New Research Identifies $11.28 Million Opportunity for Industrial Firms

A recent study conducted by Schneider Electric has uncovered a significant opportunity for industrial companies to enhance their competitiveness. The report, titled “Open vs. Closed: The $11.28M Question for Industrial Leaders,” reveals that closed industrial automation systems are leading to substantial financial losses for mid-sized organizations. Specifically, these companies are losing an average of 7.5% of their annual revenue due to operational inefficiencies, downtime, compliance retrofits, and delayed production.

The research was carried out by the global analytics firm Omdia and highlights how these costs are often obscured by the perceived reliability of legacy automation systems. For larger enterprises, the financial toll is even steeper, averaging $45.18 million in lost revenue. Smaller manufacturers are also significantly affected, with losses reaching up to 25% of their annual revenue.

Impact of Automation Systems on Revenue

The findings raise important questions about the sustainability of closed automation systems in an increasingly competitive environment. The reliance on outdated technology can hinder efficiency and growth, ultimately costing businesses more than they realize. The perception of reliability associated with these legacy systems may lead organizations to overlook the hidden costs associated with their continued use.

According to the report, organizations that modernize their systems to open architectures can potentially reclaim lost revenue and improve their operational efficiency. The shift towards more flexible and interoperable systems may provide a crucial advantage in a rapidly evolving industrial landscape.

As companies assess their automation strategies, the report underscores the need for a thorough evaluation of their current systems. By identifying and addressing inefficiencies, industrial leaders can better position themselves to capitalize on new opportunities and enhance their market competitiveness.

Strategic Shift Towards Open Systems

The study emphasizes that embracing open automation solutions can lead to greater transparency and adaptability. This shift not only minimizes operational disruptions but also enhances compliance with regulatory requirements. As industries face increasing pressure to innovate and optimize, the advantages of transitioning to open systems become increasingly clear.

With potential gains of $11.28 million annually, industrial companies are encouraged to reevaluate their automation strategies. The findings from Schneider Electric and Omdia present a compelling case for investing in modern technologies that can drive efficiency, reduce costs, and ultimately improve profitability.

In conclusion, the insights from this research highlight a critical turning point for industrial leaders. By recognizing the hidden costs of closed automation systems, companies can make informed decisions that pave the way for future growth and sustainability in an ever-competitive market.