Is the Internet of Things Really Happening?

Over the last few years there has been much speculation about the inevitable growth of the Internet of Things (or Internet of Everything). Forecasts have suggested anywhere from 30 to 50 billion devices will be connected by 2020. Cisco has estimated that the global IoT ecosystem will have a value of $14.4 trillion by 2022, and IDC has projected yearly IoT market revenue to increase to $1.7 trillion by 2020.

Here we are now in 2016, a few years into the future they were talking about back then, and it may be a good time to take a look the current state of the IoT and see how it measures up to all of these lofty expectations. Are people really embracing IoT technology at this rate? Is this money really being invested?

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Connected Devices

First, let’s take a look at the number of connected devices. If we flash back to 2013, we find that Gartner released a report entitled “Forecast: The Internet of Things, Worldwide, 2013”. In this report, they predicted that the IoT will include 26 billion connected devices by 2020. Two years later, Gartner reported a total of 4.9 billion connected devices at the end of 2015, up from 3.8 billion in 2014. Gartner also revised their 2020 estimate, anticipating 20.7 billion connected devices by 2020, a decrease of 5.3 billion (20.4%) from their 2013 estimate. (It should be noted here that Cisco continues to anticipate as many as 50 billion by 2020).

So, according to Gartner, IoT adoption has not proceeded at the rate they had anticipated at the end of 2013.

One reason for the slower-than-expected growth is the difficulty faced when trying to implement IoT technology. In fact, Gartner anticipates that through 2018, 75% of IoT projects will take up to twice as long as planned.

Value of the IoT

Now, let’s consider the monetary value of the IoT and how that number has progressed. Cisco initially projected a value of $14.4 trillion by 2022. Within two years Cisco had increased this number to $19 trillion.

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This highlights an interesting fact. Even though fewer connected devices are expected by this date, the total value of these devices and the underlying network is expected to be greater than it was when more devices were expected. Based on this, I think it’s safe to suggest that implementing IoT technology is turning out to be more expensive than originally thought.

This may be due in part to the fact that some enterprises are rushing headlong into IoT projects without the proper foresight and planning. Often it is a reaction to competitive pressure, based on a perception that a competitor is already moving forward with their IoT strategy, or simply in an effort to be the first and gain a competitive edge.


“I think it’s safe to suggest that implementing IoT technology is turning out to be more expensive than originally thought.”


Another answer may come from Gartner’s 2015 report: “Predicts 2015: The Internet of Things”, in which Gartner predicts that through 2018, there will be “no dominant IoT ecosystem platform”. They cite a lack of IoT standards and anticipate that IT leaders will be forced to compose solutions from multiple providers.

 

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Even when faced with these realities, however, enterprises are still moving forward with their IoT projects. The extra expense – though unanticipated – is not nearly enough to outweigh the potential benefits. The IoT is most certainly transforming the way businesses operate, and no one wants to be the last one to this dance.

IoT Investment

This is an important category as it will largely determine how quickly the industry moves to develop standards, and how motivated IoT solution providers will be to develop more powerful and more cost-effective solutions.
Recall IDC’s projection of annual market revenue reaching $1.7 trillion by 2020. It would stand to reason that if we are learning that IoT projects are coming in over budget and late, there is probably some distaste in the marketplace, and maybe IDC’s projection was a bit ambitious.

At the same time, though, if people are spending more on IoT initiatives than they had originally planned, perhaps IDC’s projection was a bit conservative. Let’s examine how things are taking shape.

In 2015, IDC reported that worldwide IoT spending reached $655.8 billion in 2014 and calculated a 16.9% CAGR (Compound Annual Growth Rate).

Well, 2015 is now in the books and we can see how IDC’s projections seem to be holding up. Their latest report indicates that spending in 2015 reached $698.6 billion, a CAGR over 2014 of only 6.53%. Had IDC’s anticipated CAGR proven accurate, 2015 revenue should have been closer to $766 billion.

Notwithstanding this fact, however, IDC continues to project a CAGR of 17% and an increase in spending to $1.3 billion by 2019, which would equal approximately $1.5 billion in 2020. It looks like IDC sees the IoT market cooling off a bit, though not much.

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So, while the earlier projection has proven to be overly optimistic, it is clear that investments in IoT initiatives are continuing to increase with no end in sight.

