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156 IoT Applications — Value Creation for Industry
proved during operation. To define the value of an industrial IoT application
or IoT project is difficult. There are numerous reasons for that. The value
typically shows up gradually with new process introduction and accumulates
over time, the value is often difficult to quantify due to multiple interactions
and complex processes, it may contain hard but also soft benefits difficult to
assess. Value can be generated and may show up as a result of a combination
of IoT applications with other systems or processes, or can originate in new
human behavior or new interactions. Fact is that value is the key element
finally asked by the project stakeholders or owners.
There is agreement that IoT brings benefit in different areas, however numbers
to quantify that value are scarce. More recently CISCO proposed a view
called Internet of everything based on IoT and additionally “connecting to
internet everything not connected yet” [3]. The global potential, the “value at
stake”, for what was called Internet of Everything economy and for the decade
2013–2022, was estimated to $14.4 trillion. Also 5 major drivers have been
identified n [3] and 4 of them: asset utilization, productivity, logistics efficiency,
innovation have strong connections with IoT applications in industry.
IoT applications benefit and value creation in an industrial environment
may have its origin in different aspects, depending on the application type.
There is no value but “values” each contributing to the total benefit such as:
• Value from visibility identification, location tracking
• Value form IoT-supported safety in hard industrial environments
• Value from right information providing or collecting
• Value form improved industrial operation and flows in industry
• Value from reduced production losses
• Value from reduced energy consumption
• Value from new type of processes made possible by IoT applications
• Value form new type of maintenance and lifetime approaches
• Value enabled by smart objects, connected aspects
• Value from sustainability.
The value form visibility was analyzed in a recent 2012 study by Forrester
Research [4]. Based on the responses from this study and cumulating the
responses “very important to bring value” and “important to bring value” the
results are shown in Figure 3.1. The most important IoT technologies perceived