Industrial Internet of Things a big win for manufacturing companies?

Jim van Hulst has worked in several leadership functions at EY, ING Bank, ABN AMRO Bank, and Johnson Controls International. His positions have included Director Talent Management, Global Head Professional Development, and Global Learning Technology Leader. Jim has an MSc. in Learning Technology from the University of Sheffield and a Bachelor of Education from the University of Arnhem/Nijmegen. He also holds a diploma in Business Management and Leadership from the Rotterdam School of Management, and he completed his MBA in 2020 from MSM, The Netherlands. He is a frequently asked speaker and author of numerous articles. Jim founded Jignite recently in 2021.

In this article, we discuss the Industrial Internet of Things (IoT). Without a full understanding of the changes and opportunities brought in by Industry 4.0, companies risk losing ground. Industry 4.0 relates to new trends. Examples are automated production, predictive maintenance, SMART[1] transport systems, and connected machine. The context of these “Things” is however the manufacturing discipline. It also relates to SMART cities, sensors on everything, autonomous driving cars, etc. At present and in the coming years, companies need to be more intelligent (e.g., by using algorithms), sustainable, and dynamic (e.g., by using 3D-printing) to stay profitable and competitive.

Why are the Industrial Internet of Things so important?

It is important because these new technologies fundamentally affect the way we live, work, and relate to one another. If technology fundamentally changes how we work together, does that mean all jobs will eventually disappear or that robots will replace us?

Ageing workforce

In 2019, the Organization for Economic Co-operation and Development (OECD) reported on the Future of Work, stating that only 14 per cent of jobs are at risk of automation; this is significantly less than other previous predictions (e.g., Frey 2012[2]). However, they emphasized that another element is essential to consider as well, i.e., the fact of an ageing workforce. In 2050, 53% of the population in OECD[3] countries is estimated to be over the age of 65 years (p.9) compared to 22% in 2015. This finding will be a significant shift for governments and industries throughout the world to cope with.

Read also this article on imperatives of Industry 4.0.

[1] Smart technology is a technological convergence between an object and a computer. This enables the object to connect to the internet and extend its role beyond its traditional functions

[2] Thomas Frey 2012: https://futuristspeaker.com/business-trends/2-billion-jobs-to-disappear-by-2030

[3] OECD (2019). The Future of Work OECD Employment Outlook 2019. Retrieved https://www.oecd.org/employment/Employment-Outlook-2019-Highlight-EN.pdf . Last visited December 26, 2019.