If there is any kind of meaningful takeaway from all of this, I think it’s safe to surmise that IoT projects may be coming in late and over budget, but that doesn’t seem to have had much of an impact on continued investments. It is clear that business owners and executives see the value and have no interest in letting their competitor’s gain an edge.
So, was the IoT hyped a bit excessively over the last couple of years? Maybe a bit. But, it is also very real and happening right now.

Choosing the Right Maintenance Strategy

How do you choose the right maintenance strategy for your organization? Someone from the outside looking in might think the notion of choosing a maintenance strategy is as simple as choosing between ‘repair it’ or ‘replace it’, and that’s not entirely inaccurate. Beyond the surface, though, there are a number of different considerations that can have a long-term impact on a company’s bottom line and ultimate viability. Particularly when working with numerous or expensive essential assets that are subject to the continual wear-and-tear and eventual breakdown that plagues all machines, maintenance costs can take enormous bites out of revenue.

Fortunately, numerous maintenance strategies have evolved over the years, and technology allows us to apply new techniques using new models that were previously unheard of. Let’s review some of the more popular maintenance strategies:

Reactive Maintenance
This is the simplest strategy, sometimes referred to as ‘breakdown maintenance’. The premise is simple: Use something until it can no longer be used. Then, do what needs to be to repair it and get it back in action. If it can’t be repaired, replace it. There are some benefits when compared to other strategies, such as lower initial costs and reduced staff, as well as eliminating the need to plan. Of course, these benefits are usually negated in the long term by unplanned downtime, shortened life expectancy of assets, and a complete inability to predict breakdowns and maintenance needs. The only real viable reason for employing this strategy is an inability to afford the initial costs of any other strategy.

Preventative Maintenance
Preventative maintenance is performed while an asset is still operational in order to decrease the likelihood of failure. In this strategy, maintenance is performed according to a particular time or usage schedule. For instance, regular maintenance will be performed when this particular machine reaches 5,000 hours of uptime since the last maintenance. Predictive maintenance will typically keep equipment operating with greater efficiency and extend the lifetime of the asset compared to reactive maintenance, while also preventing unnecessary downtime. It does, however, require greater planning and man-power. Preventative maintenance is not a good choice for assets like circuit boards that can fail randomly regardless of maintenance. It is also not ideal for assets that do not serve a critical function and will not cause downtime in the event of a failure.

 

Predictive Maintenance
The purpose of predictive maintenance is to predict an imminent failure and perform maintenance before it occurs. This strategy requires some specific condition monitoring and will typically have a higher upfront cost due to the need to add sensors or other hardware, and will also require skilled personnel capable of anticipating failures based on the data points being monitored. Benefits include: the ability to prevent unnecessary downtime, and minimal time spent performing maintenance as it is only done when failure is imminent. Predictive maintenance is usually not a good option for assets that do not serve a critical function, or assets that do not have a predictable failure mode.

Condition-Based Maintenance
Condition-based maintenance is similar to predictive maintenance in that it involves continually monitoring specific conditions to determine when maintenance should be performed. Typically, however, condition-based maintenance is not just performed to prevent failure, but also to ensure optimum efficiency, which can not only improve productivity but extend the life of the asset as well. Because condition monitoring equipment and expertise can be expensive, initial costs can be quite high – prohibitive in some cases. In the long term, however, condition-based maintenance may be the most cost-effective strategy for ensuring optimal productivity and extended asset lifecycles. Condition-based maintenance is usually not a good choice for non-critical assets or older assets that may be difficult to retrofit with sensors.

When choosing a maintenance strategy, think about your goals: both long-term and short-term. Determine which of your assets are critical and which are not. Calculate the cost of downtime (per minute, per hour, etc.). Take into account whatever data may already be available for you to monitor. Determine the cost and viability of adding sensors to monitor things like temperature, vibration, electric currents, subsurface defects (ultrasonic sensing), or vacuum leaks (acoustic sensing). Estimate the costs of maintenance personnel in different scenarios. Estimate the difference in costs between each of the different strategies.

You may determine that a condition-based maintenance program would provide the greatest value, but you lack the resources to implement it right away. Can you deploy a simple predictive maintenance program in the meantime, while positioning yourself to make the leap to CBM in the future?

