5 Misconceptions of OEMs about IIoT

Authored By: Vikram Kumar, CEO & Founder, Letstrack.

IIoT – Industrial Internet of Things is creating a buzz in the manufacturing industry. Industrial IoT incorporates a lot of technicalities similar to industrial settings that have existed for many years in automotive industry. By combining sensor data with the machine to machine communication, processes can be learned, refined and implemented in limitless applications.

Industrial IoT is extremely beneficial for OEMs. Use of data and digital analytics can not only help OEMs in smoother operations but can also increase efficiency in the maintenance of their portfolio. IoT in the automobile industry is bringing a shift for operators from reactive responses to predictive responses. OEMs can drive real-time intelligence where operators can efficiently receive the right information at the right time and place.

Many OEMs, however, are hesitant to implement IoT in their offerings. Despite the many benefits, OEMs are not taking complete advantage of IoT and still have misconceptions about it.

Misconception 1: IoT is not secure

Since IoT is all about connecting things and collecting data, a lot of OEMs show their concern about its security. When data is moved from IoT devices to the cloud, the chances of attacks are increased.

Many start-up companies are coming up with highly encrypted security support systems which will help make an IoT device or app more secure. Various tech enthusiasts and developers are taking full advantage of technology by making sure their IoT enabled products are bug-free and secure.

Misconception 2: IoT is only about connecting things

These days, IoT is becoming an overused term in the market despite its true usage and importance is still unclear not only to the regular customers but also to the OEMs. The misconception about IoT is only used for connecting things and people is making the term over dramatic and hindering its capabilities to boost company revenues.

For product manufacturers, IoT holds a great potential to increase revenue, reduce unnecessary costs and improve after-market experience for their customers. Analysing sensor data in the right way can help OEMs to have a better understanding of the customer’s actual engagement and improving the sales and marketing strategies of their products.

Misconception 3: Implementation of IoT is complicated

IoT involves several digital processes to establish its functionalities properly. OEMs find the implementation of IoT complex due to the deployment of a vast number of protocols. A mesh of various networks and wireless technologies make IoT a complicated affair for OEMs.

There is no doubt that the number of protocols enabling deployment of IoTis extensive. But it is also a fact that there is no set standard for companies to follow. This gives OEMs sense of liberty to determine their own correct protocols making sure that the technology they use is compatible with their overall platform. In addition, this also allows them to replace or upgrade their own offering in a better way.

Misconception 4: It is better to build your own IoT analysis team

OEMs underestimate the resources that are required to build analytics. According to their estimates, it is easier, quicker and better to build an in-house team for data analytics. But the product manufacturers must understand that having good software or hardware skills are just not enough for deploying IoT.

Real IoT deployed projects require the unique set of people in a team with vast experience of working with the different technical elements. Developing and deploying analytics and insights in IoT products require the totally different skill set than those traditional software products.

Misconception 5: It is better to invest in upgrading product offering

The majority of OEMs believe that deploying IoT in their product offerings means investing in the Research and Development of a new product altogether. It is the mindset of every manufacturer to make investments in upgrading their offerings rather than putting money toward adding new products.

Today, most of the automotive companies are investing heavily in upgrading their existing portfolio. The fact is if they are going to invest in IoT, there will be a new variety of mobility and technology with security in their portfolio.