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How IIoT is making Inroads in the Manufacturing Industry

By CIOReview | Wednesday, July 6, 2016


‘Internet of Things (IoT)’ is a highly discussed and increasingly growing as a matter of subject for board members. Experts foresee IoT as eyes and ears of industries. Continuous advancements in information technology have given space for IoT to indulge in everything; from kitchen appliances and household electronics to clothing, vehicles and retail goods. Similarly, the developmental traces of IoT can also be witnessed in manufacturing industries through ‘Industrial Internet of Things (IIoT)’. The new robust technology is rewriting the script of supply chain management in the manufacturing sector, seeding transformative developments and simplified processes.

According to Accenture, ‘Industrial Internet of Things (IIoT)’ in manufacturing industry is estimated to grow up to $14.2 trillion by 2030. The market research firm, MarketsandMarkets, also reported that manufacturing companies will escalate investments in ‘IoT’ and as a result, the manufacturing industry will have largest ‘IoT market share’ with same development pace.

Companies are now transforming into ‘Smart Factories’ by bringing out the automation element in the manufacturing processes through IIoT. “As I looked at IoT about a year ago, it became very clear that the path to revenue was a very long one in the consumer IoT space unless you’re into hardware. So we started digging into the industrial or enterprise IoT space and what became very clear was that there were a number of enterprises that needed answers today to known problems that traditional frameworks weren’t quite solving,” says Ed Ruth, Director, Verizon Ventures.

Why CIOs Embrace IIoT?

‘Industrial Internet of Things’ is the extended version of IoT that leverages automation and connectivity primarily to carry out machine-to-machine (M2M) communication. As a result, the ‘Smart Factory’ forms a closed environment within the plant network to carry out communication through internet using IoT. IIoT gives CIOs an opportunity to rethink over the benefits it promises for their business. The technology also mitigates the threats and outsmarts the risks that cause systems vulnerable to hacking, viruses and destructive malware. Additionally, you can incorporate features of IIoT by upgrading the ‘Internet Protocol (IP)’ without involving outside connection. With such flawless aspect of IIoT, it permits an organization to introduce and utilize the new gadgets and sensors that might be consummately sufficient to optimize and carry out manufacturing process.

Mobile gadgets with internet connectivity and cloud enabled services for ‘IIoT’ together transforms accessibility of industrial information from traditional manual to digital approach. CIOs can now have access to industrial-critical information at any time and from any place with internet. Also, the important aspect of IIoT connectivity is that it can portray hands-on and perceivable connectivity for far-flung areas, subcontracted manufacturing plants or suppliers' factories.

Implementing IIoT

Implementing IIoT for industries which are based on primitive production processes can be quite tricky. But it can be beneficial to implement IoT once it meets organization’s objectives and visions. Consequently, the detailed data dispersed over company’s network can be made available to authorize on-premise and remote users through automation. As a part of commitment, industries can swap devices which hinders the procedures of organizations with automated technology such as ‘IoT’ to cater customers’ needs. With the grace of IIoT and automation facilitated by it, days doesn’t seem far when human’s intervention will become obsolete.

Impact of IIoT on Manufacturing Industry


IIoT assist manufacturing leaders and CIOs to concoct enterprise decisions and move rapidly. Manufacturers are adopting the best practices to improve advantages associated with their products. To be successful, CIOs can help in streamlining supply chain management and logistics functions by maintaining services with IIoT. Also, CIOs can come up with seamless production processes that can bring out drastic improvements in productivity and maintain rigorous environment for future development.

Protection against Cargo Theft

One of the greatest benefits of IIoT includes managing supply chain and manufacturing risks to track and monitor goods. Also, it can alerts officials if the package is sent to a wrong address. IoT can save millions of dollars for each year by tracking the cargo or goods being stolen and the inventory delays. For manufacturing companies, it will be beneficial as they will produce goods once and mitigate the duplication efforts and operational costs.

IIoT, blended with mobile and cloud architecture enables additional security to data and goods. The cloud and mobile architecture brings out high level of control and automation in manufacturing industry to manage information. For an instance, if goods are moved from their designated location, IoT enabled mechanism will detect and alert officials. Such initiatives will test skills of engineers and IT process control teams and merge their efforts to leverage information security in manufacturing industry.


Transparent process and procedures are the aspects of every successful functioning of enterprises. IIoT can help manufacturers to realize facets of transparency through automation in the industry. It leverages factory networks and bring out effective communication between machines without involving human interference. IIoT has the capability to scrutinize context and processes to regulate performance in generating ROI.

In addition, you can even track products in real-time during transit or storage and record their status through sensors and devices. IIoT can also help by ensuring the correct temperature for goods and handling goods for other procedures. Consequently, the operation cost and procedures will be reduced to minimum in the supply chain and save millions of dollars against damaged goods.   

Revenue for OEMs

IIoT can help OEMs to fabricate tools for ‘predictive maintenance’ to guarantee uptime, outcomes and performance for customers. The advantage of IIoT also includes asset management which enables availability, minimized costs, and reduced operational risks by scrutinizing data. As asset management is becoming an essence of every organization, OEMs can bring out predictive business tools for efficient asset utilization.

Embracing New Technology

‘IoT’ is the blur layer between physical and digital world which is held together with IT technologies that compute data for real world. CIOs have access to big data and cloud in conjunction with IoT which are becoming part-and-parcel of every value chain for manufacturing companies. With constant development in IoT, CIOs experience difficulty to apply competitive changes with existing processes. Therefore, they need to be alert with competitive updates and include it as an innovative factor into their organization.


In manufacturing industry, quality of products is at the paramount and they strive ensure consistent promised quality. IIoT can be implemented to ensure appropriate production procedures are followed by monitoring the processes. The sensors placed at machines and goods can help to determine quality of goods by streaming production process live and ensuring no cheaper alternative components are added during the process. Consequently, IIoT can be beneficial to streamline supply chain and manufacturing processes by eliminating glitches that hamper productivity of manufacturing companies.

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