The groups expect that their collaboration will result in innovative products and solutions for the fourth industrial revolution, the companies announced at the Microsoft NT conference in Portorož on Wednesday.

Microsoft is cooperating on developing advanced smart factory solutions with Kolektor and its start-up incubator Kolektor Digital, said Microsoft representatives, adding that the groups' strategic cooperation thus continues to be strengthened through the concept of open innovation.

"Kolektor is not only our customer, using Microsoft's state-of-the-art technology, but also our important partner, with whom we're creating the future of manufacturing," said Barbara Domicelj, the director general of Microsoft Slovenija.

The collaboration agreement includes cooperation in projects designed to increase operational efficiency with automation, machine learning and advanced analytics.

The two companies plan to cooperate in the development of advanced manufacturing services, based on Microsoft's Azure cloud computing platform, as well as in researching business model innovations and running projects striving to increase operational efficiency of Kolektor's employees by improving business procedures and technology.

Kolektor Digital was founded by Kolektor to ensure the group's sustainable source of growth. The open innovation platform employs some 50 experts - PhD scientists, economists and marketing experts - and cooperates with start-ups and research institutions in developing smart digital solutions.