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Improving operational efficiency with IoT and AI within industrial sectorsOrkun Gündüz
IoT expenditures are increasing
82%of manufacturers
already have or plan to develop
a digital transformation
strategy3
63% of manufacturers
believe that applying IoT to products will
increase profitability over the next
five years4$267B
manufacturerswill invest in IIoT by 20205
50%Of IoT spending
will be driven by discrete manufacturing, transportation and logistics, and utilities6
Sources: 1- Zinnov Zones 2018, 2- MDC Research, December 2018 3 - Oracle for Industry Week 2018, 4 - The MPI Group 2016, 5 - BI Intelligence 2015, 6 - BCG 2017
3Copyright 2018 – ARRIS Enterprises, LLC. All rights reserved
Skills gap & labor costs: Another key driver for IoT adoption
Source: 1 - 2019 industrial manufacturing industry outlook, Deloitte 2019, 2 - 2019 National Manufacturing Outlook and Insights Leading Edge Alliance 2019
4Copyright 2018 – ARRIS Enterprises, LLC. All rights reserved
Inefficient operations
Source: 1 - 2019 industrial manufacturing industry outlook, Deloitte 2019, 2 - 2019 National Manufacturing Outlook and Insights Leading Edge Alliance 2019
Underutilized assets and costly downtimes ~$100,000
costs a single hour of downtime1
75%average
manufacturing capacity utilization in the US2
Source: 1- OEE Benchmark Study, SageClarity 2018, 2 - ITIC 2016
How does IoT change that?
Sources: 1 - The Road to Digital Transformation. A Progress Report for Manufacturers, Oracle for Industry Week 2018, 2 - The Internet Of Things: Mapping The Value Beyond The Hype, McKinsey Global Institute 2015
“The greatest potential for creating value will be in operations optimization—making the various processes within the factory more efficient.”2
Labor Time Analytics
Source: 1
10-25%Of
potential improvement in labor efficiency
would arise from the IoT1
Tools and equipment management
Source: 1 - IoT and Smart Manufacturing, ITIF 2016
20-50%Of
an enterprise inventory carrying costs
in manufacturing will be saved
by IoT1
Job Order and Material Flow Tracking
20% higher product count
from the same production line1
40%reduction in cycle time
with smart manufacturing
technologies2
85+%increase in forecasting
accuracy with smart manufacturing technologies2
Source: 1 - IBM 2016, 2 - Itif 2018
Equipment Utilization and Smarter Maintenance
40%reduction of factory
equipment maintenance costs by
predictive maintenance1
Source: 1 - Deloitte 2017, 2 - Itif 2018, 3 - Roland Berger 2016
30-50%reduction of total
machine downtime2
machine parks reduced by
30 ppwith Industry 4.03
