This document discusses how smart manufacturing and artificial intelligence of things (AIoT) can help drive digital transformation. It provides examples of how IoT solutions have helped various companies reduce costs and improve operations. It then discusses key concepts in smart manufacturing like the intelligent edge, cloud computing, and different waves of innovation with IoT, edge, and AI. The document outlines Microsoft's IoT portfolio and reference architecture for smart manufacturing. It also describes various Azure IoT capabilities and solutions like IoT Hub, IoT Edge, Time Series Insights, and preconfigured solutions for predictive maintenance, remote monitoring and connected factories. Finally, it discusses how machine learning can address supply chain optimization, predictive maintenance, anomaly detection, production scheduling and demand