Digital technologies have significant power to transform the manufacturing industry, according to Zebra Technologies’ 2024 report, The Rise of the Connected Factory, which states that “by augmenting workers and harnessing the power of flexible solutions that improve collaboration between C-suite, IT and operational technology (OT), manufacturers will experience enhanced connectivity, informed decision-making and improved sustainability”.
Ninety-two per cent of the global manufacturing leaders surveyed in the report shared that digital transformation is now a strategic priority for them. This statistic would have been quite different prior to 2020, as Parag Ladha, director of manufacturing industry marketing at Microsoft, says manufacturers’ core operations like production planning, inventory management, quality control, supply chain management and customer service would have largely been manual processes.
“Those operations were often characterised by siloed data and limited use of advanced technologies,” says Ladha. “However, the pandemic accelerated digital transformation, leading manufacturers to adopt cloud-based solutions, artificial intelligence-powered tools and internet of things (IoT) technologies. This shift has greatly enhanced efficiency, resilience and agility, enabling better disruption management and optimised production processes.”
Ladha explains that manufacturers can use these technologies to increase both their agility and ability to respond to challenges caused by global economic volatility, ongoing supply chain disruptions and fluctuating market demands. Building a robust digital infrastructure also enables them to move to remote and hybrid work models while maintaining operational efficiency and fostering innovation.
“Cloud and AI-powered tools like Microsoft Copilot are crucial for safeguarding manufacturing processes and driving innovation,” says Ladha.
Several notable examples demonstrate the measurable impact of solutions like Microsoft Cloud for Manufacturing and Copilot on manufacturing operations. In South Korea, LS Electric has used Microsoft Cloud for Manufacturing and Copilot to harness unstructured plant data, resulting in a 20 per cent reduction in power consumption on certain manufacturing lines.
Meanwhile, Austria-based technology company Andritz is using the Metris Copilot built on Microsoft Cloud to automate plant operations. “With the Metris digital platform, the company is now offering pulp mills a five-level concept to help them move towards autonomous manufacturing,” says Ladha. “The innovative concept has been successfully implemented at varying levels in 39 pulp mills worldwide. One mill has achieved 97 per cent autonomy, well above the industry standard of 60 to 65 per cent, and increased productivity by 18 per cent. Metris addresses a range of challenges including operating costs, process stability, plant reliability and sustainability throughout the lifecycle of an industrial plant.”
Andritz is using the Metris Copilot, built on Microsoft Cloud, to automate plant operations at 39 pulp mills, increasing productivity by 18 per cent
Generative AI is also becoming a key tool for manufacturers. “We’re seeing AI being used to create innovative designs, simulate various production scenarios and identify the most efficient processes,” says Ladha. “Manufacturers are also using AI-driven knowledge graphs to break down data silos and provide holistic insights into manufacturing operations. This capability can revolutionise product development, reduce time-to-market and enhance customisation.”
Microsoft and its global ecosystem of partners are using generative AI to power solutions that will improve operations across the manufacturing value chain. For instance, Siemens and PTC are focused on using the technology in solutions for product design, while Rockwell Automation and Sight Machine are using it to improve factory operations, Blue Yonder and O9 are adopting it for supply chain solutions, and Tulip is one of many deploying it for enhancing frontline operations. “These partners bring domain expertise, implementation capabilities and innovative solutions that complement Microsoft’s offerings,” says Ladha. “They help manufacturers identify specific use cases, customise solutions and ensure seamless integration with existing systems.”
AI, cloud, IoT and other solutions from Microsoft and its partners are helping companies meet their environmental and social responsibility targets, too.
“AI-driven predictive maintenance can extend the lifespan of equipment, reducing replacements and environmental footprint,” says Ladha. “Cloud, IoT and AI solutions can help enhance transparency and traceability, ensuring compliance with environmental standards and protecting critical infrastructure. These solutions help manufacturers achieve environmental and social responsibility targets while improving efficiency.”
