Developing IoT Solutions in Manufacturing with Azure: Case Studies from Tetra Pak, Danfoss, Thomas Concrete Group, Lexmark, Fischer

Summary

The adoption of IoT (Internet of Things) solutions in manufacturing has transformed how companies operate, make decisions, and improve product quality. The enterprise IoT market size reached $269 billion in 2023, representing 15% growth year-over-year, according to the Global IoT Enterprise Spending dashboard (Q2/2024 update).

Growth is expected to slow to 12% in 2024 before re-accelerating in 2025. The increase in connected devices, the rise of smart cities, advancements in AI and machine learning, a growing focus on cybersecurity, and the emergence of edge computing are driving this growth. Connected devices will continue to proliferate, driven by technological advancements and the increasing adoption of IoT across industries like manufacturing, which will further fuel market expansion.

Manufacturers like Tetra Pak, Danfoss, Thomas Concrete Group, Lexmark, and Fischer have used Microsoft Azure's IoT tools to implement innovative solutions that provide real-time data insights, enable predictive maintenance, and boost overall efficiency.

Tetra Pak: Leveraging IoT and Azure for Sustainable Manufacturing and Packaging Solutions

Tetra Pak, a global leader in food processing and packaging, experienced significant growth in 2023, with revenues reaching €12.8 billion—a 7% increase compared to the previous year. The company leveraged the Microsoft Azure tools suite to implement a connected factory solution to reduce unplanned downtime, improve production efficiency, improve sustainability and improve decision-making.

Challenge

Tetra Pak is now focused on sustainable manufacturing, eliminating plastic straws in some markets, and developing recyclable, fiber-based packaging. To achieve these goals, the company needed to maintain equipment efficiency across its manufacturing sites, minimize unplanned downtimes, and improve production reliability.

Solution

Tetra Pak leveraged Azure IoT Hub and Azure IoT Edge to implement a connected factory solution to enhance efficiency, sustainability, and real-time operational control. This solution gave Tetra Pak a comprehensive view of its manufacturing processes, providing actionable insights to improve productivity and product quality. Key aspects of the solution included:

• Unified Data View: IoT Hub provided a single, holistic view of productivity, safety, and quality data across facilities, enabling real-time decision-making and enhanced operational visibility.
• Real-Time Monitoring: Tetra Pak could collect data from thousands of devices using real-time monitoring, enabling predictive maintenance and optimizing machine operations.
• Operational Insights with Power BI: Power BI was implemented to surface insights, allowing employees at 24 IoT-enabled facilities to work more efficiently.
• Enhanced Compliance Monitoring: Operational technology (OT) security managers used IoT Hub and Power BI to monitor real-time compliance indicators, improving compliance with ISA-95 standards.
• Nested IoT Edge Devices: Tetra Pak adopted Azure IoT Edge's nested capability to secure connections between production networks and the cloud while maintaining network isolation.
• Algorithm Deployment: Centralized control for deploying and updating algorithms to multiple factories, ensuring consistent quality and efficiency across all facilities.

“Being able to connect anything we want to Azure IoT infrastructure opens new possibilities for us to control our processes better, and ultimately, improve quality and reliability for our customers. “ - Peter Stolt - Director of Digitalization and Automation, Tetra Pak.

Impact

The IoT-enabled solution had several significant impacts:

• Reduced Unplanned Downtime: Real-time monitoring and predictive maintenance implementation helped in reducing unexpected equipment failures, leading to more consistent production schedules.
• Improved Production Efficiency: Optimized machine operations led to improved efficiency across facilities.
• Enhanced Decision-Making: Managers gained instantaneous access to productivity data, enabling proactive actions to address potential issues.
• Improved Compliance: Real-time data monitoring improved compliance with operational technology standards by up to 15%, enhancing overall safety and performance.
• Quality Improvement: Using image analytics and algorithms on edge devices reduced production defects, improving product quality.
• Time Savings: Automated data collection and analysis replaced manual reporting, significantly reducing the time required to compile factory reports.
• Operational Efficiency: Real-time access to data allowed managers to pinpoint and address issues quickly, driving improvements in overall performance.
• Customer Savings: Predictive maintenance services helped save approximately €55,000 annually by detecting malfunctions early. These savings primarily represent reductions in unexpected repair costs, production downtime, and potential machinery replacement expenses.

