The IoT or Internet of Things is transforming the landscape of the manufacturing industry’s data collection and analysis. IoT in manufacturing today can gather data from equipment and machines to change the systems and processes of present day factory environment. IoT technologies can potentially upgrade visibility in the manufacturing industry in a radical way so that each production unit can be monitored accurately at every step during the process of production. Unit-level visibility will replace batch-level visibility, bringing in the smart manufacturing era. Neglecting or denying the revolution that IoT can usher in, will only result in manufacturers falling behind their competitors or losing clients who value innovation and speed.
Internet Of Things- Definition:
This umbrella term covers a wide range of several underlying services and technologies that rely on the utilization of a broad ecosystem consisting of technologies like Big Data, analytics and connectivity solutions among others. The Internet of Things acts as an extra layer of interaction, information, action and transaction integrated in the Internet, all thanks to the devices that are equipped with communication and analysis capabilities, data sensing along with the usage of Internet technologies. Furthermore, the IoT functions as a bridge between physical and digital realities while powering information-driven automation to improve businesses and societies on the whole.
Manufacturing is the industry that realizes majority of the IIoT or Industrial IoT projects and investments in this age of digital transformation and Industry 4.0. The Internet of Things happens to be one of the core components responsible for industrial transformation endeavors all over the world, which includes the Industrial Internet and the Industry 4.0. Manufacturing does not just lead in reference to Industrial Internet, but it also stands ahead of all other industries when it comes to the wider IoT reality. The IDC data shows that in terms of IoT spend, $178 billion was credited to the manufacturing industry in 2016, which happens to be two times more than transportation, the 2nd largest IoT spend vertical market.
IoT Forecast for Manufacturing:
It is being predicted that manufacturing will continue to retain its position as a leader in IoT spend till the year 2020. In 2020, the APeJ or Asia Pacific excluding Japan, will be spending as much as a third of its IoT spend (including software, hardware, connectivity and services) on the manufacturing industry. Other regions will also be prioritizing IoT spends towards manufacturing, except that their market shares will be comparatively slower. For example, the IoT spend towards manufacturing in the USA will amount to 15% of the total Internet of Things purchases.
It is clear by now that manufacturing is way ahead of other industries when it comes to using the Internet of Things, and the reasons for this include historical facts, IoT uses cases, actual deployments of IoT that result in rapid returns, competitive advantages of utilization of data across manufacturing value chain, tapping into newer sources of revenues, and the advancement towards Industry 4.0 or the industrial revolution- all of which contribute towards the digital transformation of the manufacturing industry.
IoT- Initial Accomplishments And Future Endeavors:
The “State of the Market: Internet of Things 2016” by Verizon provides the following information:
- As much as 66% of total early-movers opt for IoT for measuring risks, protecting company assets as well as improving their staff safety.
- 76% of the overall manufacturing early-movers opine that IoT is responsible for improvement in customer behaviors and preferences insight.
- 60% of the total early-movers are bettering the performance or reliability of their services and products with the help of IoT.
The success of IoT can be described through the example of the oil and gas industry. This industry is coming up with the industrial-automation systems for monitoring the health of costly capital assets located remotely. Such systems offer the facility of preventive and timely maintenance through the use of sensor data that generate information of real-time performance for providing early warning signs. Using this technology companies can maximize uptime, develop multiple models and improve productivity without causing any interruption in production.
Although, the Internet of Things may sound exciting and adventurous, but not many are eager to utilize the far-reaching possibilities of IoT. Proper integration of IoT with applications and transformative technologies will provide a clear picture of the usability of IoT to the manufacturing industry. The reward of successful integration of Internet of Things with the overall enterprise as well as supply chain will be newer rich insights, greater efficiency along with continuous betterment of performance.