In the heart of the digital revolution, companies across the globe are recognizing the need to adapt and transform. The industrial sector is no exception. David had the privilege of speaking with Mike Hughes, Zone President at Schneider Electric for the Nordics and Baltic region, who has been at the forefront of this transformation. With years of experience and a career that spans various regions, including the UK and Ireland, Mike shared valuable insights on the evolving landscape of digitalization in manufacturing.
“Digitalization isn't a new concept; it's been on the corporate agenda for years. However, the urgency to adopt digital strategies has significantly increased.”
The Why and How of Digitalization
David: “Why should companies talk about digital transformation today?”
Mike Hughes: “Digitalization is not a new concept; it's been part of the dialogue for many years. However, what's changed is the urgency and the necessity for it. The advancements in sensor technology over the past decade, coupled with exponential growth in computing power, particularly through AI and companies like NVIDIA, have propelled us into a new era. It's not just about being able to gather data anymore; it's about analyzing and extracting valuable insights from that data to drive significant productivity gains.”
A compelling aspect of our conversation centered around the realization that digitalization transcends IT. This transition is not just about enhancing IT infrastructure but transforming industrial processes to unlock new value.
Key Drivers of Change
From the introduction of SCADA systems to the integration of industrial software, the landscape has changed. This evolution is fueled by the need for data-driven insights to optimize processes and reduce inefficiencies.
Mike: “Over the past five years, the shift has been remarkable. Historically, IT and OT have operated in silos, but we're seeing those barriers come down. The realization that the largest potential for value lies not within office productivity tools but within industrial processes has been pivotal. When you combine digital sensor technology with AI capabilities, you create a powerful tool for unlocking efficiency on the shop floor. This convergence of IT and OT is vital for leveraging data across the entire manufacturing ecosystem.”
Sustainability + Digitalization
Another key theme that emerged was the role of digitalization in promoting sustainability.
Mike: “Sustainability and digitalization go hand in hand. As regulations around sustainability tighten, companies are compelled to not only track but actively manage their environmental impact. Digital tools allow for better energy management, supply chain transparency, and overall resource efficiency. It's a win-win scenario where companies can achieve sustainability targets while enhancing operational efficiency. [..] One of the most important lessons is that digital transformation goes beyond technology. It's fundamentally about rethinking processes and systems to unlock new value. Another critical aspect is the blurring lines between IT and OT, enabling seamless data flow and analytics. Lastly, sustainability can serve as a powerful catalyst for digital adoption, driving companies towards practices that are not only efficient but also environmentally friendly.”
Looking forward: what does the future hold?
Mike: “The future is incredibly promising. As we refine our approaches to integrating IT and OT and as technologies continue to advance, I believe we'll see even more innovative applications of digital tools in manufacturing. Sustainability will remain a key focus, driving further innovation in how we manage resources and reduce environmental impact. The journey of digitalization is ongoing, and it will continue to shape the manufacturing sector in profound ways.”
Lessons Learned
Reflecting on our conversation, several lessons stand out:
Digitalization is a strategic imperative, not just a technological upgrade. It's about rethinking processes and systems to unlock new value.
The integration of IT and OT is a game-changer, enabling seamless data flow and analytics across the manufacturing value chain.
Sustainability can be a powerful catalyst for digital transformation, driving companies to adopt practices that are not only efficient but also environmentally friendly.
A big thank you to Mike, the Schneider Electric Marketing & Communication team and AVEVA Select Scandinavia !
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Unpacking Digitalization and Sustainability with Mike Hughes, Zone President at Schneider Electric