JOIN USWhile Industry IoT is a hot topic, manufacturers look at it as an important lever for the future generation Industry 4.0 strategy.
Industry 4.0 is the next phase of digitisation in manufacturing where machines, actuators, sensors, and control systems interact with one another in an automated world through a data infrastructure such as the internet. Enterprises now believe that Industry 4.0 will transform production from isolated, optimised cells and process to a fully integrated, automated, and optimised production flow.
There is possibly no further doubt that the Internet of Things (IoT) is poised to change the way we live, work or seek out entertainment. With a burgeoning network of electronic systems and devices helping us navigate our days, we can be definitely assured that we are living in an age of efficient interactivity. We look forward with much anxiousness, for businesses primarily, to be able to revolutionise product innovation.
Enterprise leaders have come to believe the marriage of the two would bring about the revolution of opportunities to the brightest innovators with the companies looking to bring to market game-changing ideas and shape the IoT industry future. Yet, how would companies understand the ecosystem dynamics to truly interconnect devices and increase their value proposition unless they do not share information, cooperate and think of innovative ways to partner cross-industry.
Open Innovation would be key to solving this problem. According to the new report by GE in collaboration with Nasscom and Deloitte, IoT market in India stands at $5.6 billion with 200 million connected units in 2016. The IoT ecosystem in India comprises around 120 organisations from across the value chain. This is expected to grow to $15 billion with 2.7 billion units by 2020, similar to the growth seen globally. Contrary to the assumption that consumers would drive the IoT market, industry would be the driver for IoT revolution with utilities, manufacturing, automotive and healthcare seeing greater opportunity than other sectors as consumers shy away from smart devices due to cost of IoT devices and security and privacy concerns.
Speed of technology change is an immediate challenge in the manufacturing industry. From over 300 CEOs and business leaders all over the world, a survey by Frost and Sullivan done annually on ‘CEO’s Perspectives on Growth, Innovation and Leadership’ identifies that 53% of the CEOs cite an intensifying competitive environment as the biggest external threat to growth. Digital transformation is acknowledged as a dominant growth, innovation and leadership catalyst over the next five years. 34% of the CEOs have indicated that speed of technology change represents a real and immediate challenge, acknowledging that technology strategies along with strategic partnerships are central to growth.
Now if one was looking closely, one would find that India has the mind-set and the adequate resources to achieve the goal. 66% of millennials in India are excited about future job opportunities in the internet (online survey by the Telenor group), and digital sectors while 34% were ‘Extremely excited’. Now these are the youth who believe technology is ‘important’ for future careers and who describe themselves as “highly creative, intuitive thinkers”
IoT and manufacturing
IoT is being adopted widely in a variety of industries with significant results already being delivered in manufacturing and distribution across asset management, supply chain management, logistics and marketing. The study finds that the majority of industries assume IoT as not important today with the exception of the field of biotechnology.
Manufacturers who are currently coping with macro-economic uncertainty, fluctuating product prices and intense competition must understand the impact of IoT industries. The four coordinated areas are of location intelligence, in-memory analysis, mobile device support, and integration with operational systems which show that they have a practical as well as pragmatic strategy regarding how IoT can contribute greater process efficiency, revenue and integrate with existing systems effectively. Only by altering the existing paradigm of design process can an efficient and effective transition into the next era of manufacturing can be ushered. Increased connectivity at the plant is likely to be complemented by a need for advanced design and engineering capabilities, thereby catering to growing demands for innovation, efficiency and productivity.
Open Innovation becomes crucial in the ‘Internet of Technology’. Innovation is the linchpin for attaining success across industries. That being said, the country is still struggling to provide full 3G coverage. India is in need of a more concerted approach rather than just startup initiative to reach that mark. With recent developments highlighting that the internet giants are targeting ways to provide economical usage of data through their apps, the IoT dream may not be as easy to achieve.
For example, say a company, which is leading the development of a new breed of technology that layers on top of existing industrial machinery, wanted to discover new solutions to gain increasing operational visibility of the plant floor and machinery, the initiative in itself needs goes one step further to connect the factory machines via the cloud and using data analytics to help predict breakdowns and assess the machines’ overall health. Hence the solution needs to predict the life of manufactured parts by uniquely simulating the behaviour of the materials they’re made from. Without open collaboration, maximum efficiency cannot be achieved.
(The author is Founder, Ideapoke)