The authors presented the main aspects of digitization of production and industry using 4.0 technologies and based on the existing Industry 4.0 base. The opinion is expressed that the implementation of digital technologies is one of the main factors in the growth of the competitiveness of the enterprise and corporation in the conditions of global challenges and European integration processes in Ukraine. The world's most popular 4.0 technologies for the field of mechanical engineering are presented, namely: product life cycle management, predictive analytics (service) based on data processing; augmented and virtual reality, vertical and horizontal integration of machines using OPS UA, Production Management Systems (MES), smart devices and mobile applications, cloud platforms and services, etc. According to the research results, Industry 4.0 changes people's lives beyond recognition. Shortly, this will be the most global transformation in human history. And those countries that want to have high competitiveness and an efficient production system in the future should take part in it. This transformation will lead to a change in economic relations and customer needs, the way of production. Therefore, domestic production needs to take an active part in the global trend of development to occupy an important place in the world markets of high-tech products. The paper reveals the content of promising models of economic development and future markets according to UN expectations. As a result of the observation, the authors concluded that Ukrainian enterprises have underinvested in classic (3.0) technologies for years. The level of basic automation of ACSTP-IT does not exceed 50%, while Western countries, China, and Asia have mostly passed it. The authors expressed the opinion that there is no clarity on the priorities of digital technologies and the corresponding investments. There have been dozens of traditional 3.0 technologies for a long time, and newer ones belonging to the 4.0 generation are constantly being added to them today. As part of the topic of the article, it is stated that classic technologies (3.0+) should be considered robots, ERP, MES/APS/APC, SCADA/HMI, authorization, accounting/dispatching, data storage, mobile technologies, industrial networks, cloud computing. New 4.0 technologies are called IoT platforms, smart sensors, etc.
Thanks to the formation of the digital economy,
small and medium-sized businesses have
received an unattainable opportunity to be
global and have an increasingly significant
impact on the world economy. This trend
opens up new prospects for the development
of Ukrainian small and medium-sized
businesses. After all, Ukrainian companies can
integrate into international networks of added
value, which some of them are already
successfully implementing. This is the way to
increase exports and production of products
with greater added value [
Are enterprises ready to create such strategic development tools? When they come out, is it possible to launch them at the industry level? Who will be the first in this? Answers to these and other questions must be actively sought because it is speed, flexibility, and timeliness that will depend on the competitiveness of domestic products and services on the world market.
and Publications, Which
Scientific works and practical research and development of such well-known scientists and inventors as V. Isaacson, S. Brand, J. Vales, B. Elbrecht, J. Licklider, J. Von Neumann, E. Peters, E. Reinert. Ukrainian scientists and economists are also actively involved in the creation of the conceptual apparatus of the institutional palette of “Industry 4.0” system research. Among them are the names of V. Geits, V. Halasiuk, I. Guzhva, O. Holoborodko, O. Zhmerenetskyi, O. Zerniuk, S. Ilyashenko, M. Kuzmuk, K. Kraus, N. Kraus, O. Kryvoruchko, A. Maksyuta, O. Marchenko, O. Manzhura, T. Ostrikova, V. Osetskyi, Yu. Pyvovarov, Yu. Radzikhovska, O. Shtepa, O. Yurchak.
But, at the same time, a significant number of problems regarding the vision of digitization of production and industry using 4.0 technologies at domestic enterprises, the analysis of positive and negative changes that this Industry 4.0 brings for companies, remain insufficiently disclosed. In particular, a significant number of questions such as: What is generally practiced already at Ukrainian enterprises? Can this be called a real way of digital transformation of production and industry? Why are old problems not solved, and new ones are added in terms of the digitalization of the economy using 4.0 technologies?
The purpose of the article is to study the digitization of enterprises based on Industry 4.0 in the conditions of martial law and the rapprochement of Ukraine with the European Union. Development of practical recommendations and instructions in terms of speeding up the digitalization of production and industry in Ukraine. Presentation of the determinants of the qualitative step-by-step digitalization by business entities. Elucidation of the content and features of prospective models of economic development and future markets according to UN expectations. The justification of the main principles on which the positive quality of functioning of digitized productions and industrial facilities is based and the clarification of the most popular 4.0 technologies in the world for the field of mechanical engineering.
