Let's do a quick high-level recap of smart technology in manufacturing over the past decade, and then we can identify the trends we're seeing in EOY24.
The advances in M2M (Machine-to-Machine) communication and learning, now commonly called IoT (Internet of Things) or "smart" technology, have revolutionized the way we work and live, globally, and especially in the past decade. But concepting, building, and implementing smart technology involved a whole lot of pre-selling (by tech companies) "the art of what's possible" to get companies on board. This model is still true today. But let's take a quick look back.
M2M/IoT technology simply made everything faster, including (ironically) itself. From IoT sensors used to track and monitor inventory of goods while in transit and in real time, to city traffic flow management, smart city utility grid control, and predictive maintenance on the factory floor -- IoT has enabled efficiencies across all parts of our culture -- globally and in our private homes.
And then there's IoT in entertainment, such as the ability for businesses to interact with fans via their mobile phones while fans are in stadiums during concerts or sporting events. IoT technology can produce actionable data in real time that can be used to affect an immediate outcome -- like real-time people counting to measure line lengths to prompt visitors via mobile when it's the best time to head to the concessions stands or restrooms nearest their locations, for example. Or having fans vote in real time for a favorite performer during a half-time event, then announcing the favorites in real time as part of the half time show. And during the pandemic, IoT technology was being pitched to stadiums as a way to keep visitors safe from future pandemics: for example, by implementing facial recognition and alerting security if masks were not worn properly. But fast forward to today, and the pandemic is over. So there's an example where the investment would not have paid off. And then there are the practicalities that can only be determined by trial and error. For example, interacting with all stadium fans is an exciting concept. But what would happen if every fan in the stadium was on their mobile at the same time -- would the technology work? Would the fans have enough coverage to engage in the first place, with thousands of users in tight quarters all on their phones simultaneously? A lot to think through before investing in the technology.
In fleet management and supply chain operations, IoT has revolutionized the industry. It's used to improve efficiency, safety and visibility.
Predictive maintenance: IoT sensors monitor vehicle health and performance and alert when it's time to make repairs, before costly break downs.
Driver monitoring for safety and regulatory compliance
Real-time monitoring of fleets and assets
Fuel efficiency and emissions reductions via vehicle routing optimization
Firmware updates management for connected devices
Security monitoring of connected devices
Let's reflect on M2M and IoT in manufacturing. It took an intentional shove of a start to get many factories to modernize to where they are today, mostly because of the decisions IT leaders had to think through and make: for example, the huge risk of expense and failure vs. the potential "what ifs" payoffs. Tech adoption relies heavily on asking business owners to make financial decisions based on using their imaginations to envision the outcomes; and the outcomes are not guaranteed successes.
IoT in manufacturing has many of the same benefits as in fleet management. There are real time equipment monitoring features and predictive maintenance alerts. There are safety alerts to help keep factory workers safe from hazardous working conditions. Sensors are used to track equipment and goods while in the factory or in transit through the supply chain. There's inventory management and asset protection management, and so much more. And then, there are challenges of adopting IoT into manufacturing, from how to integrate new systems with legacy equipment to data security issues.
Think about it like this. Upgrading ANY equipment is a major investment. There's still work to be done, and with manufacturing, updates will always be required as machinery wears out and technology outdates itself. But like all great endeavors, modernizing a factory is part gambling the "what if's" with the "what if it flops," and the, "can we even afford to do this?" with the inevitable, "Can we even afford NOT to do this?" The race for IoT over the past 10 years has been intense. Slow, and fast, at the same time. But 1000% necessary.
Here's what I saw when I was an IoT writer in the business marketing organization for a technology company:
Factories want the promised efficiencies of M2M/IoT technology, but converting literally everything from the ground up is a daunting expense to gamble upon, especially without solid proof of concept. And most investments (in manufacturing tech) are made with little-to-no guarantee of ROI. But here's the rub-- factories are pressured to modernize first, and spend a large investment, or be left behind, and lose a large investment. Both options are expensive. One an investment with potential payoff, one a lack of investment with a potential loss (in the "don't get left behind" world of manufacturing and commerce). But both choices being made with a very foggy crystal ball. Why? Because the technology in IoT is part "develop as you go/invest," and part "will this new technology be adopted widely enough to take off in a lucrative way?"
One of the biggest hurdles for modernization was the up-front investment manufacturers had to make with just a "promise of what's possible" with M2M, or what we now call IoT or "smart" tech. M2M (or let's just call it) IoT had to be sold to investors on the ideas of "what ifs" before the technology could be purchased and implemented. Technology companies had to pitch "the art of what's possible" to factories without case studies to show.
Think of it like this. You've got a company with outdated and aging equipment that you know you will have to replace. Equipment wears down or becomes obsolete. You're approached by a tech company that promises to create innovative technology for you after begin the financial investment, tells you what cool things the technology might do, and tells you if you don't buy in, another company will, and then you'll be left behind to grapple with your regretful hesitation. But there's no existing customer success story, and you're being pitched on the art of "what's possible." You're being sold the technology before it exists. And if you buy in, the technology can be created. But you're also counting on your consumer to want the product.
Let's take a look at IoT solutions in the telecommunications/technology world as an example. Pretend you're a city government. You're approached by a tech company, let's call them for the sake of example, "BV Technologies." BV says they want to put smart sensors and camera monitors in all of your downtown traffic lights, and they will need to update all the wiring and all the lightbulbs. Plus they want to add the communication system to the local police and fire departments, which would involve city and local area telecommunication wiring. The promise is that the "smart city" technology will: 1. Control traffic flow by using sensors to sense approaching cars and change the traffic lights to manage flow. 2. Generate revenue by snapping photos of cars that run red lights. 3. Protect pedestrians from street crime with real-time surveillance and connection to local first responders. 4. Monitor weather and control local resource allowances. Ok. Sounds great, right? But #1. Expensive. and #2. Is monitoring everyone legal? #3. What are the potential downsides? #4. Would the investment be worth it? And what would be the future investment required in keeping the technology maintained and updated? In order for BV to sell the smart city technology to the city government, they'd have to pitch it all as the "art of what's possible."
That said, IoT brings with it so many cool possibilities. Watch for Part 2 to see what trends we're seeing now, and what to look for in the coming years.
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