It is a myth that total automation will replace humans on the plant floor
Published on : Wednesday 16-10-2019
Vice President and
General Manager,
ARC Advisory Group, India.
What are the latest trends in automation for the industry?
New technologies continue to make their way onto the plant floor at an almost dizzying pace. This has both positive and negative effects for those responsible for investigating, implementing, using, and supporting operational technology in industrial, infrastructure, and municipal environments. In 2019, we see further acceleration of the convergence between IT (information technology) and OT (operational technology) to support the ongoing digital transformation of industry and infrastructure. I would peg these as the latest trends in automation:
• Greater adoption of Augmented Reality (AR) to support knowledge transfer
• Increased use of Virtual Reality (VR) for training and simulation
• Growing deployment of solutions that combine cloud and edge computing
• IT/OT cybersecurity converging to address challenges faced by manufacturers, and
• More assets will deploy digital twin technology.
Is the pace of changing technology too rapid for user industries to adjust to?
Yes, the pace of rapidly changing technology is difficult for user industries to adapt to. But they have no choice – if they want to survive in the market they have to adopt new processes and technologies. In order to confront the rapidly evolving world, companies need to have systems in place to adapt with the changes. A major part of the challenge with tech change in most organisations is the vast accumulated legacy landscape of applications and systems that must be maintained, nurtured, and supported, before innovation can even be considered.
As technology changes, so too do the industries that use it. For example, mobile devices and apps are piloting major industry shakeups as they either find their way into new markets (hospitality) or change the way people interact with a market (transportation).
Are the user industries, especially SMEs, adequately informed and equipped to handle digital transformation and its challenges?
In my opinion, the SMEs in India are adequately informed and equipped to cope with the challenges of digitalisation. Companies know that to compete in today’s volatile environment, they must be able to react quickly to changing market conditions and customer expectations, innovate with new business processes that reach throughout the organisation and into the design and supply chains, monitor and adjust these processes quickly and automatically, and rapidly evaluate alternate scenarios when the inevitable glitches occur.
Successfully innovating at this level involves managing people, processes, systems, and information. And when disruptive technologies are in the mix, the first challenge is often tied up in the interplay of people and technology. Only when the people involved begin to understand what the new technologies are capable of can they visualise the potential “to be” business models and begin to take the steps towards achieving the innovation.
The Indian market always has its own challenges when it comes to technology adoption, especially the RoI factor. Are things changing?
The market in India is price-sensitive, so the RoI justification plays a major role in deploying new technologies. Other factors and arguments come into play too. These could range from “Our traditional processes are working well, why take the risk and disrupt operations?” to “Will the supplier provide timely upgrades and after-service?” At the recent India Forum these aspects were discussed in depth. At this juncture it would be appropriate to quote from two of our Industry Association Sponsors (from India): NASSCOM and AIA. This will drive home the point that India’s business landscape is certainly changing.
“The world’s most valuable resource is data, not oil,” said Achyuta Ghosh, Head of Research, NASSCOM, India’s IT-BPM industry association. India requires a comprehensive data strategy, said Mr Ghosh because data is more than just a commodity – it creates value and drives wealth creation. Further, he spoke about India’s strengths, opportunities, weaknesses, and threats in a data-driven world. The country requires an end-to-end strategy that will strengthen its competitiveness across the entire value chain.
Uma Balakrishnan, Vice President, AIA spoke about creating an ecosystem for digital empowerment in manufacturing. Empowerment, discipline and delegation are closely linked, she explained. Manufacturing companies (ranging from micro – medium – very large) are seeing rapid changes in systems, processes, and technologies; and for this they need to be digitally aware and empowered. The digital ecosystem involves multiple stakeholders who must work collaboratively: control integrators, Industrial IoT solution providers, platform vendors, cybersecurity providers, smart machines, etc. Disruptive technologies are altering business dynamics.
Is there a fine balance between total automation and safeguarding jobs?
In my opinion it is a myth that total automation will replace humans on the plant floor. Certain repetitive tasks can be automated, but the human element is very important. The majority of jobs that are at risk for being displaced are process-driven jobs. Shifts in the workforce may displace some workers while at the same time create new opportunities for others. Currently, many companies view digital transformation as being technology-driven. Machine learning, cloud architecture, microservices, augmented reality, and Industrial IoT platforms are just some of the technologies driving endless discussion among end users as well as fierce competition among solution providers. Often missing from these conversations is a focus on the human element of digital transformation. The changes that digital transformation will have in the workforce are likely to be the most far-reaching and sustained effects.
Not only will digital transformation change the number of people needed to do work, it will rewrite how that work gets done. According to the World Economic Forum’s Future of Jobs report: As technological breakthroughs rapidly shift the frontier between the work tasks performed by humans and those performed by machines and algorithms, global labour markets are undergoing major transformations. These transformations, if managed wisely, could lead to a new age of good work, good jobs and improved quality of life for all, but if managed poorly, pose the risk of widening skills gaps, greater inequality and broader polarisation. To harness the transformative potential of Industry 4.0, business leaders across all industries and regions will be called upon to formulate a comprehensive workforce strategy ready to meet the challenges of this new era of accelerating change and innovation.
G Ganapathiraman has been heading the ARC India operations since June 2012. His range of responsibilities at ARC includes supporting the global offices in preparation of market research reports, organising ARC India forums, and sales/technical promotion in the areas of automation and enterprise.