Introducing these new technologies brings new security challenges and the technologies Microsoft offers can help manufacturers overcome these issues. “With the increased interconnectivity of IT and OT environments, manufacturers need comprehensive security solutions,” says Ladha.
Microsoft has made significant strides in this space, working with its global ecosystem of partners to develop comprehensive security solutions and services. For instance, the new Microsoft Defender for IoT solution provides robust, agentless monitoring for enterprise IoT devices, making it easy for manufacturers to ensure their devices are secure. Global manufacturer of confectionery Mars, for example, has used Defender for IoT to secure OT environments across 124 factories, enhancing both security and operational productivity.
“Microsoft Copilot is crucial for safeguarding manufacturing processes and driving innovation,” says Ladha
The integration of cloud workload alerts and asset information from Microsoft Defender Cloud into Defender XDR (formerly Microsoft 365 Defender) also provides organisations with visibility across their entire digital landscape. “This holistic approach eliminates infrastructure blind spots and enhances the ability to respond swiftly to threats,” says Ladha.
He explains that Microsoft Defender XDR’s capability for automatic attack disruption is particularly noteworthy, as it can contain in-progress attacks and isolate affected assets, effectively preventing repeat incidents.
“The integration of Microsoft Copilot for Security further strengthens this framework by providing AI-powered insights with a guided response, helping security teams react more swiftly and efficiently,” adds Ladha. “These enhancements are not just about adding layers of security; they’re about creating an integrated, resilient system that reduces downtime and adapts quickly to new market opportunities. This comprehensive approach underscores our commitment to enhancing both security and operational efficiency for manufacturers.”
The rapid pace of technological advancement also requires manufacturers to continuously upskill their workforce.
“It’s important to equip the workforce with the necessary skills to leverage new technologies effectively,” says Ladha. “Investing in training programmes for frontline workers helps them adapt to and fully exploit digital innovations, driving efficiency and fostering a culture of continuous improvement.”
Ladha advocates for a holistic approach to digital transformation that encompasses robust security measures, digital innovation and training for frontline workers: “In essence, addressing these aspects from the boardroom to the factory floor enables manufacturers to achieve sustainable growth, resilience and gain a competitive edge in today’s dynamic market.”
Partner perspectives
We asked selected Microsoft partners how Microsoft’s products and AI-driven tools are helping manufacturers to safeguard their processes from disruptions as well as evolve operations for new markets
“A digitalised human resources management system, like Microsoft-based Lanteria, can provide insight into employee satisfaction rates, turnover and time-to-hire, as well as tools for succession planning, skills training and ensuring certification compliance among employees,” says Andrew Swiler, CEO of Lanteria. “Backed by Azure, Lanteria ensures an always-available, highly secure platform, so manufacturers can both safeguard employee data and ensure it is available for accurate and time-sensitive reporting.”
“Rockwell Automation and Microsoft are building AI tools to enhance manufacturers’ resilience against disruptions and optimise complex processes through the design, operate and maintain lifecycle,” says Jessica Korpela, director of global customer innovation at Rockwell Automation. “Our joint portfolio offerings leverage AI to predict and mitigate potential issues before they impact production, ensuring continuous operation and minimal downtime. Rockwell’s cloud solutions, powered by Azure, provide real-time data insights, enabling smarter decision-making and agility in adapting to changing markets.”
“Manufacturers can establish secure connections from their plant networks to Azure IoT Hub using Cogent DataHub technology in an Azure Managed Application,” says Xavier Mesrobian, vice president of sales and marketing at Skkynet. “They can run AI analytics on live process data while keeping their operations networks fully isolated from cyberattacks and other disruptions.”
Read more from these partners and others including Ansys, Spectralink and Tiger Technology in the Autumn 2024 issue of Technology Record. To get future issues delivered directly to your inbox, sign up for a free subscription.