Set IoT free, be part of the $1 trillion saving

This is one of a three-part blog series outlining the benefits of the Internet of Things (IoT) and how to boost them.

The basic premise of IoT is simple, enrich processes by automating activities using an active communications and execution system. But, this system can be boosted by combining other technologies with IoT to realize the $1 trillion savings outlined in Gartner’s 2017 predictions press release.

What is an IoT system?

In McKinsey’s article, “The Internet of Things: Sizing up the opportunity,” they refer to IoT as “the networking of physical objects through the use of embedded sensors, actuators, and other devices that can collect or transmit information about the objects.”

There are three basic functions of an IoT system:

1. An asset triggers messages based on its performance. The trigger setting and the message format are pre-configured and the message is sent to a central hub.

2. The central hub analyzes the messages for patterns or defined terms, and using pre-configured algorithms, determines a course of action to be operationalized.

3. The action center receives the action and undertakes the command sent.

IFS’s IoT system: the IFS IoT Business Connector

The benefits of IoT

IoT is a process enhancement system where the processes cross asset types (physical/digital/human), and as such, provides all the same benefits as lean process management and business process re-engineering. In fact, using lean or business process engineering (BPR) in conjunction with an IoT system is a way of optimizing the efficiency output.

Put simply, the benefits are:

• Faster process completion due to enhanced communication between assets
• Improved analysis of data collected directly from assets
• Improved decision-making from enhanced analysis
• Increases in preventative maintenance with decreases in corrective maintenance
• Faster process completion due to automation of actions

An example of IoT in use

In the IFS IoT Business Connector brochure, you will find an example of IoT in use. For instance, a factory maintenance company will better support its customers by predicting maintenance requirements from monitoring asset vibration, temperature, voltage and more—and prevent unscheduled downtime. Instead of having a machine fail during production, an early warning will trigger a maintenance call-out before it halts operations. This means production schedules are not impacted and commitments to customers are met. The result is optimal system uptime, efficient sourcing of spare parts and optimized scheduling of engineers.

Boosting the IoT system

There are two distinct areas where the basic system can be boosted. Each one of these areas will be addressed in more detail in part two and three of this blog series, respectively.

Boost 1
Enhance the effectiveness of the asset messaging, communication channels and analytical intelligence to provide a faster, deeper and more secure base of source data for wider analytical decision-making. The technologies used to boost effectiveness are Blockchain, big data and artificial intelligence.

Boost 2
Enhance the efficiency of the action performance by either augmenting manual performance or automating the task performance. The technologies used to boost efficiency are drones, robotics and virtual reality.

The boosted IoT system

To find out more about how to boost your potential from IoT, please read part two and three of this series.

I welcome comments on this or any other topic concerning finance, HCM, CSR & business strategy.

Connect, discuss and explore using any of the following means:

Twitter: @stevetreagust

Email: steve.treagust@ifsworld.com

Blog: http://blog.ifs.com/author/steve-treagust

LinkedIn: https://www.linkedin.com/in/stevetreagust

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