While data volumes have been increasing rapidly for many years, the Internet of Things (IoT) is accelerating that process. Billions of Internet-connected devices are collecting and generating data that can be used to optimize operations and create new business opportunities. That’s why the IoT is considered a key driver of digital transformation.
The problem is that many organizations aren’t using IoT data effectively. According to a recent survey conducted by Industrial Equipment News, only 16 percent of North American industrial companies consume IoT data in enterprise applications, such as enterprise asset management (EAM) software. That means 84 percent of industrial companies are not leveraging data collected from connected devices for strategic decision-making.
Survey questions were designed to explore the correlation between digital transformation and the consumption of IoT data in enterprise software. Respondents were asked about the collection of data from production and distributed assets, the consumption and use of that data, and how it influences operational and strategic decision-making. The survey also asked how well respondents’ enterprise software facilitates the consumption of IoT data and prepares the organization for digital transformation.
Survey respondents were labeled IoT Leaders or Laggards and Digital Transformation Leaders or Laggards depending upon their responses to those questions. The two Leaders groups overlapped, with 88 percent of Digital Transformation Leaders also qualifying as IoT Leaders. This supports the idea that the IoT underpins digital transformation.
Digital Transformation Leaders were almost three times as likely as Laggards to use IoT data for business intelligence or to monitor performance. In addition, Digital Transformation Leaders were more than four times as likely as Laggards to have access to IoT data in their EAM software, and almost twice as likely to be able to use IoT data in their enterprise resource planning (ERP) application.
The data suggests a real need for IoT-enabled enterprise applications that can put data from connected devices business context. EAM in particular appears to capitalize on IoT data to drive digital transformation through condition-based maintenance, which enables cost avoidance, enhanced customer service and increased enterprise agility.
Ralph Rio, Vice President of Enterprise Software at ARC Advisory Group, put it this way:
Study data suggest that the most common use case for IoT in these industrial settings is condition-based maintenance. The benefits go beyond operational improvements and maintenance cost avoidance. It increases uptime that provides additional capacity for increased revenue. It also avoids unplanned downtime that interrupts production schedules causing missed shipment dates and customer satisfaction issues.
Best-in-class EAM solutions not only analyze data from assets for indicators of decreased performance or potential failure, but provide insight that enables organizations to optimize their maintenance strategies. For example, IBM Maximo Asset Health Insights integrates with the IBM Watson IoT Platform to provide real-time analytics using IoT device data and other information sources. Devices that are registered in the Watson IoT Platform can be monitored in the Reliability Engineering Work Center, where automated actions can be defined and triggered based upon analysis of the data.
Data without analytics simply takes up storage space. EAM makes it possible to leverage the mountains of data generated by IoT devices to save money, increase revenue and enhance customer satisfaction. Let us show you how IBM Maximo can help you maximize the value of the IoT and accelerate digital transformation.
For more information about EAM, IoT and Digital Transformation, please send us an email at (email@example.com).