“The combination of Azure IoT infrastructure and Power BI has had a profound effect on OT security, all from a simple dashboard.” - Peter Stolt: Director of Digitalization and Automation, Tetra Pak.

Lessons Learned

Implementing IoT solutions using Microsoft Azure provided valuable insights for Tetra Pak, which can be lessons for other manufacturers aiming to enhance their operations and drive efficiency. These include:

• Data-Driven Insights: Real-time monitoring is essential for predictive maintenance and optimizing operations.
• Proactive Maintenance: Predictive capabilities minimize downtime and maintenance costs.
• Improved Compliance: Leveraging IoT and Power BI can significantly improve compliance with operational standards, enhancing overall safety and performance.
• Best Practice Sharing: The availability of shared performance data among facilities fosters collaboration and drives best practice behavior.
• Centralized Control: Using nested IoT Edge devices allows for centralized control over algorithm deployment, ensuring consistent quality and operational efficiency.
• Customer-Centric Solutions: Providing predictive maintenance services can generate significant cost savings and enhance customer relationships and trust.

These insights highlight the effectiveness of using Azure IoT to enhance manufacturing operations. Next, we will explore how Danfoss used Azure IoT to tackle specific challenges in the food storage industry, focusing on improving efficiency and reducing waste.

Danfoss: Leverages Azure by Developing a SaaS Solution to Reduce Energy Costs and Food Waste

Danfoss, a global engineering leader specializing in energy-efficient solutions, faced challenges with declining demand in key markets despite recording EUR 5 billion in sales in the first half of 2024. To enhance operational capabilities and support its food retail customers, the company developed Alsense Food Retail, a Microsoft Azure-powered SaaS solution that reduces energy costs by 30% and food waste by 40%.

Opportunity

Headquartered in Denmark, Danfoss manufactures products for heating and cooling appliances such as radiators and freezers. 

The company saw an opportunity to expand its offerings to software as a service (SaaS) solutions and leverage its decades of domain expertise to help its food retail customers become more efficient.

Danfoss developed Alsense Food Retail, a cloud-based solution built on Microsoft Azure Event Hubs that grocery stores use to monitor temperatures with sensors. This solution helps customers control energy efficiency across grocery chains, leading to an estimated 30% decrease in energy costs and a 40% reduction in food waste.

Solution

Danfoss adopted Microsoft Azure to move its Alsense Food Retail solution to a SaaS model, aiming to provide enhanced scalability, efficiency, and a new digital service business model for its food retail customers. Key aspects of the solution included:

• Cloud-Based Model: Alsense, launched in September 2020, was built on Azure Event Hubs to manage data between Azure and grocery stores' sensors, providing scalability and efficiency.
• Telemetry and Alarm Data: Danfoss processes telemetry data, such as temperatures and compressor performance, using Azure SQL Database and Azure Databricks for insights, while critical alarm data is processed in near real-time for immediate response.
• Real-Time Monitoring and Alerts: With over 1 million connected devices and 1.6 million monthly alarm notifications, Danfoss processes alarms using Azure Event Hubs, ensuring rapid responses to critical temperature or equipment issues.
• Scalability and Security: Azure provided the scalability, elasticity, and data security needed for the SaaS solution, supporting Danfoss's move from a traditional business model to a digital service model.

“Thanks to Azure, we provide insight granularity to our customers at a chain level so they can drill down on specific stores that aren’t performing as they should, investigate the situation, and mitigate it quickly. “- Thomas Kolster: Head of Service Innovation, Danfoss

Impact

The IoT-enabled solution significantly impacted how Danfoss manages its operations and delivers value to its customers. These impacts include:

• Improved Operational Efficiency: Grocery stores gained insights into energy consumption and appliance performance, leading to improved operational efficiency and a 30% reduction in energy costs.
• Reduced Service Costs: Customers who leveraged the Alsense solution to identify and resolve issues proactively experienced up to a 35% decrease in service costs.
• Waste Reduction: The solution helped reduce food waste by up to 40%, supporting Danfoss's commitment to sustainability and keeping more food in the supply chain.
• Customer Time Savings: Store managers experienced an 80% reduction in time spent dealing with equipment issues, allowing them to focus on other critical tasks.
• Increased Revenue Opportunities: By moving to Azure, Danfoss created new revenue streams by offering their Alsense Food Retail solution as a subscription-based SaaS model. This allowed customers to access detailed insights on energy consumption and equipment performance, helping them optimize operations and reduce costs while generating recurring revenue for Danfoss.

