1 IoT Fundamentals: Definitions, Architectures, Challenges, and Promises
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equip both departments to work toward common goals together while improving
company-wide visibility.
• Agility: When an organization does a better job of controlling costs and analyzing
KPIs, it is better able to act with agility to reduce production time and make space
for innovation, which was a highly difficult task in a siloed IT/OT environment.
1.4.5.3 Major Challenges
There is the perception of several barriers that must be overcome in order to
evolve manufacturing plants to smart factories. A recent survey of manufacturing
executives by Cisco ranked these problems for IoT in manufacturing, starting from
the most serious [17]:
• Lack of supply chain visibility
• Lack of visibility of plant floor KPIs
• Inability to access data within production
• Lack of common metrics across plants
• Plant floor IT apps in silos
• Employee skills gap
• The complexity of manufacturing operations
• Inflexible automation
• Lack of understanding the plant floor
• Lack of reliable plant floor network
• The process not automated (manual)
• Lack of clear manufacturing strategy
• Unable to justify return on investment (ROI)
• Insufficient investment to modernize
• Security threat or fear
1.4.6 Smart City
People have lived in cities for centuries, but only relatively recently, the mass
migration from rural areas to cities has intensified worldwide. In 1950, less than onethird of the world’s population lived in cities; that fraction is expected to increase to
two-thirds by 2050. In raw numbers, that was fewer than 1 billion people, to upward
of 4 billion people. As these populations increase, it puts tremendous pressure on
the local environment. The amount of energy consumed, the amounts of food and
products that must be brought into the city, and waste that must be removed strain
the transportation system and the city itself. The world’s cities use 60–80% of the
energy used in the world. They also contribute the most to greenhouse gas emissions.
Cities consume 60% of potable water in the world, wasting an estimated 20% in
leakage. It is important to optimize the use of these critical resources and maximize
their conservation [18].
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equip both departments to work toward common goals together while improving
company-wide visibility.
• Agility: When an organization does a better job of controlling costs and analyzing
KPIs, it is better able to act with agility to reduce production time and make space
for innovation, which was a highly difficult task in a siloed IT/OT environment.
1.4.5.3 Major Challenges
There is the perception of several barriers that must be overcome in order to
evolve manufacturing plants to smart factories. A recent survey of manufacturing
executives by Cisco ranked these problems for IoT in manufacturing, starting from
the most serious [17]:
• Lack of supply chain visibility
• Lack of visibility of plant floor KPIs
• Inability to access data within production
• Lack of common metrics across plants
• Plant floor IT apps in silos
• Employee skills gap
• The complexity of manufacturing operations
• Inflexible automation
• Lack of understanding the plant floor
• Lack of reliable plant floor network
• The process not automated (manual)
• Lack of clear manufacturing strategy
• Unable to justify return on investment (ROI)
• Insufficient investment to modernize
• Security threat or fear
1.4.6 Smart City
People have lived in cities for centuries, but only relatively recently, the mass
migration from rural areas to cities has intensified worldwide. In 1950, less than onethird of the world’s population lived in cities; that fraction is expected to increase to
two-thirds by 2050. In raw numbers, that was fewer than 1 billion people, to upward
of 4 billion people. As these populations increase, it puts tremendous pressure on
the local environment. The amount of energy consumed, the amounts of food and
products that must be brought into the city, and waste that must be removed strain
the transportation system and the city itself. The world’s cities use 60–80% of the
energy used in the world. They also contribute the most to greenhouse gas emissions.
Cities consume 60% of potable water in the world, wasting an estimated 20% in
leakage. It is important to optimize the use of these critical resources and maximize
their conservation [18].