Maintenance Technology August 2016 - (Page 45)
INDUSTRIAL INTERNET OF THINGS
IIoT Implications for the
Outcome Economy
R
ecently, I talked to Joe Barkai, former vice
president of research at IDC, Framingham,
MA, and author of a new book, The Outcome
Economy: How the Industrial Internet of
Things is Changing Every Business. Barkai has been
firmly embedded in the industrial-manufacturing
space for more than 30 yr. and has worked with many
large entities, such as Caterpillar, Chrysler, Ford,
Oracle, SAP, and Siemens.
Barkai's book outlines several pain points between
IIoT and manufacturing, while emphasizing the
transformative process that is taking place with
regard to business models. Barkai sees enterprises
and businesses moving to an "outcome economy," in
which companies will "create value not just by selling
products and services (using IIoT), but by delivering
complete solutions that produce meaningful 'quantifiable business outcomes' for customers."
Below is a portion of our interview, which touches
on predictive analytics and how third-party IIoT
should evolve. The entire interview, found at bit.ly/
mtjbarkai, discusses how management may be more
receptive to a longer ROI for IIoT projects and why.
Maintenance Technology: While doing research
for the book, what surprises did you encounter with
regard to predictive analytics?
Joe Barkai: The predicted-maintenance story is
really kind of the holy grail of Industrial Internet of
Things (IIoT). Every company investing in IIoT really
wants to be able to monitor mission-critical equipment remotely, be notified about impending failure,
and given enough detail and ample time to respond to
the problem.
But I was surprised, not by their aspirations but
about the optimism that these companies have in
regard to the ability to implement those systems in a
fashion that is kind of sufficiently robust, scalable, and
economic.
However, many companies are really not aware of
the difficulty of taking some of these concepts that
are very solid. That's not to say there are no solid
examples. Siemens, AG, and the Renfe high-speed
rail in Spain is one example that I cite in the book.
There are a lot of interesting and economically relevant
implementations, but people I think underestimate
the effort that it takes to create that level of predictive
models and systems.
MT: Do you sense that third-party, predictiveanalytic services are ready to emerge due to
AUGUST 2016
Grant Gerke
maintenance-department consolidation within
Contributing Editor
manufacturing?
Barkai: So, let's say 20 years ago third-party maintenance was a big, big industry to augment workforce,
to optimize resources, and so on. I think that we will
see some of this coming back, but with IIoT we'll have
new challenges. One of them is the immediate access
to equipment and security, which raises concerns
about IP linkage.
I'm personally not very
Capability of
concerned about it, but it
Network Infrastructures
is a real concern for some
MachineMachine-tocompanies. So, companies
to-machine
enterprise
will be somewhat
communications communications
reluctant and will not
Currently
10%
13%
easily give away access to
capable
their equipment.
Some
Another element of
upgrades
41%
38%
required
this-almost the other
side of the coin-IIoT
Significant
upgrades
32%
35%
isn't really about monirequired
toring or even prediction,
Network
per se. It's really about the
overhaul
18%
14%
ability to create new busirequired
ness models-outcome
Barkai describes healthy optimism among
economy. IIoT becomes
manufacturers, but equipment upgrades will be a
a platform to offer those
major impediment to better enterprise connecbusiness services. The
tivity. (Source: MPI Group's "How Manufacturers
most cited story in the
are Profiting from IoT" study).
book, of course, is Rolls
Royce in "Power by
the Hour," but you'll see this with Pratt & Whitney,
Siemens, and the Spanish Rail.
The point here is not only companies outsourcing
to a third party, but trying to outsource the ability to
deliver service. The third-party model will be different.
For the rest of the interview with Joe Barkai and
why ROI for IIoT projects will change, visit bit.ly/
mtjbarkai. MT
Grant Gerke is a business writer and content marketer in the manufacturing, power, and renewableenergy space. He has 15 years of experience covering
the industrial and field-automation areas.
Visit maintenancetechnology.com/iot and
find podcasts, white papers, and video
content on all things IIoT for the reliability
and maintenance professional.
MAINTENANCETECHNOLOGY.COM | 45
http://www.maintenancetechnology.com/2016/08/podcast-joe-barkai-charts-iiot-development-new-book/
http://www.maintenancetechnology.com/2016/08/podcast-joe-barkai-charts-iiot-development-new-book/
http://www.maintenancetechnology.com/iot
http://www.MAINTENANCETECHNOLOGY.COM
Table of Contents for the Digital Edition of Maintenance Technology August 2016
Editorial
Uptime
On The Floor
Accepting The Challenge
Advanced Software In The Jungle
Put Efficiency in MRO Storerooms
Rethink Overall Vibration Monitoring
Reliable Pumping Supplement
Practical Oil Analysis: Why and What For?
