Building a persuasive business case for adopting Industrial Internet of Things (IIoT) technologies can be challenging as it involves a comprehensive analysis of potential benefits, costs, and risks. Key considerations include identifying specific operational challenges that IIoT can address, estimating potential improvements in efficiency, productivity, and quality, and quantifying expected cost savings or revenue increases. Additionally, the business case should address how IIoT adoption provides a competitive edge.
Demonstrating how your solution addresses those challenges hinges on effectively conveying — from design to implementation to outcomes — the value proposition of your IIoT technologies. As for commonly cited obstacles to IIoT adoption challenges, here are some.
𝗛𝗶𝗴𝗵 𝗶𝗻𝗶𝘁𝗶𝗮𝗹 𝗰𝗼𝘀𝘁𝘀
Implementing IIoT solutions often requires significant upfront investment in hardware, software, and infrastructure. This can include sensors, connectivity devices, data storage systems, analytics platforms, and integration with existing systems. For many organizations, especially smaller ones or those with tight budgets, these initial costs can be a major barrier to entry.
The expense goes beyond just purchasing equipment; it also includes installation, configuration, and training costs. While the long-term benefits of IIoT can be substantial, the high initial outlay can make it difficult for decision-makers to approve such projects, particularly when competing with other investment opportunities that may have more immediate returns.
𝗖𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆
IIoT systems can be complex, involving multiple technologies and integrations across different parts of an organization. This complexity stems from the need to connect various devices and systems, often from different manufacturers and of different ages, into a cohesive network. It requires expertise in areas such as sensor technology, data communication protocols, cloud computing, data analytics, and cybersecurity.
Moreover, IIoT implementations often need to interface with existing enterprise systems like ERP or MES, adding another layer of complexity. This intricate web of technologies and integrations can be daunting for organizations, especially those without prior experience in similar projects. The complexity not only affects the implementation phase but also ongoing maintenance and troubleshooting, potentially requiring new skill sets within the organization.
𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻 𝗥𝗢𝗜
It can be difficult to quantify the exact return on investment, especially for long-term benefits or intangible improvements. While IIoT can bring significant benefits such as increased efficiency, reduced downtime, and improved decision-making, these benefits often accrue over time and can be challenging to predict accurately. Some improvements, like enhanced product quality or increased customer satisfaction, are inherently difficult to quantify in monetary terms.
Additionally, as IIoT is still an evolving field, there may be limited industry benchmarks or case studies to refer to when estimating potential returns. This uncertainty can make it challenging to justify the investment to stakeholders who are looking for clear, quantifiable benefits. The long-term nature of many IIoT benefits also conflicts with the short-term financial focus of many organizations.