For horizontal and vertical integration to impact resource competence, supply chain management ought to be included in the network.

FREMONT, CA: Two of the essential factors for production in a smart factory are horizontal and vertical integration. In the interconnected smart factory, horizontal integration warrants machinery—IoT equipment and engineering processes work together effortlessly. Vertical integration makes sure production data is used at higher managerial levels when making staffing, marketing, and other decisions.

Horizontal and Vertical Integration Challenges

Even though horizontal and vertical integration can simplify production and facilitate smarter business decisions, the shift can pose some unique challenges related to:

Lack of Communication

Horizontal integration believes that a factory has equipment and software capable of gathering production data and sharing that information with other systems. Businesses will need to either buy new IoT-enabled equipment or modify existing tools to facilitate interconnectivity to begin incorporation. Tactics for IoT enabling legacy systems comprise retrofitting them with sensors and connecting Programmable Logic Controllers (PLCs) to the internet employing converters. 

Knowledge Silos

Knowledge silos take place when a factory's information systems are unable to share data with one another, trapping data in one part of the equipment, organization, or production process. If the architecture is already compatible and comparatively new, businesses can eliminate knowledge silos by integrating current systems, setting them up to share information freely. In other cases, firms may have to attend to incompatible architecture before they can distribute production data with the rest of the company.

Asset Management

Upon integrating machines, data systems, and devices in the smart factory, one must continue to supervise the assets to assure productivity and security. Executing continuous network monitoring and picking industrial software with robust security features can aid in asset management.

Supply Chain Management

For horizontal and vertical integration to impact resource competence, supply chain management ought to be included in the network. Even it is the networking with external clients or integrating the in-house supply chain, enterprises need to leverage data-driven technology to guarantee smooth collaboration and sound decision-making.

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