A new study has found that the digitisation of engineering processes can help businesses save on capital expenditure but also operational expenditure.
The report, which was revealed by Schneider Electric, presents concrete evidence of the power of digitization across the spectrum of global industry, commerce and the public sector.
“The goal for this report is to provide readers with a useful and realistic benchmark on digital transformation’s potential in energy management and automation. The Report focuses on four key sectors of the economy, buildings, data centers, industry, and infrastructure, all undergoing transformations that will fundamentally change the way people will live, work, and play.
According to the findings of the report digitization of engineering processes, for instance, can save businesses and organisations an average of 35% in Capital Expenditure costs and time optimisation. Further, commissioning costs of new systems and assets can be reduced by an average of 29%.
These findings put to rest market concerns that digital transformation is an expensive Capital Expenditure proposition involving new systems and difficult integration into existing processes. “The customer projects studied in the Report demonstrate the opposite.”
In addition the report revealed that digitisation, by harnessing IoT, can result in significant savings in Operational Expenditure leading to step change improvements in efficiency, reliability, safety, and sustainability. Businesses and organisations report an average savings of 24% in energy consumption, as a result of digitisation.
“In Industrial applications, digital transformation allows businesses to do more with less more yield with less energy, fewer materials, and fewer labour hours. Increased productivity, up to 50%, results from energy management and automation efficiencies across the value chain, from IoT-enabled tracking to automated production lines.”
Leaders in the digital economy
“Digital transformation is the only way of delivering consistency and efficiency across a company. Technologies such as the Internet of things (IoT), artificial intelligence and big data analytics are making companies more efficient and innovative, boosting their competitive advantage,” explains Jean-Pascal Tricoire, Chairman and CEO of Schneider Electric.
“Our report indicates that many businesses and organizations need a trusted authority to manage this complexity to unlock the full potential of digital transformation. Our technologies, built on EcoStruxure™, harness the power of digitisation, enabling our customers to become more efficient, safe, reliable, connected and sustainable – leaders in the New Digital Economy.”