Friday, March 18, 2016

Get Your Prescription for the Industrial Internet of Things

Posted by Erik Dellinger

In recent years, the number of manufacturers leveraging the Industrial Internet of Things (IIoT) to improve productivity, reduce defects, and gain more visibility into the operation of their facilities has increased dramatically. A recent survey conducted by PricewaterhouseCoopers (PwC) found that over one-third of U.S. manufacturers consider it “extremely critical” to have an IIoT strategy implemented in their operation. Similarly, a survey from LNS Research with over 600 respondents found that 34 percent of companies are currently adopting IoT—a figure that will undoubtedly continue to grow in the coming years.

As part of my day to day, I speak with many organizations that are looking to adopt Industrial IoT. One observation I’ve made with a handful of these companies is that they fundamentally misunderstand how the concept should be applied. Instead of simply treating IIoT as a means of interconnecting devices, lowering operational costs, increasing throughput, and enhancing visibility, they perceive it as a “silver bullet” that will help solve problems they didn’t know they had. This has led to an increased demand from customers to identify new and detailed use cases that demonstrate how IIoT prescription-iot-blog-2016.jpgcan be applied to a facility or process, which in many instances can be like trying to find a needle in a haystack.

The situation can be likened to taking a visit to the doctor. When someone goes in for an office visit, they don’t just expect the doctor to guess what problem or illness they have. Neither do they walk in and ask for the best new medicine on the market to cure all of their problems. They instead give a detailed description of the problems they are experiencing, and the doctor prescribes a specific treatment and/or prescription to address it.

It’s this process that companies should think about when looking to implement a solution, regardless of calling it IIoT or not. In some cases, adopting a more advanced automation system does have the potential to create a new use case, business model, or competitive advantage. For example, one of our customers recently added remote monitoring to their equipment so they can better service it for their customers. Now, they offer more than just equipment—they offer a means to improve uptime.

The high-level problems that IIoT helps solve are relatively consistent across all industries and operations (e.g., increase asset utilization,  improve productivity, optimize the supply chain, improve product quality, enhance security, and so forth). Users look to solve those problems with one goal in mind: increasing profitability. The difference from one use case to the next will lie in the particular IIoT solution that is implemented—not unlike how a doctor prescribes the latest and greatest medications and/or therapies to patients depending on the specific nature of their ailment or disease.

In some cases, adopting an Industrial IoT solution will offer additional functionality and flexibility when compared to a traditional industrial automation system; however, the benefits it provides will be unique to the individual operation, facility, or process where it is being applied. I believe the major disconnect between use cases and IIoT for some manufacturers lies in the simple fact that IIoT is not a technology. So with that in mind, let’s start thinking about solving problems by applying the latest and greatest technologies—then we can call it IIoT.

Continue Learning about Industrial IoT

Download Tony Paine's eBook to learn more about the Industrial IoT's history and operational improvements it will enable in automation and control systems.

Download the Industrial IoT and Communications at the Edge eBook