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Digital Transformation of Automation

Updated on August 5, 2019

Digital Transformation of Automation

Automation is the technology by which a procedure or method is performed with minimum human help. Everything related to data acquisition, monitoring, process control, analytics, auto-modeling, search engine optimization and simulation, which are quickly moving into software internet protocol networking, and server-based data processing is changing due to digital transformation in automation. Except for the wells, mines, platforms, refineries, sensors, analyzers, and instruments are still lagging as usual.

Digital transformation in Automation

Digital transformation in automation is driven by the industrial internet of things; cloud computing, advanced analytics continues to transform how the top 50 biggest worldwide and North American automation suppliers do business.

Trends in the Digital Transformation in Automation

Industrial Internet of Things (IIoT):

IIoT platforms are used to accelerate the push of major automation suppliers into the software business through analytical applications, cloud technologies, and advanced engineering software focused on creating digital models of plants, products, facilities, buildings that can all dynamically change.

Software As a Service (SaaS):

Usage of IIoT enables software and hardware to create managed services. Software as a service typically offers annual subscriptions, which are eventually becoming outcome based services. Users pay based on desired outcomes instead of paying for just the service.
All about the Data in Digitalized Automation

Evolution in software companies:

During the past two decades, the software business has been growing and expanding for automation and control suppliers. But the following past couple of years have really accelerated this trend and software portfolio is expanding. This evolution into software business shows that intellectual property is really in the data other than in assets. If other companies and suppliers wish to survive in the new digital environment, they must focus on software advancement.

Transformation of Automation to annuity business

Aspects of automation as annual subscriptions:

In the future, various aspects of automation will be purchased by the end user as annual subscriptions. This type of annuity business will cause transformation in the overall software marketplace, where business advancement and desktop applications will be purchased as part of an annual subscription service with features of automatic updates, security patches, etc. This process of transformation of the automation system business into an annuity format will be much more competitive among automation suppliers.

Process Industries Grow Again
Robust revenue growth in automation:

In 2018, automation suppliers continue to witness effective growth in their earnings. Different methods like favorable currency exchange rates and acquisitions aided the revenue growth of many suppliers. The advancement in the software business of automation adds considerable gains with healthy activity in the electronics and automotive industries.

World Bank’s world development report 2019:

The World Bank’s World Development Report 2019 shows proof that the new industries and jobs within the technology sector increase the economic effects of staff being replaced by automation.

Computer control Automation
Automated Teller Machine (ATM):

Control of an automated teller machine (ATM) is an example of a process in which a computer performs a logic based response to a user’s selective information retrieved from a networked database. The ATM process is similar to other online transaction processes.


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