The term “digital transformation” (TC) appeared in the world back in the 2000’s. In 2011, from the submission of GapGemini Consulting and other consulting companies, the term received a powerful conceptual base, which explains how digitalization can radically change business performance. In 2014, the term Industry 4.0—the next stage of digital transformation in the industry—was widely heard at the Hannover Exhibition, and in 2015 Klaus Schwab’s bestseller “The 4th Industrial Revolution” was published. In 2016, the IT and industrial automation associations joined forces in Ukraine to create the “Industry 4.0 in Ukraine” movement.
Since then, attempts to understand the state of digitalization in various sectors of industry, in cities and their urbanism, and the possibility of accelerating this development have been traced in Ukraine. The mechanical engineering sector is the driver for the development of the entire industry in the era of 4.0. After all, smart machines are the basis of intelligent production. But this is not the only reason why nowadays the focus is on mechanical engineering. The dramatic drop in the volume of this industry after 2014 in Ukraine called into question the very existence of the industry—on the scale and boundaries that have more or less been maintained since 1991.
In addition to the traditional explanation about the loss of the CIS markets, the development of exports to other markets, as well as domestic competition, raised the question of the competitiveness of Ukrainian manufacturers. And among the factors of competitiveness, there is a special interest in those that are directly affected by digitalization. The results of a survey of the mechanical engineering industry conducted by the APPU [5] are somewhat controversial.
On the one hand, respondents show a good awareness of Industry 4.0 trends, and recognize Ukraine’s lagging but also believe in the significant impact of digital transformation on the competitiveness of their enterprises in the future. On the other hand, the interviewed experts from the market speak of excessive optimism and the “advancedness” of these results. For example, one can only be happy that 78% have digital transformation goals and 55% are implementing digital programs. However, it was not possible to get more specific information on these goals and programs. Certain contradictions in the results can be explained by the fact that those who are already approaching the implementation of 4.0 but may not yet be sufficiently confident in the integrity and integration of these strategies in their enterprises, took part in the survey. The role of digital technologies is one of the main factors in the growth of competitiveness.
The fact that 4.0 technologies are among the priority factors of competitiveness has long been recognized in developed countries, and in general, still very little in Ukraine. According to McKinsey data in 2016, more than 80% of the heads of industrial enterprises believe that technologies 4.0 will fundamentally change the landscape of industries in the next 5–10 years. In particular, 30% of them are already investing in these technologies. According to the early data of APPAU in 2016–2017 (before the 2018 survey), >90% of Ukrainian managers simply do not understand “what it is.” Accordingly, it was never about “faith”, and even more so about “investment” [5]. The general effect of technologies 4.0 for industry, the big four of the world’s largest consulting companies talk about revolutionary changes in the world’s economies thanks to digitalization.
The Ukrainian Digital Agenda Ukraine program gives average indicators of contribution to growth at the level of 20–25%. The European association Orgalime especially emphasizes and emphasizes the role of Industrial Engineering in mechanical engineering—“The primary focus of digitalization should be on those who start it (enablers)—these are the engineering industries”. Industrial engineering is machinedevice and other construction, complex engineering and system integration, technology design, industry-oriented R&D centers, etc. The position of the Ukrainian movement 4.0 about mechanical engineering. The national movement “Industry 4.0 in Ukraine” puts engineering and mechanical engineering sectors as a priority—the focus of national and state economic development programs should be on these sectors:
1. The processing industry (3rd level) consumes ready-made technologies—lines, machines, technological complexes, devices, etc. These products are manufactured in the Engineering & OEM category. If there are no local ones, imports will increase.
