The Industrial Internet of Things (IIoT) is finally set to revolutionise the factory floor. Research firm IDC estimates that by 2020, 40% of all data will be machine-generated, with 20 to 50 billion devices fuelling that growth. And a recent survey commissioned by Infor revealed that more than half (52%) of manufacturers globally see IoT as a business priority, with one in twenty claiming that it is the biggest priority.
While just 8% of those polled have an established IoT programme in place, over a third (38%) claimed they were in the early stages of investigating the potential of IoT, with 12% planning a IoT project in the next 12 months.
Manufacturers and other equipment-intensive industries have been using connected devices to monitor their operations for more than 20 years. However what is now clear is that the value of the IIoT has evolved as a result of new supporting technologies and frameworks.
Through collecting, analysing and processing sensor-generated data, companies can gain the kind of comprehensive, detailed insights which can drive down costs, or create new customer offerings and services. But for any of these opportunities to be seized, sensors alone are insufficient.
Manufacturers need a combination of real-time data combined with Cloud storage and powerful analytics. Only then can they drive fast, intelligent business decisions which will drive the kind of insightful, proactive, agile culture needed to boost profitability. Contrary to early hype, the key to seeing the benefits of IIoT resides not in the sensors, but in other core business systems.
ERP is integral to the success of IIoT as it brings together sensor-generated data with EAM, PLM, CRM databases and unstructured data from across the business. Only through this level of integration, interpretation and contextualisation can cost savings be maximised, and value propositions be created and monetised.
For many, this means that ERP must be reviewed, and often re-invented in order to capitalise on this new opportunity. Any system implemented more than five years ago is unlikely to contain the level of integration capabilities, social collaboration and intuitive user interfaces necessary. This integrated IIoT is an opportunity to embrace a range of new technologies to innovate and drive greater insight, proactivity and agility for manufacturers.
