IoT Impact on Manufacturing
The number of things connected to the Internet now exceeds the total number of humans on the planet, and we’re accelerating to as many as 50 billion connected devices by the end of the decade. For manufacturers, the implications of this emerging “Internet of Things” are huge.
According to a recent McKinsey Global Institute report, the Internet of Things (IoT) has the potential to unleash as much as $6.2 trillion in new global economic value annually by 2025. The firm also projects that 80 to 100 percent of all manufacturers will be using IoT applications by then, leading to potential economic impact of as much as $2.3 trillion for the global manufacturing industry alone.
The rise of the IoT has been driven by the convergence of market forces and parallel innovation of enabling technologies. As products have evolved, their capabilities have multiplied, creating new forms of value and even doing things well beyond their primary function. This transformation is shifting the sources of value and differentiation to software, the cloud, and service, and spawning entirely new business models.
To capture this great wave of value creation opportunity, manufacturers have an urgent need to rethink nearly everything — from how products are created, operated, and serviced. Those who don’t, place their current competitive advantage at risk.
In the IoT era, PTC's customers are bringing to market increasingly smart and connected products which generate new sources of value for customers and manufacturers as streams of data are captured, analyzed, and shared in real-time.
PTC’s strategy and technology enabled solutions have evolved to better meet the needs of our manufacturing customers in a smart, connected world. Application Lifecycle Management (ALM) solutions help companies to manage the development of all software that goes into and along with the smart product. Product Lifecycle Management (PLM) solutions helps companies manage the entire definition of the product, mechanical, electronic, and software, that fit together in increasingly complex configurations and undergo continuous change. Service Lifecycle Management (SLM) solutions help companies manage and optimize the increasingly important processes that happen after the product is delivered to the customer through an ongoing service relationship.
PTC’s recent acquisition of the ThingWorx platform will speed the creation of high value IoT applications that support manufacturers' strategies, such as predictive maintenance and system monitoring, and enhance PTC's existing service ALM, PLM and SLM solution portfolio. PTC will also now offer its customers a means to establish a secure, reliable connection to their products as well as a platform to rapidly develop applications for maintaining and operating them - and ultimately for finding ways to create new value from them.
Products have evolved from purely mechanical and electrical components to complex systems combining processors, sensors, software and a digital UI that are now connected to the Internet and each other. As their definition evolved, product capabilities have multiplied creating new forms of value for manufacturers and their customers.Today, these smart, connected products deliver extended functionality, improved performance and reliability and even do things well beyond their primary function.
Learn More ›
The Internet of Things is not a new topic and there are many other though leaders that have provided their perspective. The term “Internet of Things” is most commonly attributed to Kevin Ashton in 1999 when he was a brand manager at Procter & Gamble. In that context the Internet of Things was linking the new idea of RFID in P&G's supply chain to the then-red-hot topic of the Internet. It summed up an important insight and 10 years later, the term became a hot topic for all business leaders.
Today, firms across industries, including Cisco, GE and McKinsey, and media properties, including The Economist, along with academics and analysts all have an opinion on the Internet of Things and its impact. PTC has summarized five critical articles that anyone interested in understanding the Internet of Things should read.
Learn More ›