There is not going to be any one-size-fits-all “best” strategy, and not much drains a bank account faster than over-maintaining your equipment (yes, there is such a thing). Consider your circumstances and your goals, and choose wisely. It’s one of the most important business decisions you will make.

*B-Scada software provides data analysis, task automation, and real-time visualization for enterprises looking to implement a CBM program. Learn more at www.scada.com.

3 Reasons Modern Farmers Are Adopting IoT Technology at an Astounding Rate

It seems like everything today is touched in some way by the Internet of Things. It is changing the way goods are produced, the way they are marketed, and the way they are consumed. A great deal of the IoT conversation has revolved around transformation in industries like manufacturing, petrochemical, and medicine, but one industry that has already seen widespread adoption of IoT technology is often overlooked: agriculture.

Of course, many of us are very familiar with some of the efforts that have been made to optimize food production. As populations continue to grow, there has been a serious and sustained drive to increase the crop yield from our available arable land. Some of these efforts have not been particularly popular with consumers (i.e. pesticides, GMOs).

With the advent of new technology and the Internet of Things, farmers are finding new ways to improve their yields. Fortunately for us, these new ways are decidedly less disturbing than toxic chemicals and genetic manipulation. Using sensors and networked communication, farmers are discovering ways to optimize already-known best practices to increase yield and reduce resource consumption.

If it’s surprising that the agricultural industry would be technological innovators, it’s worth considering how agriculture is in many ways an ideal testbed for new technology.

There are a few good reasons for this:

1. Ease of Deployment

Unlike in other industries, deploying sensors and other connected devices on a farm can be relatively easy and inexpensive. In a heavy industrial environment like a factory or refinery, new technology must replace old technology that is thoroughly embedded in the production infrastructure. There are concerns about downtime and lost revenue, as well as concerns about finding the right products or group of products to integrate into their existing technological ecosystem. On a typical farm, there is no need for downtime, and usually no concern for any existing technology that may be incompatible. Inexpensive sensors placed in various parts of a cultivated field can quickly yield very useful actionable data without disrupting a single process.

2. Instant Value

Another reason that agriculture has provided such a fertile testbed for IoT technology is the speed with value and ROI can be realized. Pre-existing metrics of precision agriculture can be applied more easily, maximizing the already-known benefits of established practices (knowing what types of crops to plant when, knowing when and how much to water, etc.). Farmers have also had success safely and naturally controlling pests through the intelligent release of pheremones. Of course, there is the obvious and very tangible benefit of decreased resource consumption and increased yield. A modest investment can yield measurable results within a single season.

3. Continual value

In agricultural IoT deployments, the same practices that provide instant value will continue to provide value for as long as they are employed. Conservation of water and waste reduction provide repeated value, as well as the increased yield brought on by precision farming. There are also opportunities to improve the equipment that farmers use every day. A connected combine or tractor can record useful information about its operation and maintenance. It can also allow for certain processes to be optimized and automated.

There are some real concerns about our ability to feed our ever-growing population in the future. While controversial technologies like genetically-modified-organisms have helped to increase food production, these techniques are not exactly popular with the general public, several of whom have voiced concerns about the long-term impact of a genetically-modified diet.

The good news is that similar increases in food production are possible without the need to modify the food; we simply have to modify the processes used to produce it. And it’s not just about food production. Plants are also used for biofuels and as raw materials in manufacturing. By increasing yield and reducing resource consumption, growers are also having a positive impact on numerous other industries.

For instance, a Colorado-based company called Algae Lab Systems is helping algae farmers improve their output by introducing sensors to measure environmental factors like temperature, pH, and dissolved oxygen in their photobioreactors and algae ponds. Algae growers are now able to continuously monitor their crops from any location, also allowing for larger and geographically dispersed operations.

A case study detailing Algae Lab Systems provides some insight into how they are transforming the algae farming industry, and aquaculture in general.

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To Each His Own: Creating Custom Dashboards for Operators and Analysts

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It’s always very annoying when I try to perform what seems like it would be fairly routine maintenance on a home appliance or worse – my car – only to find out that this seemingly simple thing I would like to do is actually quite difficult with the tools at my disposal. A little bit of research usually reveals that it actually is quite simple; I just have to buy this proprietary tool from the manufacturer for what seems like a ridiculous price, and then I can proceed.

