Unlocking Physical Processes with Digitalization Technology

October 23, 2025 | Roland Echter

It’s a buzzword that’s mentioned in almost every manufacturing conversation, but how exactly does digitalization technology work?

Digitalization technology transforms physical processes into digital ones, enabling manufacturers to leverage real-time data collection, analysis, and optimization. Plant managers and line managers can monitor performance, predict maintenance needs, and improve efficiency by creating digital twins of physical assets. This technology leverages Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) to streamline operations.

Digitalization optimizes assembly lines by integrating IoT devices and sensors to collect real-time data, which can then be analyzed using AI/ML algorithms. This data-driven approach helps operators identify bottlenecks, predict maintenance needs, and improve overall efficiency. Finally, digitalization enables a more engaging, safe employee training environment by providing simulations of assembly lines, allowing workers to practice and understand important manufacturing processes risk-free.

Simulation

Simulation in manufacturing involves creating a virtual model of a production process or system. This model tests and analyzes different scenarios, such as production schedule changes, equipment configurations, or process parameters. Teams can also digitalize entire lines before they’re built in the real world. By simulating these scenarios, manufacturers can predict outcomes, identify potential issues, and optimize processes before implementing them on the floor. This reduces the risk of costly errors and improves overall efficiency.

Virtual Commissioning

Virtual commissioning is the process of using digital models to test and validate the performance of new equipment or systems before they’re physically installed. This involves creating a virtual replica of the production line and running simulations to ensure the new equipment integrates seamlessly with existing systems. Virtual commissioning helps teams identify and resolve potential issues, reducing downtime and ensuring a smooth transition while installing new equipment.

System Twin

System twins are advanced virtual representations of entire manufacturing systems. They provide a comprehensive digital model that mimics the physical attributes and behaviors of machines, robots, software, and other components integrated within a manufacturing line. System twins also enable remote monitoring and diagnostics of machines so experts can diagnose and potentially resolve issues, even if they’re not physically present.

Digital Shadow

Digital Shadows utilize digital replicas (System Twins) of entire manufacturing systems, including all machines, devices, and processes. IoT devices and sensors connect these virtual models to their physical counterparts, allowing for real-time data exchange. Digital Shadow enables manufacturers to monitor, analyze, and optimize the performance of their entire production line, predict maintenance needs, and simulate changes to improve productivity.

Predictive Maintenance

Predictive maintenance leverages digital technologies such as IoT, AI, and ML to predict and prevent equipment failures. By continuously monitoring the condition of machinery and analyzing the data in real time, smart maintenance systems can identify potential issues before they lead to costly, unexpected breakdowns. This proactive approach reduces downtime, extends the lifespan of equipment, and improves operational efficiency.

Advanced Employee Training

Virtual reality (VR) training uses immersive simulations to give employees a realistic and interactive learning experience. VR training allows workers to practice complex tasks, understand production processes, and develop skills in a controlled environment. VR training improves learning retention, reduces training costs, and enables training employees for scenarios that would otherwise be difficult or dangerous to learn in the real world.

Benefits of Digitalization Technology

Digitalization is an essential component for modern industrial operations, offering numerous advantages that significantly enhance ongoing processes, including:

Challenges and Considerations

When implementing digitalization in manufacturing, manufacturing leaders must keep several considerations in mind:

Digitalization technology has the potential to transform industries by converting physical processes into digital ones, enabling real-time data collection, analysis, and optimization. This technology leverages IoT, AI, and machine learning to drive problem-solving and streamline operations. Digitalization empowers manufacturers to remain competitive while saving critical resources, from leveraging digital twins of physical assets to predicting maintenance needs. The benefits of digitalization extend beyond operational efficiency, offering improved quality control and better-informed decision making. Embrace the future by exploring and adopting digitalization for manufacturing to unlock new opportunities for growth.

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Additional Resources

Roland Echter

General Manager - Digital

ATS Industrial Automation

Roland has helped companies across numerous industries to automate and optimize production with digital solutions. Roland works with customers to configure services, systems, using digital tool strategies to build and scale production and drive operational efficiency.