Priyanka Kaul, Associate Chief Engineer, Instrumentation with Technip Energies.

What is the current state of digital transformation in process industries?

Process industries are under constant pressure from fluctuating commodity prices, decreased capital expenditures, more stringent environmental regulations, aging workforce, and increased competition. A new generation of young tech-savvy yet less experienced workers are moving into roles previously held by industry and plant veterans with expertise. On the other hand, consumer technologies and customer experiences are raising the bar for process industry customer expectations. Additionally, process industries are facing a generational, worldwide energy transition towards sustainability.

Digital transformation is necessary as by embracing digital technologies, process industries can enhance their ability to respond quickly to market changes, customer demands, and industry disruptions. Digital transformation technologies enable seamless communication and collaboration across departments and enable organisations to streamline and improve their processes, improve customer experiences, and drive growth.To summarise, digital transformation in manufacturing and process industries is essential for making informed decisions, staying competitive, and creating new value propositions. It ensures that companies can remain competitive, relevant, and thrive in an increasingly digital and connected world.

Process industries are turning to technologies such as software-defined automation, Cloud, Internet of Things (IoT), artificial intelligence (AI), and industrial robotics to better optimise plants, empower their workforce, increase agility, and boost innovation efforts. AI, Robotic Process Automation, 5G, mobile development, and personalised user experiences are all examples of digital transformation trends that aim to work alongside humans to do everything from improving communication to limiting repetitive work. Digital Twins are used for simulation and operational phases of a process lifecycle. IIoT and Industry 4.0 are driving the growth of Wireless sensors being deployed to digitise field data.

In process industries, digital transformation is a journey towards an autonomous future. New technologies such as autonomous robots, additive manufacturing, artificial intelligence, augmented reality and 5G will allow for increased levels of automation, remote and unmanned operations. Putting humans out of harm’s way, a facility might entirely automate operations, maintenance, and incident management in the future.

Digital transformation is not only adopting new software, technologies, and processes that are more efficient and automated than traditional business practices and processes; its an entirely new, innovative way of doing things core to the process industries. Process industries must consider everything when taking on a digital transformation initiative, i.e., how people will react to the change, how it will impact customer relations, the cost, how it will align with business goals, etc. Digital transformations empower organisations to take their business into the future, position companies to withstand competition, and grow into new areas.

What key technologies are driving digital transformation in process industries today?

Key technologies driving digital transformation in process industries are as follows:

• Mobile phones and apps, 5G
• Cloud computing
• Internet of Things (IoT)
• Digital Twins
• Artificial intelligence (AI) and Machine learning (ML)
• Augmented reality and Virtual reality (AR/VR)
• Blockchain
• Big Data analytics
• Industrial Robotics and drones, and
• Additive manufacturing (3D Printing).

What role does data analytics play in the decision-making processes within these industries?

Industrial data analytics refers to the process of gathering, organising, selecting, integrating, and translating raw data into understandable information that is able to be acted upon. Data analytics uses sophisticated algorithms to generate additional actionable information from data.

Industry 4.0, digital transformation and process industrial analytics are intertwined. These data analytics happen in a continuous cycle where descriptive analytics sets the foundation, diagnostic analytics refines the understanding, predictive analytics forecasts future scenarios, and prescriptive analytics suggests actions to optimize those scenarios.

Big data refers to the growing volume, velocity, and variety of data process industries generate and collect. The use of big data allows manufacturers to identify trends in their business and take action on them. They can make informed decisions about product development, supply chain management, and other important aspects of running a manufacturing business.

What are the biggest challenges or barriers to digital transformation in process industries?

The major challenges to digital transformation in process industries are listed below:

• Outdated systems & lack of digital technology awareness
• Lack of skilled work resources and digital skill gap
• Company cultural resistance to change
• Rigid infrastructure/legacy systems integration
• Regulatory compliance and operational challenges
• Privacy concerns/Cybersecurity concerns/Data security
• Lack of overall Digitisation and Digital transformation strategy
• Cost management and return on investment (RoI)
• Lack of change management strategy
• Complex software and technology
• Driving adoption of new tools and processes, and
• Continuous evolution of customer needs and constantly evolving digital landscape.

How are sustainability and environmental concerns influencing digital transformation strategies?

The synergy between digital transformation and environmental sustainability has taken centre stage in an era marked by technological advancements and the urgent need for environmental conservation, growing consumer demand for sustainable products and regulations.

Digital transformation brings with it the power to collect, analyse, and interpret vast amounts of data. Process industries are now equipped to monitor energy consumption, carbon emissions, and resource usage in real-time. With data-driven insights, they can make informed decisions about optimising operations, reducing waste, and adopting greener practices. For instance, smart sensors in industrial settings can track energy usage patterns, allowing for adjustments that lead to significant energy savings and reduced carbon footprints.

Digital transformation in process industries and manufacturing, often referred to as Industry 4.0, encompasses the integration of digital technologies like IoT, Data analytics, Additive manufacturing, etc., into all aspects of manufacturing operations. This revolution is not only optimising production processes but also enabling manufacturers to achieve remarkable strides in sustainability.

Digital technologies facilitate the integration of renewable energy sources into manufacturing operations. Smart grids and energy management systems allow factories to optimise their energy consumption, reduce reliance on fossil fuels, and lower greenhouse gas emissions.

The challenge lies in mitigating the environmental consequences associated with the production, consumption, and disposal of digital technologies. Digital transformation initiatives, particularly those involving cloud computing and data centres, can have a substantial environmental footprint. Balancing the pursuit of innovation with sustainability goals is a challenge that process industries must address. Process industries should prioritise energy efficiency in digital operations. Utilising energy-efficient hardware, implementing smart energy management systems and life cycle assessments of digital products and services can help in minimising the energy footprint of digital processes and contribute to overall sustainability.

What advice would you give to companies just beginning their digital transformation journey?

The main points to take care in the digital transformation journey are as follows:

1. Fostering a digital culture and innovation

Process industries should encourage a digital first mindset among their employees and foster a culture of continuous learning and innovation where employees feel empowered to embrace change.

2. Focus on customer experience

Implementing customer relationship management (CRM) systems, personalised marketing strategies, and digital self-service options to provide a seamless and satisfying experience can be invaluable.

3. Data-driven decision making

Process industries should invest in robust data analytics capabilities to gather actionable insights from their business operations to gain a competitive edge.

4. Collaboration and partnering with experts

Collaboration and partnerships with technology providers, consultants, and industry experts who can offer valuable insights and expertise can prove invaluable for process industries.

5. Continuously monitoring and adapting

Regularly monitoring progress and making necessary adjustments is critical. Process industries should stay updated with the latest technology trends and industry best practices to be agile and adaptive to changing market dynamics.

Note: The views expressed are of the author in personal capacity and not of the company where the author is employed.

Priyanka Kaul is Bachelor of Engineering (Instrumentation) from University of Mumbai, India (2002). She is an alumnus of Delhi Public School, R K Puram. An Associate Chief Engineer, Instrumentation with Technip Energies, NOIDA, Priyanka has 20 years of industry experience in the Oil & Gas, LNG, and Power sector. She has worked with various reputed EPC companies and MNCs like Fluor, KBR, L&T Hydrocarbon Engineering, L&T Technology Services, Desein, S&B, GS E&C, and Technip. 

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