Whats Missing from the Industrial Internet of Things Conversation? Software

These days, you can hardly have a technology conversation without talking about the Internet of Things (IoT). And when that conversation shifts its focus to the industrial sector, including energy, Oil & Gas, Power & Utilities, and petrochemicals, among others, the discussion changes to what is being called the Industrial Internet of Things (IIoT).

So what is all this hype about? The convergence of cheap processing, unending storage, massive bandwidth, near-ubiquitous connectivity, and cloud-based applications is driving new capabilities for gathering information and changing the way we interact with machines and services. The data generated by sensors in this network of connected devices is being collected and analyzed, spawning the growth of big data analytics and applications. And the resulting analytics are being used to improve business efficiency, better serve customers and disrupt old business models.

There will be nearly 26 billion connected devices by 2020, according toGartner, which is an increase of 30 fold over 2009. Impressive, but what does it really mean to have all these devices connected to the internet? Is there any real value involved? Just because you can, does it mean that you should? We all remember the technology boom and bust of the late 1990s and early 2000s (aka Dot-com Bubble) that was fueled by an excessive amount of wishful thinking or irrational exuberance.

But the IIoT can and will be different if we keep our collective eyes on the prize. Unlike consumer-based IoT that is trying to devise a way to make your world a better place by telling you when your washing machine needs service or letting you control all of your homes systems while you are away, the IIoT is working to make our collective world a better place by improving the monitoring, control and safety of everything around us. In short, reducing risk and improving the reliability of our massive industrial systems. No small task given the amount of data that will be generated by all of those devices running around the clock.

But there is an important component missing from many conversations that will glue it all together: software.

Think about it: How good is your computer without a good operating system to make all those programs function properly, or your smartphone without a million apps to connect you and your friends or coworkers and the information you share? Large hardware vendors recognized long ago that it is the software that makes the hardware more valuable. Software supports the human interaction side of the equation by helping to turn data into information. But not just basic information, I am talking about critical, insightful, influential, and actionable information, without which we run the risk of potentially dangerous outcomes.

This next-generation software should be cloud-based because, lets face it on-premises solutions require significantly more time, money and resources than you would like to afford while trying to remain competitive. Advanced software should easily connect the existing enterprise asset management (EAM) or computerized maintenance management system (CMMS) with the field-based industrial devices and equipment. It should provide early, rapid insight into the volumes of data and information that mere mortals are expected to evaluate to find business opportunities and make recommendations as part of a larger asset performance management strategy. But more importantly, software should make it easier for your organization to achieve its highest objective: operational excellence.

Even in todays increasing connected environment, industrial organizations do little more than make use of a minimal set of vendor-supplied analytics related to machine-specific solutions automated instrument calibration, instant vibration analysis of pumps and compressors, or other equipment related algorithms. The analytical capabilities of affordable processing and storage capacity in new software solutions are just beginning to be tapped.

One key to discussing the software needs of the IIoT is to include asset performance diagnostics. More specifically, to take advantage of all the useful information out there and the connectivity promised by equipment and software vendors, we need to discuss asset performance diagnostics; the ability to quickly assess a plants equipment/asset status or health. This ability can be critical for merger and acquisition activity versus building new. This implies that we must be able to check across many equipment types, not just one or two manufacturer-specific reports, in order to understand where our metrics stand in relation to our industry peers.

Additionally, with next-generation software, organizations will gain enhanced asset reliability and comparative analysis for operational goals. Operators can perform better and faster analysis on collected data to report to the C-Suite executives, who then have better context for defining strategic goals. Comparative analytics provide the ability to internally compare the status and performance of the equipment or assets to get your own house in order and really ignite your continuous improvement initiatives. Next-generation software must help organizations take it to the next level. To get there, you need to benchmark your operations against your peers and competitors. That capability will help you move to the pinnacle of continuous improvement, and closer to overall operational excellence.

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Whats Missing from the Industrial Internet of Things Conversation? Software