Smart factories and their impact on modern manufacturing enterprises: Prospects and challenges in the era of the digital economy

¹ Kadyrov Chechen State University, Grozny, Russia
² Kazan Federal University, Kazan, Russia
³ Azerbajan University of Architecture and Construction, Baku, Azerbayjan

^* Corresponding author: heda_musaeva_997@mail.ru

Abstract

The advent of smart factories marks a significant shift in modern manufacturing, driven by the integration of advanced digital technologies and automation into production processes. This paper explores the prospects and challenges associated with smart factories in the context of the digital economy. Smart factories leverage technologies such as the Internet of Things (IoT), artificial intelligence (AI), big data analytics, and robotics to enhance efficiency, flexibility, and productivity in manufacturing operations. By connecting machines, sensors, and systems in a seamless network, smart factories enable real-time monitoring, analysis, and optimization of production processes. The potential benefits of smart factories are vast, including increased production efficiency, reduced downtime, improved quality control, and enhanced resource utilization. Moreover, the adoption of smart manufacturing practices can lead to cost savings, faster time-to-market, and greater customization capabilities, enabling manufacturing enterprises to stay competitive in today's dynamic market landscape. However, the transition to smart factories also presents various challenges and considerations. These include the need for significant investments in technology infrastructure and workforce upskilling, as well as concerns related to data security, privacy, and interoperability.