2. The main technological innovators in digitization come from another category— developers, system integrators, and IT vendors. The speed and power with which they affect categories (food and processing, metallurgy, energy, oil and gas, pharmaceuticals, building materials, urban infrastructure) is decisive for digital transformation. Industries such as mechanics, electronics, and electrical engineering are rapidly degrading in Ukraine because the conditions for development have not been created for them [6, p. 1888; 6, p. 144, 189, 255]. Accordingly, the main challenges in Ukraine are: • For industrial end-users and engineering industries—to change the focus and understanding of key business drivers: from only cost—to those that are important in the global world (business drivers)—quality, time to market, productivity, and customer experience. • For technological innovators: change the attitude of the categories of mechanical engineering and 4.0 innovators to digital technologies—instead of being an “appendage” to machines, they should become the main ones in creating added value.
There are many studies on the influence of digital technologies on the state of mechanical engineering today:
1. The McKinsey report “How to Success: Strategic Options for European Machinery” refers to a survey of more than 240 machinebuilding companies and focuses on strategic changes in 3 areas: • Change in growth patterns—both in the geography of presence (including areas of profit growth) and also in the management of value creation chains. Regarding the latter, the shift from products to services is a definite trend. Next, we see the growth of digital services. • Increasing rates of digitization—and calls into question the durability of existing business models [7, p. 722]. • Acceleration of organizational changes—which are necessary for the implementation of the above two directions of growth.
2. Back in 2016, Quest Trend Magazine determined in a survey of more than 150 machine builders that 66% of them are already on the way to Industry 4.0, and another 28% are planning these changes. Only 6% of respondents said that they do not plan any movement in this direction.
3. Another report of the same agency was specified for tasks of network interaction of machines, both vertically and horizontally of the enterprise. As you know, easy network interaction of people, machines, and systems is the cornerstone of Industry 4.0. The results show a great awareness of machine builders with both network interaction technologies and a purposeful movement in the direction of horizontal and vertical integration.
4. Hampleton analysts provide a rather extensive report showing the interest of large companies in acquisitions and purchases of technological representatives in the field of mechanical engineering. The most revealing here is the acquisition of the robotics leader Kuka by the Chinese Midea. There are dozens of similar reports and testimonies of digitization strategies of European and global machine builders in the world today [5].
Recognizing the primacy of large companies in digitalization processes, commitment to the course of digital transformation and Industry 4.0 is expressed, in particular by market participants—global vendors, integrators, business associations, consulting companies, and even the government. There are many reasons for highlighting the trend “large companies are the driver of digital transformation”. DTEK, Ukrzaliznytsia, Metinvest, Interpipe, KB “Pivdenny”, FED, subsidiaries of JSC “Naftogaz”, Kernel, MHP, and many others have openly declared their commitment to the course of digitization of enterprises. All the aforementioned companies are seriously investing in new technologies, and some of them have launched their corporate accelerators. The trend of corporate innovation is also fueled by several IT incubators that seek to involve the IT industry and the startup community in the transformation processes of our enterprises.
Despite all the positives of this trend, it is not difficult to see some distortions or “punctures” typical for this early stage of evolution. It makes sense to consider them in the 3 most typical categories of approaches to innovation: 1. Traditional, rigid selection through tendering. This is the classic and most common method of selecting contractors for certain works. the bid price is the main criterion, is also a mandatory selection condition.
most telling here is the tender of Ukrzagvydobuvannya (UZD) for the monitoring of wells for gas production, where the American Honeywell won with the sum of more than 10 million dollars. This is a rather complex and large-scale project, in which USD managers managed to correctly conduct prequalifications, as a result of which the most qualified contractors made it to the tender finals. Moreover, the bidding price in the final fell by
half. transformation
The are challenges generally of a
digital positive moment for the oil and gas industry, which is rapidly catching up with the modernization opportunities lost in previous years in terms of investments. However, in terms of digital transformation, this project does not address many other challenges facing such stateowned companies: • Ukrainian contractors or manufacturers are not visible at all—in this way, state increase the import companies component. • According to the available information, the technologies that will be used by Honeywell belong to classic 3.0 rather than innovative ones. In particular, the project does not yet solve typical 4.0 tasks of this scale, such as the creation of IoT platforms. Although it was probably a chance—we are talking about a huge distributed system of remote monitoring and control.
