CDAIT IoT Sensor 10.14.2021

Posted October 14, 2021

Angelina Kim, The Center for the Development and Application of the Internet of Things (CDAIT)

Of all the various applications of the Internet of Things (IoT), the transformative potential for IIoT is particularly compelling. A 2021 report by Grant View Research valued the IIoT market at 216 billion dollars in 2020 with a projected compound growth rate of 26.8% from 2021 to 2028. However, implementation of IIoT is not a straight shot path, and there exist are several barriers to consider. For example, nearly 74% of organizations surveyed by Cisco in 2017 reported failure of IIoT implementation; a more recent report in 2021 by Microsoft revealed that around 35% of IoT in business applications fail in proof of concept stage. Several critical factors impact IIoT implementation, these include: cybersecurity concerns, connectivity/interoperability, and unanticipated implementation costs.

Cybersecurity:

Given the nature of interconnected devices sharing and receiving data, cybersecurity is a large concern regarding implementation of IIoT. As discussed in an earlier issue of this blog, a 2021 Tripwire and Dimensional Research report found that 99% of 312 security professionals faced difficulties with security, and 97% had concerns about securing the supply chain. The Internet of Things in industrial settings are susceptible to attacks that could manifest in events such as denial of service attacks, ransomware attacks, theft of user and client data, and/or remote hijacking of a vehicle or a device. Given these types of attacks, IIoT is vulnerable to the loss of access to essential networks, interruptions in the supply chain, leaks in privacy, and in the worst case, the endangerment of lives. Part of these challenges can sprout from issues such as outdated software, lack of risk assessment, lack of specialized workers, and weak data encryption.

Companies can mitigate cybersecurity by addressing it in the planning phase. Starting with an assessment of risk and understanding vulnerabilities through preventative approach can mitigate harm further down the line. Understanding the relationship and strengthening security on both the information technology and operational technology is crucial rather than focusing just on one. Other approaches are to set IIoT devices to “fire and forget” so that the data is erased after it is sent and to “decouple information data and action data” so vulnerabilities are less impactful.

Connectivity, Integration, Compatibility, and Interoperability:

IIoT relies on devices, sensors, machines, and other components effectively communicating and working in conjunction with each other. Interoperability and connectivity is essential to harnessing the full benefits of IIoT. According to Hitachi, 85% of worldwide factories have machines that are either not connected or unable to connect to transmit data. This presents challenges because successful implementation requires that these devices do so. A robust implementation approach includes identifying and cataloging production equipment, devices, sensors, and processes, and assessing their compatibility with IIoT processes.

Legacy machines and technology are a large component to this issue. Legacy machines and technology are older technologies with a lifespan of 30 to 60 years. These technologies are frequently unable to connect. IIoT machines themselves may also have difficulty in synchronization from outages, errors, and power blackouts. This brings risk to the entire industrial process and could result in enormous losses for a company. Despite this, there exist several roadmaps to bringing these legacy machines online. Companies can start with an assessment of these legacy machines and decide which options are best for them. These options include small scale IIoT, replacing the legacy machines, and/or retrofitting these machines into the IIoT network.

High Costs and Delivering on Promises for Return on Investment (ROI):

The compatibility/connectivity problem can feed directly into high investment costs. According to a Microsoft report, 29% of companies surveyed reported lack of resources as a reason for not adopting IoT. Replacing current machines with ones that function within an IIoT infrastructure or network can present exorbitant upfront costs. Furthermore, a company seeking to implement IIoT will need to hire on new talent from data mangers to IIoT deployment professionals to software engineers to support their IIoT operation. The need to hire new employees presents yet another cost to the company and could even push the company to need to restructure their organization.

Given that there are so many challenges to IIoT implementation and high upfront costs exist, companies may have difficulties gauging the return on investment. This adds another barrier to IIoT. One solution is to mitigate the large investment costs, industry professionals have recommended incremental IoT implementation in small projects with concrete milestones. Use of IIoT can start with the areas that are more likely to yield higher returns. Companies can also explore cost cutting options through use of public infrastructure or software-as-a-service use.

Conclusion:

Although these issues were presented as separate in this blog, solutions can overlap and address multiple problems at one. For example, taking on IIoT in small projects or increments grants companies the opportunity to avoid the large initial cost. It also allows for a test case for IIoT implementation with respect to cybersecurity and interoperability and connectivity to decide what works best for each company.

Despite barriers to implementation for IIoT, the sector continues to grow. Progress has provided new insights into existing challenges and ameliorated the effect they have. While challenges will continue to exist and evolve with IIoT, solutions will arise to meet them.

For Further Reading:

Top 5 Challenges of Implementing Industrial IoT

http://www.xorlogics.com/2020/08/31/top-5-challenges-of-implementing-industrial-iot/

How Security Concerns are Holding Back the Industrial Internet of Things

https://www.reworked.co/information-management/how-security-concerns-are-holding-back-the-industrial-internet-of-things/

Industrial IoT (IIoT) and Cybersecurity: Challenges and Prospects

https://www.techslang.com/industrial-iot-and-cybersecurity-challenges-and-prospects/

Top Three Industrial IoT Challenges

https://dzone.com/articles/3-iiot-industrial-internet-of-things-implementatio

Top Ten Challenges Enterprises Face in IoT Implementation

https://www.finoit.com/blog/enterprise-challenges-in-iot/

6 Key IoT Implementation Challenges for Enterprises to Consider.