Rodrigo Portes
In the current industrial scenario, the ability to adapt and innovate is an important differentiator for companies that want to remain competitive. The application of advanced technologies and the strategic use of data have transformed the sector, providing gains in efficiency, cost reduction and improvements in customer experience.
To discuss these advances and the role of data science in industrial transformation, we spoke with Rodrigo Portes, an executive with over 26 years of experience in leadership positions in the industrial sector. A speaker, mentor and consultant for B2B sales and Industry 4.0, Portes shares his perspectives on the current panorama of Brazilian industries and the challenges and opportunities they face in adopting new technologies.
The executive has worked for multinational companies such as Rockwell Automation, Siemens and GE, and has a comprehensive view of the needs and trends of the industrial sector. He also discusses cultural barriers, the sectors most receptive to innovation and the expected evolution for the application of data science in Brazilian industries in the coming years.
- In your opinion, what is the current panorama of investments in technologies in the industrial sector? What trends would you highlight?
The current scenario of investments in technologies in the industrial sector is marked by a growing awareness of the importance of digitalization and automation, with Industry 4.0 being one of the main drivers of this transformation. However, Brazil still faces significant challenges in this area, with only a small fraction of companies effectively adopting these advanced technologies.
According to a survey by CNI – “Industry 4.0: a new challenge for Brazilian industry”, Industry 4.0 technologies are still little known by Brazilian SMEs. 57% of small companies said they were unaware of these technologies. I see the increasing use of key enabling technologies such as IoT, Big Data, Cloud, AR and VR, AI and Machine Learning, and Digital Twins, among others, as the main trends (and a need for survival).
- Have you noticed any type of resistance from industries in adopting new technologies? What would be the main barriers?
According to the survey “Special Survey on Industry 4.0: Five Years After the 2022 CNI”, answered by more than 1,900 executives and entrepreneurs from small, medium and large companies, the main obstacles to the adoption of technologies linked to Industry 4.0 were: high implementation costs (66%), company structure and culture (26%), lack of clarity about the return on investment (25%), lack of technical knowledge (25%), difficulty in integrating new technologies and software (18%).
In my opinion, the main obstacle to progress is not the high costs, since, as we know, the prices of technologies have been falling dramatically in recent years. I believe that the cultural issue and the fear of change, especially on the part of the Top Management of industries, continue to be the main barrier. Hence the importance of demystifying technology with the vast majority of companies in the country. This has been one of my goals as a consultant in recent years and that is why I created the lecture “Demystifying Industry 4.0” precisely with this objective.
- Which sectors do you believe are most eager for technological innovations and why?
Here in Brazil, mainly large companies and multinationals from some specific sectors such as automotive, food and beverage, pharmaceutical, chemical, mining and metals have invested and shown a greater appetite for innovations, projects and technologies linked to Industry 4.0 due to the pressure for efficiency, cost reduction, competitiveness and, of course, sustainability (ESG). We have several good examples and success stories, including in national companies, in these segments.
- In your experience, what factors have been decisive for industries to decide to invest in new technologies?
There are many benefits in implementing these new technologies. Not only on the factory floor, but also in improvements linked to sales, new products and services and customer experience. Some of them are:
- Cost: direct reduction in operating expenses.
- Competitiveness: maintaining or gaining market leadership.
- Efficiency: better use of resources and time.
- Security: protection against operational failures and threats (cyber security).
- Optimization: refinement of processes for maximum productivity.
- Errors: reduction of failures and rework.
- Customer Experience: improvement in customer interaction and satisfaction.
- Sustainability (ESG): aligning with greener and more regulatory practices.
- Do you notice a large disparity in technological maturity between industrial sectors in Brazil, or is this variation more related to the size of the companies?
The disparity in technological maturity in Brazil is more evident between companies of different sizes than between sectors. Large companies tend to be more advanced in their digitalization journey, while small and medium-sized companies still struggle to adopt basic technologies such as Lean Manufacturing, ERP, SCADA, MES, among others.
I usually say that when it comes to the maturity and stages of Industry 4.0, we usually find several “Brazils” within Brazil. There are larger industries, as mentioned in question 3, that already have a high level of maturity and application of the new technologies of Industry 4.0, but the overwhelming majority (SMEs) still do not use these technologies and many are not even aware of them. However, looking at the “glass half full”, I see this as a huge opportunity for companies and startups like ST-One, for example.
Copyright: ST-One
- Among industries that have already reached a high level of maturity, what innovations are they now seeking to remain competitive?
Industries with a high level of maturity in Industry 4.0 are now focusing on innovations that go beyond basic automation and connectivity. They are investing in advanced artificial intelligence, including generative AI, to optimize predictive processes and real-time big data analysis.
The industrial metaverse is another area of interest, enabling simulations and collaborations in highly realistic virtual environments. In addition, they are exploring the use of digital twins to simulate and optimize complex operations.
Sustainability is a growing priority, with many of these industries already discussing Industry 5.0 concepts, which integrate advanced technologies with a humanized and sustainable focus, promoting greener processes and the use of renewable energy.
- In which aspect within an industrial sector, such as the use of raw materials or the efficiency of production lines, do you see a significant increase in investment in innovation?
I have seen a significant increase in investments aimed at improving the efficiency of manufacturing processes and production lines, reducing energy consumption, and increasingly focused on ESG programs, i.e., Neoindustrialization.
- How do you believe data science can drive innovation in different sectors of industry?
Mainly by bringing and capturing large volumes of data (Big Data) for insights and decision-making. On the factory floor, it improves operational efficiency through predictive analysis, reducing downtime, predicting failures, and eliminating errors and waste.
As a professional in the industrial sales area, I also emphasize the importance of data science for the “top line” of companies, i.e., the sales area. It allows, among other things, the offering of customized solutions for customers, new business models, new products and services, in addition to a differentiated experience for the customer.
- How do you imagine the application of data science in Brazilian industries will evolve in the next 5 to 10 years? What transformations do you foresee?
My expectation for the application of data science in Brazilian industries is that it will see significant progress over the next 5 to 10 years. In Brazil in particular, revenues from Industry 4.0 are expected to more than double in that period, with a CAGR of approximately 23% per year, according to data from a recent IMARC survey.
Brazil has been undergoing a severe and premature process of deindustrialization in recent years. The manufacturing industry, which represented 35% of GDP in the 1980s, closed 2023 with only an 11% share of GDP.
In this bleak scenario, Industry 4.0, innovation and technology are some of the essential antidotes to reverse this situation and revitalize the industrial sector in the country.
Rodrigo Portes worked as an executive for over 26 years in leadership positions in the commercial area at renowned multinational companies in the industrial sector, such as Rockwell Automation, Siemens, Parker Hannifin, GE and IMI Norgren. He is currently a speaker, mentor and consultant for industrial B2B sales and Industry 4.0. He is the author of ebooks on B2B Sales, Digital Sales and Industry 4.0. He has worked with the Brazilian Association of Machinery and Equipment Manufacturers (ABIMAQ) for over 15 years, and has been a member of Conimaq since 2014. He also writes columns on Industry 4.0 for StartSe, Portal BR-40 and Revista Ferramenta.