“We’ve codified more than 85 years of domain expertise in the refrigeration industry to provide actionable insights to our customers so they can run their stores more efficiently. “   - Thomas Kolster: Head of Service Innovation, Danfoss.

Lessons Learned

Integrating IoT solutions using Microsoft Azure gave Danfoss several valuable insights, which can serve as lessons for other manufacturers seeking to improve energy efficiency, reduce waste, and streamline production processes. Key lessons include:

• Scalable Solutions: Moving to a cloud-based model provided the scalability needed to meet growing customer demands globally.
• Rapid Response Capabilities: Real-time processing of critical alarms using Azure Event Hubs was crucial in reducing food waste and improving operational efficiency.
• Data-Driven Customer Insights: Providing detailed data insights to customers empowered them to make informed decisions, enhancing efficiency and reducing costs.
• Sustainability Commitment: Leveraging IoT technology supports Danfoss's commitment to sustainability by significantly reducing food waste and energy consumption.

Building on Danfoss's achievements, we now turn to Thomas Concrete Group, which has leveraged Azure IoT to enhance the quality and consistency of concrete production while driving sustainable practices in the construction industry.

Thomas Concrete Group: Optimizing Concrete Quality with Azure IoT

Thomas Concrete Group, a leading supplier of high-quality concrete with a strong presence in multiple markets, is leveraging advanced IoT technologies to ensure quality, consistency, and sustainability in its concrete production. Adopting Azure IoT, the company has transformed its approach to monitoring and optimizing production processes, providing consistent and reliable products to meet the diverse needs of its customers.

Key figures for Thomas Concrete Group (2023):

• Consolidated turnover of 12.1 billion SEK (approximately 1.140 million USD, 1.060 million EUR)
• 167 concrete plants and 4 plants for pre-casted slabs and walls
• Concrete production: 5.6 million m³
• Number of employees: 2,400 employees

Solution

Thomas Concrete Group leveraged Azure IoT Central to connect their production facilities and monitor key performance metrics. The IoT solution enabled them to track moisture levels, temperature, and other variables that impact concrete quality. Key aspects of the solution included:

• Real-Time Monitoring: Connected sensors provide real-time data on moisture levels, temperature, and other key variables affecting concrete quality.
• Data Insights and Predictive Analytics: Leveraging Azure IoT Central, the company could collect data, analyze it, and gain predictive insights to enhance production quality and reduce variability.
• Operational Control: Azure's cloud infrastructure enabled Thomas Concrete Group to monitor production processes centrally, ensuring consistency and reducing production errors.
• Scalable Implementation: The solution allowed the company to scale monitoring capabilities across multiple production sites, supporting broader adoption of sustainable practices.

“We have a global IT team of 20, and there is no way that we could have delivered this project without using Azure and prebuilt services from Microsoft.” - Lennart Björnström: Chief Information Officer and Head of Business Development, Thomas Concrete Group

Impact

The implementation of the Azure-based IoT-enabled solution improved the consistency and quality of concrete production, leading to greater customer satisfaction. Key impacts include:

• Enhanced Product Quality: Real-time data improved concrete quality control, reducing inconsistencies.
• Waste Reduction: The ability to monitor key parameters proactively to reduce waste and contribute to sustainability efforts.
• Improved Efficiency: Operational control and predictive analytics streamlined production and optimized resource use. Real-time monitoring of moisture, temperature, and other key variables allowed for proactive adjustments, reducing inconsistencies and minimizing waste.
• Customer Satisfaction: Improved quality and reduced waste resulted in higher customer satisfaction and strengthened customer relationships.

Lessons Learned

The implementation of IoT solutions provided Thomas Concrete Group with several valuable lessons:

• Quality Assurance: Real-time monitoring of moisture levels, temperature, and other key variables helps ensure product consistency, while predictive analytics allow Thomas Concrete Group to address issues before they impact quality, ultimately meeting customer specifications effectively.
• Sustainability Commitment: Proactive monitoring helps identify inefficiencies and enables targeted interventions, reducing waste and supporting sustainability efforts, reinforcing the company's commitment to environmental responsibility.
• Scalable Solutions for Industry Adoption: Leveraging cloud-based IoT solutions allows for scalable implementation across different facilities, helping drive broader adoption of sustainable practices in the construction industry.

