Transforming Manufacturing with the Internet of Things

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IDC ( has conducted market research since 1964 and, sponsored by Cognizant, has prepared this paper pertaining to how IoT is changing the face of manufacturing.  IDC has forecast that there will be 30 billion connected devices by 2020 and that these smart devices will become essential components in supply chain and manufacturing.  With over half of discrete manufacturers already researching, piloting or in production with Internet of Things (IoT) programs the Internet of Things is fast becoming a reality.  The major hindrance to adoption is expected to be a lack of industry standards relating to connectivity, data storage and security.

IoT’s chief drivers for the manufacturing industry are:

  • Complex and dynamic value chains; with the ability to change rapidly to take advantage of new opportunities around the globe.
  • Emerging market growth; where product strategies reshape supply chains to support market growth sourced from emerging regions and local markets.
  • Traceability, transparency, brand and reputation; manufacturers will be able to use increased traceability to protect their reputations and fortify their ability to deliver quality products.
  • Demanding customers; a manufacturer will be able to compress business cycles in order to meet higher levels of service and the increased demand for personalized products.
  • Converging technologies for manufacturing; where both operational technology (OT) and information technology (IT), including IoT are a requirement for manufacturers to design, manufacture and deliver products.
  • Ubiquitous connectivity; universal connectivity for smart devices, interfaces and processes where manufacturers can presume that communication infrastructure will keep pace.
  • Truth in data; manufacturers seek increasingly powerful analysis of the massive amounts of data being captured.