IoT has many uses. In order to distinguish between the many uses and situations where IoT is and potentially will be, it has become common to distinguish Industrial IoT (IIoT), Consumer IoT (CIoT), Internet of everything (IoE) and finally Internet or Robotic Things - IoRT).
In some cases, these uses will overlap. Therefore, none of these terminologies are exact and "perfect", and for some, these terms can therefore appear to be more confusing than explanatory.
IIoT is based on the industrial Internet area that enables intelligent industrial operations based on data information, and IIoT must be seen in conjunction with technology integration and convergence between two technological worlds - IT (Information Technology) and OT (Operational Technology).
Which segments are covered under IIoT?
Within IIoT, most people think of "heavy" segments such as production, supply chain, energy, environment and safety, but it is also appropriate to add "less heavy" applications such as smart cities / buildings, e-health, and agriculture.
As mentioned, sometimes it may be difficult, if not impossible, to distinguish between what is IIoT and CIoT, but typical usage cases for IIoT are, for example; smart traffic solutions in smart cities, intelligent industrial machine and control applications, condition monitoring, etc, areas of use where it is normal to focus on continuity, efficiency, saving costs and predictive analyzes.
Industrial IoT is related with Industry 4.0, but what's what:
“All IoT applications in Industry 4.0 are forms of IIoT but not all IIoT use cases are about the industries which are categorized as Industry 4.0.”
Opportunities and Benefits - Challenges and Barriers
It's important to know that IIoT is not just about prediction, optimizing efficiency and reducing costs. Thanks to IIoT companies also have the opportunity to realize important transformations and can also uncover new business opportunities.
Many companies have already started IIoT procurement; some companies are in the assessment phase, while others due to various challenges and barriers have not started the IIoT process.
Uncertainty and barriers related to IIoT:
- Anxiety for data security violations
- Challenges with interoperability and Limitations with compatibility.
- The market / industry have a lack of overall IoT awareness.
- Uncertainty about the transition to new technology. Resistance to changes, which culture is established?
- Do not understand the potential benefits of IIoT.
- Price confusion and cost challenges.
Nevertheless, due to large capital inflows and high investment confidence, IIoT is the innovation engine and the most important development field within IoT.
Different predictions indicate that companies that are able to handle the industrial data challenge and understand beyond the obvious IIoT benefits have a golden opportunity to be innovative, ie they will establish strong competitive advantages and they will, seen in an Industry 4.0 perspective, even be able to create completely new business models.
Example of possibilities and benefits of IIoT:
- Reduced downtime, improves productivity and operational efficiency.
- Creating new business opportunities.
- Maximizes assets utilization and reduces assets lifecycle costs.
- Ability to sell product as a service.
- Enhancing worker safety.
- Enhancing product innovation process.
- Better understanding of customer demand.