How Industrial Internet of Things (IIoT) Will Unleash The Potential of Utility Businesses

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How Industrial Internet of Things (IIoT) Will Unleash The Potential of Utility Businesses
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The Industrial Internet of Things is part of a larger concept – Internet of Things (IoT). Basically, it is the use of Internet of Things (IoT) in manufacturing. It incorporates with machine learning and big data technology, machine-to-machine communications, and automation technologies that exists in industries for years.

Back in old days, when IoT was all the buzz, many manufacturers and industrial product companies have made great pace to connect their products and appliances to Internet of Things. But, to succeed in this era, you need more than just technology connectivity. In fact, the arrival of Industrial Internet of Things is a once-in-a-lifetime business disruption that will not only provide new capabilities, but it will also provide new opportunities.

What is Industrial Internet of Things?

The Industrial Internet of Things (IIoT), also known as the Industrial Internet, is the network of a multitude of devices connected by communications technologies that results in systems that can monitor, collect, exchange, analyze, and deliver valuable new insights like never before.

In simple words, it brings together brilliant machines, advanced analytics, and people at work. These insights by IIoT can help to drive smarter, faster business decisions for industrial companies.

The Whole philosophy behind IIoT is that smart machines are better than humans at accurately, consistently capturing and communicating data. And, due to this data, it will be possible for companies to learn about inefficiencies and problems sooner, which results in saving time and money.

Moreover, Industrial Internet of Things, just like IoT, covers several industries like manufacturing, transportation, utilities, mining, and other industrial sectors, which focuses on optimizing the operational efficiency, automation, and maintenance.

The Industrial Internet of Things Market

the market opportunity for Industrial IoT is huge. According to IndustryARC research, the IIoT market is estimated to reach $123 billion by 2021.

In the graphic below, you can also see few other forecasts by Morgan Stanley, Accenture, and Global IIoT market report.

industrial-internet-of-things-market

Back in 2014, the Internet of Things was declared as most hyped technology by an Analyst firm Gartner. Much of this technology was centered consumer applications, but the IIoT applications will going to dominate the consumer side in potential business.

While the Industrial Internet is still at an early stage, The Industrial Internet of Things will transform companies and countries, opening up a new era of economic growth and competitiveness.

With IIoT applications, the intelligent machines will have far-reaching impacts on productivity, efficiency, and the operations of industries. Although, the Industrial IoT is predicted to grow significantly, but there are still challenges to overcome.

Major Challenges in IIoT Adoption

Industries, which are planning to adopt IIoT in their products, Interoperability and security will be probably the two biggest challenges. According to Margaret Rouse, a technology writer, says – “A major concern surrounding the Industrial IoT is interoperability between devices and machines that use different protocols and have different architectures”.

Moreover, in a recent findings by Morgan Stanley in April 2016, it said that data security was even more of a growing concern for organizations which rely on universal connectivity. It’s why companies who are active in the Industrial Internet of Things as service providers offer hybrid IoT technology solutions for industrial applications, ranging from cellular and low power wide area networks to industrial connectivity solutions, fixed and beyond.

In addition to this, data integration is also another challenge in the adoption of IIoT, according to the research with 64% of respondents. However, data and more specifically insights and knowledge in ecosystems of sharing are where the future revenue opportunities reside.

Another major reason why companies are not ready for the Industrial Internet of Things according to the survey is a lack of skills.

In the Morgan-Stanley research it was mentioned that 24% of the survey respondents cited a lack of skilled workers. If there is one thing that is clear in this age of digital transformation and of the Industrial Internet of Things, it’s that no organization can do it all alone. So, it will become more important to get access to the right skills.

The Driving Benefits of Industrial Internet of Things

With the implementation of IIoT, It will possible to improve connectivity, efficiency, scalability, time savings, and cost savings for industrial organizations. In fact, companies are already benefitting from the IIoT through cost savings, due to predictive maintenance, improved safety, and other operational efficiencies.

Business leaders have also started using IIoT data to get a full and accurate view of how their enterprise is doing, which helps them make better decisions.

Additionally, most manufacturers, energy companies, and agriculture producers, the initial business case to justify the adoption of the Industrial IoT is based on incremental results in increased revenues.

The IIoT is widely considered to be one of the primary trends affecting industrial businesses today and in the future. In fact, Entrepreneurs have started finding an ideal IoT App Development Company to modernize systems and equipment to meet new regulations, to keep up with increasing market speed and volatility, and to deal with disruptive technologies. And, it is expected that this trend will continue as IIoT technologies are more widely adopted.

 
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