Digital Transformation in the Steel Industry

Digitization, Digitalization and Digital transformation are the three terms in technology today, used in many industries that are seeing a shift in the way they are being operated. In this article, we are going to focus on Digital transformation in the steel industry.

Digital Transformation in the Steel Industry: Industry 4.0

In industries, digitalization and digital transformation are the terms commonly used. Digitization is completely different from these two terms.

To say that you want to digitize an industry would be wrong because that would imply transforming a physical place in bytes and codes, which is impossible. An accurate way to describe would be using the term digital transformation.

To understand digital transformation, we need to understand what digitalization is.

Digitalization refers to improving the process - operational or production by using digital technologies, like IT, AI, automation, etc, whereas Digitization refers to codes, bytes and other digital elements in software and hardware.

Now, digital transformation refers to cultural, organizational and operational changes of a business organisation through digitalization i.e, smart integration of digital technologies. Due to this change, a fourth industrial revolution is on the rise, giving birth to the term Industry 4.0.

How is the steel industry transformed by digitalization?

Major steel and construction industries are adopting technologies like the Internet of things, Big data, Cloud computing, Artificial Intelligence (AI), Machine Learning, and BIM.

This will impact areas of processes, tech platform, and organisation structure. Just having a plant is not enough. It’s essential to invest in the next-gen IT system and technology which will create more value and improve the efficiency of work.

• Automation: To ensure least manual intervention, robots and automated systems are finding applications in both production processes and support functions. The cost of automation has come down steadily and is becoming more reliable. Software automation connects workers with mobile to instructions which could improve their efficiency.

• Artificial Intelligence: Integrated with machinery that generates data through production and maintenance processes, AI can improve the efficiency and speed up the process. It also influences autonomous and semi-autonomous machinery, prevents risks and enables safety protocols. It can also identify issues in the operational process before they become bigger problems.

• Big Data and Cloud Computing: They help conduct a highly practical analysis of data rather than traditional means and help uncover the potential in areas of:
• Identifying data patterns
• Visualising green designs
• Finding a suitable combination of materials
• Accurate budget planning

• Internet of things (IoT): According to Wikipedia, Internet of Things is a system of interrelated computing devices, mechanical and digital machines with unique identifiers and the ability of transferring data over a network without human intervention. Includes smart wearables equipped with safety apps, sensors, real-time data feeding, better cost management and resources tracking.

• BIM - Building Information Modelling: Using this process enables faster and accurate planning, designing and construction of projects in the virtual world with enough space for frequent modifications. It prevents mistakes and inaccurate designs.

An example of how these technologies are impacting the steel industry is TCS’s (Tata Consulting Agency) MADE 4M digital transformation framework. It is redefining ways in which metal industries operate and provides solutions for manufacturing, operations, asset management, Data & Analytics, and more.

News in Steel:

Demand for steel is likely to recover post- Lockdown in IndiaSteel price is likely to go up once demand recovers. Steel rate in Bangalore has been steady compared to other cities. Rate of TMT bar in VSP/SAIL brand stands around INR 40,000.

Resource : https://www.evernote.com/shard/s446/client/snv?noteGuid=0f119917-fdc7-7123-96ac-0adc2cd33e85¬eKey=31986c77399403c695ba23163e8e0661&sn=https%3A%2F%2Fwww.evernote.com%2Fshard%2Fs446%2Fsh%2F0f119917-fdc7-7123-96ac-0adc2cd33e85%2F31986c77399403c695ba23163e8e0661&title=Digital%2BTransformation%2Bin%2Bthe%2BSteel%2BIndustry