Our society is in the midst of a significant transformation with the ever-continuing integration of technologies into industry processes—from data analytics to cloud computing, machine learning, and Internet of Things (IoT). Industry 4.0 is revolutionizing the way companies produce and distribute their products. We are already seeing increased use of these technologies in areas such as autonomous warehouse robots and demand forecasting in manufacturing, where AI has the ability to reduce human error and increase productivity and efficiency. As manufacturing and the digitalization of other core industries become key growth drivers for the Philippine economy, industry 4.0 will become crucial for businesses to capture new opportunities and growth.

While many companies are still grappling with these changes and struggling to integrate Industry 4.0 technology in their operations, taking steps to embrace this change will enable businesses from countries like the Philippines to compete on a global scale. Our goal at Aboitiz Data Innovation (ADI) is to unlock the business power of data science and artificial intelligence (DSAI) by testing and implementing new ways to operationalize DSAI and deploy it to tackle specific industry, societal, and environmental challenges. What we hope is that our work and what we learn through it can provide a framework for other companies and public sector organizations to follow.

ADI was launched in Singapore to deepen the Aboitiz Group’s innovation footprint in the Philippines and beyond in Southeast Asia. While it is easy for many to talk about technology and innovation, ADI has truly operationalized AI across the Group’s entire business since its inception. The partnership and resources shared between Aboitiz business units and key strategic partners enable us to exchange ideas and better understand how DSAI is a necessary tool in bridging gaps and overcoming challenges across industries, markets, and sectors.

Take the manufacturing industry as an example, ADI and Republic Cement were able to use AI to predict cement quality based on historical data and help operators and quality managers optimize concentrations of raw materials. Not only did this result in saved time, better resource management and operational efficiency, it also improved the consistency of cement products. The application of data science in what is considered a traditional industry in the Philippines also led to reduced CO2 emissions, contributing to achieve the Group’s ESG goals in the process.  

As AI delivers functional models for operational efficiency, risk management, and environmental sustainability, ADI can serve as a model for companies and sectors in applying DSAI to solve business problems and respond to challenges.

Another area in which we’ve seen successful use cases of DSAI is the power industry. In collaboration with ADI, AboitizPower was able to reduce the use of limestone through a machine learning model thereby controlling SOx emissions better. Similar to the application of DSAI in Republic Cement, this also resulted in a lower carbon footprint.

Both models were developed in close collaboration with the Aboitiz business units to understand the challenges they were facing in their sectors, demonstrating the ability to leverage both technology and the ecosystem to connect and deliver value effectively. Similar frameworks can be applied across other industries and supply chains. As AI delivers functional models for operational efficiency, risk management, and environmental sustainability, ADI can serve as a model for companies and sectors in applying DSAI to solve business problems and respond to challenges.

It’s natural to fear all the changes happening, but to fully realize the exciting possibilities of Industry 4.0 technologies like autonomous manufacturing and interconnected processes, we must embrace these advancements. Change can be daunting but it all comes down to taking action. The benefits Industry 4.0 brings to societal and economic development far outweigh the consequences of not taking that first step. Our own experiences demonstrate that there is more to be gained than lost by taking that first step. We certainly never imagined we could use DSAI to drive innovation in cement manufacturing for the Philippine construction industry, but we did.

As the current and future workforce become more knowledgeable and skilled in DSAI, it allows for newer and bigger opportunities to accelerate productivity and drive value across the business landscape and society at large.

Being able to do actual implementation in the real world through Republic Cement and AboitizPower has shown how its possible to operationalise DSAI into impactful solutions that can challenge the status quo in traditional sectors — not for the sake of ‘disruption’, but drive transformation to deliver business and environmental outcomes for both people and the planet.

Investing in people and the youth will also help make the transition to Industry 4.0 easier for businesses and communities. With the disruption caused by COVID, it is more important than ever for businesses to help narrow the gap between what the industry needs and what academic institutions provide. As the current and future workforce become more knowledgeable and skilled in DSAI, it allows for newer and bigger opportunities to accelerate productivity and drive value across the business landscape and society at large. Our goal is to help others realize the potential and value that operationalizing DSAI can bring in developing and deploying innovative and sustainable solutions.

By showing the benefits of industry 4.0 driven AI through direct action, much can be done to simultaneously gain acceptance of the technology among skeptics and set in motion lasting improvements. As such, it can serve as a model for other businesses and carve out a better and greener path for the industry to follow. Given the advantages Industry 4.0 can bring to business and society, the real question is what are you waiting for?