Manufacturing Insights

An ERP blog from MAX

The Internet of Things - Part I: Opportunities and Challenges

Posted by Joy Budnik on Mar 2, 2016 10:00:00 AM

iot2.pngThe simplest way to think of IoT is to think “anything that can be connected, will be connected.” 

The definition offered up by the ITU Telecommunication Standardization Sector is “a global infrastructure for the information society, enabling advanced services by interconnecting (physical and virtual) things based on existing and evolving interoperable information and communication technologies” 

If you use email, social media, or subscribe to this blog’s RSS feed you’re already familiar with networked communication between people and businesses via the Internet.  IoT simply expands networked communication to include anything from your refrigerator at home to video cameras on your shop floor.

Changes in communication (both frequency and how communication occurs) aren’t good or bad in themselves. As with any technology, utility stems from the way in which humans apply tech to solve human problems.

 

IoT Opportunities

A benefit of an Internet of Things (as well as a benefit of any networked communication) is greater access to information. In this sense, IoT can potentially boost your ERP system which already helps you streamline business processes, optimize production and ultimately save money through efficient planning. Below you'll find nine opportunities IoT brings, listed in order of percieved value to manufacturers.

 IoT_Drivers_in_Discrete_Manufacturing_IDC.png

IoT Challenges

Security: Consider the scale of exposure with a growing number online devices. 

Privacy: Systems are painfully exposed currently. The website Shodan, which lets you browse vulnerable webcams, was a recent headline due to some alarming feeds it made available of babies sleeping in their cribs.  

Data Storage and Retrieval: The Economist reports the volume of data being stored doubles every 18 months.  With IoT, this figure is likely to grow even larger. Beyond storage and maintaining data centers, a challenge that comes along with more data is making sure easy retrieval is possible.

A Changing Workforce: There’s already been a shift in the skillsets manufacturers need to possess. Today, manufacturers are skilled in hardware and software innovation, R&D, design, mechatronics and other high-tech areas. The Connected Factory adds to the growing demand for skilled workers.

While the way in which things, people and businesses communicate with each other are undergoing change (hence the hype around IoT), your basic needs as a manufacturer remain constant. Stay tuned for Part II to see how Manufacturers are currently using IoT.

Topics: ERP, IoT

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