If the investment costs (ICt) associated with the implementation of the investment project are carried out in several stages, the calculation of the current net reduced income is calculated according to the formula: where NRIb is the amount of net reduced income for an investment project with multiple implementations of investment costs (ICt), NCFt is the amount of net cash flow for separate intervals of the general period of operation of the investment project, i is the discount rate used, n is the number of intervals in the total calculation period t. (2) (3) (4) (5) =
∑ =1(1+ ) , ∑ =1(1+ )
The index (coefficient) of profitability (IPi) of the investment project can be used as an auxiliary evaluation parameter because it does not allow to evaluation of the entire return flow for the project. This index is calculated according to the formula: = , where NIPi is the average annual amount of net investment profit during the period of operation of the project, and IC is the amount of investment costs for the implementation of the investment project.
The payback period is one of the most widespread and understandable indicators of the assessment of an investment project. Calculation of this indicator can be performed by two methods: • Statistical (accounting) • Discount.
The
undiscounted (statistical) payback period (PPn), determined by the statistical method, is calculated by the formula: For simultaneously implemented investment costs (ICo), this index (IDo) is determined by the formula: = ∑ =1 costs, NCFt is the amount of net cash flow for separate intervals of the general period of operation of the investment project, and ICo is the amount of simultaneous investment costs for the implementation of the investment project.
If the investment costs associated with the future implementation of the investment project are carried out in several stages (ICt), the calculation of the index (coefficient) of profitability (IDi) is calculated according to the formula: = where ІC is the amount of investment costs for project implementation, and NCFp is the average annual amount of net cash flow during the period of project operation (for short-term real investments (up to 1 year) this indicator is calculated as a monthly average). (6) (7) where PPd is the discounted payback period of simultaneous investment costs for the project, ICo is the number of simultaneous investment costs for project implementation, NCFt is the amount of net cash flow at separate intervals of the total period of operation of the investment project, i is the discount rate used, n is several intervals (years, months) in the total calculation period t, t is the total estimated period of operation of the project (years, months).
The Internal Rate of Return (IRR) is the most difficult (to calculate) indicator of the effectiveness of real investment projects. It characterizes the level of profitability of a specific investment project, which is expressed by the discount rate of cash flow, and is reduced to the current value of monetary investment costs.
The internal rate of return (IRR) = the discount rate (i), at which the NRI = 0.
That is, IRR calculations are carried out = 0, where NCFt is the amount of net cash flow in separate intervals of the general period of operation of the investment project, and n is the number of intervals in the total calculated period t.
When determining the internal rate of return, a full capitalization of the entire amount is assumed, a net cash flow with a future rate of return equal to the internal rate of return. approach established contractors, 2. Partner—through cooperation.
traditional, involves cooperation with
recognized system integrators,
This longand developers of ACSTP-IT. Private companies are following this path. A vivid illustration of such approaches is the first 4.0 cases in Ukraine from Interpipe and PJSC “FED.” There are many more of them in IT-Enterprise. Thanks to the stability of the relationship, the company was able to develop its vision of discounted payback period (PPd) is transformation according to the stages of determined by the formula: = ∑ =1 (1+ ) maturity of the customer.
Challenges to digital transformation are, first of all, dependence on one large contractor, whose range of competencies is a priori limited. Without synergy and integration, it is impossible to talk about real and deep integration processes of the enterprise— especially vertically, from sensors to ERP.
attempts to create its technological ecosystem and invited other ACS integrators to its ranks.
3. Focus on innovators through corporate accelerators. The leaders of investments in this approach in 2018 were
and Ukrzaliznytsia. The essence of accelerators is to collect the best offers from the market according to predefined needs (cases), with the signing of contracts with finalist companies. The most qualitatively such technique was developed at DTEK. Together with RadarTech (the organizer
of the accelerator), DTEK “filtered” more than 400 companies, including not only startups but also mature companies.
In general, if we talk about promising models of economic development and future markets, it is
worth noting that, according to the expectations of the UN, promising trends should be expected from the development of the bioresource economy, the closed cycle economy, the exabyte economy, the welfare economy, the impression economy, and the carbon-neutral economy. We tried to present the content and general characteristics of each of the above-mentioned
economies, their potential, opportunities, expectations, and prospects in Table 1. It is also worth noting one undeniable fact that each of these economies, in addition to its formation, is
already undergoing a deep
digital transformation, which the same will be strengthened every year and will form Industry 5.0 in the crosssection of various sectors of the economy [8, p. .
