Where are the money from the Internet of Things?

There are notions that sound good, but which raises concrete questions on the executive board: how does these notions add value? Basically, where’s the money?

An article published on the Harvard Business Review blog, “Finding the money in the Internet of Things” “, highlights three perspectives to address the impact of this technology:

1.company’s financial performance – by analyzing earnings, expenses and assets.

IoT (Internet of Things) investments allow equipment (asset) monitoring and reduce intervention and repair time in the event of a malfunction. For operations involving a high degree of use of equipment, benefits are translated at low cost with maintenance and increased equipment efficiency.

2. operational performance – analyzing the factors that determine this performance – the life cycle of clients, products and operative structure (production).

Increased productivity of equipment improves operational and financial efficiency, obviously. Beyond the figures, IoT technology allows the identification of a behavior of use of the equipment that allows for adaptation to the process, during the process.

Adaptation to the use of equipment means practically identifying those aspects that matter in the process where the equipment is integrated and the ability to anticipate and resolve possible errors.

3. Improving technical performance.

IoT technology is a solution for monitoring and warning about the imminence of a malfunction. However, its major advantage is the ability to identify a performance pattern over time.
A systematic analysis allows the establishment of practices and processes that can be improved to enhance process performance.

IoT technology is considered a disruptive technology – due to its ability to reconsider and reinterpret the way an integrated equipment in a production process contributes to the operational and financial performance of a company.

The equipment prepared for IoT, regardless of the specific benefit of its category (nitrogen from nitrogen generators, air from ADS compressors), will provide more, will be able to solve more complex problems in the process of integration.

Resistance to change and inertia to adaptation are natural to a certain extent, but managers willing to address the integration of equipment from the perspective of IoT will make quicker use of these advantages.