Dec 03, 2017The evolution of information technology, commonly termed the third revolution in the industrial sector, has elicited one of the greatest applications in industrial history. The Internet of Things (IoT) has been perceived as ground zero of the new phase of the Industrial Revolution, powered by innovation, technology and connected products. Big-data analytics, one of the significant elements of the Industrial Internet of Things (IIoT), has witnessed colossal amounts of investments during the past few years. A large chunk of multinational corporations are already investing more than 20 percent of their annual technology budget on big-data analytics.
The IIoT alludes to an interface designed for bringing together the physical world of machines with the digital world. It is a network that connects industrial devices to each other and enables communication and observation on the basis of the data patterns and information shared by these devices through a common server. The analysis of the data received from the industrial devices is utilized to improve the performance of the industrial processes that can bolster production efficiency and reduce operational costs.
The short-term impact of companies adapting the IIoT would be in terms of operational efficiency and data monetization. These short-term goals, if attained and in line with an organization's objectives, are likely to accelerate the demand for the IIoT. Such goals will also be influential in paving the way for the IIoT into more complex applications, thereby turning its deployment into a long-term strategy.
The long-term impact of the Industrial Internet of Things is in steadily altering the competitive landscape of industries and, in turn, creating an outcome-based economy. A brand-new industrial outlook incorporating advanced systems management, integrated sensor frameworks, smart machines and connected intelligent networks will unveil itself following adaptation of the IIoT.
The requirement of favorable infrastructure, resources and workforce to commercialize the IIoT across all sorts of industries is needed, however, considering the above-mentioned key scenarios. The security and safety of the stored information are among the biggest challenges that the IIoT currently faces before a significant uptake is witnessed in adaptation by various industry verticals. The rate of data breaches and hackings has considerably increased during the past few years, and the extent of the damage poses a massive threat to IIoT deployment.
Apart from security, the IIoT can only be adopted if manufacturers follow consistent industrial standards prepared by an organization. Similar products manufactured by different companies need to follow a certain standard that will allow them to work under a common platform.
The third challenge that the IIoT faces is in the context of product specifications. A product to be functional under the IIoT should adopt data-centric designs that will focus both on receiving and generating data. The outcome-based economy developed by the long-term adaptation of the IIoT will require transformations in the business models designed by industrial equipment manufacturers. The transition from a product-oriented to a service-oriented model is a constraint confining IIoT adaptation.
The other big issues that electronic industry experts have been discussing are in regard to device management, power efficiency and power consumption. The lack of a knowledgeable labor force and a common learning ecosystem is another challenge that the IIoT is likely to face after its adaptation.
The fate of the IIoT depends on its adaptability and capacity to incorporate new innovations. It will change the premise of internal competition, requiring OEMs to shift from a conventional business model to an outcome-based model. As the Industrial IoT has uncovered promising applications in every industry, it has attracted substantial levels of venture capital.
For the Industrial Internet of Things to achieve its full potential, industry segments should work together all the more intimately with innovation pioneers and regulatory bodies to put in place the standards and strategies required to empower further investments.
Kaukab Ibrahim is a strategy analyst at GSMA Intelligence, in India.