Of course, it’s easy to understand why the manufacturer doesn’t want to make it easy for end users to service their product. They want you to buy a new one, or at the very least buy this overpriced tool from them so they can scrape every morsel of profit afforded by their built-in obsolescence.

It really makes me appreciate the simplicity and widespread application of some of our more traditional tools. Take a hammer, for instance. If you need to drive a nail into wood, it doesn’t matter if it’s a big nail, a little nail, a long nail, or a short nail. It doesn’t matter who manufactured it or when. All that matters is that it’s a nail. Just get a hammer; you’ll be fine.

This got me thinking. What if we had a hammer for every type of nail available? What if each hammer was perfectly sized, shaped, weighted and balanced for each particular nail? And what if that perfect hammer was always available to you every time you needed it. This isn’t realistic, obviously, but it reminds me of some of the things I hear from our customers.

One of the great benefits cited by our end users is the ability to create custom dashboards for the different work responsibilities in their organizations. The same system is used to create maintenance dashboards for technicians, control panels for operators, system overviews for managers, reports for analysts, and even special dashboards for contractors and vendors. By providing every member of the team with a real-time view of exactly the information they need to do their jobs and nothing more, each person is empowered to do their jobs with the utmost efficiency – improving the speed and accuracy of decision-making as well as increasing the capacity for planning.

In the past, so much of our data visualization was tied to the device from which the data was drawn. If you wanted to know something about a particular machine, you had to look at the same picture as everyone else, regardless of what you needed to see.

Some modern software platforms like B-Scada’s Status products eliminate this need to tie visualizations to the device from which the data is drawn. It is now possible to visualize data from multiple devices at multiple locations through the same interface. This allows for a new concept in user interface design: rather than displaying all available information about this particular thing, you can now display all information relevant to a particular task or set of tasks.

It’s not quite “a hammer for every nail”; it’s more like a complete tool set tailored to every job, containing exactly the tools you need and nothing more. It’s really been a transformative development for many organizations.

B-Scada recently released a case study detailing how one prominent North American electric utility used Status to create a system of customized views for their operators, managers, and analysts, providing specific insights into the real-time status of their generation resources:

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The Four Biggest Challenges to Enterprise IoT Implementation

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After endless cycles of hype and hyperbole, it seems most business executives are still excited about the potential of the Internet of Things (IoT). In fact, a recent survey of 200 IT and business leaders conducted by TEKSystems ® and released in January 2016 (http://www.teksystems.com/resources/pressroom/2016/state-of-the-internet-of-things?&year=2016) determined that 22% of the organizations surveyed have already realized significant benefits from their early IoT initiatives. Additionally, a full 55% expect a high level of impact from IoT initiatives over the next 5 years. Conversely, only 2% predicted no impact at all.

Respondents also cited the key areas in which they expect to see some of the transformational benefits of their IoT efforts, including creating a better user and customer experience (64%), sparking innovation (56%), creating new and more efficient work practices and business processes, (52%) and creating revenue streams through new products and services (50%).

The IoT is Expected to Impact Organizations in Numerous WaysThe IoT is Expected to Impact Organizations in Numerous Ways

So, with the early returns indicating there are in fact real, measurable benefits to be won in the IoT, and the majority of executives expect these benefits to be substantial, why are some organizations still reluctant to move forward with their own IoT initiatives?

As could be expected, security is the biggest concern, cited by approximately half of respondents.

Increased exposure of data/information security – 50%

With the World Wide Web as an example, people today are well aware of the dangers inherent in transmitting data between nodes on a network. With many of these organizations working with key proprietary operational data that could prove advantageous to a competitor if exposed, the concern is very understandable.

 

ROI/making the business case – 43%

This is a classic example of not knowing what you don’t know. Without an established example of how similar initiatives have impacted your organization in the past – or even how similarly sized and structured organizations have been impacted – it can be very difficult to demonstrate in a tangible way exactly how these efforts will impact the bottom line. Without being able to make the business case, it will be difficult for executives to sign off any new initiatives. This is likely why larger organizations ($5+ billion in annual revenue) are much more likely to have already implemented IoT initiatives, while smaller organizations are still in the planning phase.

