Maximising automation flexibility: the ISV-driven approach

Vendor lock-in has long been a significant barrier to innovation in the industrial sector, making integration with new technologies both difficult and costly.

In today’s rapidly evolving technological landscape, industries face unprecedented challenges, from supply chain issues and vendor lock-in to the growing need for flexible and agile systems. As factories move towards smart manufacturing, the pressure to integrate new technologies, enhance operational efficiency, and remain competitive continues to intensify. Independent software vendors (ISVs) play a critical role in addressing these challenges by providing flexible, open and scalable solutions that allow industries to innovate and future-proof their operations.

However, successful integration into smart factory systems requires careful planning and strategic decision-making about the level of integration a manufacturer needs. This balance between flexibility, cost and the pace of adoption will define whether an industry can truly leverage the benefits of a smart factory. This article explores the pivotal role of ISVs in driving smart factory integration, how careful planning impacts the choice of integration levels, and how open standards and platform-independent solutions are shaping the future of manufacturing.

Breaking free from vendor lock-in

Vendor lock-in has long been a significant barrier to innovation in the industrial sector. When manufacturers rely on proprietary systems, they often find themselves restricted by the technology of a single provider, making upgrades, expansions or even basic integration with new technologies both difficult and costly. Switching to alternative software or platforms can carry significant risks, leading many companies to resist change, even when faced with more efficient or modern solutions.

ISVs offer a way out of this conundrum. By developing vendor-agnostic software solutions, ISVs enable industries to adopt flexible, future-ready systems that allow them to pivot between platforms with minimal disruption. This independence is particularly valuable as manufacturers adopt cloud-based services, where concerns around data security, control and integration can make businesses hesitant to commit to proprietary solutions.

Incorporating ISV-driven solutions into smart factory environments allows manufacturers to operate with greater freedom. For example, ISVs that build solutions on widely supported platforms enable cross-compatibility with existing systems, regardless of the original equipment manufacturers. This gives engineers the flexibility to integrate new technologies seamlessly, supporting plant-wide upgrades without requiring a complete overhaul.

One of the most important enablers of smart factory integration is the use of open standards. In modern industrial environments, efficiency hinges on the ability to connect and communicate across a wide range of devices, controllers and machinery, often from different manufacturers. ISVs play a vital role by developing software that adheres to these open standards, ensuring that various systems can work together smoothly.

Fieldbuses such as Profibus, Profinet, EtherCAT and Modbus are key examples of open protocols that are widely used in industrial automation. These standards allow industries to source products from multiple suppliers, increasing competition and lowering costs. More importantly, the use of open standards simplifies the integration of new technologies into existing systems, giving manufacturers the flexibility to upgrade their operations in line with the latest advancements in automation, IIoT and machine learning.

For instance, ISVs developing automation solutions based on these protocols can ensure that new smart devices — such as sensors or robotics — can be integrated into a factory’s control systems without disrupting existing operations. This approach helps manufacturers avoid the costly reconfigurations often associated with proprietary systems and enables them to maintain a higher level of operational efficiency.

From an engineering perspective, open standards reduce the complexity of integrating diverse systems. Rather than being constrained by the limitations of vendor-specific protocols, engineers can implement best-in-class solutions tailored to their needs, knowing that these systems will communicate seamlessly with each other. This also allows for more flexible process control, making it easier to optimise production lines and respond to changes in demand or technology.

Planning smart factory integration: choosing the right level of automation

The key to a successful smart factory transition lies in thoughtful planning and selecting the right level of integration. Not every manufacturer will need, or benefit from, fully automated systems, and determining the appropriate level of automation depends on the specific needs, processes and constraints of the business. ISVs play a pivotal role in this process by offering scalable and adaptable solutions that allow manufacturers to tailor their approach to automation and smart integration.

One of the first considerations when planning a smart factory transformation is the current state of the factory’s infrastructure. Many factories still operate with a mix of legacy equipment and newer technologies, and it’s often not feasible or cost-effective to overhaul the entire system in one go. By working with ISVs, manufacturers can gradually implement smart technologies — starting with automating key processes or integrating specific IIoT devices — while maintaining overall system integrity.

