Preventing efficiency roadblocks: Why do we advise companies against delaying their robotics plans?

Delaying investment in innovative technologies comes with numerous risks. Companies that are still hesitant should ask themselves three questions.

The European economy faces a number of challenges that affect its growth, stability and competitiveness. For example, Europe has one of the oldest populations in the world. An aging workforce increases the burden on social security systems and reduces the amount of labor, potentially slowing economic growth. Moreover, the EU's commitment to the Green Deal and achieving carbon neutrality by 2050 requires significant investments and structural changes in various sectors. In addition, there is an unwillingness to invest due to financial concerns. A recent survey by the McKinsey Global Institute (MGI) found that large European companies with more than $ 1 billion in sales lag behind their U.S. counterparts. Together, they invest $ 400 billion less per year and grow a third slower.

This setback in investment can lead to several problems that have both short- and long-term consequences, including drawbacks in competitiveness, sustainability and reputation, lower productivity and less success in attracting new, skilled workers. Innovative robotics can counter such developments, but it also requires thoughtful financing. Therefore, companies currently restricting their investments must urgently consider whether this will have more negative impact on them in the long term than it provides savings in the short term. These considerations should focus on the following three questions:

Question 1: Why are companies that do not invest in robotics less efficient?

Return on investment is traditionally used to measure the profitability of an investment. But how much does a company suffer in the long run by not investing in robotics? Companies that do not invest in robotics fall behind compared to competitors who use modern, automated systems to increase efficiency and production capacity. At the same time, they lack the innovations needed to develop new products or services and stay abreast of the latest technology. Robotics can significantly increase productivity because robots can work 24/7 without interruptions. Companies that do not use robotics operate less efficiently. Moreover, automation technologies can be more quickly and easily converted for different tasks, making them more flexible. Without such tools, it is more difficult to respond appropriately to market changes or customer requirements. Remember, the use of robotics is one way to avoid the growing shortage of skilled workers in the industrial environment. Automation has long been seen as an alternative to workers. The tenor was that robots replace workers. Collaborative robots, on the other hand, rely on closer cooperation between workers and machines, and human skills can be maximized through user-centric automation. The acceleration of data-driven processes through digitization empowers workers by, for example, using AI applications to support workers in making informed decisions. Options such as leasing or robot-as-a-service can be good options for acquiring new technology. OMRON offers small and medium-sized enterprises (SMEs) an ROI calculator to help them better understand the financial aspects of automation. If you are considering purchasing or leasing a cobot, this tool can show you the return on investment and when an investment will break even.

Question 2: Why are companies that do not invest in robotics less sustainable?

Many companies have made sustainability their mission and are increasingly responsible for implementing sustainable processes, key word corporate responsibility. What is often overlooked here is the fact that automation technologies can promote social and ecological goals in a variety of ways. A key requirement is that processes and systems are optimally coordinated. With sensors and AI, companies can detect early problems that may occur in a system, such as irregularities like vibrations or malfunctions, and take countermeasures. Optical control and innovative camera technology help detect errors and quality deviations at an early stage and react before thousands of defective parts are produced, machines have to be stopped, and prevent additional costs from rework or waste disposal. Ideally, all machine processes are smoothly coordinated and linked together for efficiency and sustainability. The machine control with an integrated robotic platform from OMRON, for example, helps dramatically reduce changeover times for production lines. Companies are challenged to evaluate their working methods, create sustainable processes and support their employees through automation.

Question 3: Why are companies that do not invest in robotics less employee-friendly?

There are some misconceptions about investing in robotics. A common fear is that robots will take jobs away from workers. However, this assumption is wrong: successful automation provides the opportunity to support workers rather than replace them. Robots take over repetitive tasks, but humans make the decisions. Smart technologies such as robotics, big data and cloud computing, augmented reality (AR) and the Internet of Things (IoT) can help address the growing shortage of skilled workers by enabling value-added and flexible workflows. Working with technology providers such as OMRON and its partners, who are well-versed in tools such as 5G, edge AI or data analytics, can greatly simplify the implementation and use of such technologies. Another tip: From planning to proof of concept (POC) to a system that works successfully and profitably, time, patience and a trusted partner are necessary. Companies must consider in advance which technology is best suited for their needs and how it can be scaled. Employee acceptance also plays an important role in automating processes. It is advisable to start small, implement initial projects and then scale quickly.

Conclusion: Focus on application needs rather than costs

Investments in new technology should not be thought of too narrowly. Instead, they should be viewed as an investment in the future. Just an ROI calculation is not enough to fully describe the benefits and opportunities of innovative robotics for businesses. Instead, all stakeholders should be included to get a holistic view of all concerns. For example, it is not advisable to focus on the cost of a new technology, such as a cobot, if such a tool can be used, converted and extended in different ways and therefore cannot yet determine where processes can be optimized. Instead of focusing on the technology and its cost, decision makers need to think and act in a more application-oriented and holistic way. A strong partner network, as offered by OMRON, helps realize company-specific adaptations and find a robotics solution that meets your exact needs.