 

Interoperability with current infrastructure/systems – 37%

Nobody likes to start over, and many of the executives surveyed are dealing with organizations who have made enormous investments in the technology they are currently using. The notion of a “rip and replace” type of implementation is not very appealing. The cost is not only related to the downtime incurred in these cases, but the wasted cost associated with the expensive equipment and software systems that are being cast aside. In most cases, to gain any traction at all a proposed IoT initiative will have to work with the systems that are already in place – not replace them.

Finding the right staff/skill sets for IoT strategy and implementation – 33%

With the IoT still being a fairly young concept, many organizations are concerned that they lack the technical expertise needed to properly plan and implement an IoT initiative. There are many discussions taking place about how much can be handled by internal staff and how much may need to be out-sourced. Without confidence in their internal capabilities, it is also difficult to know whether or not they even have a valid strategy or understanding of the possibilities. Again, this is a case where larger organizations with larger pools of talent have an advantage.

The full results break down like this:

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Many Organizations are Hesitant to Invest Much in IoT Initiatives at this Stage

There are some valid concerns, and not all of them lend themselves to simple solutions. In truth, many of the solutions will vary from one organization to the next. However, in many cases the solutions could be as simple as just choosing the right software platform. Finding a platform that eases your concerns about interoperability can also help ease your concerns about whether or not your staff can handle the change, as there will be no need to replace equipment. Likewise, a platform that can be integrated seamlessly into your current operations to help improve efficiency and implement optimization strategies will also make it much easier to demonstrate ROI.

B-Scada has released a new whitepaper on choosing the right IoT platform for your project. If you’re thinking about taking that leap into the IoT, it’s well worth the read.

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Oh, The Possibilities … When the IoT Grows Up

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The Internet of Things is something like a gangly, acne-covered adolescent with knobby knees and a clumsy gait.
We can see the bright eyes, the long legs and strong hands, and we know it is chock full of “potential”, but it sure is awkward right now.

Notwithstanding all of this awkwardness, however, this clumsy youngster has already made a tremendous difference in the world. The very thought of its possibilities has sent a tremor to the core of our civilization, touching every aspect of our material and intellectual lives. Just consider the fact that the sentence you just read – as blustery and over-the-top as it may seem – is not even inaccurate. Sure, a person can still live a simple life without all of the trappings of modern technology or communication media (I assume?), living only from sustenance won by his or her bare hands directly from the natural world, never interacting with another living soul. I suppose this is possible, and maybe this person could make a strong case that his/her life remains untouched in any way by the Internet of Things. This person, however, will not be reading this and need not be a part of the conversation.

So, to reiterate: the Internet of Things – or at least the thought of it – is influencing every component of our world today. This is because it is not simply an evolution of technology; it the sort of technological/philosophical movement that transforms civilizations. On the order of agriculture, kingship, or industrialization.

Yes, it is that significant.

That is to say, the technological/ philosophical movement started by the Internet itself is that significant. After all, the words, images, videos, and applications that inhabit the regular old Internet are themselves ‘things’. The concept behind what we call the Internet of Things is simply the dawning of the realization that the Internet is not just about people communicating with people; it’s about everything communicating with everything.

Consider what we already see happening to:

 

Cities

In Oskarshamm, Sweden smart building technology has helped reduce the city’s power consumption by 350 MWh, reducing their carbon footprint by 80 tons of CO2. Houston, Texas has used new sensing technology to retrofit 40 municipal buildings for energy efficiency, delivering $3 million in yearly energy and water savings.

Entire cities are changing the way they govern their populations, the way they distribute resources, the way they police themselves. Cities are changing the way they transport goods and people, the way they measure and control their impact on their environments. Everything that defines what a city is and does is being transformed by not just new technologies, but the new ideas inspired the Internet of Things.

 

Agriculture

One of the foundational elements of civilization, a technological/philosophical movement that predates history itself, is being profoundly influenced by the Internet of Things. Farmers large and small are using networked data to maximize the already-known benefits of established practices (knowing what types of crops to plant when, knowing when and how much to water, etc.). Farmers have also had success safely and naturally controlling pests through the intelligent release of pheromones. Decreased resource consumption and increased yield are very tangible benefits that have the potential to solve some very serious problems related to food shortages and ever-increasing populations, while simultaneously reducing the environmental impact of farming and bringing the family-owned farm back into the global marketplace.

