The integration of software, sensors and connectivity with assets makes up the digital transformation in manufacturing. This transformation will revolutionize the way factories work and produce. Also, IoT has given manufacturing companies the ability to be more efficient and flexible, which will ultimately help increase their bottom line. 

Digital transformation in manufacturing is moving at a rapid pace. Recently, data has been collected from various sources on the Industrial IoT to provide a snapshot of current implementation. The data shines a light on the adoption rate of IoT in manufacturing environments and the several types of use cases. 

One study based on a survey of 316 senior executives who are implementing IoT initiatives revealed that 62% are using IoT at scale across all regions, geographies, and sites for at least one purpose. Therefore, this survey shows that IoT is now a key part of most organizations’ operations. It has evolved from being a small-scale project to be used in a test setting. It is interesting to note that IoT adoption at full-scale was much higher in manufacturing than in any other sector, such as retail or utilities. 

According to the study, reducing costs and improving processes were top business drivers. This was followed closely by factors like improving employee productivity and increasing competition

IoT Benefits and Uses 

Since IIoT is now a reality, c-suite executives are increasingly recognizing how connected technologies can transform businesses. It is easy to identify the most popular benefits of the digital transformation in manufacturing by focusing on six themes. 

Predictive Maintenance 

It is possible to detect and prevent equipment failure by using sensors and data collection, combined with big data analytics to spot trends and patterns. Artificial intelligence and machine learning are also available to create completely intuitive condition monitoring methods that require little human input. 

Continuous Improvement 

Manufacturers have greater control over their production lines’ performance thanks to the use of Industrial IoT, real-time dashboards and mobile apps. For instance, plant managers are able to quickly spot bottlenecks and make adjustments, which allows them to improve their overall equipment efficiency. 

Smart Energy Consumption 

Monitoring energy consumption from machinery, production lines and auxiliary systems systems becomes possible and easier every day.   

It is possible to combine the data with larger data sets like weather or seasonal forecasting and even real-time pricing for electricity to provide a better understanding of each business performance. 

Supply-chain Optimization 

The Industrial IoT era has made supply chains more efficient, flexible, and transparent. For example, manufacturers have full visibility into their incoming components and warehoused parts. Moreover, machine networks provide real-time feedback that allows for better purchasing decisions. 

Tracking Equipment 

Imagine being able to see the exact location of all assets, down to individual tools, within your manufacturing plant. This is the future of equipment tracking. With training, the connected tools can learn the task, which ensures that they perform within pre-set parameters. This increases production quality and decreases operator errors. 

Connected Products 

It is possible to use smart components, which collect usage data, to increase customer engagement and improve operations. Thus, the valuable data gathered from the field can be used to improve future products by fitting sensors to such products.  


In conclusion, it is clear that Industrial IoT has the potential to transform manufacturing because it is already available and has genuine business benefits. Industrial IoT is constantly evolving, allowing for new business models and other ways of working. 

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About the Author

Santiago Picco

Partner @ 4i Platform - Data Driven Innovation Electronic Engineering specified in control automation. Master in Stategic Management of Techology. Data scientist. Industry 4.0. IIoT and Digital transformation.

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