<p>The rapid advance of industrial technologies has transformed our lives. Ever since the diversification of our agrarian economies into the production of goods and services, industrial technology has helped increase productivity and the standard of living in both developed and emerging countries. Today, the manufacture of industrial goods still accounts for 16 per cent of gross world product and is estimated to reach 25 per cent by 2022. A major technological development is again about to turn the industrial world upside down - this time in the form of the digitization of the factory.<br><br>Whether in terms of the safety, quality or affordability of our everyday products, we consume, without a second thought, goods which would have seemed miraculous to past generations. The technology that powers our modern transport facilities, smartphones, medical equipment and food supplies is at the height of current industrial innovation.<br><br>The latest wave of this industrial innovation has been described in various terms, such as "Industry 4.0," the "Industrial Internet of Things," or even the "4th industrial revolution." The underlying objective is the same - to establish constant connectivity between the Internet and each resource involved in the manufacture and delivery of goods. Going beyond this connectivity, the "digital factory" creates a shared virtual world in which realistic simulations and better decision making are possible with regards to, for example, reducing consumption of resources, energy and time.<br><br><strong>The stakes: refocusing on global value creation</strong><br>While the digital revolution has already significantly impacted industry, its benefits do not yet extend to the planet's 7 billion inhabitants. Dare we hope that this new wave of innovation will provide a better quality of life for civilization? And can we reduce industry's environmental impact at the same time? Yes, I believe it is possible - and this is the vision that we want to share with our customers over the coming decades.<br><br>Companies in the industrial sector are often seen by their shareholders simply as sources of profit. But for citizens and employees - and their countries as a whole - they have greater responsibilities. Over the past 40 years, the intense focus that has been placed on beating the competition and reducing costs has not only damaged the social fabric but has also adversely affected industry itself, and its ability to change. This disillusionment can be tackled effectively if we adopt a more long-term and sustainable vision which is not limited to the confines of the factory walls.<br><br>Emerging countries such as Brazil, Russia, India and China have already recognized the value of this and have seen enormous economic returns, not only by developing their manufacturing capacities, but also in terms of design. But they are now faced with rising wages, environmental concerns and quality control compliance.<br><br>If we work together, the wealth created by industry could serve the needs of everyone on the planet. For this to be achieved, we must produce the right goods for each region, at the right price, of the right quality and in the right quantity. These goods could be created using new and more sustainable processes, with more highly skilled jobs and thereby sustain the growth of the economy in each region. For each country and for each company, the key factor for success will be the capability of adapting to rapid changes in demand.<br><br>The digital factory will make it possible to address these issues. By implementing the digital factory concept, humans again become the key focus, their cognitive functions are given free rein and they can concentrate on innovation.<br><br>The digitization of industrial processes is already underway. But the sums invested up to now continue to be small as compared with the digitization of other corporate functions, such as finance and engineering. Manufacturing is now gaining importance and is looking set to distribute more globally the wealth it generates.<br><br>This trend has important implications for industry and national leaders. Industrial processes can easily be connected, tailored and dynamically changed across a network of industrial companies. This strategy, referred to as "Manufacturing as a Service" or MaaS, gives companies the possibility of responding rapidly to changes in demand or in market conditions. Industrial companies can now remain connected with their customers, providing them with value throughout the entire life of the product - thereby also extending industry's impact from the products themselves to the services which support them.<br><br>Industrial companies applying a MaaS approach can create high value-added experiences for other companies or for their clients throughout the product life cycle - from delivery, support, repairs or changes, to its end-of-life.<br><br>The digital factory also has the potential to create a large number of skilled jobs - that is to say "knowledge workers" - that will be freed from repetitive tasks thanks to digitization, computer systems, equipment connected directly to the Internet and advances in automation.<br><br>In addition to generic digital infrastructures, such as access to high-speed Internet, industrial companies must invest in other digital manufacturing technologies. The result, in terms of the creation of skilled industrial jobs, will make it possible to develop more sustainable manufacturing, with harmonious and sparing use of necessary resources throughout the product life cycle.<br><br>Workers must be trained for these opportunities and their jobs must evolve relatively rapidly, since this new world of production is capable of creating a new economy, for the benefit of all.<br><br>Like the "Lean" revolution and other initiatives for continued improvement, this change will take some time. But with a positive mind-set and determination to invest in this future, the "digital factory" has the potential to offer unprecedented growth and riches for our planet.<br><br><em>The author, Chandan Chowdhury, is managing director-India at Dassault Systèmes</em></p>
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