Do Automation Systems Provide Improved Business Value

Automation projects are often categorized as greenfield – new automation systems going into new plants or plant expansions, or brown field – new automation systems going into existing plants to update or upgrade existing systems. The value proposition for greenfield automation projects is pretty clear and significant. The automation system is simply required to get the plant or plant expansion up and running making it essentially a binary value proposition.

The automation ventures are generally classified as greenfield – new automation frameworks that are used for the expansion of new plants or brown field – new automation frameworks going into existing plants for any requirements of updating or upgrading existing frameworks. The incentive for Greenfield automation ventures is entirely clear and huge. The automation framework is just required to get the plant or plant extension up and running making it profitable proposition.

On the off chance if the plant is functioning the automation framework has completed its functions and the organization is profiting. If not, and the automation framework is the reason, the negative value is huge. In view of this the essential offer for automation frameworks in a greenfield situation is to limit the danger of on-time delivery of a working framework and an operating plant. A second incentive in greenfield situations is offering a economical system.

The offer for brownfield automation ventures ought to be centered around the incremental value of the automation framework . Actually, when mechanical organizations are attempting to legitimize the capital consumption for a automation framework redesign they regularly need to extend a normal rate of return (ROI). On the off chance that the anticipated ROI is over an edge restrict set by the organization's monetary administration group the capital venture has a sensible shot of being endorsed.

The fascinating highlight of the RFPs is that the budgetary spotlight is normally on convenience/lessened cost instead of ROI or incremental business value generated. Maybe the explanation behind this is ROI and incremental business value are exceptionally hard to ascertain after the automation frameworks are started up.

This circumstance presents a tremendous issue for modern organizations and mechanical automation providers. Mechanical organizations are normally not getting the value they should, this could be acknowledged from their mechanization ventures. Automation providers end up in the situation of having a tremendously important capacity that is seen as giving little of no value. This might be one reason that modern organizations are holding up longer and longer to update introduced automation frameworks. For what reason would you refresh a framework that is working entirely well if the new framework offers no incremental value. This may likewise be the reason that mechanization frameworks, which can offer some benefit, are getting to be products at a consistently expanding rate. Automation frameworks are essentially not seen by modern administrators as including value.

There is a crucial need for this to change and the industrial companies can benefit greatly through the effective utilization of automation technologies, but, for the most part they are not benefiting to the degree they should be. Automation systems can be highly valuable if applied and measured effectively. Perhaps it is time to question the traditional business processes and perspectives that are diminishing the value of automation.

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