Tuesday, November 06, 2018
Double-digit increases in industrial IoT sophistication in one year, IFS study reveals
30 percent increase in IoT for asset performance management, 10 percent increase in IoT to monitor customers’ equipment
IFS, the global enterprise applications company, has released a research study of 200 North American executives that reveals substantial year-over-year gains in internet of things (IoT) usage in industrial companies.
Executives at respondent companies, ranging from manufacturers to trade contractors to oil and gas companies, are collecting more data from connected devices, integrating it with other systems in new ways, and making IoT data more central to their businesses.
The study shows:
- Companies collecting IoT data on entire work cells or production lines rather than individual machine components or individual machines has increased by 17 percent. This enables more advanced use cases, which helps explain a 30 percent increase in use of IoT to support asset performance management.
- Respondents using IoT to monitor their customers’ equipment saw a 10 percent increase, potentially signaling transformational approaches to field service management.
- Despite these advances, the percentage of respondents who have integrated IoT data streams with their enterprise resource planning (ERP) software hovers at 16 percent. This reluctance may represent a barrier to leveraging IoT to deliver net new business models or revenue opportunities.
“Enterprise IoT integration allows you to take incoming data from connected devices and use it to create business events in ERP,” IFS Chief Product Officer Christian Pedersen said. “The software can either present that data to humans or act on it as it comes in. Think of the potential for IoT constantly streaming into ERP through the business logic, where artificial intelligence (AI) applications constantly learn and apply that learning by creating new business logic. That is when AI will see the real breakthrough—and when ERP systems will dramatically transform, changing the way we think about them.”
Antony Bourne, President, IFS Industries added, “IoT is a big disruptor. But if industrial companies do not embrace digital transformation, chances are that their business will be the one that’s disrupted by more agile competitors. IoT helps companies transform their businesses, making them more efficient, enabling them to explore new revenue sources and fundamentally changing business processes. One key constraint is the lack of skilled resources with the ability to deploy transformation technologies. Experienced partners both in enterprise software and technology platforms can help overcome these constraints and identify a proven way forward.”
Download the study: Industrial IoT: Two Year Trendline
Learn more about IFS IoT Business Connector at: www.ifsworld.com/corp/solutions/ifs-applications/iot-business-connector/.
IFS™ develops and delivers enterprise software for customers around the world who manufacture and distribute goods, maintain assets, and manage service-focused operations. The industry expertise of our people and solutions, together with commitment to our customers, has made us a recognized leader and the most recommended supplier in our sector. Our team of 3,500 employees supports more than 10,000 customers worldwide from a network of local offices and through our growing ecosystem of partners. For more information, visit: IFSworld.com
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