Industrial IoT Helps Manufacturers Gain an Competitive Edge
The Industrial Internet of Things (aka Industrial IoT or IIoT) is a natural evolution of a transforming economy, impacting almost every industry, including manufacturing. In a few years, technology has connected more people, businesses and machines, a trend that does not show any sign of slowing.
Businesses that adopt to technology quickly gain and maintain an edge over their competition. Companies that adopt digital transformation faster than their competitors report a higher profit margin, on average a 55% three year profit margin, versus those who are slow to embrace technological advances report a 37% three year profit margin.
Digital leaders are more likely to have a comprehensive data acquisition strategy and use data to differentiate themselves from their competitors. In this blog post, we address why your manufacturing company needs Industrial IoT to stay ahead of your competitors.
IoT makes personalized customer service easier
Manufacturing companies that typically are structured around their products or business functions find that resources are disconnected from one another. Essential resources like enterprise asset management, enterprise resource planning and supply chain management are siloed. Lack of a comprehensive map of the company’s data leaves little opportunity to enhance the products, pricing, manufacturing process or any other aspects that contribute to the overall customer experience.
A single solution, versus a number of disparate systems, improves control across a mix of make-to-order, make-to-stock and other production processes. Companies can improve responsiveness to customer demand spikes by rapidly onboarding vendors. Not only are companies better able to respond, but have the ability to become more proactive by forecasting demand, minimize equipment downtime and anticipate order fluctuations.
Saving Money by Gaining in Productivity
Manufacturers that have successfully implemented Industrial IoT to make a smart, connected factory have realized productivity gains of 17-20%, on average.
Artificial Intelligence (AI) and Industrial IoT can drive operational and financial gains through the cloud. In this setting, we are also witnessing the rise of IIoT, the Industrial Internet of Things, which uses intelligent robotics through the production cycle. Data collected from each piece of equipment and processed in the cloud makes knowledge sharing easier between platforms, workers and machines, facilitating collaboration on processes that involve both repetitive tasks and complex decision-making.
Productivity and quality also increases, by removing human error and constantly analyzing operations to ensure maximum efficiency and optimal resource usage.
When applying advanced AI technologies such as machine learning and cognitive services against the data coming in from the manufacturing process, you now have a value-added layer of insight into your data. This allows you to improve operational efficiency, speed production, optimize equipment performance, minimize waste and reduce maintenance costs.
Business leaders have much to gain by transforming themselves into digital leaders. Apart from everyday on-site operations, this unprecedented visibility of processes and productivity means that they can make better decisions, based on real-time data, predictive analytics and accurate information rather than the traditional ‘gut feeling’ and trends.
Companies need to be nimble
In conclusion, legacy companies that are digital laggards that aren’t open to change and become irrelevant in a digitized world. But those who embrace the change that digitization brings, become more nimble, responsive to their customers, improve their overall performance and better able to increase their revenue and profit margins.
For more information, visit our website to learn how you can achieve a new level of IoT connectedness.