Is IIoT Worth the Investment? Discover the Cost, Gain, and Impact of Implementing Industrial Internet of Things

Maximizing ROI: IIoT Implementation Cost and Impact

The IIoT allows enterprises and industries to be more efficient and reliable in their operations by focusing on machine-to-machine (M2M), big data, machine learning, and machine-to-machine communication. The IIoT includes industrial applications such as robotics, medical devices, and software-defined manufacturing processes.

The IIoT is more than just a network of consumer devices. It also allows for internetworking with physical devices. It is distinguished by operational and information technology (IT) integration. OT is the network of industrial organization's control systems and operational processes (ICSs), which includes supervisory control and data acquisition systems (SCADA), distributed control systems, and programmable logic controllers.

The convergence of IT and OT allows industries to achieve greater system integration, including optimization and automation. It also gives them better visibility into the smart supply chain and logistics. Smart sensors and actuators make monitoring and controlling physical infrastructures in industrial operations such as agriculture, manufacturing, healthcare, transportation, and utilities easier. Remote access and control are also possible.

The IIoT is an integral part of Industry 4.0's fourth industrial revolution. Understanding how cyber-physical systems, production processes, and other information sources will transform through big data and analytics is crucial. Industrial devices and infrastructures benefit from real-time data from sensors and other information sources and can use it to make "decisions" and develop specific actions and insights. The IIoT allows machines to automate and take over impossible tasks for previous industrial revolutions. The IIoT can be used in a broader context to address issues related to connected ecosystems and environments. For example, how do cities become smarter cities or factories become more efficient factories?

Industries and businesses can grow by capturing and sending data between intelligent products and machines. Industries and businesses can use the data to spot inefficiencies and errors in their supply chains and address them immediately. It allows them to improve operations and finance. The IIoT integration can automatically optimize asset use, predict failure points, and trigger maintenance processes.

Businesses can gather more data and analyze it faster by adopting smart connected products. It will improve performance and scalability and bridge the gap between production floors and offices.


What Business Problems can the Industrial Internet of Things Solve? What is the Industrial IoT?

What Business Problems can the Industrial Internet of Things Solve? What is the Industrial IoT?

Because of its ability to facilitate faster and more effective decision-making, the IIoT is crucial. Many businesses are also working on digital transformation projects. The IIoT is a vital enabler of the change.

The IIoT provides highly detailed data in real-time, which can help companies better understand their business processes. By analyzing data from sensors, companies can improve their efficiency and open up new revenue streams. They can also gain insight into their more comprehensive supply chain, enabling them to coordinate better and increase efficiency.


What Industries are Adopting the Industrial Internet of Things (IIoT)?

What Industries are Adopting the Industrial Internet of Things (IIoT)?

The IIoT is a hot topic for the transport, manufacturing, retail, and utility industries. The IIoT can help manufacturers better understand their production lines and predict when they will need to be serviced. This will decrease unexpected downtime. Utilities can make remote installations self-monitoring with the IIoT, reducing the need to send staff. Retailers will be able to identify bottlenecks in their supply chains, while transport companies will be able to monitor their vehicle fleets' performance better. These aren't all exciting areas. Healthcare and government will also be major IIoT users. While large organizations are currently using it, it could become more widespread as the cost of hardware and services drops.


What Security Considerations and Challenges are Involved in Adopting IIoT?

What Security Considerations and Challenges are Involved in Adopting IIoT?

The IIoT could revolutionize the way industries work, but it is essential to have strategies to boost digital transformation efforts and maintain security amid excellent connectivity.

Operational technologies are essential for all industries and businesses. They can help with worker safety and quality. However, OT integration into the internet is causing organizations to introduce more intelligent devices and automated machines at their workplaces. This, in turn, creates new challenges requiring an understanding of IIoT's inner workings.

Three areas must be considered when implementing IIoT: availability, scalability, and security. Industrial operations may already know that availability and scalability are second nature. They could have been in place for a while. Many businesses can make mistakes when integrating IIoT into their business operations. Many companies still use outdated systems and processes. Many of these systems and methods have existed for decades, so they are difficult to change.

Security vulnerabilities have increased due to the increase in smart devices. While IIoT users are responsible for securing their devices' setup and use, device manufacturers are responsible for protecting their customers when they release their products. Manufacturers must be able to provide security measures and remediation for security problems that may arise.

