IoT will redefine manufacturers' products, services and operations in 2015

 

INTERNET of Things (IoT) will dramatically transform manufacturers' products, services, and operations this year, forecasts a new report from IDC Manufacturing Insights.

 

The report, which details the primary production applications of IoT and outlines manufacturers' current expectations, investment plans, and concerns, says that beyond the hype surround the technology, industry developments indicate growing industry confidence in IoT. Manufacturers expect IoT investments will yield significant operational cost reductions. They hope such initiatives will enable companies to improve service and support, retain customers while attracting new ones, and stand out from the competition.  

 

The primary applications of IoT revolve around processes and products. The IDC report forecasts that by 2020 at least half of all corporate stand processes will have automated data acquisition. A quarter of them will have self-correction capabilities. In terms of supporting products, onboard service revenue will be double its current share of total industry revenue by 2020. Technology will be a core product competency by then.

 

"As IoT provides the basis for an increasing amount of automated data acquisition, manufacturers will be able to adapt their processes and their products not just for incremental improvements," says IDC Manufacturing Insights practice director and report author Kimberly Knickle, "but also for more transformative purposes, including self-healing or autonomous processes and capabilities that evolve into new business models."

 

Current manufacturing investments in IoT center on three major initiatives, namely smart manufacturing, connected products, and connected supply chains. 

 

The first involves the application of IoT to the overall production process and individual assets in the hopes of boosting production output and product quality, or improving operations and workforce safety at the same time reducing lower resource consumption. Investments in connecting products comprise applying IoT to vehicles and industrial machinery to impact product performance. This covers the collection of detailed information on products in the field, remote diagnostics, remote maintenance when possible, and even remote operations. Product as a service is seen as a new delivery model.

 

In connected supply chains, IoT is applied to increase visibility and coordination in the supply chain. This involves tracking assets (trucks, cases, containers, etc.) or inventory, whether inbound or outbound, to boost execution efficiency and achieve integrated business planning.