Over the next decade, the Internet of Things (IoT) could make a $4 trillion difference to U.S. manufacturing. By helping manufacturers gain better intelligence about their business operations, IoT can increase revenue and reduce costs. Not all manufacturers are ready to collect and analyze Big Data, however. An increasing number of devices are equipped with IP addresses, but deploying data-driven technologies can be complex. Ultimately, there are several “rungs” to climb. So where’s your company on the IoT ladder?
In a recent report called The Internet of Things: What It Means for U.S. Manufacturing, PwC and the Manufacturing Institute conclude that “we may still be several years away from seeing widespread adoption of IoT technology and systems”. The cost of sensors, computing power, and data storage will continue to fall, but today’s prices aren’t yet low enough. Manufacturers will also need IoT-related software to analyze the data that’s received from Internet-connected sensors and cameras on machines and equipment.
How are other manufacturers handling what the report calls “the ascent towards toward high operational intelligence”? If collecting and using data from so-called “smart sensors” is the bottom rung of the IoT ladder, then 35% of manufacturers have started their climb. Nearly 20% of survey respondents plan to join them in the next three years. Another 25% of manufacturer says they’ll start climbing someday, but lack a timetable.
If using embedded sensors represents a higher level of achievement, then 38% of U.S. manufacturers have already reached this next rung. That’s an important statistic, since nearly the same percentage (34%) describe IoT adoption as “extremely critical” to their operations. That doesn’t mean IoT isn’t important to the other survey respondents. A full 60% says that it’s at least “moderately or slightly critical” to adopt an IoT strategy.
Has your company started its climb up the IoT ladder yet? If you’ve begun your journey, what advice would you share with other manufacturers? If you’re still waiting to grab on and take hold, how soon until you take your first step?
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