This article first appeared in the
Autumn 2017 issue of The Record.
The internet of things (IoT) has had a radical effect on how modern companies and organisations operate. With greater visibility and interoperability, IoT is opening up opportunities that were inconceivable only a decade ago.
In the manufacturing industry, IoT has become a powerful force for business transformation. Gartner recently predicted that by 2020 for example, more than 20 billion connected things will be in use globally across all industries.
“Data volumes continue to rise exponentially and, with unlimited compute power and rich data platforms, manufacturers are now able to gain unprecedented insights related to all aspects of their businesses,” explains Sanjay Ravi, worldwide managing director of discrete manufacturing at Microsoft.
The connectivity available using IoT technologies is merely the first step according to Ravi, who believes the real value lies in data and the insights that can be gleaned.
“Combined with advanced technologies such as machine learning, artificial intelligence, smart robots, and mixed reality, IoT is completely changing the face of manufacturing,” he says. “Manufacturers are able to rethink how their organisation operates and generates value. They can transform their business processes with systems of intelligence that help draw better insight out of data and convert it into intelligent action. This includes building in continuous feedback loops from a variety of channels – sensors in products, connected factories, global supply chains, after-market services, and direct end customer feedback.”
IoT enables manufacturers to enrich their market offerings to deliver not just a manufactured product, but also value-added business services that provide a complete, connected customer experience.
“As manufacturers integrate IoT more and more into their business, they can essentially create a holistic approach that incorporates the technology, people and processes that enable these feedback loops, defining their competitiveness and ability to change the entire industry landscape,” explains Ravi.
Microsoft offers the holistic platforms, advanced technologies, enterprise-grade solutions and extensive partner ecosystem to allow manufacturers to enhance their offerings and realise results quickly.
“Our rich portfolio of Industrial IoT services and solutions makes it easy for manufacturers to apply advanced technologies to business challenges once deemed too costly or complex to solve in order to make better business decisions and deliver better business outcomes,” Ravi says. “For example, IoT Central, our new IoT software-as-a-service offering, streamlines the development process of IoT solutions. We offer preconfigured solutions through our Azure IoT Suite that are engineered to help manufacturers get started quickly and move from proof-of-concept to broader deployment. In addition, Microsoft Azure IoT Edge simplifies IoT further by spanning cloud and IoT Edge devices that make it easy to securely distribute cloud intelligence locally.”
Companies across the manufacturing industry are beginning to reap the benefits of Microsoft’s offerings in the IoT space. For example, food packaging and processing company Tetra Pak is using Microsoft IoT technologies to predict and avoid equipment failures. Intelligent cloud, machine learning and artificial intelligence capabilities are all being harnessed by Tetra Pak, enabling new levels of quality and predictability within the company.
Another example is Sandvik Coromant, a supplier of cutting tools and services to the metal cutting industry, which has partnered with Microsoft to develop a scalable service model that integrates all elements of the production flow, covering people, machines, tools and data.
Microsoft has also worked with Jabil, a leading provider of design and manufacturing solution, to develop a plant floor quality assurance solution that not only analyses real-time problems and defects, but also identifies errors or failures before they even occur.
“Using our technology, Jabil has created a digital, intelligent, and predictive factory that delivers an 80% prediction accuracy rate,” Ravi explains. “This allows for greater yield, including a 17% reduction in scrap and a 10% saving in energy.”
Ravi believes IoT today is at a tipping point, as the openness and interoperability between hardware, software and services continues to grow.
“We have moved beyond proof-of-concepts to real-world production environments that are driving real value,” he says. “As we look to the future, we only see this pace of innovation accelerating. Every enterprise will need to become a digital business, adopting a digital mindset that connects people to the information and tools they need to move from data to insight and from insight to action – action that transforms service into a competitive differentiator and a powerful cost-saving experience for customers.”
Ravi believes that capabilities such as ¬predictive maintenance, asset management, remote monitoring, and blockchain – as well as technologies such as artificial intelligence, Bot frameworks and cognitive services – are also greatly extending the benefits that IoT can provide.
“Manufacturers that are incorporating these capabilities into their businesses successfully are seeing strong results: reduced overhead, conservation of resources, increased profits, optimised operational efficiencies and much more,” concludes Ravi.
“There is no right or wrong way to get started, but manufacturers must take action today with IoT or they risk being left behind.”