Industry 4.0 is Changing the World. Could the Circular Economy Save It?

However you get your news these days, there are a few themes that are impossible to avoid: climate change, plastic waste, and the growing role of artificial intelligence are driving the news cycle wherever you are.

If you work in industry, like me, there are other buzzwords you come across daily – Industry 4.0 and sustainability are two of the big ideas that are impossible to avoid.

And that’s fair enough – does anyone really want another industrial revolution? It was only 200 years ago that the first one started, accelerating our race towards the Anthropocene - the age of humanity. For all the good it has brought human civilization, there are also huge impacts on the health of the rest of the planet.

But hear me out. If we want to find a way to have our industrial cake (I.e. make money) and eat it (I.e. reduce our burden on the planet) then we need to get the fourth industrial revolution right – because it will enable something even more powerful – the circular economy.

Don’t just eliminate waste. Monetize it.

If we want to reduce our impact on the planet, Industry has to take the lead - while 3% comes from us – our homes and municipalities – in the USA,  at least 97% of solid waste is produced from industry (and it’s probably more). That has to change.

The circular economy is more than a sustainability initiative – it’s about helping industrial companies make and save money by better managing their resources and waste efficiently. This waste can be reduced, monetized, and circulated across supply chains and value networks. In other words, industrial companies need to start thinking about their waste as valuable inventory. If they do it right, they’ll consume less and create more value for their shareholders.

And the benefit of circular economy is that it is already working. The best companies are reinvesting these funds into continuing to improve the way their businesses work: P&G has saved over $2B in the last ten years on their circular economy journey; it’s estimated that globally, an addition $700b/year awaits organizations who circulate materials instead of starting from scratch.

As industrial companies continue down this path, they’ll need digital solutions that can support their business and operating models – which is why Industry 4.0 and the Industrial Internet of Things is so important. The technology from Industry 4.0 combined with the foundations of lean and kaizen culture can make this happen.

The circular economy is where sustainability meets profitability

The circular economy is going to need a lot of effort from across multiple value chains but things are already starting to happen.

Thanks to its strong heritage in serving industrial sectors with both hardware and software for improved operations, GE Digital’s offering is an enabler for industrial companies looking to explore how to make their own steps towards digitalization – and even circular operating models.

To contribute, GE Digital is currently investing in the development of its analytics-powered APM and OPM (Asset Performance Management and Operations Performance Management) suites, as well as upgrades to its core manufacturing and automation suites. We are also developing Digital Value Stream Mapping solutions – to help manufacturers pinpoint where there is waste in their systems, and easily figure out what to do about it.

There are three areas where we are focusing our efforts:

1. Digitize and optimize operations

    

   • Our Automation and MES software capture data about production processes helping manufacturers to improve productivity and analyze trends across their operations
   • Our Predix OPM offering brings the power of predictive analytics to industrial data, allowing industrial companies – and their entire supply chains – optimize their operations through continuous AI and Machine Learning

2. Extend asset life through better maintenance

    

   • Our Predix APM software uses AI and Machine Learning to help industrial companies to predict potential problems with their most critical assets – avoiding expensive maintenance issues and even more expensive unplanned downtime.
   • By improving the way that assets are maintained in the field, we are also in a better position to increase their active lifetimes.

3. Reduce energy, waste and emissions

    

   • Our OPM creates a digital twin of the operating environment through integrating data from multiple sources and uses analytics to monitor, predict, and prevent generation of waste from production operations
   • This process digital twin can reduce waste by 4x and decrease energy usage up to 30%

A true circular economy is some way away - but for the sake of our environment, societies and economies it is clear that we need to get there.  Adopting the digital technologies from Industry 4.0 faster - and the power of the Industrial Internet of Things - is the next big step on the journey. Is it one we can afford not to take?