The Industrial Internet of Things (IIoT) is one of the most discussed and prized technologies in industrial settings today, with its many promises of efficiency enhancements and cost savings.
However, despite the potential returns on investment (ROI), implementation for supply chain, warehousing, and logistics experts is a monumental hurdle. From smart sensors connected to manufacturing networks to advanced quality control cameras, IIoT challenges prevent many small- and medium-sized enterprises (SMEs) from competitive implementation.
What is it about the IIoT that is prohibiting SMEs from a complete transformation?
The number of technologies in the IIoT comes with a notable price tag. A study of 62 manufacturing SMEs determined the mean implementation cost averaged $22,054.57, with a potential cost savings of $58,087.66. Several assets involved in this bill include, but are not limited to: Routers; Cloud computing infrastructure; Sensors; Actuators; Software; and Middleware.
Merging the IIoT with existing systems is another cost. For example, connecting RFID tags with IIoT data-collection software may be impossible and require replacements with more advanced active tags with better range and functionality. Despite the research, SMEs with limited capital may be unable to justify the transition as an early scaling opportunity.
When smart sensors connect to manufacturing networks, they must have strong end-to-end encryption and other control mechanisms aligning with cybersecurity compliance frameworks, like ISO or the GDPR. Ensuring effectiveness and upkeep with activities like audits and third-party penetration testing are additional expenses and time investments.
Protecting IIoT systems and RFID tech from vulnerabilities is paramount. By prioritizing robust risk management strategies before full-scale implementation, organizations can mitigate potential downtime. Investing in security measures from the start can ultimately prevent costly recoveries that may exceed the initial installation of the IIoT.
Many SMEs still contain legacy systems because of the financial barrier to upgrading. Middleware and custom hardware solutions may be the best solution to mitigating these obstacles while accommodating IIoT specifications.
RFID and sensors can often retrofit older technologies to have modern capabilities, such as remote product tracking in warehouses or defect detection on production lines. This will empower numerous sectors, specifically e-commerce, where meeting increasing demand is crucial for stability. Phase-based implementation will extend the lifespan of legacy tech until finances are more secure.
A skills gap persists in industrial settings, preventing a smooth transition to the IIoT. Few SMEs have the resources to invest in in-house hardware engineers, cybersecurity analysts and other specialists. Third-party aid is available, but it likely costs more in the long term.
The start of an IIoT implementation journey should focus on education and consultation, regardless of the expense. The expertise is crucial for preventing human error in operations and maintaining sensitive IIoT devices for longevity.
The IIoT and supplementary technologies must integrate with legacy systems, but they should also be compatible. The challenge is futureproofing operations to consider potential upgrades in the future while making the tech and app stack coherent with each other. Research to ensure that architecture, APIs and data organization interoperates is crucial for eliminating vendor lock-ins.
SMEs can continue scaling despite up-front financial and time investments by offering new services to clients based on their new assets, such as predictive maintenance consulting based on internal data.
Knowing the drawbacks and obstacles is the first step in adopting the IIoT, regardless of the company’s size. Then, plan for gradual investments and installations, unlocking the opportunities and benefits the IIoT delivers.
Predictive Maintenance. Companies of all sizes must discourage reactive maintenance in favor of data-driven preventive schedules. Data from IIoT sensors can inform these repair windows by tracking anomalous behaviors and comparing them with historical data. Complementary tools like RFID help track maintenance activity and parts utilization, making operations more agile and transparent.
Increased Energy Efficiency. IIoT sensors are most commonly associated with production and supply chain tracking, but they can also collect significant environmental data. Sensor-based monitors can oversee factors like temperature, energy consumption and air quality to inform sustainability goals. Leveraging sensors will help SMEs comply with environmental regulations and lessen adverse impacts on the planet.
Eventually, these key performance indicators will reveal process discovery opportunities, encouraging energy consumption cuts in antiquated machinery or adjustments in cleaning protocol to prevent accumulation in ventilation systems. The ability to identify machine-specific concerns with RFID tags promotes a continuous improvement mindset while demonstrating the versatility of the IIoT.
Improved Supply Chain Visibility. Sensors enable companies to have more expansive, real-time monitoring capabilities. Manufacturing and supply chain workers can see a machine’s effectiveness or a fleet’s status from connected computer software, connecting stakeholders with next-generation transparency.
Operators will know when process orders are fulfilled or when a retailer receives a case. It could even detect instances of theft or track tools across a facility. The live updates immediately notify parties of concerns, leading to more proactive action to prevent stockouts or excess inventory.
Enhanced Product Quality. The manufacturing process, especially those equipped with high-speed motors and automated robotics, must have the IIoT to correct quality control issues. Assets like computer vision, powered by artificial intelligence, are one example of tools with data-driven sensors that can discover product defects and categorize production loads effectively.
The tools can also review a production line to discover the cause of a repeat issue, hastening corrective protocols. Eventually, this could lower scrap rates and expedite lead times for higher customer satisfaction.
New Business Models. Beating the challenges of implementing industrial IoT allows SMEs to expand into new verticals or reconsider their business structure based on the most well-known IIoT archetypes. They can have data-driven services in conjunction with their products.
For example, a heavy machinery manufacturer can offer rental retailers products with smart and RFID specifications, helping them track or bill customers remotely. SMEs can charge companies more for these resources, creating new revenue streams.
While SMEs face more challenges than other organizations in implementing the IIoT, many solutions exist to make it possible.
Committing to digital transformation could make some SMEs more competitive than large corporations, as businesses seek to support smaller partners and consider the sector’s future with up-and-coming experts. The initiative will set small- and medium-sized companies apart, demonstrating their dedication to innovation.
About the Author: Emily Newton
Emily Newton is a seasoned freelance writer and Editor-in-Chief of Revolutionized Magazine, specializing in the intersection of technology and industry. With a passion for exploring the latest innovations in IoT, supply chain, and automation, she delivers compelling content for industry professionals. You might have seen her work in publications like IoT Times and Embedded. When she’s not writing, Emily enjoys playing chill video games and stargazing.
Posted in: Expert Views
Tagged with: IIoT, Industrial Internet of Things, ROI
James Hickey, Managing Editor,  RFID Journal
[email protected]
Claire Swedberg, Senior Editor, RFID Journal
[email protected]
+1 (360) 466-1562
 
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James Hickey, Managing Editor,  RFID Journal
[email protected]
Claire Swedberg Senior Editor, RFID Journal
[email protected]
+1 (360) 466-1562 
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