"Connected Industries" was proposed at the German Information and Communications Trade Fair in March 2017. Based on the technological innovation brought about by the Fourth Industrial Revolution, the public and private sectors will work together to create new added value and solve various social problems. However, there are several challenges to overcome, and more proactive efforts are essential to realize Connected Industries without falling behind the rest of the world. In this article, we will explain the overview of Connected Industries, its benefits, and how to resolve the challenges.
What is Connected Industries?
Connected Industries is a concept that the Ministry of Economy, Trade and Industry proposed to the world in March 2017 as the vision for Japanese industry. Targeting mainly the manufacturing industry, it shows the way industries should be, creating new added value by connecting machines, technology, and people via data, while also aiming to solve social issues.
The three pillars of Connected Industries
The following three pillars have been established in our pursuit of Connected Industries:
- Realizing a new digital society in which people, machines, and systems cooperate rather than oppose each otherThe
rapid evolution of AI and robotics has often led to fears and hostility that they will take away people's jobs.However, AI and robotics can be used to bring out or assist human capabilities, with the aim of solving social problems and realizing a digital society. - Solving problems through cooperation and collaborationThe
concept of Connected Industries is to create added value by connecting companies, corporations and individuals, and things and people. To achieve this, we will cooperate and collaborate in various situations to strengthen our competitiveness in the international community. At the same time, one of our goals is to solve social problems not only in Japan but also around the world. Therefore, we also aim for cooperation and collaboration between countries. - "Connecting" is one of the essential keywords in advancing Connected Industries, which is to actively promote human resource development in line with advances in digital technology while maintaining a human-centered approach
. This "connecting" also means connecting current technology to the next generation of human resources across generations. For this reason, it is essential to develop human resources with a long-term perspective and an eye toward future technological innovations.
Benefits of realizing Connected Industries
The main benefits that manufacturing can gain from realizing Connected Industries are as follows:
- Creation of new added valueOne
of the major benefits of realizing Connected Industries is the creation of new added value. By connecting people, things, and technology, such as connecting things with each other using IoT and collaboration and co-creation between people, machines, and systems, we can bring out more of human wisdom and creativity than ever before. This is likely to create new added value.Specific examples include the creation of transportation services using unmanned autonomous driving that connects common platform technologies such as artificial intelligence, IoT, and robots with driving control technology, accident data, and camera information data; credit based on transaction and payment data that connects common platform technologies with financial technology, purchasing, supply chain data, and financial market data, and the sophistication of asset management advice services. - Solving social problems that transcend national borders
Another benefit of implementing Connected Industries is the ability to solve social problems. Technological innovations in AI and IoT and the use of data are expected to lead to connections between companies across borders, the passing on of technology and wisdom between people across generations, and connections between producers and consumers.
As a result, there will be an increased possibility of solving various social problems that have been difficult to address until now, such as the exhaustion of local economies and communities, and energy and environmental constraints.
Issues and Solutions for Promoting Connected Industries
There are several challenges to overcome in order to realize Connected Industries. Here we will look at specific challenges and how to address them.
Main challenges in promoting Connected Industries
- In order to realize Connected Industries, where companies have not yet made much progress in DX (digital transformation)
, digitalization is essential, including the innovation of business processes through system introduction and renewal, and the development of new technologies. However, although there has been progress compared to the past, digitalization is still not advanced overall, and data is not being used across the entire company or collaboration between companies is not possible.
In Connected Industries, it is essential to create added value by connecting various things, people, and companies, so it will be difficult to realize Connected Industries unless digitalization of business operations progresses. - Shortage of advanced IT talentThe
shortage of advanced IT talent capable of using AI, IoT, and other technologies is one of the issues impeding the realization of Connected Industries. According to the Ministry of Economy, Trade and Industry, the estimated shortfall in IT talent by 2030 is likely to be on the scale of 160,000 to 800,000. As the shortage of advanced IT talent is predicted to become even more pronounced in the future, it can be said that if things continue as they are, it will be difficult to realize Connected Industries.
Reference material: Survey on IT talent supply and demand | Ministry of Economy, Trade and Industry, Mizuho Information & Research Institute, Inc. - Utilizing the Internet is essential to realizing Connected Industries, which creates cybersecurity risks. The challenge is the rise in cybersecurity risks. In April 2023, the JPCERT/CC Incident Report Response Report was released by the JPCERT Coordination Center, a general incorporated association. According to this, the number of reported damages from cyber attacks increased by approximately 3.2 times, from 16,398 in 2018 to 53,921 in 2022.
