In today’s rapidly evolving industrial landscape, the trend of smart manufacturing is reshaping the global manufacturing industry. Industry leaders and experts are increasingly discussing key questions: What will be the future direction of industrial development? What goals does smart manufacturing aim to achieve? And why are so many companies investing heavily in the Industrial Internet of Things (IIoT)?
Li Kai, head of the Smart Manufacturing business at the Industrial Division of Schneider Electric (China) Co., Ltd., highlights that the rapid growth of smart manufacturing and IIoT is closely tied to broader industry trends. The first step in this transformation is achieving transparency through IoT technology.
[Image: A visual representation of smart manufacturing processes]
**Transparency: The First Step in Intelligent Manufacturing**
According to Li Kai, as a global leader in digital transformation within energy efficiency and automation, Schneider Electric has observed clear trends in the industrial sector—electrification, digitization, decarbonization, and decentralization. These shifts are not just theoretical; they are reflected in real-world developments across various industries.
For instance, while the power sector may seem traditional, electrification continues to grow at an impressive pace. In the coming decades, global electricity demand is expected to surge. Digitalization is enabling more information nodes across all sectors, while decarbonization is evident in the rise of electric vehicles and renewable energy sources. Decentralization, on the other hand, is visible in cloud computing, distributed energy systems, and smart microgrids.
China, as a major manufacturing hub, is at the forefront of adopting new industrial technologies. The government's "Made in China 2025" initiative underscores the importance of digital and intelligent transformation in the manufacturing sector. However, Li Kai points out that challenges remain, particularly in production efficiency, energy consumption, and product quality. The goal of digitalization is to produce more with less—less labor, less energy, and better results.
One of the biggest challenges facing China’s manufacturing industry is rising energy costs. Many heavy industries, such as cement, already have high energy consumption levels. With stricter domestic and international regulations, energy efficiency has become a critical issue.
To address these challenges, the real problem for many manufacturers isn’t a lack of will or technology—it’s the opacity of their operations. Li Kai describes factories as "black boxes," where data is hidden and decision-making is inefficient. To move toward intelligence, transparency must come first.
**IoT Architecture: Enabling Interoperability and Future Growth**
The Industrial Internet of Things has emerged as a powerful catalyst for change. By addressing issues like data collection, transmission, and cloud-based analysis, IIoT helps solve long-standing industry problems. Cloud computing, mobile internet, big data, and AI provide a strong foundation for future smart manufacturing.
Schneider Electric’s EcoStruxure architecture is a prime example. It consists of three layers: interconnected products, edge control, and application, analytics, and service. This platform supports both cloud and on-premise deployment, offering flexibility and scalability.
Li Kai emphasizes that the top layer—application, analytics, and services—is often overlooked but holds the most potential for digital transformation. Through this layer, companies can improve efficiency, reduce risks, and enhance return on investment.
**Making Manufacturing Transparent and Intelligent**
Today, the focus is no longer just on connecting hardware but on generating valuable insights from data. Li Kai compares smart manufacturing to the human body: automation is like limbs, digital systems are like the nervous system, and lean operations are the mind—the core of intelligence.
Schneider Electric advocates a "soft and hard combination" approach, prioritizing process optimization before implementing technology. This ensures that solutions are tailored to real needs, leading to transparent and effective outcomes.
Li Kai often jokes that working with customers is like a long-term relationship. Deep collaboration and understanding are essential to uncovering hidden needs and delivering meaningful solutions.
At the product level, EcoStruxure enables full transparency across all factory levels. This "transparent + convergence" model is one of the few practical examples of IoT solving real industrial challenges.
**Two Dimensions of Intelligent Value**
Ultimately, Schneider Electric’s smart manufacturing solutions offer two key benefits: end-to-end intelligence and lifecycle intelligence. End-to-end intelligence ensures seamless integration from suppliers to clients, while lifecycle intelligence connects digital services with production and R&D for continuous improvement.
As the manufacturing industry transforms, transparency, intelligence, and digitalization are becoming essential tools for competitiveness. With the integration of new technologies, more Chinese manufacturers are poised to embrace the "smart" era and contribute to the nation’s vision of becoming a global industrial powerhouse.
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