The Internet of Things is ushering in the fourth industrial revolution. Despite widespread understanding of the need for digitalization, there are still many misconceptions that hinder the implementation of Industrial IoT. Many organizations have delayed their Industrial Internet of Things (IIoT) plans due to complexity and cost concerns.
Preparing for the worst-case scenario is not necessarily a bad thing, but you may be overestimating the risks of Industrial IoT and underestimating its true value. To help you get the right perspective, we’ll reveal six common misconceptions about Industrial IoT implementations in this article.
Myth 1: The Industrial IoT is about automated networks with millisecond latency
Manufacturers often adopt traditional, automation-centric thinking when interpreting the Industrial Internet of Things and its potential value. Many envision digital factories as next-generation automated facilities—completely outfitted with next-generation production lines and robotic machinery that can transmit data with millisecond latency. While enhanced real-time automation is part of the story, it is certainly not the single element that will define our next industrial revolution.
The core value of the Industrial IoT is unprecedented visibility into existing processes and equipment that can support strategic decision-making. Typically, this visibility comes from granular sensor networks that capture asset, process, and contextual data, such as worker wearables, pipeline sensors, and environmental sensors. The remote monitoring network is the core pillar of the industrial IoT deployment, which can provide timely notification of situations that may disrupt operations and threaten worker health, thereby improving factory safety and production efficiency.
Unlike high-bandwidth, time-sensitive communications, Industrial IoT sensor networks primarily send small amounts of telemetry data every few minutes or only when an anomaly is detected. Conversely, data sent too frequently may be useless and burden back-end systems. What really matters is network coverage, reliability and scalability, and the battery’s ability to operate independently for many years. Automation-oriented Ethernet infrastructure cannot meet these requirements.
Myth 2: Industrial IoT means having to connect to the cloud
Cloud is a hot topic in most IoT or Industrial IoT discussions. There is no doubt that the cloud has its benefits and has an important place in the industrial IoT market. It provides a cost-effective, ubiquitous infrastructure for massive data storage and management. Cloud computing incorporates advanced machine learning algorithms that can even identify trends in process and equipment operations to predict and prevent future failures.
That being said, the cloud is definitely not a necessity in an Industrial IoT deployment. Despite the many benefits of cloud solutions, it may not be the first choice for many industrial companies. This is because a large number of traditional industrial systems have only limited security measures, making them easy targets for cyber hackers when connected to the Internet. In addition to cybersecurity risks, data privacy, and increased latency, unguaranteed service uptime is also a major issue with third-party managed clouds.
With numerous wireless vendors offering cloud-integrated solutions, the cloud appears to be an integral part of Industrial IoT implementations. In fact, flexible industrial IoT architectures often leave this decision to the end user, allowing them to choose the backend system that best suits their business needs. Operational data can be forwarded to on-premises servers and data centers or cloud-based analytics platforms based on user needs. Industrial IoT aims to increase control and visibility of industrial operations to improve operational efficiency, safety and sustainability.
Myth 3: Industrial IoT implementation requires a lot of capital
The need for new wireless communication architectures often triggers the idea of large upfront investments, which hinders Industrial IoT adoption. However, once you start researching the technology options available today, you’ll realize that building an Industrial IoT infrastructure doesn’t have to cost a fortune. A new robotic system can cost hundreds of thousands of dollars, not to mention a complex and expensive installation and maintenance process. In comparison, wireless low-power industrial IoT sensor networks can be deployed at a fraction of the capital expenditures and operating expenses.
In addition to today’s significantly lower sensor prices, new wireless technologies such as low-power wide area networks (LPWAN) provide cost-effective connectivity options for factory-wide sensor networks. With a scalable solution, you can also minimize expensive infrastructure (i.e. base stations) while addressing multiple applications and challenges simultaneously. This in turn simplifies complexity and accelerates return on investment.
Myth #4: Enabling Industrial IoT in legacy systems is complex and involves production downtime
Programmable logic controllers (PLCs) were born during the third industrial revolution and are the core of industrial automation systems. While these control centers excelled at real-time, localized tasks, they (designed in the early 2000s) were not intended to connect to the outside world. Most older programmable logic controllers come with a plethora of proprietary serial protocols used only for closed-loop control processes. New programmable logic controllers may come with Ethernet connections, but many complex industrial environments prohibit hardwiring.
Because of these communication challenges, manufacturers tend to believe that deploying Industrial IoT in traditional programmable logic controllers and industrial systems is extremely difficult. Typically, we see a daunting process that includes onerous hardware replacement, cabling, and weeks of production downtime. The truth is, emerging plug-and-play connectivity is making Industrial IoT implementations in traditional factories a reality.
This solution can interface with traditional programmable logic controllers using automation-specific protocols to extract key data points without any hardware modifications. It provides a robust wireless link that transmits data wirelessly to a central management system, eliminating any cabling requirements. As a result, costly production downtime is eliminated.
Myth 5: Industrial IoT has little immediate value
Even if an Industrial IoT investment is affordable, manufacturers may still decide it’s not worth it. This is because there is a common perception that Industrial IoT has little immediate value and is merely an optional add-on to day-to-day operations. However, you might change your mind when you learn that factory shutdowns cost an estimated $50 billion a year.
Industrial IoT helps manufacturers break down factory data silos by unlocking data from systems that previously operated in a closed manner. Enhanced asset and operational transparency greatly facilitates troubleshooting and maintenance activities while eliminating manual tasks. This will have a direct impact on cost savings and overall equipment efficiency by reducing machine and production downtime.
Myth 6: The Industrial Internet of Things will eventually replace people
The Industrial Internet of Things reflects a paradigm shift in industrial operations and the expertise required. Certain manual tasks will be automated to increase productivity, but that doesn’t mean the need for humans will disappear. To protect big data and turn it into business intelligence, new job functions such as data scientists and security engineers are critical. Existing jobs like machine operator will continue to evolve with new skill sets. Human intelligence is the brains behind Industrial IoT implementations, and no machine can be as flexible as a human.
It’s also important to note that Industrial IoT frees employees from repetitive and monotonous tasks to focus on higher-return, higher-value tasks. Likewise, one of its ultimate goals is to create a safer and healthier work environment for employees. Therefore, the Industrial IoT should not be seen as a job threat but as a means to the worker-centric smart factory of the future.
As with any previous industrial revolution, implementation of the Industrial IoT is not without challenges. However, make sure these misconceptions don’t distract you from reality. Accurately assessing how Industrial IoT addresses your business challenges and measuring it against potential costs will be key to a successful deployment.
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