Gartner: Algorithm marketplaces to become more popular with Industrie 4.0
Industrie 4.0 is a German Federal-Government-sponsored initiative to create smart manufacturing.
In a recent report from Gartner titled Predicts 2017: Industrie 4.0, the market intelligence predicts that by 2020, 30% of Industrie 4.0 projects source their algorithms from algorithm marketplaces, a sharp rise from the 5% reported in 2016.
Industrie 4.0 is a German Federal-Government-sponsored initiative dedicated to the creation and implementation of smart manufacturing technologies.
Thomas Oestreich, managing vice president at Gartner, commented: "Industry 4.0 projects are facing two significant challenges.
"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 Industry 4.0 initiatives."
According to Gartner's report, analytics vendors have begun to create marketplaces for software components, which include analytical algorithms. Helping to realise the benefits of an economy in software development, these marketplaces will reduce software distribution costs and improve access of available algortithms.
"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 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.
Elsewhere, the early adoption of Industrie 4.0 by some has also pushed for a revamp on their enterprise resource planning (ERP).
Christian Hestermann, research director at Gartner, shared: "Many ERP solutions are old, and they cannot cope with the amount of data and transactions to be processed, and the level of granularity in business transactions.
"ERP could fast become the bottleneck of digital business, not allowing a business to act quickly enough to grasp digital business opportunities in a fast-changing business world," he added.