Internet of Things (IoT): Merits and Patterns
In the age of Industry 4.0 (Industrial Internet) and the digital transformation of producing, the manufacturing industry is the market where the Internet of Things (IoT) becomes the Industrial Internet of Things (IIoT). Projects, products, and new innovations are being produced, which powers the market and enables the foremost investments and profits to be made in IIoT.
Manufacturing isn’t only the undisputed leader within the Industrial Internet, but it leads all the industries, including the buyer IoT space within the broader IoT reality. According to the International Data Corporation (IDC) in 2017, the manufacturing industry spent a total of $178 Billion in 2016 on IoT, which is reportedly the second-largest vertical market.
The manufacturing industry could be a leader within the IoT by enabling manufacturers to undertake digital transformations from multiple perspectives: efficiency, automation, customer focus, competitive benefits, and therefore the advantages offered by using data throughout the manufacturing value chain and leveraging new revenue streams, which is a key aspect of digital transformation in manufacturing.
In the APeJ region (the Asia Pacific excluding Japan), a third (1/3) of all IoT spending (hardware, software, services, and connectivity combined) will behave been manufactured in 2020. In other regions, manufacturing occupies the primary place but it has spent a much smaller percentage on IoT. In the US, for example, the manufacturing industry only spent about 15 percent on IoT. Clearly, there are many opportunities to be realized within the future Industrial Internet markets.
As we all know, manufacturing is a highly complex industry, which covers many sorts of products, operations, processes activities, components, machines, people, partners, information systems, etc. Let’s examine the manufacturing or industrial production stage of raw materials: They are purchased, logistical transported, warehoused, cataloged, inventoried, and processed or reformatted to be utilized or to build other new products. This is the front-end supply-chain for the manufacturer.
After the new products are produced, they may be shipped to another location for finalizing product or packaging the product. Subsequently, the final new product is purchased, logistically transported, warehoused, categorized, and inventoried before they are stocked onto the shelves of a retail establishment. This is the supply chain for the retail market. It’s clear to see there is an enormous market interconnection. In fact, 66% of the Producing Pioneers state that IoT is the most critical element for competitive advancement for the future of the manufacturing industry!
Implementing the “Industrial Internet of Things (IIoT)” is key to a successful manufacturing industry by utilizing an integrated approach, which supports technologies like Data Analytics, Cloud-based interfaces, APIs, etc. To make your manufacturing company become more competitive and successful in 2021, contact our expert consultants at Charter Global, Inc.
Posted by Charter Global Inc. on November 09th, 2020.