Tech Trends Decoded: Industrial IoT
The buzz around buzzwords has made buzzword a buzzword. And here’s another one for you- IIoT.
India’s startup ecosystem has evolved considerably over the past couple of decades and is said to be in its third wave, with innovation and deep tech at its core. While the Internet of Things, or IoT, has a visible (and quite significant) role in this wave, a subset of this technology is making headlines as well.
Industrial Internet of things (IIoT) extends the use of IoT to the industrial framework through the use of sensors and inter-connected intelligent devices, capable of sharing and extracting crucial data. Why is this so important you ask? To explain this, we need to introduce another trending word- Big Data.
Big Data, very simply, refers to the large volumes of data that swamp a business almost every day. Industries are increasingly relying on analysing this data to get deeper insights for more informed decision-making and improving the efficiency of their businesses. So, just like Geospatial Big Data is collected through satellites and radars, IIoT is used to gather information in various sectors like manufacturing, retail, transportation, etc.
IoT, IIoT and Industry 4.0 – Are We Talking About The Same Things?
Short answer – no.
Long answer – no way!
IoT, IIoT and Industry 4.0 are related and overlapping concepts but cannot be used interchangeably. Let’s define each of them separately to understand why they are different.
IoT, in layman terms, means extending the use of the internet to devices, computers, processes and an array of other things to facilitate the collection and transfer of data. Again, the advantage is that this data is critical for businesses to get insights.
IIoT, of course, as we have mentioned earlier, is a subset of IoT and is focussed on a few specific sectors where productivity and reliable communication are essential.
And now coming to Industry 4.0, a concept used synonymously with IIoT and often said to be the same thing. But it’s not. Germany first coined the term Industry 4.0 as a part of their “High-Tech Strategy 2020” which they presented in 2010. It was described as a “decentralised production chain that stretches from design all the way through the supply chain, manufacturing, distribution and customer service.”
Evidently, we are talking about intelligent, well-connected machines, requiring minimum human intervention. IIoT is based on a similar premise but extends to multiple industries, while Industry 4.0 is limited to the manufacturing sector only. Also, IIoT is concerned with possibly anything connected to the internet while Industry 4.0 limits its scope to automation, robotics and embedded systems. One mostly has to do with a particular government while the other is global.
What Are Some Important Use Cases of IIoT?
Predictive Maintenance
Industries that deploy large amounts of equipment and machinery struggle with high costs of maintenance. IIoT collects data in a way that companies can predict when something will go wrong with their machinery so that they can swing into action before time.
Data collection also helps in forming maintenance cycles and timelines so that every piece of equipment is promptly serviced to maximise productivity and output.
Automated Processes
Many industries rely on manual efforts of workers who perform repeated and sometimes high-risk tasks. These workers are exposed to boredom and exhaustion as they do their jobs, putting at stake the overall productivity. IIoT seamlessly takes over such duties and lets humans focus on more fruitful tasks while ensuring greater workplace safety.
Asset Tracking
Asset tracking or asset management helps companies locate their vital physical assets across the supply chain. The traditional way of keeping track was through handwritten sheets or Excel files which were prone to human error. This was followed by the development of software to reduce the manual burden but could not completely eliminate the errors.
IIoT enabled asset tracking can overcome such shortcomings and does so with no human intervention. Logistics, raw material, inventory, quality control etc. are well taken care of, and any problems are easily detected.
Smart Metering
Globally, smart meters have gained a lot of popularity in recent times and are being adopted at a fast pace. Their core function is to help companies manage their utilities such as electricity, water and fuel consumption.
Through the use of IIoT, not only is the total use of various utilities highlighted, but also when and where they were used. Such insights help companies optimise their consumption, reduce their cost burden and also manages their carbon footprint.
What Are The Key Industries That Use IIoT?
IIoT, as mentioned previously, is useful for quite a few major industries. Here is a list of the key industries looking to benefit from IIoT:
- Manufacturing
- Transportation
- Oil and gas
- Heavy machinery
- Healthcare
- Agriculture
- Development of Smart Cities by the Government
- Energy and natural resources
What Can Hinder IIoT’s Growth and Implementation?
Well, of course, everything can’t be so rosy. There are a few roadblocks that industries can face as they implement IIoT.
Non-Pervasive Technology
Adoption of IIoT can be significantly affected by the non-availability of technology across the globe. While some countries are highly advanced and will be able to develop the infrastructure required for extensive implementation, others may lag.
A survey by Accenture validates this point by suggesting that adoption of IIoT is indeed geographically limited. This will only widen the gap between such nations.
Analytical Assessments
While we have spoken extensively about IIoT providing much-needed data to businesses, its real worth will only be actualised once the data is analysed correctly. This calls for sophisticated analytics software and experienced professionals who can understand and present vast amounts of information.
The idea behind this activity is to get actionable insights which can be worked upon and implemented for short-run and long-run gains.
Security Issues
Data is at the heart of IIoT, but the truth is that nobody is completely safe from malware and cyber-security attacks. This is one of the biggest challenges faced by the industry. Sensitive data leaks and software hacks can bring down the entire company. The funds involved in bringing the business back to life becomes an added burden.
To secure themselves against such malpractices, companies may need to invest in superior security equipment and software, the cost for which poses a new challenge.
Cost of IIoT Implementation
The advantages of adopting IIoT is evident for businesses. While the bigger ones can afford to spend on new technologies and create infrastructure for their smooth implementation, small and medium scale enterprises may be left behind.
The dilemma for such companies is also triggered by the time it can take for them to get a return on their investment, given their present size.
What’s The Road Ahead?
The boost that automation and data provide to businesses is undeniable. Further, with the (almost) guarantee of saving costs, IIoT is a technology waiting for its moment of glory. It is said that IIoT will grow much faster than IoT in the coming years. The movement towards a more virtually connected world with more devices, faster internet and greater accessibility will only fuel the rise of IIoT.
And for a business world that loves its numbers, it’s only fair to end with a few. GE Digital predicts that 46% of the global economy can benefit from IIoT. Additionally, it talks of a 100% (not kidding) impact on energy production and 44% impact on global energy consumption. Lastly, McKinsey is of the view that we are looking at a $33 Trillion opportunity. Now that’s ending with a bang, right?
