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Late last year, Peter Reynolds wrote a post about his experience at Emerson Exchange Conference and how there is a view in the process industries that IIoT is something that has been around for years. Peter went on to point out the difference based on point of reference. The challenge we face today is the ambiguity of where this digital transformation can take us. Industry needs to overcome the "ambiguity effect," because failure to understand what makes this trend different and recognize how to create value will contribute to the loss of competitive viability.
Let me be quick to point out that I, too, understand the similarities of IIoT to the ways business has been conducted in the past. Having architected and implemented several SCADA and process control systems, I certainly understand the concept that connecting to smart field devices over large geographic distances to central data archival units so that other applications may use the data to create information is not new. The danger is getting stuck in functional fixedness. Let's look at cellphones for example. You could argue that we've been talking on the phone since the late 1800s. When cell phones were introduced, it was only seen as a way to do the same thing without tethering. Nokia and Motorola flourished. Where are they now and why? Suddenly, a startup changed the functionality focus with email access. Blackberry flourished, but that's not the end of the story. When you look at cell phones today, they advertise the lifestyle enhancement - better pictures, social connectivity, and easier navigation. In fact, no one even talks about phone call quality. This is the Digital Transformation we face today.
One trend that ARC sees is the democratization of technology afforded by the Internet. No longer are advanced computing platforms and computationally intense applications limited to corporations with the funds, personnel, and physical infrastructure to support it. Smaller corporations have the same access these resources thanks to the Internet of Things. This means that competitive advantage can shift much faster, because more competitors can innovate independently and quickly react to others. In September, I wrote about SAP's Asset Intelligence Network which can benefit both small and large suppliers and end users.
Focus on the similarities of IIoT to what is done today will cause companies to miss the promise of what the future holds.
Let me be quick to point out that I, too, understand the similarities of IIoT to the ways business has been conducted in the past. Having architected and implemented several SCADA and process control systems, I certainly understand the concept that connecting to smart field devices over large geographic distances to central data archival units so that other applications may use the data to create information is not new. The danger is getting stuck in functional fixedness. Let's look at cellphones for example. You could argue that we've been talking on the phone since the late 1800s. When cell phones were introduced, it was only seen as a way to do the same thing without tethering. Nokia and Motorola flourished. Where are they now and why? Suddenly, a startup changed the functionality focus with email access. Blackberry flourished, but that's not the end of the story. When you look at cell phones today, they advertise the lifestyle enhancement - better pictures, social connectivity, and easier navigation. In fact, no one even talks about phone call quality. This is the Digital Transformation we face today.
One trend that ARC sees is the democratization of technology afforded by the Internet. No longer are advanced computing platforms and computationally intense applications limited to corporations with the funds, personnel, and physical infrastructure to support it. Smaller corporations have the same access these resources thanks to the Internet of Things. This means that competitive advantage can shift much faster, because more competitors can innovate independently and quickly react to others. In September, I wrote about SAP's Asset Intelligence Network which can benefit both small and large suppliers and end users.
Focus on the similarities of IIoT to what is done today will cause companies to miss the promise of what the future holds.