What the Internet of Things (IoT) Means for Industry
Probability is high that you know how the Internet has changed computing forever and how the Internet of Things (IoT) has made changes in your life, with everything from smartphones to your automobile. But did you know what the IoT means for industries? That is what LNS Research’s white paper, “The IoT Revolution and the Connected Value Chain,” discusses.
The white paper examines how manufacturing businesses moving toward a closed-loop environment can leverage the technology inherent in IoT to improve their companies. In addition, Cisco says that by 2022, there will be approximately 13.5 billion “connected devices” in the manufacturing arena, which potentially means that change is coming soon to the manufacturing world and those who do not adapt will be left behind.
There are four aspects the white paper examines.
Read this summary and download the paper to know more about what the Internet of Things (IoT) means for industry.
How Manufacturers Grow Past the Siloed Value Chain
According to the white paper, a recent quality management survey by LNS Research of over 500 industry executives discovered that 78% of them worked in a “disconnected” environment. However, some of them are working toward a better environment by investing resources in enterprise quality management software (EQMS), which “typically come stacked with comprehensive suites of quality management processes, analytics and dashboards, and reporting modules.” According to LNS Research, 34% of such executives are planning an EQMS solution, and 21% have already adopted the software for use in their businesses.
How IoT Technology Affects Closed-Loop Quality
IoT is “poised” to take the use of data and industry intelligence to the next level, the white paper notes, particularly with the use of real-time performance marketing in manufacturing. Intelligent sensors can provide a wide variety of performance data. For example, Rolls-Royce is now selling jet-engine flight hours to companies like Boeing instead of selling the jet engines outright. Rolls-Royce then uses IoT to remotely monitor how the engines are working, providing a more extensive picture than just having a mechanic physically look at the engine. Such smart sensors will continue to improve closed-loop technology.
What Executives Think of IoT Technology
A survey of 250 executives by LNS Research found a variety of attitudes regarding IoT among business people. It turns out that 43% of the executives admitted they do not understand the technology, while a total of 42% said they are interested in how the Internet of Things can affect their businesses. A total of 15% of the executives said they could see no impact of IoT on their businesses. Four percent said that customer demands were causing them to make investments in IoT technology.
When these same executives were asked what the nature of their IoT investment in the future would be, 46% of them said they did not see any such investment in the foreseeable future. However, 13% said they had already made an IoT investment, while 23% will make such an investment over the next year. A total of 18% said that they would not make an investment in IoT in the next 12 months.
The white paper notes that some more education is needed regarding explaining the importance of IoT to manufacturers. To that end, organizations such as Industrial IP Advantage and the Industrial Internet Consortium are doing their best to educate businesses about the benefits of IoT and to facilitate better communication between such smart devices and smart systems. The white paper notes that in the future “it is important for quality to have the right processes and data analytics in place to leverage the impending data influx.”
IoT Recommendations for Businesses
The white paper makes the following recommendations for businesses to incorporate IoT into their businesses:
- IoT is an important point of closed-loop technology: Companies are already expanding closed-loop technology in their businesses; 22% already have it, and 40% plan to have it in their businesses within the next year. IoT use takes it a step further.
- EQMS will turn such data into intelligence: IoT data will turn into actionable intelligence with the use of EQMS, the white paper notes, using advanced analytics and data visualization. Companies who use it will learn more about their products.
- Education about the IoT is critical: Since 43% of the executives surveyed did not understand what it was, further education is important in order to further the use of the technology. Businesses who want to maintain a sharp competitive edge will need to dig deeper on this issue, the white paper says.
- IoT is available right now for businesses: Companies, particularly manufacturers, can use IoT right now in their businesses; the technology is available today, not just in the future. IoT can potentially change companies’ futures right now.
To read the complete paper, click on the image below.