As more businesses innovate and embrace technology, they become stronger, more agile, leaner, and more competitive in their respective industries. Many businesses are now undergoing industrial digital transformation and automation to get ahead of the curve. 

Digital transformations are organization-wide changes to updated technology. Industrial IoT  is a trend worth exploring for businesses undergoing a digital transition. While the concept may be new, it finds its roots in several concepts that have been around for some time. 

Operational Technology (OT), Information Technology (IT), and the Internet of Things (IoT) are some of the concepts that come into play here. If you’re interested in learning about the rise of Industrial IoT, keep reading to get an understanding of its basic principles. 

What is Operational Technology (OT)?

Operational Technology (OT) has been around ever since machines and other equipment were used to ensure that the industrial processes run smoothly. However, OT was coined more recently and refers to the hardware and software that controls or monitors machinery, processes, and events within the organization. 

Industries ranging from oil and gas to healthcare have operational technology set in place. Initially, OT was more of a controlled and mechanical technology, but with recent IT developments, it is becoming more independent. 

What is Information Technology (IT)?

Information Technology (IT) is more commonly used than OT. It refers to the use of computers to store, retrieve, and process data for the business as and when needed. IT has been known to make processes easier and leaner, as the business can shift from manual recording and retrieval to an agile digital environment.

With new concepts like Big Data and Machine Learning coming in, IT is no longer the simple concept it used to be. 

Industrial IoT: Where OT meets IT

Internet of Things (IoT) uses software, sensors, and other technologies to create a network of physical objects/devices. The purpose of linking these consumer objects is to create a system that allows easy flow of information and data through the internet and gain better control of the devices. 

Industrial IoT goes one step further. Instead of consumer devices, it links the machinery and equipment (OT) in a company by using IT. In short, Industrial IoT is a form of convergence of IT and OT. 

The machines are linked through the internet and rely on big data, machine learning, and machine-to-machine (M2M) communication. Industrial IoT uses software, analytics, and sensors to transmit information and help machines make decisions. 

The idea is to create smart machinery that requires minimal human intervention and can make sound decisions independently. The more data it receives, the better the machine will be at making decisions. 

Why Are Companies Choosing Industrial IoT?

Needless to say, Industrial IoT is a trend that’s here to stay. It uses big data in a meaningful manner to help your company’s operations in the following ways: 

Increased Productivity and Leaner Operations

Production times drop significantly as your business embraces Industrial IoT. The increase in machine productivity is also reflected in reduced waste and fewer instances of human error. 

Better Connectivity and Efficiency

In the long run, business operations are set to become more efficient as machinery becomes better connected and runs smoothly with minimal human interaction. The independence of machines can allow the company to innovate even more for the customers and create more value. 

Reduced Workforce

Industrial IoT reduces the need for mechanical labour. However, there’s a growing need to develop technical skill sets to handle the machinery with this advancement. This enables companies to reduce their variable labour costs, while promoting skill development in the job market. 

Improved Safety

A welcome gift of Industrial IoT is reduced human exposure to industrial hazards. Since machines are working independently, humans can stay relatively safe. This helps reduce the company’s safety-related liabilities as well.