Industrial enterprises around the world produced nearly two zettabytes (one billion terabytes) of data in 2023, and that figure is expected to double within five years, according to ABI Research, which provides market research on transformative technologies. However, much of this valuable information remains underutilised across the manufacturing industry. But with the rise of new technologies and AI, manufacturers can now harness this data in unprecedented ways, unlocking efficiency, agility and innovation across their operations.
Technologies like Azure IoT Operations, Microsoft Fabric, Azure AI and Copilot Studio are bridging the gap between legacy data and modern AI-driven insights, enabling factories to become smarter, more responsive and highly connected. But what is at the heart of this transformation? The digital thread.
“The digital thread revolutionises manufacturing and quality control by seamlessly connecting data across the entire product lifecycle, enabling real-time problem-solving, enhanced efficiency and improved customer satisfaction,” says Rupert Stuetzle, general manager of manufacturing and mobility in EMEA for Microsoft Germany. “Imagine you are the quality control manager at a large electronics manufacturer. You have received reports of a serious, recurring component issue for a newly released product, which unfortunately has led to a recall. Historically, the only solution would be to issue a full recall, which has significant financial, operational and reputational consequences. However, with the digital thread to provide comprehensive visibility into your organisation’s data you can trace the entire production history of the defective product, from design to final assembly, within a few simple clicks.
“The digital thread revolutionises manufacturing and quality control,” says Microsoft’s Rupert Stuetzle
“The digital thread helps you to quickly identify a fault in a specific batch of components sourced from a single supplier. Armed with this insight, you can determine the exact scope of the affected products, work with the supplier to amend the situation and initiate an extremely precise, targeted recall. This swift, data-driven response mitigates customer inconvenience, and helps preserve a brand’s reputation.”
A digital thread connects data, processes and information across a product’s entire lifecycle, making it easier to track and improve decisions. It links everything from research and development to production and even end-of-life management. By combining operational technology (OT) – like sensors, machines and factory systems – with information technology (IT), the digital thread gives manufacturers a complete view of their operations in real time.
The first step in building the digital thread is data collection. “To create the thread, manufacturers must develop a seamless flow of data from the physical environment of the factory to the digital environment of the cloud,” says Stuetzle. “As a smart factory can generate up to a petabyte of data per day, it is critical to ensure all industrial data is collected, consolidated and processed in a consistent manner across the cloud-to-edge continuum.”
Microsoft Azure IoT Operations helps break down old barriers between OT and IT systems, making it easier to collect the data needed for the digital thread. Once this data from factory equipment is stored in the cloud, it can be organised and structured to a set standard with tools like manufacturing data solution in Microsoft Fabric. There, generative AI can analyse the data to uncover valuable insights that help improve operations.
“Manufacturing data solutions in Microsoft Fabric brings disparate pieces of information together, from OT sources like factory sensor telemetry to IT data like inventory details, into a unified data foundation, following an industry standard information model,” says Stuetzle. “By providing a scalable and repeatable pattern to address all factory domain data projects, this data flow creates the digital thread: a consolidated view of all customer relationship management, product lifecycle management, enterprise resource planning and manufacturing execution system, just to name a few. With each of these key pieces of IT, OT and engineering technology data under one roof, manufacturers are empowered with more visibility into their enterprise and factory data than ever before. When a large language model is layered on top of this foundation, employees can access the digital thread using conversational input and receive answers in real time in their native tongue.”
Manufacturing data solutions on Microsoft Fabric allow organisations to explore insights anywhere along digital thread. Manufacturers like Schaeffler, Bridgestone and IPG are already leveraging this technology to unlock the full value of their factory data.
Schaeffler, which manufactures precision mobility components, uses this technology to modernise data management processes and generate valuable insights across various IT and OT systems. AI-driven insights maximise machinery uptime, improve product quality and increase output by giving employees quick, useful information in real time.
Bridgestone, the world’s largest tyre and rubber company, leverages manufacturing data solutions in Microsoft Fabric to accelerate the productivity of its frontline workforce. “As a private preview customer, and in collaboration with Avanade, Bridgestone uses the digital thread and AI technology to address key production challenges, like yield loss,” says Stuetzle. “The query system solution enables frontline workers, with various levels of experience, to easily interact with their factory data, and efficiently uncover insights to improve yield and enhance quality.”
Furthermore, agent templates in Microsoft Copilot Studio provide a low-code, customisable solution, designed to minimise time spent on menial tasks to allow frontline employees to dedicate their time to more rewarding work.
“Agent templates in Microsoft Copilot Studio provide the foundation for custom copilots, which act as the user interface for the digital thread,” says Stuetzle. “Agent templates are low-code solutions specifically designed to address key challenges manufacturers face, like ensuring workplace safety, skilled labour shortages and enhancing operational efficiency. For example, to improve occupational health and safety compliance a manufacturer can leverage the Factory Safety Agent in Copilot Studio, customise it to reference the unique documentation of their organisation, and embed it into familiar platforms, like Microsoft Teams, to facilitate a seamless user experience. Then, when a frontline worker has a safety question, they can get immediate answers in natural language without skipping a beat.”
Manufacturers can leverage the Factory Safety Agent in Copilot Studio to ensure workplace safety and enhance operational efficiency
Meanwhile, for a plant manager or operations manager, agent templates are a valuable tool to improve operational efficiency, as the Factory Operations Agent provides real-time factory floor insights in natural language. “By making it quicker than ever before to uncover answers, agent templates save time for the people of manufacturing, from the shop floor to the top floor,” says Stuetzle.
“With tasks like data pulls and finding documents handled by AI, employees can devote their time to their most impactful work. In this way, agent templates on Copilot Studio create more productive organisations, and unlock new value for manufacturers.”
Partner perspectives
We asked selected Microsoft partners how they are using Microsoft Cloud for Manufacturing, Copilot and Azure AI Agent Service to help manufacturers transform legacy data into actionable insights, enhance production processes and drive innovation
“Hexagon’s asset performance management solution, HxGN APM, is a key component of Hexagon’s Smart Digital Reality, which merges the physical and digital worlds to unlock unprecedented value from data,” says John Renick, senior strategy enablement consulting lead at Hexagon. Built using Microsoft Azure, HxGN APM takes a holistic approach to transform data into actionable insights, providing a unified, real-time view of industrial assets.
Hexagon’s HxGN APM solution merges the physical and digital worlds to gain value from manufacturing data
“M-Files leverages Microsoft technology to help manufacturers transform legacy data into structured, actionable information,” says Ville Somppi, senior vice president of industry solutions at M-Files. “M-Files pulls in enterprise information across various business systems and organises documents around a specific industry and business context.”
“At Synergy Technical, we help manufacturers transform legacy data into actionable insights using Microsoft Cloud for Manufacturing and Microsoft Copilot,” says Dan Finn, vice president of sales at Synergy Technical. “By integrating AI-powered predictive maintenance and real-time internet of things analytics, we enable manufacturers to reduce downtime, optimise workflows and improve product quality.”
Read more from these partners in the Spring 2025 issue of Technology Record. Don’t miss out – subscribe for free today and get future issues delivered straight to your inbox.