Study Shows Manufacturing Executives Well Aware of Big Data Benefits

In the article, Big Data Analytics Can Benefit Manufacturers, the author uses data from a recent Honeywell study to show how manufacturing companies are responding to and using big data analytics to enhance their processes.  The Industrial Internet of things is providing significant amounts of data that many manufacturers are taking advantage of.  In particular, manufacturers are using analytics to prevent unscheduled downtime and equipment breakdowns.  Surprisingly, 33% of respondents of the 200-executive survey said they do not plan to invest in analytics, mostly due to lack of funds or lack of  understanding of how the analytics can benefit their company.

One of the most surprising results of this Honeywell survey was that 42% of respondents admitted to running their equipment harder than they should.  Consequently, big data analytics to prevent machine breakdowns is very important, and 70% of respondents said analytics can prevent breakdowns.  Without the proper analytics, manufacturers run the risk of falling behind competitors.  With so much on the line, it is not surprising that 80% of senior executives surveyed in a different executive recruiting firm poll said that investment in the digital transformation is critical.

With a majority of senior level executives understanding that the investment in the digital transformation is so important, the next question is how will a company manage this transformation.  Many companies do not have a Chief Digital Officer, or CDO, so the responsibility moves to the rest of the C-level board to oversee the transformation.  This strategy can bring about issues since the transformation is happening so fast that high level managers already tasked with significant decision making will not put adequate time toward the company’s digital needs.  An ideal situation would be for a company to have a CDO, and preferably a CDO with experience in IT and/or sales.

 

Do you believe companies should invest in a CDO?

How bad will the consequences be for companies that don’t invest in big data analytics?

Which college graduates will be most in demand now that this digital transformation is happening?

 

http://www.eweek.com/database/big-data-analytics-can-benefit-manufacturers-2.html

Manufacturers Are Experiencing the Benefits of Big Data

In the article and exhibits presenting in How Software and Big Data are Changing Manufacturing in the United States, the author lays out a vast array of benefits manufacturers can experience when they incorporate big data analytics into their processes and decisions.  The manufacturing sector represents just 12% of the US GDP, but the actual dollar amount is $1.2 trillion of exported goods.  Furthermore, the US manufacturing sector has increased output 30% since the global financial crisis of 2009.  Any advantage manufacturers can gain going forward translates to incremental dollars in sales and cost savings.  Big Data is the key that is allowing manufacturers to save money, grow, and compete in an international marketplace.

Some of the distinct advantages big data gives manufacturers are in productivity, product development, and simulation based approach test new products.  The conclusions drawn by an Ohio University study suggest that manufactures could boost productivity by 30% by utilizing more flexible production techniques along with big data analytics.  Manufacturers could experience up to a 50% decrease in production development costs which translates to a 7% reduction in capital assets.  Another interesting path big data paving is a simulation based approach to testing new products.  An example of this is Volvo integrating customer data into its forecasts to understand if a new design will appeal to customers.

Finally, big data also creates value in the supply chain and is spurring change in the management of manufacturing.  In the supply chain, big data is predicted to be able to save 15-20% on transportation costs and help reduce inventory by 20%-30%.  Big data is changing the way manufacturing enterprises are managed as well.  Big data is creating a huge number of jobs, estimated at 1.5 million.  Managers now must understand what data is relevant and how to use this relevant data.  Not adapting to the big data world will result productivity decreases and manufacturers falling behind competitors who do utilize big data.  Its management’s job to become familiar with big data techniques and hire those who specialize in the data so that companies can stay ahead of the curve.

 

Will big data finally allow manufacturers to bring manufacturing jobs back to the US?

Do you think the future of big data is in the simulation side?

Do you think that current managers can differentiate between what data is useful and what is not?

http://www.dataversity.net/software-big-data-changing-manufacturing-united-states/

 

Industrial IoT vs Consumer IoT

In this article we will talk about IIoT and clear up certain misconceptions that you may have.

What is IIoT?- The Industrial Internet of Things (IIoT) is simply, the use of Internet of Things (IoT) technologies in manufacturing. It incorporates machine learning and big data technology, harnessing the sensor data, machine-to-machine (M2M) communication and automation technologies.

Misconception: The IIoT is the same as the consumer Internet of Things (IoT)

The IIoT includes IoTdevices located in industrial settings. This maybe a factory floor, a high-speed train system, a hotel, a municipal lighting system, or within the energy grid itself. The requirements for IIoT are far more stringent than the consumer IoT. There can be no compromises in control, security, reliability in tough environments and it needs to be autonomous with little or no human intervention. These devices are built to withstand the test of time.

Peer to Peer rather than Push-Pull

While consumer IoT is linked to human-perceived comfort, security, and efficiency. The industrial networks have basic operating roles that do not require human intervention. Operations that must happen too quickly, too reliably, from too harsh or remote an environment to make it practical to push-pull data from any kind of centralized Internet server or the cloud. A major goal for the IIoT is to help autonomous communities of devices to operate more effectively, peer to peer, without relying on exchanging data beyond their communities.

The IIoT to IoT link

Individually, industrial devices generate the “small data” that, in the aggregate, combines to become the “big data” used for IoT analytics and intelligent control. IIoT devices that are IP-enabled could retain their ability to operate without human intervention, yet still receive input or provide small-data output via the IoT.

What is the real IIoT opportunity?

The real opportunity of the IIoT is not to pretend that it’s the same as the IoT, but rather to provide industrial device networks with an affordable and easy migration path to IP. This approach will build bridges to the IIoT, so that any given community of devices can achieve its full potential. An example of this is the IzoT platform of devices developed by Echelon.

Source- http://radar.oreilly.com/2014/02/the-industrial-iot-isnt-the-same-as-the-consumer-iot.html