Cybersecurity becomes even more critical as more serious security incidents occur. Hackers can gain access to connected systems, which could expose a business to significant breaches and possibly cause operations to be shut down. Industries and companies that adopt the IIoT must plan and operate like technology companies to ensure the secure management of both digital and physical components.

Adopters also have to integrate industrial operations with IT. Both information and connection must be protected. Data of users should be treated in compliance with privacy regulations such as the General Data Protection Regulation (GDPR) of the European Union. Although data gathered is essential in generating insights for devices and infrastructures, personal information must be kept separate from general log data. It is vital to store information, such as personally identifiable information (PII), in encrypted databases. Businesses could be exposed if they store unencrypted data in the cloud with any other relevant activity.

Technology fragmentation has been a significant concern in the IoT. The IIoT must coexist with different protocols, standards, and architectures. The interoperability of IIoT systems may be hindered by the further use of protocols and standards such as Message Queuing Telemetry Transport (MQTT) and Constrained Application Protocol (CoAP).


What is the Difference between the Internet of Things (IoT) and the Industrial Internet of Things (IIOT)?

What is the Difference between the Internet of Things (IoT) and the Industrial Internet of Things (IIOT)?

Although they often overlap, the IIoT shouldn't be confused with the consumer Internet of Things. Smartwatches, intelligent home speakers, light bulbs, door locks, and other smart home devices are all examples of consumer IoT devices. However, the core concept of the consumer IoT remains the same as the IIoT. It uses sensors and automation to improve processes. The consumer IoT is not about an industrial revolution. It's about making life easier and more enjoyable or trapping us all in a web surveillance network by intelligent machines we have welcomed into our homes, depending on which view you take.


How Big is the Industrial Internet of Things?

How Big is the Industrial Internet of Things?

The global spending on the Internet of Things (IoT), expected to rise from $646 billion in 2018 to $745 billion in 2019, is projected to grow to $1 trillion by 2022. Businesses will account for the majority of this spending.

According to tech analysts, IIoT is already a big business. IDC manufacturers will spend $197billion on it, while transport companies will spend $71billion and utilities $61billion. Consumer IoT spending will be $108 billion, focusing on smart homes, personal well-being, and connected car infotainment.

The IoT budget will depend on what companies spend it on. For manufacturers, systems that support production and asset management are critical. Transport companies will prioritize freight monitoring and fleet management, while utilities will focus their spending on building smart grids for electricity and gas.

IDC stated that the top IoT use cases would be smart manufacturing operations ($100billion), production asset management ( $44.2 billion), and freight tracking ($41.7billion). However, the analyst pointed out that the areas of airport facility automation, electric vehicle charging, and agriculture field monitoring -- as well as bedside monitoring in healthcare and in-store marketing in retail -- are the most likely to see the most significant growth.

IoT services will make up $258 billion, according to IDC. Hardware spending will be close behind at $250 billion. More than $200 billion will go into sensors. In 2019, IoT software spending will reach $154 billion. China and the US will be the largest spenders, followed by Japan, Germany, Korea, France, and the UK.


What are the Current and Future uses of the Industrial Internet of Things (IIoT)?

What are the Current and Future uses of the Industrial Internet of Things (IIoT)?

Rolls-Royce is an excellent example of the future use cases for IIoT. More than 70 trillion data points are received from engine service to the customer by the engine manufacturer. Although the original service model was focused on repairing engines, it can now use that data to schedule and manage engine repairs. For example, machine learning analytics can be combined with that data to alert engineers to possible problems before they are discovered.

Some of their futuristic ideas include using small robots just 10mm wide to crawl through engines with tiny cameras. This will allow engineers to inspect the engine visually without having to take it out of the aircraft. Remotely controlled robots could be used to perform specialist repairs. This would make it easier for engineers to return to the aircraft's location and reduce travel time.


What's the Industrial Internet of Things Used to do Now?

What's the Industrial Internet of Things Used to do Now?

It isn't new for sensors to monitor machinery or track goods. The IIoT's unique feature is its mass adoption. This is due to the ubiquitous availability of low-cost sensors and wireless networking options.

It's still the early days for the IIoT for most companies. While some of the technologies involved were (and are still) too complex or expensive for mass adoption, others, such as 5G networks, are not yet ready.


Which Businesses are Already Leveraging the Industrial Internet of Things (IIoT)?

