The Internet of Things (IoT) is impacting nearly every business in the world and across many different industries. However, many businesses have yet to invest in the IoT, and they often have a number of questions.
Realistically, asking these questions is a great idea. While your business may benefit from the internet of things, there are several factors to consider before you take the leap and make a huge investment. Here are six of the most common ones.
Do I Need the IoT?
This is a good question. The difference may very well be between need and want. Yes, adopting the use of the Internet of Things could save your business a great deal of money. It could make things simpler, and even increase your profits. However, the IoT in your industry may not be as developed as in others, and while being an early adopter has its advantages, there are potential drawbacks as well.
So the question becomes and individual one about the current state of your business, and if and when you need to adopt the IoT to survive. Asking yourself honestly does my business need IoT? and making a list of pros and cons will help you make the right decision.
What Will it Cost?
You probably already have systems in place for your industrial operation. You have a SCADA system even if it is dated, PLC’s and HMI devices. These may be largely location based and hard-wired systems, but for the sake of argument we will assume they are working.
Moving to a cloud-based system may or may not cost your business a significant investment. If your devices already have the potential to be connected to more modern PLC systems, the cost may be lower than you think.
However, if your entire system is outdated and operates on a more analog platform, you may need to replace nearly everything, a much more significant decision. Determine cost before taking any steps.
How Much Money Will it Save My Business?
The internet of things will make nearly any business more efficient, in the long run increasing production and potential profits. If your business is ready for this kind of growth, the money savings from the IoT can be significant. There are a few areas to look at:
- Reduced Production Failures
- Energy and Material Savings
- Payroll Percentage Savings
- Supervisory Cost Reductions
All of these areas can see significant reductions in costs from the right SCADA system integrated with the IoT properly.
When Will I See My Return on Investment?
Once you have determined your need and the cost of implementation along with the savings your business will see, you can use some simple calculations to see when you will see your return on investment. In many cases this will determine if your business is actually ready to transition to the IoT.
The real reason is you will need funding to carry you through the transition period. If it will take 3 months to break even, you need three months of operating costs in the bank or funded by investors or other methods.
While in the long run , the adoption will pay off, your business needs to be able to sustain payroll and day to day operations in the meantime.
How Will IoT Impact My Workforce?
Your workforce will be impacted by the IoT. In most cases, you will actually reduce the workforce you need. There are some other factors to consider as well.
- What training will my employees need? How familiar are your employees with technology, and how readily will they be able to receive training and make the transition to more modern systems?
- Can I shift workers to new positions? While some positions will be eliminated by the adoption of the IoT, new ones will be created as well. Do you have employees who can make that transition and are willing to?
- What’s the cost of letting go? You will probably have to let some workers go, offer them early retirement, or shift them to new, less valuable positions. Are you prepared to do this, and what will the costs be in unemployment benefits and early retirement packages?
It is never easy to let employees go or make decisions that impact your workforce in less than desirable ways, but often the survival of the company depends on it. This is a question that should be asked early in the process of adopting the IoT.
Is this Move Future Proof?
What’s the future hold? No one knows for sure, and there are no guarantees. However, when looking at the IoT, the adoption of big data, and the increasing number of connected devices it is clear that the IoT is here to stay.
Still, if your industry is in a state of flux, making sure the system you move to is future proof is essential.
Despite all the hype about the Internet of Things, you should be asking some questions before your business makes the investment. Use these six questions to get your started.
