Industrial IoT’s impact ‘significant’
Accenture says trend will affect industries spanning 60% of GDP among G20 nations
The industrial internet of things (IIoT) will be a major trend in 2015, with significant implications for the global economy, according to Asif Javed, managing director for technology at Accenture.
Laying out his predictions for the coming year, Javed said that the reason the IIoT will constitute such a major trend is because it affects industries spanning more than 60% of GDP among G20 nations. He named manufacturing, mining, agriculture, oil & gas, and utilities as prime industries that will benefit from the IIoT. Javed added that companies dependent on durable physical goods, such as healthcare organisations, logistics firms and warehouse operators, will also be affected by the trend.
"Not surprisingly, the IIoT's potential payoff is enormous. The most conservative independent estimates place spending on the IIoT worldwide at $20 billion in 2012, with spending expected to reach $500 billion by 2020," Javed asserted.
"More optimistic predictions of the value created by the IIoT range as high as $15 trillion of global GDP by 2030, according to Deutsche Bank Research from this year."
Javed said that operational efficiency is one of the key attractions of the IIoT, adding that early adopters are already focused on these benefits. By introducing automation and more flexible production techniques through IIoT technologies, he said, manufacturers could boost their productivity by as much as 30%.
Javed added that, as the lines between the digital and physical worlds continues to blur, industrial companies are turning into customer service companies. He claimed that manufacturing, energy and other industrial executives had told Accenture that new services, competitors, and ways of operating are transforming their industries.
"Asset owners and operators will spend on these digital services to help them increase their production and efficiency. They will also invest in their own novel solutions to improve the performance of existing assets and processes as well as collaboration across the supply chain - whether the business is chemicals, mining, oil and gas, energy or agriculture," he predicted.
"Digital services - offerings that combine information, transactional and professional services - will lie at the heart of these shifts. Some companies are already converting products into product-service hybrids, which we define as connected, intelligent physical goods capable of producing data for use in digital services."
However, Javed warned that success as a purveyor of hybrid products and services would not come easy. He said that companies must compete and collaborate with players from different industries, which are all attempting to find a competitive edge with digital technology.