How open, software defined automation turns inefficiency into opportunity
- By Gwenaelle Avice Huet
- 27 Nov 2025
- 5 min read
“The shift to open automation isn’t just about avoiding hidden costs; it’s about unlocking value. By embracing open systems, businesses can achieve greater efficiency, reduce operational risk, and position themselves for sustainable growth.”
- Gwenaelle Avice Huet, EVP Industrial Automation
In today’s dynamic business environment, shaped by evolving supply chains, global developments, regulatory shifts, and rapid technological innovation, success depends on more than competitiveness. It requires adaptability. Organizations that embrace fresh approaches and prioritize agility, resilience, and sustainability can not only navigate uncertainty but unlock new pathways for long-term growth and impact.
One of the most powerful opportunities for industrial leaders today lies in rethinking automation strategies. Moving from closed automation ecosystems to open, software-defined architectures isn’t just a technical upgrade, it’s a strategic shift that delivers measurable cost efficiencies, operational flexibility, and innovation at scale.
For decades, closed automation systems were trusted for their reliability and consistency. But in today’s fast-changing environment, these systems often limit flexibility and create inefficiencies that quietly erode profitability.
Recent research by Schneider Electric and Omdia: “Open vs. Closed: The $11.28M Question for Industrial Leaders” highlights the scale of this challenge, and the opportunity it presents.
This research surveyed over three hundred companies across energy, food and beverage, water and wastewater, metals, and manufacturing industries and engaged 10 C-suite level participants to obtain both quantitative and qualitative insights on the impact of closed industrial operations.
Across industries such as energy, oil and gas, food and beverage, water and wastewater, metals, and manufacturing, companies operating closed systems face hidden costs totaling 7.5% of revenue of annual revenue.
- Mid-sized companies lose an average of $11 million annually due to inefficiencies tied to vendor lock-in.
- Large enterprises face losses of more than $45 million every year.
Rather than viewing this as a sunk cost, forward-thinking leaders see it as a chance to unlock savings and reinvest in growth. By transitioning to open automation, businesses can reclaim millions in hidden expenses and redirect resources toward innovation and competitiveness.
The hidden costs of closed automation, including a breakdown for medium businesses (source: Schneider Electric)
Open, software-defined automation architectures offer modular, scalable, and interoperable solutions that align with the realities of today’s industrial landscape. Here’s how they create tangible business value:
Cost Efficiency
Open systems reduce reliance on single vendors, simplify upgrades, and enable seamless integration with other technologies. This lowers both upfront investment and ongoing operational costs, helping organizations recover that $11.28 million and more.
Agility and Flexibility
Organizations can respond quickly to changes in demand, supply chain disruptions, or regulatory updates without costly infrastructure overhauls. For example, software-defined automation allows engineers to automate workflows, troubleshoot remotely, and update processes in real time.
Continuous Innovation
Modular designs and interoperability make it easier to adopt emerging technologies, ensuring businesses stay competitive and future-ready.
Collaboration and Ecosystem Growth
Open architectures foster partnerships and knowledge-sharing, accelerating innovation across industries.
Industrial competitiveness depends on agility and open automation is the key. What was once a constraint can now become a capability, helping organizations navigate complexity and seize new opportunities with confidence.
The shift to open automation isn’t just about avoiding hidden costs; it’s about unlocking value. By embracing open systems, businesses can achieve greater efficiency, reduce operational risk, and position themselves for sustainable growth.
Now is the time for industrial leaders to act. Open architectures deliver cost savings, flexibility, and innovation, transforming automation from a fixed expense into a strategic advantage.
The e-book “Open vs. Closed: The $11.28M Question for Industrial Leaders”, developed by Schneider Electric and Omdia, reveals striking insights into the hidden costs of traditional, closed automation systems. Learn how organizations adopting open software-defined automation report faster reconfiguration and deployment, vendor independence and reduced engineering time, real-time insights and digital continuity and future-ready infrastructure for AI-driven innovation.
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