**Germany**: Omron Corporation teams up with Cognizant in a $345 million partnership aimed at transforming the manufacturing sector by integrating operational and information technology. The collaboration seeks to address Industry 4.0 challenges and enhance productivity through advanced technologies and a new virtual control platform.
Omron Corporation has announced a strategic partnership with Cognizant, a major player in manufacturing IT, with the ambitious goal of redefining the future of manufacturing through a combined investment of approximately $345 million. This collaboration aims to integrate operational technology (OT) and information technology (IT) for manufacturing customers on a global scale.
The partnership leverages Omron’s extensive portfolio of over 200,000 OT products, including controllers, servomotors, sensors, safety equipment, and robots, alongside Cognizant’s IT capabilities that encompass cloud services, artificial intelligence (AI), the Internet of Things (IoT), and digital twin technologies. Both companies are optimistic about the potential of their synergy to deliver a distinctive, all-encompassing solution for digital transformation in the manufacturing sector.
During a recent announcement event in Germany, Omron’s President and CEO, Junta Tsujinaga, expressed confidence in their joint venture’s prospects, estimating that it could generate revenues of around 50 billion yen (approximately $345 million) within the next five years. He indicated that Cognizant’s strong presence in Europe is expected to bolster Omron’s expansion efforts in the region. Currently, Omron employs around 2,000 individuals across 28 European countries.
Tsujinaga identified multiple challenges that have hindered the full realisation of Industry 4.0, highlighting barriers such as the separation between manufacturing and IT, the complexities involved in digitising legacy machinery, and the inconsistent data formats prevalent among various machines. He believes that Cognizant’s consulting prowess, coupled with its focus on manufacturing-oriented IT and AI-driven management, aligns well with Omron’s capabilities in data collection from shop floor technologies.
A centerpiece of this partnership will be the development of a “virtual control platform” (VCP) that operates on the edge of industrial sites. The VCP will integrate industrial PCs and connect Omron’s shop floor technologies with Cognizant’s IT systems, enabling precise synchronisation and real-time orchestration of factory activities.
Tsujinaga noted that “Omron is the only manufacturer of control equipment in the world that owns all the equipment used in the production line,” positioning the company uniquely in this collaboration. He further asserted that “through this partnership, we will promote the integration of IT and OT to solve urgent issues faced by manufacturing sites, such as significantly improving productivity, reducing operational losses, and speeding up management decisions.”
Cognizant’s CEO, Ravi Kumar S, echoed the commitment to innovation within the manufacturing sector, stating that the partnership aims to reinvent manufacturing. He noted, “clients are looking for a strategic partner with deep industry and domain expertise, end-to-end capabilities and the ability to manage complex technologies at various layers of digital factory. We are excited to partner with Omron in taking integrated value propositions and capabilities to transform manufacturing for our clients globally.”
Kumar highlighted the value of combining Omron’s expertise in OT data and systems with Cognizant’s capabilities in digital manufacturing and IT/OT integration. This collaboration is intended to enable manufacturers to leverage real-time data for quicker and more reliable decision-making.
Founded in 1933, Omron today employs around 28,000 individuals worldwide and reported sales of ¥819 billion (€5 billion) for the financial year ending March 2024, with automation comprising nearly half of its revenue. On the other hand, Cognizant has a global workforce of approximately 336,800 and reported revenues of $19.7 billion in its most recent financial year, offering services that empower customers to become data-enabled and data-driven.
Source: Noah Wire Services
