The global status of industrial-robot adoption and the need for collateral automation

December 21, 2018

Using the measurement of the number of industrial robots per 10,000 manufacturing workers in the country, the International Federation of Robotics (IFR) establishes each year a global map of industrial-robot adoption.

Since 2018 is about to draw to close, the latest numbers concern the 2017 situation, which registered a 15% raise compared to 2016.

To quote the Technology Review article:

“Korea once again has topped the charts, with 710 robots per 10,000 workers, followed by Singapore with 658 and Germany with 322. India was at the bottom of the list, with only 3 robots per 10,000 workers”.

You can see more relevant charts here.

What is deemed as the robot revolution determines future consequences outside factories. Robot activity involves IIoT, and makes its way outside the hardware area by demanding collateral software upgrades and the increasing adoption of platforms and programs able to complement automatized operations.


Higher wage economies drive the robot adoption wave


There is a simple logical reasoning backing this phenomenon. Adopting industrial robots means an expensive initial investment, which does not make sense (yet) for those economies relying on cheap human labor. Southeast Asian nations lead the world when it comes to robot adoptions. While we need to mention that the social measures needed to act as a Safety Net for the people being replaced by robots still lag behind what the numbers prompt as being necessary, the fact is that pushing for increased automation and robot-ization will continue.

Moving workforce around the globe (for example taking those from leading areas industrial-robot adoption into places where the robot revolutions is not yet significant) may buy some time for global social policies meant to prevent major disruptions.

However, for the business owners that have global operations, as well as for those who need to integrate their operations with partners and customers that expect automation to be from a certain level up, there is not much extra time left to leverage robot adoption.

Awareness and strategy are of key importance in making sure the impact of business disruption is turned into growth and creatively reinventing certain areas of activity.


Where do ERPs come into picture?


Regardless of the object of activity of any organization, having a functional, leading-edge ERP means opening the path towards establishing a digital version of its activity. Or what SAP calls the digital twin.

Since implementation, and furthermore data streaming, pattern identification and tweaks take a certain amount of time, it is highly recommended for those who don’t yet have a modern ERP to start the adoption process as soon as possible.

Since gaps between various economical players affect all the direct and indirect partners, the push for leverage when it comes to business process automation will go on, if not become stronger. From public services to independent businesses, it’s the all or none paradigm that business owners will have to face, sooner or later. Having this in mind, many of them structure their short to medium future strategies in a way that will ensure their presence and success on the market, rather than the opposite. Part of this strategy consists of adopting, expanding or upgrading a modern ERP for their business.

Contact us to find out more about how you can adopt, implement and/or develop the SAP ERP!





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