While the most prominent organizations have made progress, many potential users of the IIoT still need to invest.

The UK's government-backed innovation agency Digital Catapult has teamed up with Dyer Engineering and Special Metals Wiggin to create a Connected Factory demonstrator'. It is also looking for IoT- and LPWAN-enabled startups that can deploy asset-tracking solutions in a natural manufacturing environment. This project will address some of the problems associated with process optimization and control and indoor tracking to locate assets, equipment, or components.

Worcester Bosch, an engineering company, will conduct another set of intelligent factory tests in the UK. This includes IoT sensors and 5G data analytics. These can help with preventive maintenance and predicting equipment failures.


Industrial Internet of Things Is often Confused with?

The IIoT has several alternative labels. One is machine-to-machine (M2M); others refer to the 'Fourth Industrial Revolution or Industry 4.0. These labels can be interchanged; the core concept is that businesses can benefit from pervasive real-time data and dynamic decision-making.

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What are the Most Critical Industrial Internet of Things Technologies for you?

What are the Most Critical Industrial Internet of Things Technologies for you?

It is easiest to think about three major components of the IIoT infrastructure: the sensors and the network. Because each part of the IIoT infrastructure is mature and inexpensive enough to make projects financially feasible, it is starting to take shape. The specific project will determine how these elements are combined.


The Industrial Internet of Things and 5G

Depending on the project, sensors could be anything from cameras and thermometers to motion sensors. Depending on the application, the networks may include Bluetooth and wi-fi through to 4G or (soon?) 5G networks and satellites. A tracking system that uses satellite links to track goods while they are being shipped by sea and switches to wi-fi when they reach a port. This is an example of an IIoT project. This business is open to vendors from satellite companies to mobile operators and networking companies.

The vast amount of data generated by all these sensors will be huge. They will need to process much faster to enable IIoT advocates to make fast decisions that will improve business efficiency. Gartner predicts that 14.2 million connected devices will be used in 2019 and that 25 billion will be by 2021. It will produce a massive amount of data, including still images, speech, and network traffic data. AI will be crucial to controlling that flow, identifying patterns, and making predictions. Gartner stated that CIOs need to build an organization with the skills and tools necessary to use AI in their IoT strategy.


Industrial Internet of Things (IIOT) and Cloud Computing

Many of these applications will also use cloud computing in some way. It could be data storage, big data analytics, or both. Or it could be more complex. Cloud computing vendors offer cloud services extending from their data centers to the edge is called edge computing. Edge computing allows data analysis on- or near the IoT device rather than at distant cloud data centers. Companies can obtain answers faster by reducing the distance that data must travel. Microsoft has its Azure IoT hub. Google has Google Cloud IoT. Amazon Web Services has its AWS IoT service network.


Industrial Internet of Things, security

Because networking objects are now connected, there is a greater risk of hackers attempting to steal control or snooping on data being sent. Poor security practices by IoT device makers have long been criticized, including weak passwords or software that cannot be updated when bugs are discovered. These concerns and many more are part of the IIoT's security challenges, but much more is at stake. Hackers have a more excellent attack surface if they can connect manufacturing lines and power grids to the internet in any form (or the web). While the IIoT can make businesses more responsive and expose critical national infrastructure to cyber attacks, it could open up these networks for hackers.

Inmarsat surveyed 750 companies to find out how many have invested in security technology or provided assistance to security professionals. More than half of respondents said they did not have the cybersecurity staff to execute their Industrial IoT deployments. Inmarsat warned that enterprises could be vulnerable to cyberattacks to disable industrial machinery, ransomware, or steal industrial secrets.

Companies should consider access management, secure execution environment, data encryption, validation and authentication between sensors and gateways, and the software orchestration platform.

Gartner, the tech analyst, found that security is a primary concern for IoT system deployments. This is large because they cannot control the hardware and software used. It's not surprising that IoT security spending is proliferating.

The problem with IIoT security is that these projects are managed at the business unit level. However, it is difficult to establish a consistent, broader security strategy. Gartner stated that choosing which products or services to use is "largely ad-hoc" and depends on the alliances between device providers or the core system the devices are replacing or enhancing.


How can you Get Started in the Industrial Internet of Things?

How can you Get Started in the Industrial Internet of Things?

