How Does Industrial IoT Work?
The Internet of Things (IoT) is a solution that connects mobile phones, sensors, and electronic devices together to convert raw data into valuable information. There is a significant number of sensor-enabled objects in the market that can communicate their status via the internet, increasing the use of smart networks with web and mobile apps, hardware, and innovative services.
The Industrial Internet of Things (IIoT) uses and applies the IoT framework in an industrial setting, allowing companies insight into their operational processes. IIoT can connect machines and devices in manufacturing and industrial buildings to monitor equipment to ensure it remains operational and safe. Most companies have custom software for manufacturing
The Internet of Things has a massive projected growth that companies should consider when evaluating if they want to incorporate IoT technology into their current business practices. By 2030, it’s expected to generate approximately $1.4 trillion to $3.3 trillion by 2030 – 26% of the total. It was also found that the greatest potential for value creation in an industrial or factory setting is by optimizing operations in manufacturing by making daily management more efficient.
8 Best Applications and Use Cases of Industrial IoT
Industrial IoT can gather a large amount of data, but knowing how to use it can make all the difference. Here are eight examples of industrial IoT application that can help improve business operations and employee safety conditions.
Asset Tracking
By using GPS-enabled devices, organizations can track assets on the move, including individual crates and boxes to transportation vehicles. There are multiple sensors that can get the job done, but cellular IoT devices stand out with the capability to send regular updates for managers to monitor the assets’ location.
Asset tracking can also be applied in fleet management by using cellular IoT devices to receive detailed information on environmental conditions. This can help managers track compliance with safety regulations, including:
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Monitoring vehicle statuses
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Optimizing transportation routes
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Sending maintenance alerts
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Monitoring fuel consumption
Predictive Maintenance
The industrial sector has undergone a digital transformation. These days, industrial equipment and machines are typically equipped with connected sensors that consistently monitor the machine’s primary components to send an alert when an issue is detected. By catching these issues before they reach a critical status, maintenance can be scheduled without disrupting operations, saving businesses time and money.
Production Visibility
By utilizing an IoT system, industrial facilities can gain insight into the production line they previously couldn’t access. Sensors can gather a large variety of data, including temperature and humidity conditions, production times, and energy usage. With this data, facility management can gain insight into working conditions and production areas that can improve efficiency without sacrificing quality.
Using IoT devices in an industrial setting can also improve employee productivity. With precise data on which machines need repairs or updates, and the possibility of working on them remotely, companies can reduce maintenance costs. There is also the possibility of automating production deadlines, allowing employees to allocate their time effectively to meet delivery deadlines.
Remote Monitoring and Control
With the global market being as robust as it is, it’s rare for an industrial business to have just one location. With multiple locations spread across a state, country, or the world, remote monitoring can help managers actively monitor operations and manufacturing conditions through an application.
Having the ability to monitor operations, check in on industrial machine statuses, and access geolocation data from a remote setting can be a game changer. Some industrial IoT sensors can also provide remote control over settings, including equipment activation.
Supply Chain Optimization
With the use of IoT devices, industrial companies can optimize their supply chain operational efficiency. Warehouse and inventory management are crucial parts of the supply chain. Utilizing an IoT system can help companies save time and money with predictive maintenance, remote monitoring, and inventory storage conditions.
Energy Optimization
By incorporating industrial IoT technology with business operations, companies can analyze the data gathered to optimize the use of machines. Nearly every operational process can be monitored and analyzed to determine ways to make it as efficient as possible. This can include lowering the waste of raw materials, improving quality control, and reducing operating costs.
For example, the data gathered by IoT sensors can alert managers to poor storage conditions for raw materials, workflow hang-ups, and the final product’s overall quality. Once aware of these issues, companies can take the necessary steps to optimize industrial processes.
Safe Working Conditions
While data has plenty of use for improving machine utilization and production processes, it can also impact working conditions. IoT sensors can monitor temperature conditions, air quality, and employee health conditions. With this data, companies can prevent gas leaks, fire hazards, and workers from reaching potentially dangerous stress levels.
Taking extra steps to ensure safe working conditions for employees can go a long way. Employees could feel motivated to work knowing their company cares for their well-being, increasing productivity and contributing to a positive workplace. This also appeals to potential employees and investors, knowing the company and management care about more than profits alone.
Industrial Automation
One of the more common uses of IoT in the industrial industry is automation. With IoT devices, companies can automate various machines and tools to operate efficiently while collecting data to improve processes further. With industrial automation, companies can minimize errors while allowing remote access to machines, reducing the amount of manual work required and improving safety conditions.
Advantages of the Industrial Internet of Things
IoT devices have plenty of uses in industrial settings, but what are some of the benefits that can be derived from those uses? Here are just a few of the potential advantages:
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Improved Decision-Making – There are countless ways to benefit from data collection, including improved decision-making. Management can analyze historical data on operational and manufacturing processes to support decision-making. Utilizing IoT systems, industrial companies can make well-informed decisions with the data to back them up.
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Increased Customer Satisfaction – Industrial IoT technology has the potential to impact various parts of the operations workflow and conditions, which can extend to the customer experience and satisfaction. With improvements to the production line, supply chain, and working conditions, companies can produce high-quality products at reasonable prices.
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Quicker Time to Market – With data gathered from IoT devices in real-time, companies are able to make changes to their operations or business strategies to meet the ever-changing market needs. IoT devices can monitor nearly the entire production process, allowing management to identify any steps that could be hindering the product from hitting the market sooner.
The Challenges of Wide-Spread IIoT Implementation
While there are many advantages to implementing industrial IoT technology, we can’t overlook the challenges a company will face. Here are a few of the potential challenges with integrating IoT technology:
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Skills Gap – With new technology comes a need for a new skills-set, and there are two routes a company can take: train current employees on the new technology or hire new employees with existing skills and knowledge. There is no right or wrong solution, and company management must weigh the pros and cons when deciding.
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Legacy Systems – Companies that decide to integrate IoT technology into their current business practices will likely encounter challenges with legacy systems. Many companies have spent years, potentially decades, updating equipment and improving systems like their production processes or inventory management. This likely means the current setup is an intricate blend of technology, which can make the IoT setup a complex process prone to issues at the beginning of integration.
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Data Security – Security is always going to be a high-priority concern when it comes to technology. In the industrial sector, systems must be protected from cyber threats to prevent malware and data leaks. Some safeguards could include using encryption, tracking devices in case they get lost, and performing regular risk assessments.
Partnering With Geneca
Is your company ready to integrate industrial IoT technology into your daily operations but unsure where to start? Reach out to Geneca today for a commitment-free consultation! Our team is ready to work together to take your company’s production process to the next level.