Defined as the rapidly expanding network of
connected smart devices and objects, the IIoT enables huge amounts of data from
physical objects to be used to automate tasks or generate new services. It will
also mean greater personalisation of customer experiences, generating new
business opportunities as a result.
The potential benefits for business are significant:
research by Accenture suggests that the IIoT will support the creation of new
products, services and markets, with the potential to boost the GDP of the
world’s 20 largest economies by $14.2 trillion by 2030. In the UK alone we
estimate that the IIoT will add US$300 billion to GDP by the year 2030. That
could rise to $531 billion, should investments increase and greater efforts be
made to improve the underlying enabling factors in the economy.
The agrochemical industry provides a good example to
help us understand how the IIoT could generate this level of growth. Companies
in this sector could branch out from selling products by making use of climatic
and geological data to earn revenue from guaranteed yields for specific crops
in certain locations.
Another example could be for plane engine
manufacturers to monitor engine performance in flight to pre-empt maintenance
issues, thus reducing air travel delays.
What these examples also show is that the IIoT can
enable what Accenture calls the ‘outcome economy’, in which workers create more
varied and bespoke options for customers based around new experiences that go
beyond the original product or service.
A steel company in Maryland is already benefiting
from this kind of workforce transformation by using automation, robotics and
analytics to create a safer and more engaging work experience, as well as
improve productivity and quality. The investments made in digital have enabled
the company to significantly increase its hourly pay and recruit more employees
due to the rise in demand.
The technology has the potential to empower workers
by providing data on how customers are interacting with products, enabling
virtual teams to experiment with technologies to produce prototypes and tweak
product design more quickly. Innovation should become more spontaneous than it
is today.
In addition, employees will be able to deal with exceptions
flagged by data to resolve challenges faced by customers, and to design more
tailored approaches. For this reason, individual talent will become more
important in the IIoT-enabled world.
Given the vast potential of the IIoT, the
development of work-specific skills will be a major factor in whether the next
wave of digital innovation can be harnessed to achieve growth and boost
competitiveness. New jobs, such as digital robot design, healthcare analytics
and software development, will require new skills. Schools will need to change
what is taught so that people entering the workplace will be able to perform
the kinds of jobs that will emerge.
Businesses and governments will also need to
recognise the generational transformation in the workforce that the IIoT will
drive. But with 72% of CEOs and business leaders surveyed by Accenture saying
their companies have no firm plans around IIoT, and just 7% having developed a
comprehensive strategy, there is a long way to go.
The benefits that the Industrial Internet of Things
could bring for economies, businesses and workers are clear, but in order to
reap the rewards businesses must step up their efforts to foster change in
preparation for this next technology wave.
Sources: hrmagazine.co.uk