NetZero Innovation, technology, and investment The potential depends on public Economy—carbon- models in markets will accelerate the pressure on the government and neutral economy, world’s transition to CO2 reductions. About consumer behavior.
$2.3 trillion one-sixth of the world’s investment in energy resources went to renewable energy sources in 2017.
• The market for health trackers and remote monitoring devices in 2023 amounted to $60 billion.
Experience A paying customer does not buy a product, • The global digital content • According to forecasts, the Economy—the but an emotion. The thesis is not new, but market will reach $237.3 billion world market of sports economy of now it will be filled with technological by 2024 compared to $143 tourism will amount to $2.9 impressions, $6.5 highlights. This applies to everything from billion in 2019. billion by 2028 compared to trillion healthcare to banking. It is also about • The global market of banking $1.4 billion in 2018. complex software algorithms and high and financial chatbot services • The experience economy technologies: from 3D reality for trying on was estimated at $357 million in is not a new concept, but it is clothes to virtual trips to remote places. 2017 and may reach $2.1 billion evolving. Although humanity by 2024. is moving towards conscious • The 3D printing sector will consumption and care for grow to $28 billion in two years. the environment, it still wants impressions and travels. • It is expected that the world renewable energy market will exceed $1.5 trillion by 2025. • By 2025, the global electric car market will grow by 22.3% to $567 billion. • By 2025, the market of lithium-ion batteries will amount to $93 billion, the market of hydrogen production by 2023—$199 billion. • Going Net Zero could create 42 million renewable energy jobs by 2050 and lead to cumulative savings of $62 trillion.
Digital transformation challenges are the right approach widely used around the world to find and encourage innovators. Nevertheless, many questions were raised by the general strategy and selection criteria of DTEK—companies that offer “light” solutions and mainly related to control and accounting in non-production processes made it to the finals: • Unified infrastructure solutions as IoT
platforms. • New solutions regarding cyber security (we are talking, by the way, about the largest operators of critical infrastructure). • Asset management systems
and predictive equipment diagnostics. • Solutions that allow for a “digital leap”— • i.e., how to solve the backlog of the same mines or power plants in the mass digitalization of physical assets.
Without solving such tasks, it is difficult to make serious changes in approaches to the digital transformation of such enterprises. Without this, and against the background of a constant increase in tariffs, the question that
market
participants ask themselves is becoming
increasingly acute—“What is the essence
of these innovations?” [
The above-mentioned approaches can
be complementary. What is generally already practiced at such enterprises as DTEK? Can this be called the true path of
digital transformation? Do these approaches solve the main issues of acceleration in the field of ACSIT in the 21st century? Rather “no”. Mainly because old strategic challenges are not solved, and new ones are increasing.
First, there is no clarity on the priorities of digital technologies and the corresponding investments. There have been dozens
of
traditional 3.0 technologies for a long time, and
newer ones that belong to the 4.0 generation are
constantly being added to them today [
Classic technologies (3.0+): robots, ERP, MES/APS/APC, SCADA/HMI, authorization, accounting/dispatching, data
warehouses, mobile technologies, industrial networks, and cloud computing. New technologies 4.0: IoT platforms, smart sensors, cobots, 3D printing, artificial intelligence, cyber security, VR/AR, Real-time Location Services, Wearable, drones.
Which of them are priorities today and why? For example, with a limited budget, should you invest in AR/VR technologies, IoT, cloud platforms, etc.? Or maybe take up cyber security first? What do priorities depend on— or only ROI? And how can you calculate the ROI for completely new technologies? And what about financial indicators in cyber security issues?
Similar questions have been around for a long time, but there are usually no unequivocal answers to them.
Secondly, there are no “digital leap” strategies. Ukrainian enterprises have underinvested in classic (3.0) technologies for years. The level of basic automation of ACSTPIT does not exceed 50%, while Western countries, China, and Asia have mostly passed it.
