Internet of Things no more needs any introduction. When these IoT capabilities are implemented in the Industrial and Manufacturing space, it becomes Industrial IoT. This technology is an amalgamation of different technologies like machine learning, big data, sensor data, M2M communication, and automation that have existed in the industrial backdrop for many years.
Industrial Internet makes a connected enterprise by merging the information and operational department of the industry. Thus improving visibility, boosting operational efficiency, increases productivity and reduces the complexity of process in the industry. Industrial IoT is a transformative manufacturing strategy that helps to improve quality, safety, productivity in an industry.
Industry 1.0 (1784) - The invention of steam engines kick started the Industry 1.0. However, the manufacturing was purely labor oriented and tiresome.
Industry 2.0 (1870)- The first assembly line production was introduced. This invention was a big relief for the workers as their labor was minimized to the possible extent. Henry Ford the Father of mass production and the assembly line introduced the process in a car manufacturing plant by Ford to improve the productivity using conveyor belt mechanism.
Industry 3.0 (1969)- Involved advancement of electronic technology and industrial robotics. Miniaturization of the circuit boards through programmable logic controllers, Industrial robotics to simplify, automate and increase the production. However, the operations still remained isolated from the entire enterprise.
Industry 4.0 (2010) - The vision of connected enterprise through interconnecting industrial assets through the internet was fulfilled with the introduction of Industry 4.0. The smart devices communicate with each other and create valuable insights. IIoT brought with it the advantages of asset optimization, production integration, smart monitoring, remote diagnosis, intelligent decision making and most importantly the feature of Predictive Maintenance.
Industrial Internet of Things brings along lot of advantages some of them are listed below:
Technology of Smart Sensors, Robotics & Automation, Augmented/Virtual reality, Big Data Analytics, Cloud Integration, Software applications, Mobile, Low power Hardware devices and Scalability of IPv6-3.4X 10^38 IP address, etc.is a major driver for the Industrial Internet.
Customer Behavior: The edge that IIoT gives to enterprises over their competitor helps them achieve better customer satisfaction and retention through value addition.
Macro-Economic Drivers: Government policies like Industry 4.0, Smart Factories, Make In India, Make In China 2025 & Smart Cities, Japan’s Industrial Value Chain Initiative Foum, Support of Green initiatives, Rising Energy & crude oil prices, Favorable FDI policies, Policies by regulatory bodies, etc. works totally in favour of the IIoT evolution.
The endless unfolding of new technologies have added up to a huge list of the “Next Big Thing”. However not every evolving technology has the potential to break through the business and social landscape. McKinsey Global Institute has identified some of the important technologies that can create economic transformations. One of them in the list is IIoT. McKinsey estimated that IoT will have a potential economic impact of up to $6.2 trillion by 2025. It also has the potential to drive productivity across $36 trillion and operating costs across multiple industries, including manufacturing, health care, and mining.