Maintenance Technology August 2016 - (Page 45)
INDUSTRIAL INTERNET OF THINGS
IIoT Implications for the
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
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
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
maintenance-department consolidation within
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
concerned about it, but it
is a real concern for some
MachineMachine-tocompanies. So, companies
will be somewhat
reluctant and will not
easily give away access to
Another element of
this-almost the other
side of the coin-IIoT
isn't really about monirequired
toring or even prediction,
per se. It's really about the
ability to create new busirequired
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/
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
Table of Contents for the Digital Edition of Maintenance Technology August 2016
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
Compressed Air Care
Nurture STEM Learning
Heed Drive-Belt Temps
Internet of Things
Maintenance Technology August 2016