Executive Overview
With the emergence of the Internet of Things (IoT), Industrie 4.0, Smart Manufacturing, and other new approaches and initiatives, manufacturers have to consider how they design the next generation of smart connected products and the factories that will produce them.
The Internet of Things (IoT) is a universal term that can apply to internet-connected devices in numerous markets, including automotive in-car, medical, residential, consumer, and industrial. The Industrial Internet of Things (IIoT) is distinct, however, due to the unique nature and requirements of devices, assets, and applications used in manufacturing and other demanding industrial environments.
ARC Advisory Group recently returned from the Offshore Technology Conference in Houston, where we found the mood and activity level surprisingly upbeat in light of the dramatic and precipitous decline in oil prices over last ten months. No doubt, the recent recovery in oil prices over last few months, driven in large part due to material cutbacks in capex budgets and rig count reductions, has helped provide some stability and perhaps even helped rekindle the resilient spirit that oil & gas industry participants have generally exhibited over the decades.
Ethical sourcing takes different forms and routes in different industries and in different areas of the world.
ARC Advisory Group recently completed an extensive project devoted to sizing the total available market (TAM), for industrial automation devices that can potentially be used in the Industrial Internet of Things (IIoT). This effort focused on assessing the value of connectable devices used in manufacturing production with the potential to be included in IIoT applications. It yielded a 2014 TAM of over 120 million devices worth over $210 billion.
The third-party logistics (3PL) market -- defined here as non-asset-based transportation, warehousing, and integrated supply chain services -- witnessed negative growth of 3.9 percent in the first quarter of 2015. The market declined globally due to weakening of the reporting currency of the 3PLs. Though the overall market performed weakly, the domestic transportation services did best, with a year-over-year (YoY) decline of 0.9 percent.
ARC Advisory Group's European Industry Forum in Amsterdam last March included a well-attended workshop on energy management, a topic that offers the potential for industrial organizations to both improve sustainability and reduce costs. However, energy management also involves a multitude of issues and challenges for companies that are starting or expanding their related initiatives. One issue is when a data-driven focus conflicts with the practical, real-world operations "know-how" that's often present on the plant floor.
The potential of the Industrial Internet of Things (IIoT) to transform production operations is one of the hottest current topics in manufacturing. Along with related initiatives, such as Industrie 4.0, IT/OT convergence, and Smart Manufacturing, the IIoT is cited as an approach to make manufacturing production more flexible, cost effective, and responsive to changes in customer demand.
ARC Advisory Group recently conducted a web-based end user survey to gain a new perspective on trends in Analytics and Business Intelligence (ABI) selection, application, deployment, trends and related challenges in India.
This PowerPoint report summarizes the survey results and provides some recommendations for ARC Advisory Services clients.
The results are a representative sample of the trends in the market.
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Executive Overview