2D Sales Drawings
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Image credit – McKinsey
Why Should Industrial Companies Embrace the IIoT?
According to the above McKinsey report graphic, ‘factories’ will be the largest value gainers from IoT. Of course ‘factories’ happen to be key customers of industrial suppliers so the key reason industrial suppliers should embrace IIoT is ‘for growth’. Growth from offering new services, new applications and new products – for more detail see CapGemini’s Digital Engineering: The new growth engine for discrete manufacturers. But ‘growth’ isn’t the only reason! Not embracing the IIoT when your current or new competitors do, may lead to being left behind, competitive disadvantages and loss of market share (see this Industrial Internet Consortium case study showing, “upgrading to a modern Industrial IIoT process is unavoidable if they want to stay competitive“)
How to Get Started with IIoT – 7 Recommendations?
In our first IIoT post, IIoT Use is Accelerating Fast – Is Yours? – we recommended that you plan your own use of IIoT and invest in it. Now, in this post, we want to add more detailed recommendations distilled from reading multiple IIoT papers, studies and surveys monitoring what has worked best for early adopters:
3 Conclusions and Implications
1. IIoT is accelerating industrial connectivity, cloud computing (particularly ‘at the edge’) and adoption of digital twins. Collectively these are enabling new business models that are transforming industrial companies. As a result every company is becoming a software company – or at least every industrial company that embraces IIoT is becoming a software company. This has obvious implications for development or recruitment of the software and IIoT skill sets and/or new partnerships industrial suppliers need. This is likely to create a shortage of IIoT skills.
2. IIoT enables business, factory and plant managers to measure the profitability of their operations in real time. Improving profitability starts with optimizing the performance of each industrial asset so that it performs as efficiently and reliably as possible. It continues with big data and predictive analytics to optimize business processes, for productivity, to minimize energy costs and raw material use – all in real time!
3. IIoT and related technologies are wonderful tools but they are not a panacea for the hard thinking needed to design good processes nor are they a magic bullet for bad processes. They can be a shorter route to discovering that the hard work wasn’t done first, for example they won’t make un-calibrated process sensors or instruments accurate or faulty enterprise software work. In short they are just tools and, as the old saying goes, “the hammer isn’t going to design and build the house!
The IIoT is and will have deep impacts on industrial suppliers, not only on their products and services but also on their sales and marketing as we described in ‘The Coming Impact of IIoT on Industrial Sales and Marketing‘. As always please add a comment below or ask a question using the button below or by calling us.