Manufacturers are convinced the Industrial Internet of Things (IoT) will help them improve operations and profitability by 10% or more, but most are struggling to develop the right plans to take advantage of the technology, according to a new IndustryWeek survey sponsored by Emerson (NYSE:EMR).
The survey revealed that about 60% are exploring or investing in Industrial IoT pilot projects, but only 5% are investing against a clear business case for how to best implement the technology. The vast majority of Industrial IoT investment today is in the early stages of plan development and small-scale trials, often as part of a larger operational efficiency programme.
The survey found the biggest challenges for operational efficiency programmes are company culture (47%); lack of clear business strategy (41%); and knowing which technology will deliver measurable improvement (34%).
“Early Industrial IoT successes demonstrate that manufacturers can achieve operational improvements that significantly impact the bottom line, but this survey shows that adapting to advancing technology is a significant challenge,” said Mike Train, executive president of Emerson Automation Solutions. “The small percentage of companies that have already developed clear business plans for Industrial IoT are positioning themselves to realise tremendous competitive advantages. We encourage everyone else to consider two critical first steps: start small and invest in applications that enable a clear business case.”