Next, we turn our attention to Lexmark, which has leveraged Azure IoT to improve manufacturing operations, focusing on enhancing productivity, reducing waste, and optimizing resource allocation.

Lexmark: Optimizing Manufacturing with Azure IoT

Lexmark, a global leader in imaging and IoT technologies, leveraged Microsoft Azure IoT Hub to enhance operational visibility, reduce waste, and improve energy efficiency across its manufacturing facilities. The implementation centralized data from multiple sites, enabling real-time insights, predictive maintenance, and optimized resource allocation.

Opportunity

By implementing Microsoft Azure products, Lexmark, created new IoT offerings that brought its enterprise capabilities to new small and medium-sized business customers. 

These same services powered Lexmark’s digital transformation, driving substantial customer experience improvements, new predictive service capabilities, and support center efficiency. The company wanted to integrate all data repositories and digital workflows into one cloud-based system encompassing the entire business. 

The solution created a 360-degree view of customers and facilitated real-time data analysis for immediate decision-making, transparency, and long-term success for customers, partners, and Lexmark.

Lexmark needed to improve operational visibility across its manufacturing facilities to enhance productivity and reduce waste. Fragmented data systems made it difficult to gain a unified view of operations.

Solution

Lexmark implemented Azure IoT Hub to centralize data from various manufacturing processes. Lexmark gained real-time insights into machine performance, energy consumption, and overall productivity by connecting equipment across multiple facilities. Key aspects of the solution included:

• Centralized Data Platform: Azure IoT Hub allowed Lexmark to consolidate data from all manufacturing facilities into a unified platform, providing comprehensive visibility into operations.
• Real-Time Insights: Connected devices provided real-time data on equipment performance, enabling quick identification of inefficiencies and allowing for prompt adjustments to maintain smooth operations.
• Predictive Maintenance: Using Azure's data analytics, Lexmark could predict equipment failures before they occurred, minimizing unplanned downtime and reducing maintenance costs, ultimately leading to greater efficiency and reliability in their manufacturing processes.
• Scalable Technology: Azure IoT's flexibility allowed Lexmark to adapt the solution across its facilities, facilitating process standardization and scalability.

“Azure’s full-suite approach matched Lexmark’s end-to-end technology ownership model and had been key to us delivering scalable enterprise-class print solutions into the SMB space. We deliver IoT-powered print via the cloud, which Azure was built to provide. “- Phil Carter: Senior Director of Global Portfolio Management, Lexmark

Impact

The IoT-enabled solution had significant positive impacts on Lexmark's manufacturing operations:

• Energy Optimization and Productivity Gains: Real-time equipment monitoring optimized energy use, enhanced visibility allowed for predictive maintenance to reduce disruptions, and centralized data improved resource allocation, minimizing waste and boosting overall efficiency.
• Enhanced Customer Satisfaction: Improved operational efficiency and quality translated into better products and services, resulting in higher customer satisfaction.
• Technician Efficiency: The new system enabled a 20% improvement in technician efficiency through optimized service dispatch and predictive maintenance.

If you want to achieve a similar impact, consider consulting with your Microsoft Gold Partner to plan your predictive maintenance project.

Lessons Learned

The implementation of Azure IoT solutions provided Lexmark with valuable lessons that contributed to its operational success:

• Data Centralization: Centralizing data is key for operational visibility and informed decision-making.
• Scalable Solutions: Implementing scalable IoT solutions is essential for process standardization and supporting growth across multiple sites.
• Energy Efficiency: Monitoring energy consumption leads to better resource management and sustainability.
• Customer-Centric Approach: Leveraging data analytics to improve service offerings can significantly enhance customer satisfaction and open new business opportunities.

Following Lexmark's achievements, Fischer has also utilized Azure IoT to boost efficiency and quality in their construction solutions, focusing on proactive monitoring and improved safety.

