Algorithms are at the heartbeat of Industrie 4.0 projects, according to Gartner, and that’s going to result in 30 per cent of Industrie 4.0 projects sourcing algorithms from leading algorithm marketplaces by 2020.
That means a jump of less than five per cent, what we currently have in the market.
Industrie 4.0 is a German Federal-Government-sponsored initiative to create smart manufacturing that is gaining broader support as a framework for connected, smart products and systems.
"Industrie 4.0 projects are facing two significant challenges," said Thomas Oestreich, managing vice president at Gartner. "First — in the connected world of cyber-physical systems — they need to deal with the sheer volume, real-time velocity and diversity of data. Second, in order to drive new value and differentiating innovations, new algorithms need to be developed. This is making algorithms the pulse of Industrie 4.0 initiatives."
He also said that building new algorithms requires skills most companies don’t have today. To make sure they keep up with the competition, many companies will employ service providers and combine them with using algorithm marketplaces.
"Reusing prebuilt algorithms and applying them to a specific use case can significantly reduce development time and will offer an important library, expanding the possibilities for in-house development teams," said Mr Oestreich.
"We encourage CIOs to build a task force with data and analytics leaders to evaluate algorithm marketplaces, and then create their own library of available and potentially useful algorithms," he added.
Gartner’s full report is available on this link.
Image Credit: MNBB Studio / Shutterstock