Introduction
Today the term “Internet of Things” (IoT) has become increasingly discussed in the context of improving business operations. IoT is about generating new data, aggregating them from multiple sources, sharing them, and analyzing the data to generate keener insight and better behavior. IoT applied in manufacturing is referred to as Industrial IoT (IIoT).
The purpose of the Smart Manufacturing Industrial Internet of Things (IIoT) Roadmap for Northeast Ohio is to establish a regional IIoT commercialization strategy, tactical framework and plan of action. This roadmap represents a vision and goals derived from a collaboration of several regional stakeholders.
Road Mapping Process
The road mapping process employed is Team NEO’s InSeven® model. This model is designed to identify key regional strengths as the basis of long-term regional development opportunities surrounding those assets.
The first half of the process “Where We Are Now” deals with defining and setting up the road mapping project and assessing current conditions of the IIoT market and regional asset space. During this phase, a substantial number of market studies and industry intel were canvassed and nearly fifty voice of the customer (VoC) surveys were collected. The information is then used to populate a value chain model and to validate the needs of the region.
The second half of the process “What is Possible” deals with outlining the potential for growth opportunities in the targeted IIoT market segment. After comparing other competitive regions to NEO’s IIoT strengths and capabilities, a NEO IIoT growth strategy and tactical implementation plan was formulated and approved by the Working Group.
Why Focus on IIoT in Northeast Ohio?
Manufacturing is an essential component of NEO’s economy, and is projected to continue growing in the future. Accounting for more than one fifth (21%) of the region’s total gross regional product (GRP), the sector has seen productivity growth of 92% between 1990 and 2015, with an additional 73% productivity growth projected by 2025.
To maintain our competitiveness in a global economy, innovation will become increasingly important to how we manufacture, both the products we produce and the processes we employ. IIoT offers an opportunity to gain an additional competitive advantage in manufacturing and change the growth trajectory of the sector even more significantly moving forward.
Potential IIoT Impact on NEO
To gain the benefits of IIoT, NEO’s current manufacturing base will need to change their processes and how they work. According to Moody’s Economy.com projections, Northeast Ohio’s manufacturing GRP is projected to grow approximately $4 billion from $45 billion in 2018 to $49 billion by 2025.
Based on calculations utilizing McKinsey Global Institute Data and Accenture estimates, IoT’s application in a factory setting such as IIoT in the manufacturing sector has the potential to grow GRP beyond the current projection of $49 billion to $52 billion in 2025. The higher end of the potential impact IIoT will have on NEO’s manufacturing sector by 2025 is $62 billion dollars.
Download the IIoT Roadmap
In late 2018, an Industrial Internet of Things (IIoT) Commercialization Roadmap was developed by local industry leaders to identify the opportunity, impact and path forward for implementation of IIoT in Northeast Ohio.
In late 2018, an Industrial Internet of Things (IIoT) Commercialization Roadmap was developed by local industry leaders to identify the opportunity, impact and path forward for implementation of IIoT in Northeast Ohio.
Where is Your Company on the IIoT Journey?
The IIoT Readiness Assessment was developed collaboratively by the Roadmap Project Team and Working Group to be used as a tool to help a company evaluate its digital maturity and readiness for IIoT implementation.
