IT in Manufacturing


IT in manufacturing – the CIO’s new challenge

November 2015 IT in Manufacturing

The computerisation of manufacturing as encapsulated in “Industrie 4.0”, or the so-called “fourth industrial revolution” is attracting attention by manufacturing decision makers who find their companies increasingly part of the global supply chain.

Gavin Halse.
Gavin Halse.

Industrie 4.0 fact or fiction?

Industrie 4.0 describes an industry where customisation of products and flexible mass production are enabled by information technology, advances in virtualisation, mobility, data processing and internet enabled service architectures. Some companies have been proactively preparing for this new benchmark in manufacturing flexibility, while others have predicted that Industrie 4.0 will eventually die a natural death, much in the same way that other IT led innovations climbed Gartner’s famous hype-cycle only to fall spectacularly again.

The requirements of Industrie 4.0 are ambitious and many companies will fail to meet the new benchmark. Does this mean that they will go out of business? Probably not, at least for now.

Industrie 4.0 is placing new demands on the manufacturing CIO who is tasked with building the necessary capabilities within the IT organisation to future proof the systems.

In the past it might have been possible for the CIO simply to focus on business process optimisation, running the ERP systems and providing a secure stable IT infrastructure for the enterprise. This remains necessary but is no longer sufficient.

The convergence of IT and operations

Those CIOs that in the past avoided MES as being the realm of “highly specialised scada programmers and control engineers” are no longer able to ignore the reality of the convergence of IT and sensors on the physical plant. In turn, the specialists who preferred to work on their isolated proprietary PLC, scada or DCS systems cannot avoid these systems becoming part of a much broader ecosystem.

Integrated MES level applications such as laboratory management, plant maintenance and supply chain systems also need to be extended beyond the enterprise boundaries to connect with external real-time information. Several of these systems might have served the business well in the past but they are not designed for the future open architecture and will need to be upgraded or replaced.

As the Internet of Things (IoT) evolves and more and more physical sensors are coupled into the plant, IT is also increasingly being asked to process, store and analyse the resulting data. This requires a new set of skills and capabilities, and many are finding it hard to keep up to date.

As systems become more connected, integrated and automated, so the skills required to implement, maintain and operate the systems also become more specialised. New skills will be required across the board that can leverage these new services and technologies in ways that enhance business performance. Many individuals will find themselves poorly prepared in this regard and will have to seek out new skills in order to stay relevant.

The influence of human behaviour

I was involved in a project some years back that calculated the optimum production schedule to meet forecast demand in a beverage company. The system involved a very complex interrelated system such as raw materials, batch processing, blending, packaging, warehousing and distribution. The problem was so complex it could only be optimised using advanced software. Yet, as it turned out, the people involved in executing the resulting plan were often unwilling to accept the calculated optimum because they could not understand how the computer had come up with it. When the solution was not consistent with their own instincts, the system was deemed to be wrong. In the new world of Industrie 4.0 such behaviour would severely inhibit the organisation’s capability to respond correctly in response to complex external stimuli.

It should be clear that implementing the principles of the fourth industrial revolution is more than wiring sensors to the Internet and analysing the resulting big data. It will involve a fundamental change in the way people make decisions at work using new technologies; and will require a new level of skill in operations, engineering, process control/MES and IT. A new generation of informed information worker is required to make Industrie 4.0 a reality for most.

The manufacturing CIO clearly needs to be comfortable with the concepts of Industrie 4.0. Established IT processes that in the past focused on preparing month-end reports from an ERP system might not be adequately prepared for real-time analytics driven manufacturing decisions.

My advice to a manufacturing CIO is to get familiar with Industrie 4.0, even if it is not yet clear on how it will impact on your organisation. Deep organisational transformation takes time; and the sooner there is a clear vision of what the future holds and an understanding of what is required, the sooner the process can start.

As CIO you should proactively build the new required competencies in your teams. Most of the Industrie 4.0 concepts will be familiar to IT people who are presently getting comfortable with cloud, mobility, SAAS and big data. Align the IT organisation closer to the engineering and manufacturing execution teams and seek common ground for collaborative projects. This is one area in manufacturing where the CIO can certainly lead business transformation.

For more information contact Gavin Halse, Absolute Perspectives, +27 (0)83 274 7180, [email protected], www.absoluteperspectives.com





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Data centre design powers up for AI, digital twins and adaptive liquid cooling
IT in Manufacturing
The Vertiv Frontiers report, which draws on expertise from across the organisation, details the technology trends driving current and future data centre innovation, from powering up for AI, to digital twins, to adaptive liquid cooling.

Read more...
How digital infrastructure design choices will decide who wins in AI
Schneider Electric South Africa IT in Manufacturing
As AI drives continues to disrupt industries across the world, the race is no longer just about smarter models or better data. It’s about building infrastructure powerful enough to support innovation at scale.

Read more...
How quantum computing and AI are driving the next wave of cyber defence innovation
IT in Manufacturing
We are standing at the edge of a new cybersecurity frontier, shaped by quantum computing, AI and the ever-expanding IIoT. To stay ahead of increasingly sophisticated threats, organisations must embrace a new paradigm that is proactive, integrated and rooted in zero-trust architectures.

Read more...
2026: The Year of AI execution for South African businesses
IT in Manufacturing
As we start 2026, artificial intelligence in South Africa is entering a new era defined not by experimentation, but by execution. Across the region, the conversation is shifting from “how do we build AI?” to “how do we power, govern and scale it responsibly?”

Read more...
AIoT drives transformation in manufacturing and energy industries
IT in Manufacturing
AIoT, the convergence of artificial intelligence and the Internet of Things, is enhancing efficiency, security and decision making at manufacturing, industrial and energy companies worldwide

Read more...
Today’s advanced safety system is but the beginning
Schneider Electric South Africa IT in Manufacturing
Industrial safety systems have come a long way since the days of hardwired emergency shutdowns. Today, safety systems are not just barriers against risk; they are enablers of safer operations.

Read more...
Siemens brings the industrial metaverse to life
Siemens South Africa IT in Manufacturing
Siemens has announced a new software solution that builds Industrial metaverse environments at scale, empowering organisations to apply industrial AI, simulation and real-time physical data to make decisions virtually, at speed and at scale.

Read more...
Five key insights we gained about AI in 2025
IT in Manufacturing
As 2025 draws to a close, African businesses can look back on one of the most pivotal years in AI adoption to date as organisations tested, deployed and learned from AI at pace. Some thrived and others stumbled. But the lessons that emerged are clear.

Read more...
South Africa’s AI development ranks 63rd in the world
IT in Manufacturing
The seventh edition of the Digital Quality of Life Index by cybersecurity company, Surfshark ranks South Africa 75th globally.

Read more...
Optimising MRO operations through artificial intelligence
RS South Africa IT in Manufacturing
AI is reshaping industrial operations at every level in the maintenance, repair and operations supply chain, where it is driving efficiency, predictive insight and smarter decision making.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved