The Industrial Internet of Things can help companies navigate the current crisis and emerge stronger once operations ramp up again.
Remote employee collaboration, Vision-based control systems, Remote asset control, Digital performance management, IIoT-enabled asset optimisation, and Real-time procurement transparency.
These are only a few use cases where Industrial IoT represents an important improvement lever during this unprecedented crisis by lowering cost and improving products and process performance and capabilities in the short term. Industrial IoT solutions are also strategic enablers that can help companies to emerge stronger once operations ramp up again by reforming operating models in Supply-Chain integration, across value chain In-line process optimisation thanks to Plug and Play asset interconnection, Digital Twin modeling, and off - the - shelf applications.
Industrial IoT (IIoT), a major element of Industry 4.0, can help companies as they proceed on this journey. It has demonstrated its value on many occasions over the past few years, but some skeptics still doubt its worth and elected not to make bold investments in this area. What’s more, few business leaders view IIoT as a critical improvement lever in times of crisis, especially if their organizations have not previously explored it.
One of last McKinsey article, from which we report here a few extracts, describes very well how industrials and companies can apply IIoT as they move through the three horizons outlined. Companies can begin this journey without a full IoT stack in place because the necessary technology foundations, including connectivity solutions and platforms, are readily available on the market. Any business can therefore apply IIoT solutions with limited effort.
The pandemic will have a lasting effect on businesses, even after it abates. On the customer side, industrials might see a permanent shift toward contactless delivery or greater end-user configuration. They may also decide to implement new strategies along the entire supply chain to avoid disruptions similar to those they encountered in early 2020.
In addition to negotiating the current crisis, companies must prepare for such changes and aim to emerge stronger than they were before. Lighthouse factories prove that deploying IIoT use cases at scale can create significant improvements for all operational key performance indicators.
For example, some have increased output by 10 to 200 percent, reduced product costs by 5 to 40 percent, and decreased time to market by 30 to 90 percent. Overall, industrials will need to continue to strive for more operational flexibility, particularly the ability to change production volumes when needed. The following IIoT use cases show how companies can increase operational flexibility and start achieving impact at scale.
IIoT can increase production efficiency of single machines or entire production lines by using advanced analytics to optimize process parameters. The algorithm analyzes information on all available variables, including production, scheduling, asset condition, and input goods. Data from individual machines get combined with information about the overall production program, allowing companies to optimize machine settings based on previous and subsequent production steps. This allows companies to adjust production schedules quickly to account for changes in demand or unexpected supply-chain disruptions.