TRANSITION TO THE SMART FACTORY: Making transition is a not an easy job and takes time. Every smart factory looks different due to setup in layouts, production of parts, machines size and performance, etc. However, there will be many differences between various factories but the mechanism needed to integrate a smart factory is almost same and each one is important: 1. Data2. Technology3. control and Internet of things(IoT)4. People 5. Cyber security. Manufacturers should consider which area to focus based on their own companies specific objectives and then investment is made.Data Data are the livelihood of a smart factory. With the computation power of computers, data can be analysed and provides feedback to the system, since it is a closed loop control. With these data one can predict operational performance, fluctuations in supply chain, and abnormalities in a system; and can rectify it as soon as possible before any major breakdown occurs. Data can exist in many form not just operational data of machines but also data from the environment such as dust particles, humidity, emissions, temperature and etc. How data are combined and processed varies from factories to factories. For example in a quality department must consider the data from dust particles before taking measurement but other department need not necessary takes these information. For a factory to be smart, companies should constantly collect large amount of data and validate it. Once a smart factory reached a certain position in terms of standards, the data generation is also increased over time. For example companies must upgrade their data storage. Data storage might be represented in form of1. Digital twin 2. Digital shadow.Digital twin servers as a life line between the physical and digital world. First smart sensors gather information about real-time status, working condition, or layout which is integrated with a physical machine. Data from various equipments are connected to a storage device such as cloud-based system. This input is analyzed against business models. With the available information new opportunities are uncovered within the virtual environment that can be applied to the real world, ultimately transforming your business.Digital shadow refers to a set of unique traceable digital activities, operations that are performed using Internet or on digital devices. Digital data can also be stored in many ways depending on the company’s investment. Since it is a smart factory; one should storage data as online, it records everything right from time stamping, ordering of products, workers time stamping works , etc, using these methods everything can be traced backed who did what, so there will be hassle free backtracking the sources of error.