The Untold Cons of Industrial IoT — What You Should Consider Before Investing
Being the owner of a small business can be a conundrum at certain times. You have the chops to play in the big leagues. But lack the center stage gear.
Here’s the deal, though. At times, you might be better off without that gear. Here’s a receipt that proves it.
Not too long ago, we were visiting a client who was looking to upgrade his facilities. For the sake of the story, let’s say he ran a small-sized bottled juice factory, and his name was Fred.
A vendor had already paid a visit to Fred and told him about all the benefits the industrial internet of things (IIoT) could add to his operations. They covered most of the bases on how IIoT could help him take his factory to the next level.
Real-time monitoring and control, data-driven insights, and feedback would empower:
Comprehensive automation of production lines, schedules, and inventory
Optimization of energy consumption, for instance, by balancing grid supply and demand
Early diagnosis of issues such as pipe leaks or pressure changes
Fred was delighted. He couldn’t believe how much he was missing out on.
By the time we were called in for assistance, our involvement was well outlined. We were there to check the existing infrastructure and define the upgrade terms so the vendor could come over and supply the devices for the IIoT network’s installation.
We were in the early stages of information gathering and field surveying at Fred’s bottled juice factory when we noticed that pursuing an upgrade to the industrial internet of things probably wasn’t the right call for these facilities.
If you are in the same spot Fred was, you want to know about these four disadvantages of adopting IIoT. They are valid for every small business owner. And worthy of being considered before committing to a technology upgrade with your vendor of choice.
IT infrastructure’s shape: the foundation of any digital system
Integrating IIoT technology into an existing IT infrastructure is a sensitive step. The plant’s hardware, software, network, and data components must match various operability factors for connectivity success. Among them are scalability, security, reliability, interoperability, and performance. Getting it right is critical for the value of the IIoT in your industrial application.
If you lack the physical and virtual space to host the new toys and engineering a solution for it is far-fetched, it’s time to run the numbers and check if implementing the project is worth the trouble.
Secure privacy and data management: keeping your business under lock and key
IIoT devices may introduce new vulnerabilities or attack vectors to your systems. How do you protect your business from data breaches and hackers? With an iron-clad cloud computing (CC) infrastructure. Whether it’s your own or hired by a third party, CC infrastructure is meant to handle the enhanced security measures and policies that your operations and business need.
Be aware that most companies, even multinationals, hire CC infrastructure services from the likes of Amazon, Google, or Microsoft. If you’re bound to go down the same path, consider that once you do, another actor will be eyeing your business.
Costs of switching to IIoT: technology migration comes with a price tag
Technological migrations involve capital investments and operational expenditures. Switching to the industrial internet of things is no different. You’ll have to invest in hardware, software, and integration fees. Then, after start up, comes the spending on technical support and maintenance to keep the digital assets running.
How much money will it cost you? It depends on the type, number, and complexity of the devices and sensors required for your applications.
Organizational change: the unspoken factor
Integrating IIoT technology into an existing system that works and has given you profitable results requires changes in the organizational culture, processes, and skills. Training, communication, and collaboration among the stakeholders are key to the success of the project.
By pointing out these factors, we don’t mean to discourage you from your innovation initiatives.
Our goal is to show you that, as a small business owner who runs a profitable company, deciding when to install IIoT in your operations is a big question mark. So you shouldn’t be rushed into action. Deciding what’s best for your business and your staff requires careful planning and preparation. You must be mindful of your readiness level.
Any company interested in adopting IIoT should consider the above factors and consult with experts and stakeholders before making the move.
To determine if the installation of an IIoT network is the best fit for you, a good place to start the journey is:
Checking the current state of your manufacturing equipment and infrastructure. You want to know if your equipment is outdated, unreliable, or incompatible with IIoT devices.
Verifying the availability of skilled workers and the robustness of your IT infrastructure. IIoT requires a workforce that can operate, maintain, and troubleshoot smart devices and systems. It also demands a robust IT infrastructure. If your company fails to meet the human and technical requirements needed to install and operate IIoT, you must work on closing that gap before moving forward with your project.
Estimating the potential return on investment (ROI). IIoT can bring significant benefits and new business opportunities. Still, you should evaluate the expected ROI and competitive advantage of IIoT implementation. Compare the results with the initial and ongoing costs, as well as your current benchmarks.
Overviewing the technology’s alignment with your company’s vision and strategy. IIoT will transform your manufacturing process and culture. Having a clear vision and strategy for how IIoT can support your mission, values, and goals is a must before getting busy.
What did Fred decide? He realized his readiness level was far from “ready-to-go.” So he delayed his IIoT project until a later stage. First, he had technical and staff barriers to overcome.
I hope this article is useful as you embark on your own Industry 4.0 plans.
Until next time.
I’m Raul Verdusco, CEO & Founder of Verdusco Consulting, your connection to automation engineers for industrial applications.
