In today’s industrial landscape, the ability to adapt and innovate is an important differentiator for companies that want to remain competitive. The application of advanced technologies and the strategic use of data have transformed the sector, providing gains in efficiency, cost reduction, and improvements in the customer experience.
To discuss these advances and the role of data science in industrial transformation, we spoke with Rodrigo Portes, an executive with more than 26 years of experience in leadership positions in the industrial sector. Speaker, mentor and B2B and Industry 4.0 sales consultant, Portes shares his perspectives on the current landscape of Brazilian industries and the challenges and opportunities they face in adopting new technologies.
The executive has worked for multinational companies such as Rockwell Automation, Siemens and GE, and has a comprehensive view of the needs and trends of the industrial sector. And it discusses cultural barriers, the sectors most receptive to innovation, and the expected evolution for the application of data science in Brazilian industries in the coming years.
1. In your view, how is the current panorama of investments in technologies in the industrial sector? What trends would you highlight?
The current landscape of investments in technologies in the industrial sector is marked by a growing awareness of the importance of digitalization and automation, with Industry 4.0 being one of the main drivers of this transformation. However, Brazil still faces significant challenges in this field, with only a small fraction of companies effectively adopting these advanced technologies.
According to a CNI survey – “Industry 4.0: a new challenge for Brazilian industry”, industry 4.0 technologies are still little known by Brazilian SMEs. 57% of small companies said they were unaware of such technologies. I see as main trends (and need for survival) the increasing use of the main enabling technologies such as IoT, Big Data, Cloud, AR and VR, AI and Machine Learning and Digital Twins, among others.
2. Have you noticed any kind of resistance on the part of industries in the adoption of new technologies? What would be the main barriers?
According to the survey “Industry 4.0 Special Survey: Five Years After the 2022 CNI”, answered by more than 1,900 executives and entrepreneurs from small, medium and large companies, the main obstacles to the adoption of technologies related to industry 4.0 were: high implementation costs (66%), company structure and culture (26%), lack of clarity about the return on investment (25%), lack of technical knowledge (25%), difficulty in integrating new technologies and software (18%).
In my view, the main obstacle to advancement is not the high costs, because as we know, the prices of technologies have been falling precipitously in recent years. I believe that the cultural issue and the fear of change, especially on the part of the Top Management of the industries, continues to be the main barrier. Hence the importance of demystifying technology with the vast majority of companies in the country. This has been one of my purposes as a consultant in recent years and that is why I created the lecture “Demystifying Industry 4.0” precisely with this objective.
3. Which sectors do you believe are most eager for technological innovations and why?
Here in Brazil, fundamentally, large companies and multinationals from some specific sectors such as automotive, food and beverage, pharmaceutical, chemical, mining and metals have invested and demonstrated a greater appetite for innovations, projects and technologies related to industry 4.0 due to the pressure for efficiency, cost reduction, competitiveness and, of course, sustainability (ESG). We have several good examples and success stories, including in national companies, in these segments.
4. In your experience, what factors have been decisive for industries to decide to invest in new technologies?
There are many benefits to deploying these new technologies. Not only on the factory floor, but also in improvements related to sales, new products and services, and customer experience. Some of them are:
- Cost: Direct reduction in operating expenses.
- Competitiveness: maintaining or gaining leadership in the market.
- Efficiency: better use of resources and time.
- Security: protection against failures and operational threats (Cyber security).
- Optimization: refinement of processes for maximum productivity.
- Errors: reduction of failures and rework.
- Customer Experience: improvement in customer interaction and satisfaction.
- Sustainability (ESG): aligning with greener and regulatory practices.
5. Do you observe a large disparity in technological maturity between industrial sectors in Brazil, or is this variation more related to the size of companies?
The disparity in technological maturity in Brazil is more evident between companies of different sizes than between sectors. Large companies tend to be more advanced in their digitalization journey, while small and medium-sized companies still struggle to adopt basic technologies with Lean Manufacturing, ERP, SCADA, MES, among others.
I often say that when it comes to the maturity and stages of industry 4.0, we usually find several “Brazils” within Brazil. There are larger industries, as mentioned in question 3, that are already at a high level of maturity and application of new industry 4.0 technologies, but the overwhelming majority (SMEs) still do not make use of these technologies and many do not even know about them. However, looking at the “glass half full”, I see this as a huge opportunity for companies and startups like ST-One, for example.
6. Among the industries that have already reached a high level of maturity, what innovations are they now pursuing to remain competitive?
Industries with a high level of maturity in Industry 4.0 are now focused on innovations that go beyond basic automation and connectivity. They are investing in advanced artificial intelligence, including generative AI, to optimize predictive processes and real-time big data analytics.
The industrial metaverse is another area of interest, allowing for simulations and collaborations in highly realistic virtual environments. In addition, they are exploring the use of digital twins to simulate and optimize complex operations.
Sustainability is a growing priority, with many of these industries already discussing Industry 5.0 concepts, which integrates advanced technologies with a humanized and sustainable focus, promoting greener processes and the use of renewable energy.
7. In what aspect within an industrial sector, such as the use of raw materials or the efficiency of production lines, do you notice a significant increase in investments in innovation?
I observe a significant increase in investments aimed at the efficiency of manufacturing processes and production lines, in the reduction of energy consumption and programs increasingly focused on ESG, that is, Neoindustrialization.
8. How do you believe data science can drive innovation in different industry sectors?
Mainly by bringing and capturing large volumes of data (Big Data) for insights and decision making. On the factory floor, it improves operational efficiency through predictive analytics, reducing downtime, predicting failures, and eliminating errors and waste.
As a professional in the industrial sales area, I also emphasize the importance of data science for the “top line” of companies, that is, the sales area. It allows, among other things, the offer of customized solutions for customers, new business models, new products and services, as well as a differentiated customer experience.
9. How do you imagine that the application of data science in Brazilian industries will evolve in the next 5 and 10 years? What transformations do you foresee?
My expectation for the application of data science in Brazilian industries is for a significant evolution in the next 5 and 10 years. Especially in Brazil, Industry 4.0 revenues are expected to more than double in this period, with a CAGR of approximately 23% per year, according to data from a recent IMARC survey.
Brazil has been suffering a severe and early process of deindustrialization in recent years. The manufacturing industry, which already represented 35% of GDP in the 80s, closed the year 2023 with only 11% of GDP share.
In this gloomy scenario, Industry 4.0, innovation, and technology are some of the essential antidotes to reverse this situation and revitalize the industrial sector in the country.
Rodrigo Portes has worked as an executive for more than 26 years in leadership positions in the commercial area in renowned multinational companies in the industrial sector, such as Rockwell Automation, Siemens, Parker Hannifin, GE and IMI Norgren. He is currently a speaker, mentor and consultant for industrial B2B and industry 4.0 sales. He is the author of ebooks on B2B Sales, Digital Sales and Industry 4.0. He has been working with the Brazilian Association of the Machinery and Equipment Industry (ABIMAQ) for over 15 years, being a Member of Conimaq since 2014. He also writes columns on industry 4.0 for StartSe, Portal BR-40 and Revista Plataforma.