By embracing a digitally-driven disruption of its industrial landscape, South Africa has the opportunity to invigorate its output capacity, create new skills and attract more investment, says Siemens SA CEO Sabine Dall’Omo.
International studies suggest SA is ready to embrace digitalisation and is already moving up the digital rankings. According to the 2016 World Economic Forum (WEF) Global Information Technology Report, SA has jumped 10 places since last year to 65th out of 139 countries in overall Networked Readiness Index (NRI) rankings.
This is a key indicator measuring how well an economy is using digital technologies to boost competitiveness and wellbeing. The WEF report shows that this digital transformation is mostly business driven, as SA performs best in business usage, ranking 32nd globally.
Another WEF study found that SA’s current level of digitalisation and integration is expected to rise from 27% to 64% within five years.
What does this mean?
Our world is becoming increasingly digitised, from personal devices to complex systems in the industrial space. From gas turbines to trains to manufacturing or medical imaging equipment, our physical world is taking on a digital dimension.
Sensors and actuators collect data, monitor conditions, automate functions and optimise processes. Advanced algorithms, high-powered computing, better connectivity and cloud storage all facilitate the emergence of smart systems.
Whether it is a power plant, transport network, a commercial, industrial or healthcare facility, the convergence of the physical and virtual worlds offers boundless opportunities to advance operations for all areas of society.
Digital technologies promote the future of manufacturing – where new dimensions in productivity and efficiency increase competitiveness. Digital technologies create intelligent infrastructure systems, and create a networked world of energy where data increases efficiency of power plants and makes grids smarter.
An excellent example of a successful digital disruption is the Renfe Spanish Rail Company’s Madrid-Barcelona-Malaga trains, which were so unreliable in the past that commuters opted for air travel instead.
After adopting digital monitoring technology that predicts maintenance and prevents downtime, the 26 high-speed trains fitted with the software now boast an on-time rate of 99,94%, and 60% of passengers have switched from aircraft to train, which is more eco-friendly.
Is the price of digital efficiencies paid for with human job losses?
This is a particularly valid concern in South Africa, where unemployment is high, many workers are unskilled, and a large part of the work force is manual labour. While many entry-level physical jobs have already been replaced by cheaper and more efficient automation, this does not mean that the economy will suffer direct job losses.
Entry-level labour-intensive jobs will continue to play a central role in industry. Instead of rendering an employee obsolete, digital technology actually redefines the role of the worker, often leading to greater skills development, better pay and social upliftment.
Digitalisation is changing our world in every conceivable way. Knowing how to leverage these opportunities, however, requires a unique set of skills that can bridge these two worlds.
Businesses should therefore proactively develop a digital strategy with a partner that has the engineering, domain and digital know-how to generate performance improvements across the entire value chain, from design to production and operations to maintenance.
Those that do not embrace the digital revolution run the risk of falling behind.
For more information contact Jennifer Naidoo, Siemens Southern Africa, +27 (0)11 652 2795, [email protected], www.siemens.co.za
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