It’s Time to Develop Your Industrial IoT Strategy
Laura Anthony | Content Design Manager
Tod Grams | Business Development Partner
The Industrial Internet of Things (IIoT) is revolutionizing the world of manufacturing at a pace that continues to escalate. As a manufacturer, maybe you haven’t had the bandwidth or resources to do a deep dive into IIoT. Perhaps you feel paralyzed as to the best way to move forward. After all, IIoT is a complex undertaking that feels overwhelming and requires a significant investment and considerable change.
According to Market Watch, the global IoT market is expected to reach $1.4 trillion by 2026. In addition, the potential economic impact for IIoT within factories alone is estimated to be $1.2 to $3.7 trillion a year by 2025 according to the McKinsey Global Institute Report.
While the risk of implementing an IIoT strategy may feel great, the reward is far greater. The purpose of this blog is to further fan the flame of your need for an IIoT strategy.
First, we will attempt to get your mouth watering by sharing six advantages of IIoT. Then we will cite three ways you could start to ease into the internet of things, and lastly, we will list seven ways you can prepare for it.
Industrial Internet of Things Defined
Let’s give a quick review. The Internet of Things (IoT) imagines that many of our physical things “talk” with one another through electronic sensors, actuators, and software through network connectivity. In the home, this technology has equipped appliances, light bulbs, door locks, security cameras, and thermostats to be controlled from a phone or a website while at home and away.
The Industrial Internet of Things (IIoT) is the ability to connect smart devices within industrial processes to monitor, automate, and predict all kinds of outcomes. The IIoT connects information technology with operational technology. It largely focuses on machine-to-machine communication, big data, and machine learning. Other common applications include robotics, medical devices, and software-defined processes.
The Industrial Internet of Things is bringing game-changing benefits to manufacturing—reducing operating costs, increasing productivity, improving safety, and more.
What are the benefits?
IIoT is the future. Those who choose to continue with legacy machines and processes will eventually lose their ability to compete. However, those who make the investment to revitalize their operations with updated technologies will achieve far greater efficiencies, increased profitability, and long-term sustainability. Gary Hauthier says it well, “When you reduce the cost of failure, you see a big eruption of innovation.” Below are just a few of the many benefits of IIoT.
+ Predictive Maintenance (PdM) for Higher Quality and Reduced Downtime.
PdM prevents asset failure, reduces downtime, and lowers repair costs through sensors on manufacturing equipment.
+ Real-Time Data for Increased Business Agility
Real-time supply chain insights are created by tracking material flow and manufacturing cycle times. This helps decision-makers respond to any bottlenecks or inefficiencies.
+ Better Inventory Management
IIoT provides supply chain visibility so organizations can monitor inventory and production flow which helps reduce or prevent errors.
+ Improved Safety and Compliance
Monitor health and safety KPIs in real-time.
+ Greater Energy Efficiency
IIoT keeps energy costs under control and optimized from anywhere.
+ Enhanced Customer Experience
Connect suppliers with customers in real-time and increase data-driven personalization.
While there are countless ways to apply IIoT, let’s look at three common ways manufacturers are using it.
+ Remote Monitoring. Equipment operators can receive real-time data through a single dashboard on a piece of equipment with sensors. They can monitor repair needs, maintenance needs, and the overall life cycle quickly and accurately.
+ Predictive Maintenance. Equipment monitors and sensors can track a variety of maintenance issues and prevent failure and downtime proactively.
+ Automation. Processes are being automated in a variety of ways with unprecedented precision to save time, money, and resources.
A global leader in food processing recently partnered with DISHER to complete a $5.8 million-dollar automated assembly line/facility expansion with IIoT technologies.
How to Prepare for Change
Let’s look at some ways you prepare your organization for IIoT implementation. It takes a significant amount of planning, preparation, and investment and everyone needs to be onboard. According to Life Cycle Engineering, there are seven areas that need preparation to be successful.
+ Stakeholder preparation. Learn the needs and expectations of your stakeholders regarding your asset management system. Set clear objectives.
+ Data preparation. Ensure the quality and integrity of your data.
+ Process preparation. Assess your asset and work management processes.
+ People preparation. Establish a systematic, structured change management plan. Hire the IoT expertise needed and educate the team to implement the changes.
+ Project preparation. Assess, prioritize, and develop roadmaps for your selected IIoT initiatives.
+ Technology preparation. Assess your network to ensure machines and devices can communicate with each other and your enterprise system, and plan for cybersecurity. Partner with technology specialists who will help guide you through the process.
+ Management reporting preparation. Identify your business metrics and ensure they are available to report out to executives.
Start preparing your operation for IIoT by assessing your team’s skills and your current state of performance. Define your future state and develop an IIoT plan with cost-benefit analysis. Manage your IIoT strategy proactively with effective change and program management.
The time is now to take steps forward in developing your organization’s IIoT strategy. Don’t take the risk of getting left behind. If you are ready to move forward and augment your team with an IIoT partner, DISHER welcomes the opportunity to come alongside you.
Together, we can assess your advanced manufacturing needs and develop a custom plan that will make a measurable impact on your immediate and long-term future. Get connected with our award-winning team of engineers who would love to help advance your business forward.
Industrial Internet of Things (IIoT) – Definition
The Building Blocks of Digital Transformation — Life Cycle Engineering
Industrial IoT: Benefits, Applications, and Challenges Of Wide-Spread IIoT Implementation
6 Uses and Benefits of Industrial IoT | Industry 4.0
11 Leading Benefits of IIoT in Manufacturing – VKS Blog
Industrial IoT – The Top 5 Benefits of Industry 4.0 – Hitachi Solutions
Ten benefits/advantages of IIoT and analytics for manufacturers – IIoT World
The Benefits of IIoT for the Manufacturing Industry | 3Pillar Global