In today's rapidly evolving industrial landscape, the trend of smart manufacturing is reshaping the global manufacturing sector in profound ways. Industry leaders and experts are increasingly discussing key questions: What direction will future industrial development take? What goals does smart manufacturing aim to achieve? And why are so many companies competing to develop the Industrial Internet of Things (IIoT)?
Li Kai, head of the smart manufacturing business at Schneider Electric (China) Co., Ltd., emphasizes that the growth of smart manufacturing and IIoT is closely tied to current industry trends. He explains that the first step in this transformation is achieving transparency through IoT technology.
**Transparency: The First Step in Manufacturing’s Intelligent Upgrade**
According to Li Kai, Schneider Electric has observed a clear shift toward electrification, digitization, decarbonization, and decentralization across industries. These trends are supported by various market dynamics, technological advancements, and policy directions. For instance, while the power industry may seem traditional, it remains a growing sector with rising global electricity demand. Digitalization is expanding information nodes across all sectors, and urban electrification reflects the push for lower carbon emissions. Decentralization is also on the rise, seen in cloud computing, renewable energy sources, and smart microgrids.
China, as a major manufacturing hub, is driving the need for new industrial technologies. The "Made in China 2025" initiative highlights the government's focus on digital and intelligent transformation. However, challenges remain, particularly in production efficiency, energy consumption, and product quality. Li Kai believes that digitalization aims to optimize resource use—reducing manpower and energy input while increasing output.
For example, the labor advantage once held by China is diminishing. Future workers will require better working conditions and more efficient management systems. Additionally, energy consumption is becoming a critical issue, especially in heavy industries like cement, where efficiency gaps with other countries are evident. Rising regulatory standards make these challenges even more urgent.
The real challenge for manufacturers isn’t a lack of will or technology but rather the opacity of factory operations, often described as a "black box." Without transparency, effective decision-making and optimization become impossible. Solving this issue is essential for true intelligence in manufacturing.
**IoT Architecture: Enabling Interoperability and Growth**
This challenge has accelerated the development of the Industrial Internet of Things. With IoT, data collection, transmission, and cloud analysis have become more efficient. Technologies like cloud computing, big data, and AI provide strong foundations for smart manufacturing. Companies are now developing their own IIoT strategies.
Schneider Electric’s EcoStruxure platform exemplifies this approach. It consists of three layers: interconnected products, edge control, and application, analytics, and services. The architecture supports both cloud and on-premise deployment, offering flexibility. Li Kai highlights that the top layer—application and analytics—is often overlooked but holds significant potential for digital transformation.
**Making Manufacturing Transparent and Intelligent**
Today, hardware connectivity is no longer the main barrier. The real challenge is generating actionable insights from connected devices. Li Kai likens intelligent manufacturing to the human body: automation is the limbs, digital systems are the nervous system, and lean operations represent the mind—the core of intelligence.
Schneider Electric promotes a "soft and hard combination" strategy, emphasizing deep understanding of customer needs before implementation. Through lean consulting, digital platforms, and tailored automation solutions, they help create transparent and efficient systems.
Li Kai humorously notes that collaboration with customers is like a long-term relationship. Deep discussions are necessary to uncover unmet needs and deliver meaningful solutions. This process ensures that the "nervous system" and "texture" of the enterprise are fully understood.
At the product level, EcoStruxure provides a comprehensive solution covering connectivity, edge control, and analytics. This "transparent + convergence" architecture enables full visibility from the shop floor to the executive level. It represents one of the few practical examples of IoT solving industrial challenges.
Ultimately, Schneider Electric’s intelligent manufacturing solutions offer two dimensions of value: end-to-end intelligence and lifecycle intelligence. End-to-end intelligence connects every stage of the supply chain, while lifecycle intelligence integrates digital services with production and R&D for continuous improvement.
In this era of rapid change, transparency, intelligence, and digitalization are key to staying competitive. As more technologies like IIoT are integrated into manufacturing, companies can unlock new efficiencies and drive innovation. We look forward to seeing more Chinese manufacturers embrace this transformation and contribute to the nation’s vision of becoming a global leader in smart manufacturing.
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