Over the past three years, Deloitte Consulting has been following the evolution of the smart factory, the use of data from physical assets to optimize manufacturing performance and make informed decisions.

In the firm’s most recent study, released in March, one conclusion was clear: Smart factories have arrived.

“Three years ago, a lot of people were talking about Industry 4.0, the industrial internet of ihings, the smart factory, but we saw relatively few concentrated efforts to advance those,” said Stephen Laaper (pictured, right), principal at Deloitte. “As we fast forward three years, we’re seeing that the specific capabilities for what each one of those topic areas can enable for organizations have become much clearer. Companies have been planning for these types of investments and they’re taking action.”

Laaper spoke with Lisa Martin, host of theCUBE, SiliconANGLE Media’s livestreaming studio, during the HPE Discover Virtual Experience event. He was joined by Brenna Sniderman (pictured, left), executive director of the Center for Integrated Research at Deloitte, and they discussed the importance of human-centered design and linking smart-factory initiatives to organizational value. (* Disclosure below.)

Primary competitive driver

According to Deloitte’s findings, 86% of manufacturers in the U.S. believe that smart factories will become the primary competitive driver by 2025. This is motivating firms to invest in systems and platforms, powered by artificial intelligence and robotics, to modernize the shop floor.

Yet, one of the key themes uncovered by Deloitte was the need for human-centered design based on needs of the user.

“You want to think about what the user is actually going to be using that data for,” Sniderman said. “Human-centered design is thinking about what that individual needs to do their role. If talent within your organization and folks on the shop floor see the value of this data and information, they’re going to be more inclined to adopt it because it makes their job easier.”

Deloitte surveyed representatives across multiple industries, from chemicals and aerospace to life sciences and healthcare. Although smart-factory implementation is moving forward, two out of three manufacturers surveyed reported no progress on initiatives.

This underscores the need for value, ensuring that smart-factory deployment is fully aligned with objectives and goals of the organization.

“We see a lot of efforts underway with very little tied value,” Laaper noted. “The reality is that not all of these solutions are created equal. There’s very clear guidance in terms of how particular capabilities that are being built will lead to value.”

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of the HPE Discover Virtual Experience event. (* Disclosure: TheCUBE is a paid media partner for the HPE Discover Virtual Experience. Neither Hewlett Packard Enterprise Co., the sponsor for theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE