Industrial IOT (IIOT) — Myths & Realities

Hilaal Alam
2 min readSep 9, 2017


21 billion devices will be connected with internet by 2020, estimates Gartner, a leading analyst firm. Internet of Things in the industrial world is becoming a buzzword; but yet to realize its full potential. Many corporate executives talk about the revolutions likely to be brought by IIOT in their respective segments. However, many have seldom understood its true potentials. This is mainly because, the Industrial IOT is perceived under a very narrow definition. Mostly, IIOT is (mis)understood as an answer to the problems related to the maintenance and health of machines and other connected systems. Of course, the predictive maintenance will bring in huge benefits to companies by preventing shutdowns and smoothening the productions. However, the manufacturers of the machines are solving the issue of shutdowns at different levels.

Industrial Hype with Boosted Ratings…?

The digital manufacturing is picking up everywhere across the globe. IIOT was initially thought as a game changer in many ways, including the cost savings and elimination of middle level activities. But, the industrial culture and the ecosystems have not synced with each other and with IIOT system yet. With the under-perceived concepts, the benefits are boosted with fictitious numbers. There are unofficial numbers reported as 35% to 50% increments in benefits including the cost saving (just to satisfy their top level managements). True that it is likely to translate IIOT ecosystems into many advantages, including the improved productivities.

Industrial reports have not shown any convincing direct benefits out of IIOT yet. A corporate giant acknowledges only ~10% of benefits or savings in relevant processes. The productivity is expected to improve by ~15%, whereas the overall equipment efficiency gain is projected to be ~ 11%. The automation is likely to increase with higher efficiency and the stability by the index of 3.4–4.1.

Perceived Benefits

Simply the machine maintenance cannot be the core benefit of IIOT. The zero defect in quality control is one of the biggest expectations with better “traceability” and advanced process control out of IIOT. The fast root cause analysis and quick feedback to upstream will be the boon to bring down the quality rejections to <0.01 dpm.

What could be “actual” benefit?

Industrial IOT is a pathway towards the smart factory and a framework for it. IIOT comprises of information exchanges right from corporate decisions down to the implementation of processes and monitoring the performances. IIOT in principle, ensures all of them.

Job Threat?

No. Industry 4.0 is not only the technology advancement, but the new mindset, says, Dr. Laurent Filipozzi, Vice President, Site Head of Plant, Infineon Technologies Asia Pacific Pte Ltd, in the keynote presentation on “Industry 4.0 for the Manufacturing Industry” seminar held at Singapore Polytechnic, Singapore on September 7, 2017.

The existing jobs like machine operators will evolve as robot co0rdinators with additional trainings. Data scientist will be the new job scopes in this space. The new skill sets will be required for big data and self organization. In fact safety and healthier workplace will be another important outcome of IIOT.



Hilaal Alam

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