Fischer: Optimizing Construction Solutions with Azure IoT

Fischer, a global leader in construction solutions, with 4,700 employees and gross sales of 1.16 billion euros in 2023, utilized Azure IoT to enhance quality control, safety, and efficiency in their production processes. By integrating sensors like SensorAnchor and SensorDisc with Azure IoT, Fischer developed an end-to-end construction monitoring solution that enables real-time insights, predictive maintenance, and improved structural safety.

Challenge

Fischer wanted to improve quality control in their production lines and enhance the safety and lifespan of engineering structures. They faced challenges in visualizing the forces acting on bolt connections in structures like scaffolds, cranes, and bridges. Existing measurement systems were too complex and time-consuming. 

Fischer needed a simple, end-to-end solution that could digitally model these processes and make key information accessible to customers. By investing in Azure IoT, Fischer used products like SensorAnchor and SensorDisc to improve transparency and enable predictive maintenance.

Solution

Fischer utilized Azure IoT to create a comprehensive construction monitoring solution featuring SensorAnchor and SensorDisc. These sensors are connected to Microsoft Azure, allowing real-time monitoring of forces acting on bolts and other critical connections. Key aspects of the solution included:

• Comprehensive IoT Architecture: Fischer built a full IoT ecosystem instead of just a sensor system, ensuring end-to-end monitoring and transparency.
• SensorAnchor and SensorDisc Integration: SensorAnchor wirelessly transferred data to the cloud, while SensorDisc enabled on-site monitoring through the Fischer PRO App.
• Azure Event Hub: Azure Event Hub processed the sensor data, identified outliers, and triggered alerts when necessary, enabling proactive safety measures.
• Data-Driven Insights: Fischer used the gathered data to predict maintenance needs and provide customers with a better understanding of their structures' health and longevity.

“Based on Microsoft Azure, our Construction Monitoring solution gives users clear feedback on a structure’s condition and the forces acting on it. That helps them schedule predictive maintenance and improves the structure’s safety and service life. “ Dr. Daniel Rill: Product Manager - fischerwerke GmbH & Co. KG

Impact

The IoT-enabled solution brought several positive impacts to Fischer's construction monitoring:

• Enhanced Transparency: Real-time data provided greater transparency into the condition of engineering structures, helping detect risks and potential failures early.
• Improved Safety and Longevity: Predictive alerts allowed for proactive maintenance, improving safety and extending the service life of structures.
• Reduced Manual Effort: Continuous monitoring eliminated the need for separate documentation and manual inspections, reducing labor costs and minimizing environmental impact.
• Broader Applications: The solution's scalability enabled its use in diverse sectors, including robotics and energy infrastructure, helping clients optimize their operations and reduce maintenance costs.

“Azure IoT helps us offer customers new services and deliver end-to-end digital processes. Our sensor technology generates real added value, but it’s the IoT architecture that makes this possible.’ Marc Klunzinger: Product Owner - fischerwerke GmbH & Co. KG

Lessons Learned

The implementation of Microsoft Azure solutions more specifically Azure IoT Hub solutions, provided Fischer with valuable insights and lessons that contributed to their operational success:

• End-to-End Monitoring: Implementing an end-to-end IoT solution provides a comprehensive view of structural health, enabling better decision-making.
• Proactive Maintenance: Predictive alerts allow for timely maintenance, reducing the risk of failures and extending the lifespan of structures.
• Scalability: Utilizing Azure IoT provides the flexibility to adapt and scale solutions across various sectors, meeting evolving customer needs.
• Environmental Benefits: Reducing unnecessary maintenance and site visits leads to lower environmental impact and cost savings.

Conclusion

The experiences of Tetra Pak, Danfoss, Thomas Concrete Group, Lexmark, and Fischer illustrate the benefits that IoT-enabled solutions can bring to manufacturing and construction. Using Microsoft Azure, these companies have gained better visibility, enhanced efficiency, and improved decision-making. 

From predictive maintenance to real-time insights, these solutions have helped optimize operations, reduce energy consumption, minimize waste, and improve product quality.

If you’re considering how Microsoft Azure IoT solutions can transform your operations, connect with us to learn how we can support your goals for greater efficiency, sustainability, and innovation.

If you’re undertaking an IoT-enabled solution development project or considering starting one and need to develop a PoC, it’s beneficial to consult with a Microsoft Gold Partner experienced in implementing IoT-based solutions with Azure. Book a call with our team of experts to learn how to kickstart your project and drive growth.