Physical infrastructure electronic devices that are able to sense, generate, and transmit data have been around for nearly 50 years. In 1968 Schneider Electric invented the first Programmable Logic Controller (PLC). But the change now in 2015 is the fact that the cost of IP enablement is now so low and therefore all sorts of devices can be connected to internet to participate in the more open IP-style network and transmit data and receive instructions form various computers anywhere in the world.
Thus IoT allows plants to now monitor new variables that, in the past, were cost prohibitive. Measurement of vibration on machinery and power consumption on all branches of the power system are some examples of how IoT can be cost effectively used in manufacturing and service systems. These lower entry costs are leading to the explosion of the network and generating a more granular level of data on the existing assets of the firms.
The free-flowing yet structured management of the new data allows managers within organisations to improve real-time energy and automation tracking in order to cut costs, and operate more safety, reliably, and efficiently.
Leading analysts such as McKinsey & Company are predicting that IoT-enabled business will grow to $10 trillion annually by 2025. IoT will enable higher levels of collaboration and will change the way goods are produced.
Michael Porter is a Harvard economist expects Internet of Things will deliver "tremendous" efficiency gains.
The Internet of Things will help individual companies to limit the waste factor in global economies in more effective ways. Products which are connected to the web can communicate on their usage patter. This data will be used to schedule maintenance when it's really needed, increasing efficiency. The data will also be used in predictive analytics to reduce failures and improve product design. In sum, all those functionalities will boost the efficiency of production systems.
Updated 27 June 2016, 19 Apr 2016, 6 Apr 2016
10 Dec 2015