In conversations about 4.0, a clear answer should also be given to the question of “digital leap”—how to raise the necessary base for data processing technologies. This is the main principle of digitization and it is about the automatic acquisition of data from physical assets. Without it, talking about artificial intelligence and other smart technologies in most cases sounds like fiction.
And again, there are no clear answers to this question yet. It is not clear why many esteemed customers need new 4.0 technologies if many of their control-accounting-automation tasks have not been solved. And they are solved by classic, long-available methods and contractors. Without clear answers to these questions, companies will catch up with the developed world in another 10–20 years. But then there will be new technologies.
Thirdly, endless tenders and the practice of “squeezing”—even in the case of quality contractors, have had a bad effect on the confidence of industrialists. The implementation of complex projects is always associated with risk management, and teamwork between the contractor and the customer—and on a longterm basis. But if you squeeze and tender all the time, lowering the price—what kind of parity of interests are we talking about? This is also one of the reasons why many leading developers prefer to work abroad. To this, it is worth adding that even in tenders there are clear criteria for the selection of the contractors in question.
As for innovation competitions, the questions are the same. Why did certain companies win in them in past years—the criteria are extremely blurred and unclear. In addition, the organizers of such competitions—even if hundreds of companies pass through them—do not make any final analysis of the results. Meanwhile, such analytics are extremely important for the orientation of other customers in understanding “who is who”, and for market participants to understand “where to move or where the growth zones are”. As a result, many customers go around in circles—it seems that there are also many developers, and they have already worked with many—and for some reason, it is necessary to “launch everything from the beginning.”
Fourth, the a lack of focus on the ecosystem.
The “fashion for startups”, which captures the mind of some CEOs, is harmful because it distracts from a much more important strategic question—how to revive and strengthen the innovation ecosystem in your industry? That is, customers from the easy supply of IT incubators, and today already state structures and international funds, are trying to build an increasingly “sophisticated” system of filters to filter out the best proposals from developers. Not analyzing at the same time—“Where do these proposals come from and are there conditions for creating a flow of innovative products?”. The innovation ecosystem in most sectors of Ukraine, which includes modern research institutes, project institutes, laboratories, technology parks, funds, etc., has been destroyed. Most often, it is so obvious that it does not even require special evidence. And instead, of restoring it together, the largest market operators continue to “milk” it. All this is similar to the notorious phenomenon—of the desire to get “milk without a cow”.
Fifth, ignoring the standards on which the world industry 4.0 is based. Talks about interoperability, integration, and cyberphysical interaction are completely groundless without consideration of the standards underlying these phenomena. And here is the surprise—it turns out that many directors do not need these things at all. They don’t even realize how similar innovative approaches are to the same invention of the bicycle. After all, you will have to redo everything. What then is the meaning of these innovations?
Sixth, uncertainty in “non-technological”
factors. The simplest principle of PPT (People,
Process, Technologies) was invented in IT, in
particular, to introduce the principle of any
technological implementations as complex
changes in the organization. That is, “you can’t
automate chaos”—you can’t implement new
modern technology without changes in
business processes, organization structure,
methods and culture of interaction, personnel
skills, knowledge, etc. This high-tech axiom is
already 25 years old, if not more [
Evidence of this is presented in Table 2. Predictive Predictive maintenance is a new type of machine and The most active in Ukraine is the Ukrainian analytics equipment maintenance that replaces traditional methods company IT-Enterprise, whose product (service) based such as planned preventive maintenance (PR). Stoppage of SmartEAM is the winner of the 2017 4.0 on data production can cost an enterprise from several thousand competition. SmartEAM uses the RCM method, processing dollars per day (FMCG) to 2.5 million per day (automotive which is the next step in the maintenance of PPR. industry). Today, smart machines can provide data on why and when a particular part or assembly might fail. Applying predictive analytics with new data processing methods and models can save up to 40% on maintenance and reduce unplanned downtime by up to 50%.