- The risk in Connected Industries is that as everything becomes connected, the opportunities for cyberattacks increase. In addition, once a security incident occurs, there is a high possibility that it will spread widely, so caution is required.
Reference material: JPCERT/CC Incident Report Response Report | JPCERT Coordination Center, a general incorporated association
Measures to address the challenges of Connected Industries
In order to solve the issues facing the promotion of Connected Industries, it is essential for companies to promote digital transformation and develop IT human resources. However, this cannot be solved by one company alone, so it is necessary for the entire country to work on it.
The government will strengthen subsidies for purchasing equipment and systems to realize digitalization, take measures to raise awareness, and implement measures to develop IT human resources. And for companies, it will be important to understand the importance of Connected Industries and use government subsidies to actively promote digitalization and develop the employment of IT human resources.
In addition, the government and the entire industry must work together to address cybersecurity risks, such as by implementing the Cyber-Physical Security Framework (CPSF), which summarizes examples of security measures in Society 5.0, and developing the technology necessary to improve hardware security.
Connected Industries Initiatives and Major Examples
Connected Industries lists specific areas of focus, which are:
- In the field of autonomous driving and mobility services
, we will promote data utilization, AI system development, and human resource development in order to lead the world in the automobile industry. One example is the "Autonomous Driving Level 4 Advanced Mobility Services Research and Development and Social Implementation Project (RoAD to the L4)," a joint project between the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism. Level 4 autonomous driving is defined as "fully autonomous driving under limited conditions," and this project aims to popularize new mobility services (MaaS) by achieving this, reducing environmental impact, and solving transportation issues.
Specifically, efforts have already begun to realize unmanned autonomous driving transportation services in limited areas and autonomous driving of trucks and general vehicles on highways. - Manufacturing and Robotics
The chronic labor shortage caused by the declining birthrate and aging population is an urgent issue in all industries, and it is also having a major impact on the manufacturing industry that supports the Japanese economy. Therefore, "manufacturing and robotics" are attracting attention as a solution to the labor shortage. The introduction of industrial robots and production management using AI can greatly improve work efficiency and reduce the burden on workers.
One power equipment manufacturer has successfully put into practical use an AI transport robot that autonomously transports heavy loads simply by giving instructions on the movement process. As a result, it is possible to reduce the burden on workers and allocate them to more productive tasks. - Biotechnology, which utilizes bio- and organic materials, is also an essential initiative in Connected Industries. In Japan in particular, there are high hopes for the reform of biotechnology and the materials industry, with the creation of new value through fusion with the digital field in mind. One city gas company is effectively utilizing biogas generated by fermenting sewage sludge and food waste with microorganisms. In addition, they are working on a model for local production and consumption of thermal energy that utilizes unused biomass resources in the region.
- Plant and infrastructure security
Plants and infrastructure are facing a mountain of issues, including aging equipment, retirement of experienced engineers, and lack of progress in the use of new technologies. To address these issues, we are working on plant and infrastructure security based on data collected using sensors and drones.
In 2018, we conducted a demonstration experiment using drones to inspect high-altitude areas of an oil storage tank, which would be difficult for humans to do. We also conducted flare stack inspections at an oil refining plant using drones equipped with infrared cameras.
Digitalization of manufacturing and securing IT talent are key to realizing Connected Industries
Connected Industries is a concept proposed by the Ministry of Economy, Trade and Industry in March 2017 to the world, mainly for Japan's manufacturing industry. Similar initiatives are underway overseas, but Japan is slightly behind, so companies will need to take the lead and proactively work on it in the future. Issues include the lagging digitalization of manufacturing and the shortage of IT personnel. To realize Connected Industries, DX (digital transformation) is essential, and digitalization must be promoted as soon as possible, and data sharing must be promoted not only within companies but also between companies. First of all, the key to realizing Connected Industries is to aim to improve the efficiency of your own business through digitalization, and in the process, to promote the development of IT personnel.
Please also take a look at this article:
What is Industry 4.0? Explaining the current situation and challenges in Japan, and the key points to realizing it | Stratus Blog
