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How IoT Will Impact the Manufacturing Industry in 2017

Posted by Indusa Admin on January 4, 2017 9:14 pm

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The Internet of Things (IoT) has infiltrated the industrial sector.

How does Industry 4.0 fit into your business plans for 2017?

Factories have become smarter, workers have become more efficient, and big data has never been more important. In the next two years, more than 76 percent of manufacturers will increase their use of smart devices or embedded business intelligence in their manufacturing processes.

The industrial sector is turning to manufacturing cloud solutions to reduce operational costs, improve customer experience, create new and better products, and ultimately, make smarter business decisions.

With the internet of things infiltrating the industrial sector, manufacturers must find ways to embrace the wave of the future. Read more.

Whether you’ve already implemented IoT into your business, or you’re thinking about getting “smart” soon, manufacturers must find ways to embrace the wave of the future.

Here are several ways IoT will impact the manufacturing industry in 2017:

Everyone will be talking about IoT

While manufacturers see the benefits in cloud solutions like IoT, most are not currently using them. Despite a high level of interest and planning, only 10 percent of manufacturers currently implement a manufacturing cloud solution, according to Forbes.

Expect everyone, from C-level executives deciding where and how much to invest, to the plant worker on the floor, to educate themselves about the impact IoT will have on their industry and their jobs.

There will be more money spent on software

According to research from Business Insider, manufacturers will invest $70 billion in IoT technologies by the year 2020. That’s a considerably high increase; last year, manufacturers spent $29 billion on manufacturing cloud solutions.

Organizations that have already implemented IoT solutions have seen their maintenance costs drop by 30 percent, and predictive maintenance has reduced machine-specific failures by 70 percent.

A new industry means new jobs

Unfortunately, some traditional industrial jobs will become obsolete due to IoT. However, that doesn’t mean the number of jobs in the industry will decrease. While jobs in production and on the assembly line could be changed or eliminated, the number of jobs in IT, research, and analytics will skyrocket, according to a study by BCG Perspectives. New positions like Industrial Data Scientist, Robot Coordinator, and IoT Architect will be created. Old positions like Assembly Line Worker and Machine Operator will now be empowered with robotics, AI, and augmented reality.

Big data will change the way you do business (even more!)

Big data has become more prevalent in almost every industry, but especially manufacturing. Companies are realizing the importance of having metrics that matter to make intelligent business decisions. Smart sensors are enabling machines to talk to machines. The machinery on your plant’s floor can now communicate with your fleet, providing zettabytes of data to manufacturers.

According to John Rabinowitz of Panoramic Power Blog, smart sensors will allow companies to monitor, control, and improve operations, predict equipment failure, automatically log data, notify users of anomalies, and speed up the flow of information and responsiveness from the market.

Customer experience will be improved

Improving customer satisfaction and product quality are two of the main reasons manufacturers are investing in manufacturing cloud solutions. Mass production and industrial revolution are practically synonymous. However, instead of a million Ford Model T’s being produced, manufacturers are mass-producing multiple products with multiple customizations.

As Michelle Hopkins, Managing Editor of Lifecycle Product, points out, “by relying on a cloud-based technology stack that must be continuously and seamlessly operated and improved over the product’s life, these products can be modified and enhanced after purchase and customized based on the customer’s evolving preferences.”

There are currently 5 billion connected devices to IoT today and that will likely increase to 25 billion by 2025. The manufacturing industry is in a unique position to take advantage of cloud solutions. Those that have already done so are reaping the benefits. As you budget for 2017, how does IoT factor into your business plans?

It’s time for your business to take a trip to the cloud.

Learn more about how Indusa provides digital transformation services to manufacturing and distribution firms around the globe.

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