The Internet of Things (IoT) is being touted as the next frontier for manufacturers that want to connect not only with their physical resources but also with their customers. By tying into the IoT, companies can instantly access real-time information on assets halfway across the globe and make faster and better-informed decisions. But despite the potential benefits of the IoT, industry analysts suggest that the technology may not be a good fit — or even fit at all — for the average manufacturer.
Growth — or lack thereof — of radio frequency identification (RFID) as a parallel to IoT’s adoption challenges. Industry hype around RFID has lasted for years, but factors such as cost and project size have prevented adoption from climbing as fast as vendors suggested. Manufacturers are still asking, “Why can’t we just keep using barcodes?” In light of this, the onus really falls on vendors to prove the value of IoT investment to their customers.
It’s a classic market problem: Vendors who are interested in [IoT] have this notion that, ‘why wouldn’t you want to instrument everything you have?’ The buyers, however, are still unsure why they should change how they detect and respond to problems. They’re wondering if they really need to be able to monitor things in real-time”
Most companies who are consumer focused — manufacturers, distributors, retailers — certainly see it as an eventual opportunity, but, right now, a lot of [IoT] is very experimental. IoT has the most potential in asset management and production monitoring.
What’s the difference between tracking individual items using IoT technology and RFID technology? Aside from the costs associated with each – Oh wait! It’s the costs of each that ‘s keeping both from gaining ground. Both technologies can provide item level identification but RFID can now be considered ‘old’ tech while IoT (Internet of Things) is the current darling of the development world. Here’s what I see happening over the next few years.
The automotive industry especially seems to have a lot of promise because of the number of cars that are sold and in terms of the value of having connectivity. Watch for more on this and how the “Battle for the Dashboard” is progressing.This contest sounds like the “Battle of the Bands”. See the kickoff to this contest with Apple’s Entry