent drop in budgets, although the data was collected early on during the crisis. The two exceptions are 1) projects involving technologies directly linked to COVID-19, and 2) highly strategic initiatives.
- Increased activity in some enterprise technologies – with entire workforce’s telecommuting, there has been a significant increase in technology like work-from-home infrastructure, collaboration tools, virtualization infrastructure, VPN networking, mobile devices, security and desktop support.
- Many digitization initiatives get accelerated or intensified – Many factors indicate that the current decrease in demand for technology and digital solutions will be a short-term issue. In the medium-to-long run, the COVID-19 technology impact may be positive. Everyone has been forced to embrace new technologies and discover their benefits and challenges. Companies also will be built with more resilience to be better prepared in the event of another pandemic.
- The digital divide widens – Depending on how you’re handling your digital budget during the pandemic will determine where your organization lands in the great digital divide. Companies who did not take Industry 4.0 as seriously as they should have will fall behind while others working toward the new future all along will take the lead for years to come.
Make sure you’re on the right side of the digital divide when business returns to normal. 2W Tech is here to help. We are a technology service provider specializing in solutions for the manufacturing industry. Give us a call today to learn more about adopting Industry 4.0 in your organization.