Why Old Tech is Costing Factories Millions

The Cost of Old Automation Systems

Industrial companies are losing $11.28 million annually due to outdated automation systems. These systems are inflexible and costly to update, leading to significant financial losses.

Key Problems Identified

Downtime and Inefficiencies
High Maintenance Costs
Hidden Issues Masked by Perceived Reliability

Financial Impact

Large Companies: Lose around $45.18 million annually.
Smaller Companies: Lose up to 25% of their revenue.

Challenges with Old Systems

Designed for static environments, struggling with modern demands.
Expensive and time-consuming to update.
Proprietary architectures limit data access, reducing visibility and responsiveness.

Fragmentation and Its Effects

Multiple distinct platforms with unique maintenance needs.
Vendor dependency and workforce inefficiency.
Siloed systems hinder predictive maintenance and fast issue resolution.

The Solution: Open, Software-Defined Automation

Modernizes legacy systems.
Accelerates ROI.
Strengthens industrial competitiveness and resilience.

Benefits

Flexibility: Decoupling software from hardware.
Integration: Multi-vendor systems.
Adaptability: Quick response to market shifts.
Skill Gap Closure: Addressing engineering skill gaps.

Implementation and Benefits

Pilot Projects: Start with asset-level trials.
Full-Scale Deployment: Expand to full-plant or multi-site deployments.
Data Ownership: Full data ownership and improved quality control.
Cost Transparency: Greater cost transparency.

Critical Cost Areas

Operational Agility and Resilience Losses
Optimization and Efficiency Costs
Preventable Quality Failure and Costly Data Maintenance
Sustainability and Compliance Costs

The Urgency of Action

Industrial leaders are deploying tactical solutions to sustain core priorities. In a rapidly changing world, agility and flexibility are crucial for survival. Every quarter of delay in addressing the cost of closed automation ecosystems results in another $1M+ in lost value.