At an operational level, companies that embrace digital are able to make production faster, more efficient and flexible - while at the same time improving quality. Digital transformation means unifying so-called isolated data silos, eliminating system discontinuities and abandoning paper-based workflows. At a strategic level, digital transformation - and the Internet of Things in particular, with wearable devices - makes data available to develop new products and make existing products smarter.

The digital factory interconnects sensors on machines (and smartphones) to the ERP system that underpins decision-making. For digital transformation to work, IT systems, machines, sensors, even components and semi-finished products must be interconnected so that they can communicate with each other. The ideal scenario is fully automated production, with real-time reports on the status of various components, with machines and systems able to recognise when they need maintenance, so that downtime can be predicted and minimised.