 

Industry

This is the realm of autonomous factories and self-healing machines. Through the convergent development of advanced computing power, sophisticated network technology, sensors, robotics, and analytic techniques, we are seeing the integration of industrial systems both vertically and horizontally. Machines to Machine communication, predictive maintenance, and continuous improvement programs are completely reinventing manufacturing.

Companies like Honda and ABB are using IoT technology to consolidate and organize their manufacturing and maintenance operations through systems of real-time communication and process automation. Companies are using advanced analytics to discover unknown opportunities for improved efficiency. Consider how Kennametal reduced their production cycle time by as much as %40 by simple modifications to their processes like changing the angle of a cut in a particular machining operation.

Real-time consumer data is helping companies be more responsive to the needs and expectations of their customers, and eliminating gaps between supply and demand. Predictive analysis is helping to reduce maintenance costs and incrementally improve production processes through systems of continual improvement. A unique quality of the impact the Internet of Things is having on Industry is its benefits extend beyond the marketplace. Whereas previously profit increases were sought by increasing the scale or speed of production, the new paradigm focuses on increasing efficiency, reducing resource consumption and eliminating waste. The new industrial landscape of smart, connected devices will incidentally lead to a cleaner, safer, more sustainable planet, which leads to the next item…

 

Environment

It is certainly possible to see new technologies as a double-edged sword in this arena. Historically, what humankind has deemed to be good for itself has quite often seemed to be detrimental to our environment. As the Internet of Things makes it easier for us feed and accommodate larger populations, and populations continue to grow, it is not difficult to see how this could negatively impact the environment. An interesting quality of the philosophical thrust behind most Internet of Things initiatives, though, is the tendency toward reduction and conservation.  Use fewer resources. Create less waste. Do as much as possible with what is available to us. In a way that may be unprecedented, this worldwide technological evolution may actually improve our relationship with the natural world.

 

Yes, the Internet of Things is a gangly, awkward, stumbling bunch of possibilities right now, but it is already changing our world. And while we may not have reached that tipping point yet – the point where what is possible becomes what is necessary, and a movement truly transforms our civilization – I think most of us can feel the axis tilting.

There will inevitably come a time when what is happening becomes what has happened, and we will only recognize the revolutionary quality of it when we look back at it in retrospect. In the case of the Internet of Things, I think we have reason to be optimistic.

(Originally published on the B-Scada, Inc. blog.)

3 Reasons You Should Consider Giving Your Process Operators Mobile Devices

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That’s right. It’s time to own up to the fact that the majority of us are using phones and tablets to do business everyday. We buy, sell, trade, learn, teach, and all manner of horrible and wonderful things that we have always done (no, not everyone does horrible things, but don’t act like the things you do are always so wonderful either) all with the aid of portable devices that allow us to move freely about our lives without being tethered to a desk chair.

Why, then, is it so difficult for some people to recognize that our industrial process operators and technicians – who are so often stuck behind a stationary HMI or calling from the field to speak with someone who is – would be far better equipped to do their jobs if only they were afforded the same conveniences they afford themselves in their lives outside of work.

I know there are concerns about security – about opening some digital wormhole through which all sorts of nefarious activity could be invited. There are concerns about ill-intentioned deviants having potential access to sensitive process data – which is not only proprietary, but often essential to our infrastrucure – as well there should be. But it’s not like these potential problems didn’t exist before mobile devices, and while some concerns are certainly valid, mobile devices provide a number of key benefits and opportunities that cannot be ignored:

 

  • For Remote Management of Disparate Assets
    This one seems pretty obvious, but imagine the amount of time that could be saved by not having to manually inspect field equipment or call back to the control station every time there is a simple question.
  • For Constant Access to a Portable Media Viewer
    How can you ensure that operators and techs always have access to the latest work masters, training videos, etc.? Upload or edit a document and make your changes instantly available to all relevant perties – regradless of where they are or what they’re doing.
  • For Instant access to Forms and Form Data
    Create Purchase Orders or close Work Requests from anywhere. Assign new owners or upload a picture you just snapped and attach it to a Job. The possibilities are nearly unlimited.

 

Sure, there are only three benfits listed here, but without much thought I’m sure you could think of a few more. Let me know in the comments below.

And for some additional food for for thought, check out this white paper on “The Benefits of Mobile HMIs” and tell me I’m not absolutely right about this:

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