The Industrial Internet of Things (IIoT) industry is no stranger to hype and unrealistic expectations. If you've ever heard the sound of a deflating balloon, you might find it akin to the disillusionment that has plagued the IIoT industry for years. But before we dismiss it, let's explore the potential value that lies within this technology.
For our savvy readers, buyers and vendors, this blog sets out on a journey to demystify the complex landscape of IIoT, exploring the challenges and frustrations that shape the experiences of those navigating its waters.
Deciphering the Complexities of the IIoT Market
The mid-2010s saw the emergence of IIoT, with companies rushing to capitalize on the latest technology trend. But, the industry soon found itself trapped in a whirlwind of confusion. On one end of the spectrum, some people didn't even know what IIoT stood for, while on the other, there were grand visions of Industry 5.0. Most of us found ourselves somewhere in the middle, trying to navigate the complexities of Industry 3.0.
The IIoT landscape also collided with Artificial Intelligence (AI) and Big Data, adding further layers of complexity. Private equity and venture capital groups made lofty claims, injecting excessive funds into the industry and pressuring companies to adopt IIoT. This led to frustration, disappointment, and dissatisfaction on factory floors.
Giant companies were eager to sell their C-Suite solutions to unprepared factory floors, focusing on their bottom line rather than providing practical solutions. The result? A market is drowning in confusion and unmet expectations.
Navigating the Impact of COVID-19
The COVID-19 pandemic exacerbated the challenges in the IIoT market. Many startups and established companies faced difficulties as the corporate world was consumed by fear and uncertainty. This environment was not conducive to experimentation and innovation.
Startups struggled to survive. Despite having innovative solutions and successful proof of concepts, they were overshadowed by the chaos. The timing was unfavorable, and the industry was not ready to embrace their offerings.
Challenges in the Implementation of IIoT
To make the IIoT landscape more accessible and practical, addressing the challenges vendors and customers face is essential.
Vendor Issues
The issue of silos arises as vendors often promote solutions that do not integrate with a facility's existing ecosystem, leading to confusion and hindering adoption. Pricing complexities compound the problem with diverse models such as SaaS, capital hits, and maintenance budget allocations. "Hidden fees" add another layer of complication to pricing discussions. Additionally, vendors must move beyond vague assurances, like "preventing downtime," and offer tangible, quantifiable value to potential customers. Some vendors fall short in providing specifics, offering high-level examples without real-world use cases, making it crucial for customers to seek solutions that apply to their needs.
Customer Issues
Some find themselves trapped in a perpetual pilot phase, lacking clarity on their objectives and relying on sensors to discover issues that can justify scaling the solution. Financial aspects pose another hurdle, as customers need to furnish vendors with specific data, such as downtime or uptime models, for scalable IIoT projects. The lack of comprehension of these financial metrics can impede progress. The initiation of IIoT can be laborious, involving many meetings and resource allocation, with budgets often drained by the "people costs" associated with sensor installation. Furthermore, the unpredictable nature of maintenance budgets adds complexity, making it difficult for customers to invest in IIoT technology.
Paving the Way for a Resilient IIoT Ecosystem
The vast potential of the IIoT landscape to revolutionize industries, prevent downtime, and optimize operations is undeniable. But, realizing this potential demands a collaborative effort to surmount the hurdles that have impeded its progress.
As we embark on this journey together, we aim to guide you through the intricacies of the IIoT landscape, empowering you to make informed decisions as a buyer or vendor. To explore practical solutions, consider Le Price International's IIoT offerings, including our wireless vibration sensor for 24/7 remote monitoring of critical assets. Contact us to learn more about how our solutions can enhance your operations.
Source:
Drury, J. (2023, July). The No-Nonsense Buyer’s Guide to IoT: Part 1. Reliable Plant. https://www.reliableplant.com/Read/32418/buyers-guide-iot-is-doa
