Industrial manufacturing organizations have been challenged for many years in terms of how to operate more efficiently. Under attack from competitors with manufacturing capabilities in markets where labor costs are lower, organizations have been faced with the challenge of relocating or making substantial efficiency gains in their existing factories.
Generating savings in businesses that typically rely on a network of distributors to sell and maintain their products across the world and consequently have a disconnected relationship with their end users means opportunities to access new forms of revenue beyond the initial sale of a product are limited. A race to the bottom on price is of no attraction to shareholders because it offers no prospect of revenue growth as products become commoditized.
Therefore industrial manufacturing organizations must radically overhaul their cost bases and their strategies. IoT can help in both of these goals because of the capability it offers to collect and transmit data from across the manufacturing process. Sensors from the factory floor to the end product can feed vast volumes of data into a central point enabling manufacturing performance data to be analyzed and data from the product in deployment to be turned into actionable insights in near real-time.
However there are also many opportunities for IoT in the industrial world, stemming from a greater use of sensors and the data they capture.