Chemical companies are investing billions of dollars in technology solutions designed to capture, process and use data generated from a myriad of devices,
partners and industry systems. As companies explore what is being called the Internet of Things, they are seeing substantial return on investment in the form
of equipment effectiveness, reduced quality costs, improved supply chain visibility and much more. Chemical executives that know how to successfully navigate this era of Big Data are transforming the way business gets done, while those that lag behind are jeopardizing the future.
The Internet of Things (IoT) is defined by Gartner, Inc. as a network of physical objects that contain embedded technology to communicate and interact with their internal states or the external environment. The amount of information flowing to and from these smart machines is incredible. Yet, data by itself is relatively useless. It is only when chemical companies have the intelligent systems and technology backbone in place to capture the data and convert it into action that the true value of the Internet of Things can be realized. For example, IDC forecasts the IoT revenue opportunities for process manufacturing industries (including chemicals) will be $167 billion by 2018.
A lot has been written on the data being generated by sensors embedded in everything from test tubes to turbines. Yet it’s difficult to understand the
tangible benefits of the Internet of Things without some concrete examples to explain how newly available information is being used to change the business of chemical manufacturing. Below are a few ways chemical companies are capturing data and using it to make insightful business decisions. Of course, it is
important to remember that companies are just beginning to understand how to operate in this new, data-intensive environment.
Part 2 of this blog will elaborate on the role of technology as foundation for IoT driven business transformation.
Read also the CEO Perspective on the Internet of Things for Chemicals and follow us on @sapindustries for the latest updates on SAP Industries news,
insights, and events.
Note that this post originally appeared on SAP Business Innovationhttp://blogs.sap.com/innovation/industries/the-internet-of-things-what-it-means-for-the-chemicals-in...
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