Research Reveals Real Company Benefits From Internet of Things

I received report recently from Altizon (www.altizon.com). It is an interesting look at some Industrial Internet of Things implementations.

The distribution of projects was (out of 62 companies reporting):
• Condition based maintenance 30
• Productivity improvement 62
• Quality Improvement 10
• Energy optimization 35
• Warehouse management 5
• Predictive maintenance 12
• EHS 1

They then looked at overall benefits that their customers derived so far from Industrial Internet of Things projects. The results were distributed with average and spread noted:
• Average Improvement in Topline 5% (3%-8%)
• Average Improvement in Productivity 13% (7% – 50%)
• Savings in Energy Expenses 5% (1%-8%)
• Savings in Indirect Cost 15% (1%-20%)
• Savings in Tooling and Spares Cost 3% (0.5%-6%)

These are interesting numbers. All the companies were implementing productivity improvement projects. Two-thirds also were upgrading maintenance strategies. This showed in an average of 13% improvement in productivity with at least one actually showing a 50% improvement (maybe we don’t want to benchmark the “before”).

I don’t know what they included in indirect costs. But I’m intrigued by the improvement in top line of 5%. This must be from better communication from customer to manufacturing. Certainly that’s an IioT program worth going for.

Altizon works in a number of industries. They looked at trends among their customers in the various industries. Following are highlights.

Trends

Automotive—Move towards a connected Supply chain: Visibility into a supplier’s manufacturing process, in-transit visibility, and management of inventory.

Industrial Products—End-to-end process traceability and Genealogy: if a product fails, it can be traced back to the conditions under which the product was built and the components that constitute the product, right down to the vendor.

Steel Industry—Genealogy and Process traceability-from mining to distribution; environmental management and adoption of ISO 50001.

Tire Industry—Reconciliation of real-time production booking with planned data in ERP systems; environmental management and adoption of ISO 50001.

Food and Consumer Goods—Genealogy and process traceability; performance benchmarking within and across plants.

Chemical Industry—Predicting quality and process yield based on detailed analysis of raw material used; IoT enabled system’s safety.

If you are planning an Internet of Things program and researching potential projects and benefits, these findings would be valuable toward the success of your proposal.

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One Response to Research Reveals Real Company Benefits From Internet of Things

  1. Cheryl Beebe June 21, 2017 at 12:55 pm #

    There’s so much talk of industrial IoT and the connected factory, but it’s nice to see data about implementation and success rates.

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