IIoT Changes Everything

The Industrial Internet promises to bring profound changes to global industries through the convergence of physical and digital sciences.

In the world of IIoT (industrial internet of things), sensor enablement and device connectivity transform passive physical assets into data producing powerhouses – emitting streams of consumable data from all critical assemblies and subsystems.  When combined with advanced analytics and tools that add rich contextual information, machine and process digitization will enable profound improvements across the industrial landscape.

Industrial organizations that integrate physical and digital assets will become fundamentally different entities – reinventing the way they operate to deliver value to customers, partners, and shareholders.

The Power of 1%

In a seminal brief entitled The Moment for Industry, GE’s Chief Economist Dr. Marco Annunziata posits that a 1% improvement in critical operating KPIs – fuel efficiency, uptime, employee productivity – can dramatically reduce costs and improve financial margins.  Indeed, Dr. Annunziata estimates that the Industrial Internet will power 43% of the global economy by 2025, with an annual economic value of $43T.

Today, Industrial Internet solutions are delivering substantial benefits in a wide range of sectors, from aviation to energy to transportation, as well as to cities and hospitals.

  • Airlines are reducing fuel burn and aircraft downtime, thereby improving operating margins and service
  • Railways are achieving 10-20 percent increases in network velocity
  • Wind farms are raising annual energy output by up to 5 percent and profitability by 20 percent
  • Hospitals are delivering better healthcare, faster – and at lower costs
  • Interconnected lighting is becoming our cities’ nervous system, delivering budget savings, greater eco-sustainability and a better quality of life

Still in the throes of early adoption, the Industrial Internet holds great promise for industrial innovators seeking early-mover advantages. The convergence of physical science, data science, and high productivity application tools form the foundation on which digital industrial companies will thrive. Leaders will reap the benefits of reduced operating costs, improved production yields, and enhanced levels of customer service.