The beauty of ISV solutions lies in their flexibility. Because they are platform-independent and built on open standards, ISVs can help companies introduce smart technologies incrementally. This allows manufacturers to control the pace of their integration, opting for partial automation in the beginning and scaling up as the technology proves effective or as business demands change. A manufacturer might start with integrating sensor data for predictive maintenance and later extend the solution to integrate with the plant’s overall production management system.

For example, a factory might initially focus on implementing smart sensors to monitor energy consumption and equipment health. Once the benefits of this data-driven approach are realised, the manufacturer can expand the smart factory system to include fully automated control of production lines, real-time data analytics, and ERP integration. The ISV-driven approach ensures that the factory can scale its smart operations while avoiding the financial and operational risks of an all-at-once implementation.

As industries transition towards smart factories, the need for platform-independent solutions has become increasingly important. Smart factories are characterised by their use of connected devices, sensors and machines, all communicating and sharing data to optimise production. However, one of the main challenges is the diversity of hardware and systems used in these environments. ISVs provide solutions that can operate across different platforms, ensuring that smart factories are not limited by the compatibility constraints of their equipment.

A common issue in smart manufacturing is the wide range of communication standards used by different machines, sensors and controllers. This diversity makes integration difficult, particularly when proprietary software is involved. ISVs, however, specialise in developing platform-independent solutions that bridge the gap between these systems. For example, some ISV solutions support hundreds of communication protocols, allowing manufacturers to integrate diverse technologies into a unified control framework.

This flexibility reduces downtime and allows for the gradual implementation of new technologies, making it easier for manufacturers to adopt and scale smart factory solutions at their own pace. Additionally, the ability to integrate systems from different vendors ensures that manufacturers can future-proof their operations, knowing they are not tied to a single technology provider.

For engineers, the benefits of platform-independent ISV solutions are clear: they allow for more agile system design, enabling factories to experiment with new technologies and approaches without the risk of being locked into a single vendor’s ecosystem. This is particularly important in fast-moving industries, where the ability to adapt to technological advancements can be a key competitive advantage.

Unlocking value through ERP integration

Enterprise resource planning (ERP) systems are critical for managing everything from supply chain logistics to financial operations in industrial environments. However, these systems can often fall short when it comes to addressing the specific needs of individual industries. This is where ISVs excel, by offering tailored software solutions that extend the capabilities of ERP systems, providing functionality that is highly specialised for the demands of specific industries.

For example, an ISV may develop solutions that enhance quality control processes, provide advanced reporting, or integrate e-commerce functionality into an existing ERP platform. These extensions help manufacturers optimise their operations and improve efficiency without the need for an entirely new ERP system.

From an engineering perspective, ISVs also enable smoother integration between ERP systems and operational technologies. By developing software that bridges the gap between business-level and plant-level systems, ISVs provide a unified platform for managing both production and administrative processes. This allows for real-time data exchange between ERP systems and industrial equipment, helping manufacturers make more informed decisions and improve overall efficiency.

ISVs also provide manufacturers with the flexibility to upgrade and enhance their ERP systems over time. By working with ISVs, manufacturers can add new features and functionalities as needed, avoiding the limitations of proprietary ERP systems and ensuring that their operations continue to evolve with the latest technological advancements.

Embracing an open future

As industries embrace the future of smart manufacturing, the role of ISVs in enabling flexibility, integration and innovation cannot be overstated. By offering vendor-agnostic, platform-independent solutions that adhere to open standards, ISVs provide manufacturers with the tools they need to break free from vendor lock-in and future-proof their operations.

Thoughtful planning of smart factory integration is crucial, as not all businesses require full-scale automation from the start. ISVs help manufacturers choose the appropriate level of automation and allow for flexible, phased implementations. By controlling the pace of smart factory integration, businesses can avoid costly disruptions and ensure a smooth transition to more intelligent operations.

By embracing ISVs, industries can unlock the full potential of smart manufacturing, building flexible, scalable and future-ready operations — laying the foundation for long-term success in a competitive market.

*Patrick van Eybergen, Managing Director of Ti2 Group and co-host of the Industry X.0 Unplugged podcast, has a passion for driving innovation, and explores the rapidly evolving landscape of industrial technology while advocating for Australian manufacturing.

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