SAP Tips and Tricks
Maximize Ethernet
Compressed Air Care
Nurture STEM Learning
Heed Drive-Belt Temps
Internet of Things
ISO 55000
Products
Showcase
Ad Index
Final Thought
Maintenance Technology August 2016
https://www.nxtbook.com/atp/MaintenanceTechnology/efficient-plant-jan-feb-2024
https://www.nxtbook.com/atp/MaintenanceTechnology/efficient-plant-april-2022
https://www.nxtbook.com/atp/MaintenanceTechnology/efficient-plant-october-2021
https://www.nxtbook.com/atp/MaintenanceTechnology/efficient-plant-june-2021
https://www.nxtbook.com/atp/MaintenanceTechnology/epapril2021
https://www.nxtbook.com/atp/MaintenanceTechnology/epmarch2021
https://www.nxtbook.com/atp/MaintenanceTechnology/epjanfeb2021
https://www.nxtbook.com/atp/MaintenanceTechnology/epjulyaug2020
https://www.nxtbook.com/atp/MaintenanceTechnology/epjune2020
https://www.nxtbook.com/atp/MaintenanceTechnology/epmay2020
https://www.nxtbook.com/atp/MaintenanceTechnology/epapril2020
https://www.nxtbook.com/atp/MaintenanceTechnology/epmarch2020
https://www.nxtbook.com/atp/MaintenanceTechnology/epfeb2020
https://www.nxtbook.com/atp/MaintenanceTechnology/epjan2019
https://www.nxtbook.com/atp/MaintenanceTechnology/epnovdec2019
https://www.nxtbook.com/atp/MaintenanceTechnology/epseptoct2019
https://www.nxtbook.com/atp/MaintenanceTechnology/epmay2019
https://www.nxtbook.com/atp/MaintenanceTechnology/epapril2019
https://www.nxtbook.com/atp/MaintenanceTechnology/epmarch2019
https://www.nxtbook.com/atp/MaintenanceTechnology/epfebruary2019
https://www.nxtbook.com/atp/MaintenanceTechnology/epjanuary2019
https://www.nxtbook.com/atp/MaintenanceTechnology/epdecember2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epnovember2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epoctober2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epseptember2019
https://www.nxtbook.com/atp/MaintenanceTechnology/epaugust2018
https://www.nxtbook.com/atp/MaintenanceTechnology/0818schneider
https://www.nxtbook.com/atp/MaintenanceTechnology/epjuly2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epjune2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epmay2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epapril2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epmarch2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epfebruary2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epjanuary2018
https://www.nxtbook.com/atp/MaintenanceTechnology/epdecember2017
https://www.nxtbook.com/atp/MaintenanceTechnology/epnovember2017
https://www.nxtbook.com/atp/MaintenanceTechnology/epoctober2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtsept2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtaugust2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtjuly2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtjune2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtmay2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtapril2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtmarch2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtfebruary2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtjanuary2017
https://www.nxtbook.com/atp/MaintenanceTechnology/mtdecember2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtnovember2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtoctober2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtseptember2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtaugust2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtjuly2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtjune2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtmay2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtapril2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtmarch2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtfebruary2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtjanuary2016
https://www.nxtbook.com/atp/MaintenanceTechnology/mtdecember2015
https://www.nxtbook.com/atp/MaintenanceTechnology/mtnovember2015
https://www.nxtbook.com/atp/MaintenanceTechnology/mtoctober2015
https://www.nxtbook.com/atp/MaintenanceTechnology/mtseptember2015
https://www.nxtbook.com/atp/MaintenanceTechnology/MTAugust2015
https://www.nxtbook.com/atp/MaintenanceTechnology/MTJuly2015
https://www.nxtbook.com/atp/MaintenanceTechnology/MTJune2015
https://www.nxtbook.com/atp/MaintenanceTechnology/M
https://www.nxtbook.com/atp/MaintenanceTechnology/0415endress
https://www.nxtbook.com/atp/MaintenanceTechnology/MTApril2015
https://www.nxtbook.com/atp/MaintenanceTechnology/MTMarch2015
https://www.nxtbook.com/atp/MaintenanceTechnology/MTFebruary2015
https://www.nxtbook.com/atp/MaintenanceTechnology/MTJanuary2015
https://www.nxtbook.com/atp/MaintenanceTechnology/MTDecember2014
https://www.nxtbook.com/atp/MaintenanceTechnology/MTNovember2014
https://www.nxtbook.com/atp/MaintenanceTechnology/MTOctober2014
https://www.nxtbook.com/atp/MaintenanceTechnology/MTSeptember2014
https://www.nxtbook.com/atp/MaintenanceTechnology/MTAugust2014
https://www.nxtbook.com/atp/MaintenanceTechnology/MTJuly2014
https://www.nxtbookmedia.com