SAP’s Strategy for Industry 4.0

Manufacturing companies are challenged to increase productivity while producing individualized products with high quality in an environment of constantly changing and varying customer demand. 

Industry 4.0, or the Industrial Internet of Things (IIoT), is about industrial transformation using new digital technology that makes it possible to gather and analyze data across machines and business systems, enabling faster, more flexible, and more efficient processes to produce higherquality individualized goods at lower cost. Industry 4.0 will radically change production across discrete and process industries. Production equipment will become highly autonomous.

The way humans work in production will change, with workers getting tailored information and decision support with smart devices. The production software stack will see a shift from transactional production execution to data-driven business process execution and optimization. All sensors, devices, machines, and so on will be connected.

With this level of connectedness, it is key that the architecture principles guiding the solutions are secure, interoperable, portable, open, modular, affordable, and extensible. SAP is an active user and a major contributor to various industry standards and related open source projects.

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