Product Lifecycle Product Lifecycle Management (PLM) is especially relevant The greatest effect from the application of Management for machine builders when it comes to innovation and “Engineering Data Management PDM” is (PLM) constant change. The main trends in this area concern the achieved when integrated with the typical transfer of PLM to the cloud environment, the emergence of configuration of “Management of a Product-Data-asa-Service (PDA AS), which turns product manufacturing enterprise for Ukraine”: this is data into valuable assets, collaboration platforms, micro- how PLM technology is implemented—product services, as well as blockchain integration. life cycle management technology.
Augmented and To master new machines, put them into operation, and then Companies active with these technologies in virtual reality in service, operators and operating personnel used to use industrial segments are currently unknown. instructions in PDF or printed format. But when it comes to Although their number is growing rapidly—the quickly finding the information you need, as a rule, such first classification and landscape were made in things do not work—it takes too long! It is another matter Unit.city. The Sensorama company is included in when the image of the necessary unit or part is presented in the 4.0 movement from this list. a visual form in 3D and also with all the accompanying information in real-time about the state of the mechanism.
This is how Virtual and Augmented Reality (VR & AR) technologies work. The use of AR significantly reduces the cost of personnel training and equipment maintenance, as well as reduces unplanned downtime.
Vertical and The “chips” of 4.0 are implemented by interoperability—both OPS UA has long been widely used by many horizontal vertically and horizontally (the value creation chain) of the market players at the SCADA/HMI level. New integration of enterprise—this is the OPC UA standard (MEC 62541). This is controllers (such as the Schneider Electric machines using the de facto standard for 4.0 projects (included in the RAMI M241/M251) allow the use of an OPC UA server OPS UA model) and supports several other protocols and “on board”—this provides more opportunities mechanisms—TCP, HTTPS, UPD, AMQP, and MQTT. Available for integration into the cloud environment and implementations are today in Java, .Net, and ANSIC/C++. OPC work in distributed architectures.
Foundation has more than 500 companies that support and implement their developments.
Production Production management systems are not a new thing in the It seems that Ukraine missed the 3rd generation Management industry. We are already talking about the 4th generation of of MES—it is extremely difficult to find them at Systems (MES) MES (Manufacturing Execution System)—software for our (any) factories. This is additional evidence of managing production processes in real-time. From gaps between the levels of IT and OT (ASUTP)— autonomous, local solutions, through integrated and modular after all, there are already many ERP systems on solutions based on platforms that allow easy integration of the one hand, and ASUTP on the other in third-party solutions and applications (apps). enterprises.
Smart devices The transfer of intelligence to any device is a characteristic of “Smart” (more intelligent) devices that are easily and mobile IoT and 4.0. Decreasing the price of sensors and many other integrated into the network have long been applications field devices makes it possible to significantly increase the offered by a lot of manufacturers in Ukraine, intelligence of physical objects into which they are integrated. primarily Western ones. Yes—sometimes they Typical use cases are better monitoring of equipment, are more expensive, but even in such cases, the including predictive analytics, tracking of wagons or benefits of using them compensate for the initial machines, mobile personnel, optimization and better cost. One of the best examples of the use of the management of production, etc. One of the best cases new Real-Time Location Services technology with new type sensors and the use of mobile described by us in Industry 4.0 where mass use is mentioned applications is demonstrated by Kyiv-based of smart sensors in production is Intel’s case. Leantegra. The company is widely implementing this technology in Turkey for tracking rolling stock and personnel in underground mines.
Cloud platforms Digitalization is impossible without IT infrastructure. Its Ukrainian industrialists are very cautious about and services central elements are the network and data centers (data new opportunities. Bias about cyber threats, centers). Maintaining your own, modern data center is an ignoring global trends, reluctance to pay for expensive “entertainment” for most enterprises, which is why subscription services, etc., collectively throw us most manufacturers today switch to using cloud services and back into the last century. Still, there is platforms. Industrialists need to know that the trend in movement. In the field of industrial platforms, Industry 4.0 is the use of ready-made platforms-as-a-service good examples are shown by the winners of the (PaaS). Almost every manufacturer of CAE/CAD/PLC/SCADA 4.0 competition in 2017—IT Enterprise, and even field devices offers integration into them today. Indusoft, and Novatek-Electro (Overvis).
