Internet of Things
allow equipment manufacturers and operators of machinery and assets to monitor them remotely, predict failures, and proactively maintain assets. They can collect data from remote assets and merge it with business data, such as past maintenance records and contextual data including weather and traffic information. They can then analyse this data to find patterns and root causes for failures - insights that help them predict when an asset or equipment will fail and proactively apply preventive measures to stop the failure from occurring. An SAP customer, Kaeser Compressors, Inc, uses IoT technologies for just this purpose. The German-based manufacturer of air compressors, wanted to provide excellence of service to its customers across the world. Using IoT platforms and technologies it is now able to collect processing data from air compressors onsite so that it can constantly monitor usage and performance. It can gather a complete picture of a compressed air station and then use predictive analytics to fix problems before they emerge and help avoid unplanned downtime.
The challenges
Of course, as with any new technology, there are barriers to the uptake of IoT platforms. Almost half (47 per cent) of respondents to the recent study of UK manufacturing executives identified a lack of awareness and understanding as the main barrier, followed by outdated legacy technology (mentioned by 43 per cent) and concerns around data protection (mentioned by 42 per cent). Contributing to this fear of the unknown was the lack of on the ground examples of IoT in action – only one in five (20 per cent) have seen an IoT application in practice. With a lack of awareness and understanding being such a major challenge it is incumbent on the technology industry and IoT experts to do a better job in guiding manufacturers through the journey. If manufacturers can work with IT professionals to draw out the real business value of the IoT, together they can unleash the potential of this new era of technology. Industry efforts such as Industrial Internet Consortium, which SAP is a member of, aim to do just this. As well as its focus on driving through the adoption of interoperable standards it also plays a role in engaging and supporting end-users in understanding the business benefit and impact of the IoT. Part of this is also about dispelling myths. Some commentators have voiced concerns that IoT platforms may lead to pressure on jobs. Encouragingly, in SAP’s recent study a sizable proportion of manufacturing executives saw IoT
technology as a career booster, with almost half (48 per cent) stating IoT innovation will lead to higher value job opportunities. Changing mindsets is not just about the business benefits but also about showing a pathway for people to opportunities for more creativity and innovation. It’s about highlighting the new job roles that are further up the value chain – whether it’s managing how the IoT can improve manufacturing processes and systems or applying the technology to product and service development. This requires new skills but creates new and exciting opportunities.
Now is the time
This is a genuine pivot point for the UK manufacturing industry. But it requires manufacturers to embrace the new technologies and apply it to their business and commercial challenges. Technologists can wax lyrical about the amazing impact of the IoT, but until people start to explore the opportunities for themselves it will be difficult for them to see the practical advantages. By which time it might be too late. This requires two things: A mindset shift that is willing to explore new ways of working and to innovate across new technologies. And secondly it requires significant investment. Currently, it would appear that UK manufacturers are holding back from investing in IoT platforms and approaches. But from a practical perspective, now is the time. The cost of entry has never been so low and technology so integrated. This means that even SMEs can think about adopting these groundbreaking technologies. Moreover, it’s not just about using the technology. More connected and integrated manufacturing systems can move businesses into new markets and create new revenue streams. The IoT could be a boon for the UK manufacturing sector but only if we collectively focus on practical changes in mindset, investment and application. This is the challenge for the technology industry and manufacturers alike. v
Nayaki Nayyar Nayaki Nayyar is GM & Head of IoT Go to Market for SAP. As market leader in enterprise application software, SAP helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organisations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 310,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. www.sap.com
www.manufacturing-today-europe.com 15