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Why should you plan to invest in an IIoT platform?

May 2019 News

The more things change, the more they might appear to stay the same. Therefore, it should come as no surprise that Gartner predicts that within the next two years more than half of IIoT implementations will not be hosted in the public cloud, but rather be running on infrastructure located on the premises, closely integrated with existing operational technology (OT) systems. Perhaps not quite the ‘revolution’ we keep hearing about, but more an evolution of tried and tested principles developed over the years in the field of automation and control.

The evolution of OT

‘Operational Technology’ is used to describe the hardware and software systems in industrial environments that instrumentation and control engineers are already very familiar with. OT systems monitor and control physical processes using sensors connected to devices controlling valves, pumps, motors etc. Industrial control systems such as PLCs, scada and DCS are all important parts of an OT system.

OT systems have existed for some time now and are capable of reading high throughput data streams from plant and equipment, storing and analysing vast amounts of data and presenting information in ways that supports operational decisions. In order to guarantee reliability and performance, these systems are often proprietary in nature and isolated from the world-wide web.

Over the past few years Operational Technology systems have continued to evolve. The recent IIoT platforms are in many respects part of this evolution. But the sometimes-subtle differences are important to understand. IIoT platforms are open to the web and promise to facilitate improvements in productivity and efficiency across the whole value chain as well as make possible completely new business models. In contrast to OT, IIoT platforms allow for a higher level of automation and insight by leveraging cloud connectivity to connect to many more diverse IoT devices across geographical boundaries. IIoT platforms are particularly effective when combined with new cloud-based analytics capabilities that can present information in an easy to understand format that can even be acted on by your suppliers and customers.

Which IIoT platform?

As a manufacturing CIO, you will soon be (or perhaps are already) faced with the decision on whether or not to invest in an IIoT platform. It is important to be well prepared for such a strategic technology decision. You will need to identify suitable technology suppliers that will meet future business requirements. To secure investment approval you will also need to build a compelling business case.

An IIoT platform is integrated software that is capable of providing connectivity between devices and systems in industrial environments. A suitable IIoT platform needs to have device management capabilities, as well as data retrieval, streaming and storage, advanced analysis and visualisation capabilities. There are over 30 IIoT platform vendors on the market today and finding the best one for your business will require some homework.

Several approaches to implementing an IIoT platform are possible. For example, a simple ‘upgrade’ of the existing OT systems in the plant might seem to be a simpler approach than implementing a brand new third-party IIoT platform. Several established PLC/DCS/scada vendors are building new capabilities that incorporate IIoT in their product roadmaps. This approach can simplify integration and help standardise systems around one supplier. On the other hand, you could perhaps look around for a third-party ‘universal’ IIoT platform that is more open and has a bigger reach. If you shop around, what are the most important criteria for selecting the right technology? Should you look for an on-premise solution or a mixed model where part of the system is hosted in the cloud?

Some of the criteria to consider when evaluating IIoT platforms include:

• The ability to integrate with multiple disparate mission-critical systems, potentially in regulated environments (if applicable).

• Ability to connect to third-party cloud-based web services, such as exchange rates, weather, logistics tracking etc.

• Self-diagnostic capabilities and remote management of devices.

• Supports low latency, high volume data streams.

• Robust and reliable edge processing of data that will be relied on for safety, supporting automated processes, equipment protection etc.

Developing a business case for investing in a new IIoT platform will also require some careful planning.

Your business case will naturally depend on the industry, specifics of the manufacturing process, the status of the existing OT systems and the potential value in adopting new business models. Here the manufacturing CIO needs to work closely together with the line of business owners (marketing, engineering, manufacturing etc.) to understand and define any potential IIoT-based projects.

There are likely to be other value adding benefits from an IIoT platform implementation:

• Eliminating ‘silos’ of information, particularly in established factories where disconnected islands of information have become entrenched over time.

• The ability to collect and process higher volumes of complex data from a range of new IoT devices in the field (and combine this with data from existing OT devices in the factory).

• The ability to federate multiple real-time data streams into a common centralised data store. Imagine the ultimate ‘scada’ system or ‘data warehouse’ that incorporates real-time plant and business system data, field instruments, computerised maintenance management data, field service data, condition monitoring etc.

• Providing universal access across the business to information previously held in proprietary systems that can assist in business decision making to enable enhanced automation of business processes across the whole value chain.

• Improved analysis and visualisation of this data using modern tools, even outside the factory boundary.

The benefits of a new IIoT platform will also allow advanced decision making around industrial equipment, processes and assets, as well as provide better overall visibility of the entire operation.

Where to now?

For the manufacturing CIO, it is becoming important to develop a clear plan to align and integrate IT, OT and emerging IoT systems. This requires proactive planning to invest in the leading IIoT platforms of the future. Failure to do so could result in the business losing ground in fast changing markets. New market entrants who have no technology ‘baggage’ and who can rapidly implement digital business models can pose a real disruptive threat to established businesses that are slow to react.

Such a strategic plan to bring together IT, OT and IIoT will of course require the careful selection and implementation of an IIoT platform that will grow to serve the requirements of the business well into the future. The CIO has an important role to facilitate this process and help guide the business.





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