What is the Internet of Things
Since its creation, the Internet has had unexpected success and growth worldwide. Recently, major technology progress has permitted to decrease consumed resources and to miniaturize machines communicating across the network. Beyond the interconnection of computers, phones or tablets, a new world is emerging where it is now virtually possible to connect any machine, sensor, actuator, i.e. any “object” or “thing” to the network. This new technology has received different names such as the Internet of Things (IoT) or the Internet of Everything (IoE) meaning that men and machines are connectable to the Internet.
will be connected to the Internet by 2020 (source: CISCO)
are not connected today (source: CISCO)
estimated for 2013 to 2022 (source: CISCO)
are already exploring the possibility of using IoT (source: EIU)
What is the Industrial Internet of Things (IIoT) ?
Although IoT (Internet of Things) technologies have recently gained in popularity through consumers applications (connected watches, healthcare bracelets), the Industrial IoT (IIoT) is about to conquer and to transform manufacturing, energy, agriculture, transportation and other industrial sectors. The concept of “Industrial Internet of Things” (IIoT) has therefore appeared and is about to transform radically the way the entire industry is organized.
The world of IT solutions (used for resource planning, customer relationship, management and decision support systems) is on the verge of being merged with the world of Operations Control Systems (OCS - used to monitor and control field equipment and to support manufacturing and production processes). Today OCSs are based on outdated technologies controlling expensive large machines with rigid interfaces. Using powerful and flexible IT technologies for such systems will open new opportunities.
In order to deliver successful results and services, companies will need to reorganize and to partner up in order to create ecosystems centered on customer needs. This will raise many technology challenges such as security and system interoperability. Those challenges are well known in the IT world. In contrast, OCSs, which are still based on legacy technologies, will require a radical mindset change.
What are the benefits of this new technology ?
In the short term, for product makers, Industrial Internet of Things offers an opportunity to reduce operational costs by increasing operational efficiency (predictive maintenance, remote asset management, reduced equipment failures or unexpected downtime). In the medium term, Industrial Internet of Things will generate new sources of revenues by offering new value-added digital services to product owners and operators. In the long term, new business models will appear where customers will pay products based on use or on outcome.
Value added digital services
Innovative business models