Back in 2011, the German Government launched the ‘Industrie 4.0 strategy’ to digitise manufacturing. Seven years later Industry 4.0 is a global buzzword, with firms such as Bosch, Siemens and Schneider Electric implementing connected assets, aggregating operations data and asset information into cloud-based data lakes and leveraging analytics to optimise processes and predict risks. Industry 4.0 is also driving interest in digital twin simulations of complex assets. A fascinating example of the potential for step-change is Akselos – an MIT spin out which recently received $10 million in funding from its customer Shell and Innogy Ventures.
An essential component of operational risk management for industrial assets is the ability to identify the likelihood of an adverse event, analyse its potential impact and suggest methods to avoid or mitigate negative outcomes. What’s new about the industry 4.0 approach is that it aims to do this in close to real time. As part of the annual Verdantix survey on operational risk management, we asked 221 operations managers what role industry 4.0 strategies play in triggering the implementation of digital approaches to operational risk. We heard that 54% view it as very important or important. This new driver is good news for vendors of ORM software such as Petrotechnics, RAP International, RiskPoynt and TenForce.
To learn more about how the ORM software market will grow over the next 20 years see the Verdantix report Operational Risk Management Software Market Size And Forecast 2018-2038.