The path to higher profitability is via the Internet of Things (IoT) — and it may be easier than you think. A recent study finds that most manufacturing executives believe that IoT will boost profitability over the next five years.
That’s exciting news — but new profits won’t materialize at these companies without a carefully crafted plan that prepares employees and their facilities to communicate, share, and leverage information.
Four critical steps pave the way to IoT success:
1. Prioritize: Develop an modernization schedule based on three factors:
- Performance improvement opportunities (quality, reliability, speed)
- Obsolescence issues that jeopardize production
- Security concerns, given increased risk of intrusion via the Internet
This schedule will determine which lines, machines, controls, etc. require replacement — and when.
2. Balance: Coordinate the modernization schedule with the capital-expenditure budgeting process over multiple years. Carefully document estimated return on investment from IoT upgrades — including improved production performance, enhanced asset management, and increased plant capacity into those calculations.
3. Replace: After a modernization plan is established, manufacturers identify specific new equipment and devices to support the IoT. These selections should provide smarter manufacturing out of the box, while also offering long-term flexibility to adapt to new technologies and standards.
4. Repeat: Savvy leaders know that modernization isn’t a one-time exercise. These execs review automation opportunities on an annual basis, making sure that their companies keep pace with the IoT — and with their competitors.
Smart manufacturing = higher profits. What are you waiting for? Learn more about The Connected Enterprise.