The internet of things (IoT) and the industrial internet of things (IIoT) are growing fast. Companies are making larger investments, sensors are becoming less expensive and more powerful, and the evidence is coming in to show that the payoffs can be significant. innius can help you carve out a slice of that giant pie.
Fast IoT growth and cautious approaches from many companies
Estimates on the growth of the IoT and IIoT range very widely, although all the numbers are in astronomical ranges. Some analysts are predicting IoT-driven sales volumes to approach $9 trillion by 2020. Around the globe, the IIoT is said to generate as much $15 trillion of GDP by 2030.
There is also a remarkable discrepancy in the findings: By most accounts, close to 65 percent of the IoT and IIoT implementations so far are targeting cost reduction and efficiencies, and a little over 20 percent involve risk management. Only approximately 13 percent are meant to generate revenue growth or facilitate innovation.
At the same time, close to 75 percent of businesses currently working with or planning to make use of the IoT and IIoT indicate they are looking for growth opportunities and ways to produce greater results from existing products.
Intense need for business-ready IoT solutions
Maybe some of these companies initially have or had more ambitious goals than they felt they could support when they explored the IoT in-depth. So far, there have been very few ready-to-go solutions such as innius to help companies turn the IoT to their advantage. Many of the large enterprises getting into IoT/IIoT have created their own data management and analytical systems, and even some of the products available for purchase are really platforms that you can use to build your IoT solution. Not many smaller companies will have the budgets and resources to commit to such a potentially risky endeavor. Also, furnishing your industrial assets or products with connected sensors is just one part of what you need to do. You also need a way to store, process, safeguard, and analyze the data that are generated from all the sensors.
We designed innius to make it possible for companies of all sizes to benefit from the IoT in a controlled, low-risk manner. When you deploy innius, you can start small, connecting a single machine or a handful of them until it’s time to scale up, an approach some of our early adopters use. One of them, Tronrud Engineering, expects to increase the revenue from sales of spare parts in the range of 30 to 50 percent. Across industries, it is expected that IoT intelligence is going to help companies generate close to 25 percent more revenue through proactive sales of parts and services, and through improved customer self-service.
How sensors boost the value and efficiency of services
Some other companies already report dramatic results from the IoT. Sensors that assess the fuel consumption, tire pressure, engine temperature, speed, and location of vehicles are helping tire manufacturer Michelin become a service provider that helps fleet managers save as much as 2 liters of fuel for every 100 kilometers driven. Caterpillar expects that its global dealer network can capture an additional $9 billion to $18 billion per year by transitioning to IoT-enabled predictive maintenance and improved fleet management. An equipment rental provider catering to the oil and gas industry reduced onsite maintenance trips by 50 percent, generating substantial savings.
Predictive maintenance, for many companies an initial, well-controlled area where they look to realize IoT benefits, generally is expected to reduce maintenance costs by roughly 30 percent, including more than a 10 percent savings on scheduled repairs, and reduce equipment breakdowns by 70 percent or more.
IoT-driven performance management and revenue generation
Many companies aim to apply IoT intelligence to managing the performance of their industrial assets. Conservative estimates reckon that these businesses can improve their overall equipment effectiveness (OEE) by 5 percent. When it comes to generating greater revenue, greater responsiveness, proactive management of industrial assets, and the resulting increase in customer satisfaction is trending to help companies increase their share of customers’ spending by as much as 10 percent. And, they can improve their revenue growth by as much as 30 percent above the industry average within 36 months by taking advantage of IoT/IIoT data and making smarter decisions regarding their research and development.
We are ready to assist you in translating the benefits potential of the IIoT into measurable business advantages. If you would like to explore innius more practically, have questions, or want to provide feedback, please contact us.
Discover 5 actionable tips for boosting OEE with IoT asset monitoring: