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