Platforms such as Mindsphere (Siemens), Predix (GE), Ability (ABB), Ecostruxure (Schneider Electric), and many others are increasingly used, including machine builders.
Cyber security The Internet of Things is sometimes called the Internet of Technical Committee 185 and its group on cyber Threats. Cyber-attacks on Oblenergo, “Petya” and other security are actively working on the (including many non-public) attacks are eloquent evidence of harmonization of Ukrainian DSTU to the vulnerability of Ukrainian customers. Centrifuges at the international standards. It is worth knowing and Iranian nuclear power plant went “down” due to the Stuxnet following the best practices of brand leaders virus, which “broke” control algorithms in Siemens present in APPAU and the 4.0 movement—from controllers. Does this mean that we should then ban the Siemens, Schneider Electric, Phoenix Contact, Internet and close ourselves off in our environment, “on and others. But you should not ban the Internet, proprietary protocols”? Not! The whole world is moving to as the heads of some Ukrainian enterprises still cloud technologies and the Industrial Internet of Things do—this path is a dead end. (IIoT), where cyber security issues are one of the main ones.
The IEC 62443 standard is mandatory for industrialists to follow this path and build their systems and products to be safe. For machine builders, the MEK 62451 (OPC UA) standard is also important, which allows you to “build” an
OPS server into a machine in a safe manner.
Simulation, Machine builders increasingly use virtualization and Such things are completely new for Ukrainian virtualization, simulation technologies in the process of developing new machine builders. We do not have any and digital twins products. This makes it possible to reduce the cost of information about development or production many times over and speed up the pace of implementation. development. Therefore, digital simulation—in all its varieties—becomes a mandatory part of the PDP (Product Development Process). Simulation and digitalization capture the entire life cycle—for example, from the design of a mechanical product to the programming of the machine on which it is produced, and to its introduction into production.
Here is a classic example from Dassault Systemes from the Hannover Exhibition 2017. In 2018, Hannover demonstrated even more similar cases. An even more advanced level is digital twin models that virtualize the behavior of a real object at all phases of its life cycle.
New business The transition to service models is a typical characteristic of Ukrainian OEMs have known about service models Industry 4.0. Paradigms and “xxx-as-a-Service” approaches models for a long time. At least, giants like Corum are beginning to be applied to everything around—SaaS Group had their attempts to switch to them 3–4 (Software-as-a-Service) models, products, and platforms years ago. We still have a long way to go to the (PaaS) have been in use for a long time. Now it’s the turn of level of Kaeser Kompressoren, which already the Machines. Similar approaches are available thanks to the sells a service (compressed air), not digitization of machines. After all, the main problem of compressors, in Germany. If only because none operation is machine maintenance. Thanks to predictive of the machine builders has yet fully maintenance, including a whole set of 4.0 technologies implemented the technologies that provide the (digital twins, cyber security, cloud computing—analytics...) Product-as-a-service or Machine-as-a-service all these become realities. model. And they are all based on 4.0 technologies.
Returning to the main intrigue of the last three years—the trend of “big—as drivers,” today's success is decided precisely by the ability to create and implement effective strategic development plans. So far there are none. Perhaps they are not there because large enterprises act in the old way—they try to create important things of a strategic nature (sometimes—at the level of the entire country) in their closed environment—without involving the best market experts, without analyzing world trends, without a strategic focus on the wider ecosystem.
Industry 4.0 is changing people’s lives beyond recognition. Shortly, this will be the most global transformation in human history.
And those countries that want to have high competitiveness and an efficient production system in the future should take part in it. This transformation will lead to a change in economic relations and customer needs, the way of production. Therefore, domestic production needs to take an active part in the global trend of development to occupy an important place in the world markets of hightech products.
We hope that ahead of us is the wide implementation of innovative technologies in production, increasing the efficiency of business operations and, accordingly, increasing its competitiveness. Of course, for this, it is necessary to overcome several challenges that the modern world poses to Ukraine, but the main thing is that the country is on the right path, which will not only significantly increase the level of business, but also help accelerate the economic development of the entire country.