The researchers analysed industry\u00a0data across 25 EU countries between 1996 and 2017. They found that when adoption levels are low, robots can have a negative effect on profit margins. As the uptake increases, however, automation drives the profits higher.<\/span><\/p>\n This U-shaped effect was attributed to the integration process. At first, businesses using robots typically tend to focus on streamlining operations \u2014 an expensive and laborious task. But w<\/span>hen automation increases and the robots are fully integrated, the emphasis shifts to product innovation. As a result, companies find new revenue streams and competitive edges.<\/span><\/p>\n \u201cInitially, firms are adopting robots to create a competitive advantage by lowering costs,\u201d\u00a0Chander Velu, a professor at Cambridge\u2019s Institute for Manufacturing, said\u00a0in a statement<\/span>. \u201cBut process innovation is cheap to copy, and competitors will also adopt robots if it helps them make their products more cheaply. This then starts to squeeze margins and reduce profit margin.\u201d<\/p>\n Velu\u2019s research was inspired by the impact of computing. When computers first entered workplaces in the 1970s and early 1980s, productivity growth initially slowed, before rising again. Velu wanted to know whether robots have had similar effects.<\/p>\n Catch up on our conference talks<\/p>\n Watch videos of our past talks for free with TNW All Access \u2192<\/p>\n<\/div>\n<\/div>\n To find out, his team first analysed industry-level data \u2014 primarily from manufacturing,\u00a0where robots are most commonly used. Next, they examined robotics data from the International Federation of Robotics (IFR).<\/p>\n After comparing the two datasets, they deduced how robots have impacted profit margins. Finally, the team asked manufacturers for insights about the adoption process.<\/span><\/p>\n \u201cWe found that it\u2019s not easy to adopt robotics into a business \u2013 it costs a lot of money to streamline and automate processes,\u201d study co-author Dr Philip Chen<\/span> said.<\/p>\n The findings emerge amid expanding industrial automation.\u00a0 Since the 1980s, robots have been widely used for demanding and repetitive tasks, such as vehicle assembly. In more recent years, however, robots have become adept at more intricate jobs, like complex electronics manufacturing.<\/p>\n These advances are convincing more businesses to adopt robotic processes. For firms exploring the possibilities, Velu has some advice.<\/p>\n \u201cWhen you start bringing more and more robots into your process, eventually you reach a point where your whole process needs to be redesigned from the bottom up,\u201d he said. \u201cIt\u2019s important that companies develop new processes at the same time as they\u2019re incorporating robots, otherwise they will reach this same pinch point.\u201d<\/p>\n You can read the study paper\u00a0in the journal\u00a0<\/span>IEEE Transactions on Engineering Management<\/a>.\n <\/div>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n For forums sites go to Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n If you want to read more like this article, you can visit our Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n
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