The Internet of Things (IoT) is the term used to describe the billions of “things”, or devices, that are connected to the Internet. Embedded with electronics, software, sensors and connectivity, these “things” can be controlled remotely to exchange data with users and other connected devices. In the manufacturing industry, the integration of machinery, shipments, infrastructure, etc. with networked sensors and software is referred to as the Industrial Internet of Things.
For manufacturers to stay on top of trends, they need to embrace the Industrial Internet of Things and understand how it impacts the future. Here’s more information:
What People Are Saying About the Internet of Things (IoT)
In an Assembly Magazine article titled “Software Enables Demand-Driven Manufacturing” author John Maher says the following:
The Industrial IoT will bring exponential value to those companies that know how to use it. According to a recent report from the McKinsey Global Institute, “The Internet of Things has the potential to unleash as much as $6.2 trillion in new global economic value annually by 2025. McKinsey also projects that 80 to 100 percent of all manufacturers will be using IoT applications by then, leading to a potential economic impact of as much as $2.3 trillion for the global manufacturing industry alone.”
However, a recent Accenture survey found that seventy two percent of CEOs and business leaders say their company has yet to make concrete plans for the industrial Internet of things and only seven percent have developed a comprehensive Internet of Things strategy with investments to match.
We say, what’s the hold up? The time to utilize this technology is now and manufacturers must be working towards implementation.
The benefits of using Industrial Internet of Things applications include:
Improved Operational Efficiency via Access to Real-Time Data
The Industrial Internet of Things creates a synchronized factory where managers have access to all production environment data, including equipment, product, planning, and execution data, in real time. Everyone has immediate access to the same information which improves the process. The data can be used to predict maintenance failures and disruptions to proactively prevent them in order to reduce downtime. Reduced downtime results in increased production and revenues.
Growth Opportunity Insights
In addition to creating a more efficient process, the Industrial Internet of Things can also be used by manufacturers to find new business models and new revenue streams. Access to valuable data in real time allows managers to see the “big picture” which can inspire new types of products, services, or approaches that bring value to the customer. This should alleviate the fears of those who believe that the technology means a loss of jobs as 86% of 1,400 business leaders think the Industrial Internet of Things will be a net creator of jobs. (Source)
Manufacturers that have yet to embrace the Industrial Internet of Things, keeping their data in inefficient silos, are going to fall behind. The time to integrate it in order to have actionable knowledge about production cycles and improve efficiency and increase profits is now.