Research highlights the competitive advantage of implementing IIoT at scale

The benefits of networking devices to gather data across industrial operations using the Industrial Internet of Things (IIoT) are widely acknowledged, with most businesses and industrial plants currently deploying it in some form.

Based on research of more than 300 industrial decision-makers across seven markets and nine industries, including utilities, data centres, renewable energ, and transport infrastructure, the report from ABB also reveals that many businesses can gain additional benefits by upgrading their electrical assets with smart sensor technology. 93 percent of organisations are already on their digitalization journey and 21 percent are mature and reaping true benefits.

Sherif El-Meshad, global digital lead from ABB Electrification says: Organisations across the energy sector are embracing digital transformation, replacing traditional assets with smart ones, but there is a real opportunity to make faster progress towards a data-driven future. Against an increasingly challenging and complex energy transition backdrop, digitalisation provides an opportunity to not only simplify the journey but also fundamentally improve efficiency.

The research also shows a disconnect between businesses' desire to meet sustainability targets and their perception of the most effective way to do so, with 44 percent saying environmental targets are very important for electrical systems management yet only 20 percent viewing sustainability targets as a driver of interest for IIoT implementation.

Automation has already established itself as a significant contributor to production efficiency and environmental compliance, continues El-Meshad. While the research shows a strong commitment to meeting sustainability targets, in order to realise these ambitions organizations must accelerate their digital transformation efforts. This will help monitor and optimize resource consumption and reduce carbon emissions through the use of smart technology.

In addition, the research explores the top five barriers to adopting digital technologies. 42 percent of respondents cited concerns over cybersecurity, 41 percent named integration with existing assets, and 35 percent ranked internal skills expertise and evidence of business value or ROI as the reasons preventing them from adopting IIoT at scale. ABB explores how to overcome these barriers and develop a long-term digitalisation roadmap that will deliver operational and financial results, as well as accelerate decarbonisation.

When it comes to adopting IIoT, businesses should focus on capturing scalable value, El-Meshad concludes. Achieving scale requires commitment and investment, but it can be a route to entirely new methods of working. Organisations that implement IIoT at scale can differentiate themselves from the competition with new business models and revenue streams.