Enterprise AI Analysis

The Need for Digital Architecture in Operationalizing Digital Engineering Strategies for Smart Production Systems

The global market for production organizations is becoming increasingly dynamic and complex. To address this development, production organizations develop strategies to become smarter in their operations, aiming at more flexibility and just-in-time mechanisms. These strategies imply advanced levels of digitization of the tactical decision making for and operational control of the primary production processes, both within individual organizations and at the level of supply networks. To embody this digitization, a spectrum of advanced digital technologies is available, such as artificial intelligence, blockchain, end-to-end process control, internet-of-things, and augmented reality. The realization of the strategies through digitization with these technologies is, however, severely hindered by two typical problems. Firstly, a large gap often exists between the high-level, abstract intentions formulated in strategies and the detailed, concrete embodiment in digital technology. Secondly, classes of digital technologies often are considered in isolation in projects resulting from a digital strategy, making synergies between technologies almost impossible and thus heavily reducing the added value of digitization efforts. This short commentary paper argues that the effective use of digital architecture in smart production system design is the path to effectively addressing these two problems. The observations and suggested architecture approach are illustrated by experiences with large international research and development projects in the smart production domain.