How IoT can be a driver for the 4th industrial revolution in the UK
Author : Mohsen Mohseninia, European VP at Aeris
18 December 2017
UK business output is returning to growth due to a manufacturing boom while the services sector lags, according to new research released in August. However, I believe we will only see this boom continue if manufacturers are prepared to embrace the Internet of Things (IoT) and treat it as a vital element to the Fourth Industrial Revolution, or Industry 4.0.
The term Industry 4.0 encompasses the idea of a new industrial revolution, with IoT as its driver. A report by Deloitte, states that IoT is potentially the most crucial element of Industry 4.0 and its role in new connected technologies, such as robotics, AI, and high quality sensors is changing manufacturing in profound ways.
IoT is changing the concept of a product and moving the industry towards a service model. As part of the connected economy, and in order to capitalise on the opportunity that this presents, firms can adapt and start delivering value to their entire supply chain, from their own engineering organisations all the way to the end user. Manufacturers should consider how they can move away from making products that lose value once they are sold. The alternatives are products which gather data throughout their lifecycles, thus creating a more meaningful insight of the product performance in the real world.
As outlined by the Deloitte report, with IoT, data, in addition to physical objects, is a source of value - and connectivity makes it possible to build smarter supply chains, manufacturing processes, and even end-to-end ecosystems. One example of this in action is the connected car. The connected car is an example of how an unconnected product can generate a whole ecosystem around it, such as telematics that can provide information for usage based insurance and safety alerts to drivers.
The data that connected cars produce is valuable to not only the manufacturer and its customers, but also its whole ecosystem. For example, if a car manufacturer collects performance data from an engine, which is produced by a supplier, the car manufacturer can share that data with them. This enables the manufacturer to pinpoint any performance issues and raise them directly with the supplier, as well as enabling the supplier to use the data to inform R&D. It also creates the potential to discover potential engine issues, via remote monitoring, flag them to the driver, via a push notification, and therefore avoid a breakdown.
It’s clear that UK manufacturers do see the potential that IoT and Industry 4.0 bring to the table. However, the exponential rise of new digital technologies that will come with this era are likely to disrupt the UK workforce and industry as we know it, so firms need to be ready for the change. Though recent research may give UK manufacturers ground for optimism, real, sustained growth, will only be achieved if the industry embraces new technologies, such as IoT, and is prepared to use these technologies to alter and optimise business models as we enter Industry 4.0.
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