1. IoT is THE Big Thing
Manufacturers are increasingly leveraging the Internet of Things (IoT), which entails the interconnection of unique devices within an existing Internet infrastructure, to achieve a variety of goals including cost reduction, increased efficiency, improved safety, meeting compliance requirements, and product innovation. IoT’s existence is primarily due to three factors: widely available Internet access, smaller sensors, and cloud computing.
Roughly 63% of manufacturers believe that applying IoT to products will increase profitability over the next five years and are set to invest $267 billion in IoT by 2020. They understand that IoT empowers them to make informed strategic decisions by providing crucial, real-time information. Nearly a third (31%) of production processes and equipment and non-production processes and equipment (30%) already incorporate smart device/embedded intelligence according to The MPI Group. Similar percentages of manufacturers have a company strategy implemented or in place to apply IoT technologies to their processes (34%) or to embed IoT technologies into products (32%).
“IoT and predictive analytics are having a major impact on manufacturing, offering exciting new opportunities for connecting operations and transforming business processes,” said Michael Strand, Senior Vice President at Hitachi Solutions America. “Innovation is driving business growth, and technology is enabling manufacturers to evolve with an increasingly digital-first business landscape.”