"Internet of Things can have massive impact on manufacturing"

The Internet of Things (IoT) is a scenario in which physical objects, containing embedded technology to communicate and interact, are able to transfer data over a network without requiring human-to-human or human-to-computer interaction. As Internet of Things has evolved through the convergence of wireless technologies, micro-electromechanical systems (MEMS) and the Internet, IoT has the potential to revolutionise the manufacturing sector. 
 
In this interaction with Rakesh Rao, Arun Kundu, Director, Professional Services, Asia Pacific & Global Strategy, Verizon Enterprise Solutions, explains the impact of Internet of Things on the shop floor and benefits incurred by the manufacturing companies.
 
How can manufacturers benefit from Internet of Things (IoT)?
While manufacturers vary greatly, on the scale of production and the kinds of products they make, IoT can add value to most, if not all. IoT is also creating opportunities to capture and interpret data leading to new services, avoiding commoditisation. And of course, manufacturers are always looking for ways to streamline processes and increase efficiency. IoT-enabled asset tracking not only provides manufacturers with better control of their logistics, but using the data can also enable them to offer their customers near real-time tracking of shipments, an appealing differentiator. The factory of the future will be more capital efficient and flexible. Updates from product design teams will be introduced more quickly, and customisations incorporated more easily. Schedules will reflect changes in demand within hours, not days. Managers will be able to see what stock and raw materials are on hand, and exactly where they are, from their tablet.
 
With Internet of Things, manufacturers can remotely monitor the condition of equipment and look for indicators of imminent failure - for example vibration, temperature, or pressure outside normal limits. This means that the manufacturer can make fewer visits, reducing costs and freeing up employees. For the customer it means less disruption, increased uptime, and ultimately higher satisfaction. Taking this to the next level, manufacturers can offer a price-per-use, inclusive of all hardware, installation, and servicing. This is servitisation, and it’s very attractive to customers looking to spread costs and increase accountability.
 
Production line monitoring and automation is one of the most mature IoT applications. By connecting production-line systems, manufacturers can move to predictive maintenance, helping to make better use of resources and reducing unplanned downtime. This strategy can improve equipment utilisation and plant output overall. Most production-line systems already contain the necessary sensors - it’s just a case of adding connectivity. Manufacturers can also track pallets, shipping containers, and equipment both on- and offsite, using location-aware IoT devices. Using a mix of connectivity technologies, including cellular and satellite, this tracking can cover shipments across road, rail, sea, and air transport. This end-to-end monitoring reduces the chance of loss or theft, and additional sensors can be used to verify that perishable or fragile goods are kept in appropriate conditions and handled properly throughout their journey.
 
What is Verizon doing to drive the adoption of IoT?
I believe that strategic network investments will continue to be a major focus for savvy CIOs in 2015, as companies seek to make sense of big data, transition to the cloud and monetise the Internet of Things (IoT). 
 
Verizon data shows 204% year-over-year growth in the number of Internet of Things connections in the manufacturing sector and by 2025, many manufacturers will get more revenue from services than from product sales. We have consistently focused on offering superior connected machines solutions, helping manufactures improve their services, streamline logistics, and ensure time-sensitive inventory is delivered to consistently meet customer expectations and resource management procedures.
 
We also help manufacturers manage the performance and security of critical assets, vehicles, and equipment wherever they’re located using smart, machine-to-machine (M2M) technology. Wirelessly connected machines, devices, sensors, and systems enable the exchange of important data and information, allowing them to improve decision making, use resources efficiently, and equipment management, while helping mitigate maintenance issues and control costs.
 
How are IoT technologies helping organisations globally?
The Internet of Things is founded on familiar technologies - like sensors, networking, and cloud computing - but its potential for transformation is incredible. By 2025, best-in-class organisations that extensively use IoT technologies in their products and operations will be up to 10% more profitable. The Internet of Things is already having a massive impact on business. It offers organisations the opportunity to transform how they operate, and gives both new entrants and established players the ability to innovate and disrupt.
 
Organisations are seeing measurable benefits from Internet of Things projects. Transportation companies are saving millions of dollars by reducing fuel consumption using data captured, transmitted, and analysed in near real-time. Local governments are making budgets go further with LED smart street lighting that does not need regular maintenance, but can automatically report when it needs to be repaired. Utility companies are eliminating costly and inconvenient home visits to read meters by introducing smart meters that report more granular usage data without human intervention. These are just a few examples of the myriad ways in which IoT is making new products, business models, and processes possible.