Understanding your goals is the first step to creating an IIoT strategy. IIoT projects may focus on predictive maintenance, industrial automatization, broader operational efficiency, and making better business decisions. Each project will require different sensors, networks, data analytics, and data processing.


What are the Potential Risks for IIoT Systems?

What are the Potential Risks for IIoT Systems?

The lack of security measures is one reason why there are many security issues associated with IIoT. Security holes such as exposed ports, insufficient authentication practices, and outdated applications all create security risks. These risks can be compounded by the fact that the network is directly connected to the Internet.

Many businesses are familiar with the potential business consequences of IT systems being down due to malware or cybercrime. The convergence of IT/OT presents a significant risk factor: real-world risks that could even affect civilians.

Unsecure IIoT systems could cause operational disruptions and financial loss, among other serious consequences. Security risks are more significant in environments that are more connected, like:

  • Software vulnerabilities that could be used to attack systems.
  • Systems and devices that are internet-connected can be publicly searched.
  • Hacking, targeted attacks, and data breaches are all examples of malicious activities.
  • Manipulating the system can lead to operational disruptions (e.g., product recalls) and sabotage (e.g., production line stoppage).
  • A system malfunction could cause damage to devices or physical facilities or even injure operators or others nearby.
  • As the IT environment compromises OT systems, they are used to extort.

One notorious example of an OT system being compromised by the IT environment was the December 2015 cyberattack on a Ukrainian power grid. The adversary was able to infect the IT infrastructure to disrupt the power supply to thousands of households and shut down critical systems.


How can Industries and Businesses Secure the IIoT?

How can Industries and Businesses Secure the IIoT?

While productivity is an essential aspect of IIoT systems' operations, it should not be overlooked that security is equally important. Businesses could be more profitable by connecting OT to the Internet, thanks to the multitude of sensors and connected devices at work and the real-time data they produce. However, failing to invest in cybersecurity can undermine the benefits. Security by design and embedded security methods should be considered.

Security operations centers (SOCs) are essential for proactively monitoring and protecting against the wide range of threats affecting connected environments. This central unit allows companies and industries to watch the large number of alerts they might receive and enable rapid response. SOCs are particularly useful for facilities that require better visibility and continuous analysis of security status. SOC teams are designed to identify security incidents and any other abnormal activity so that they can immediately fix them before compromises occur. This solution addresses legacy systems, low visibility, and slow response times. SOCs can prioritize alerts and optimize threat correlation, allowing enterprises to manage IT and OT.

Organizations must adapt to new threats and shifts in industrial infrastructures and the threat landscape. Because it is a specialized field, IIoT adopters could emphasize the importance of having a dedicated team to tackle security in an OT environment. If enterprises and industries want to prosper in the IT/OT convergence, they should consider hiring security professionals who can understand and respond quickly to different threats.

Industries and businesses would be able to secure their operations by having a complete stack of protection built into different layers of IIoT implementations. These security layers include the device and network as well as the cloud.

The device layer typically includes IIoT devices and apps from manufacturers or service providers. IIoT users should be able to see the data transmission and storage methods used by their service providers and manufacturers. Manufacturers and service providers should be able to notify enterprises when there is a security problem.

The gateway gathers data from devices and is located in the network area. Organizations should invest in next-generation intrusion detection systems (IPSs) to detect and monitor potential attacks. This is where you will find a control center that issues commands to various devices. Security hardening should be implemented at the control center to protect against malware infection and hackers taking control.

The cloud is where providers need security measures that run server-based protection to reduce the risk of hackers gaining access to servers and stored data. This highlights the fact that organizations may be subject to data protection retributions.

Secure IIoT systems require end-to-end protection and connected threat defense, starting at the gateway.

  • In the event of malware infection, regular monitoring and detection are essential.
  • Improved threat detection and detection, as well as early detection of anomalies.
  • Anticipating threats and attacks between IT & OT.
  • Secure data transfer.
  • An IPS of the next generation to stop attacks by exploiting vulnerabilities
  • Protection of servers and applications across the data center as well as the cloud

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Where does the Internet of Things go in the Future?

Where does the Internet of Things go in the Future?

The IIoT is still in the early stages of pilots and trials, with a few exceptions that have seen significant investments by large companies. The future of industry (IITs) is predicted that interest will grow as sensors become smaller and more affordable and the 5G network (in particular) becomes more widespread.