IoT use increases production of 72% of manufacturers, BDO study shows

The global manufacturing industry is enthusiastically welcoming the IoT trend by embracing smart devices and embedded intelligence to boost productivity. IoT is currently responsible for better management of at least half of plant production and equipment processes.

So far, 72 percent of manufacturers have seen productivity increase while 69 percent have confirmed improved profitability in 2016 as a result of IoT implementation in plants and processes, according to a MPI Internet of Things study sponsored by BDO. The survey of 374 manufacturers was conducted in November and December 2017.

Although more than half of companies consider themselves IoT-competitive and 14 percent believe they are leaders in IoT adoption, they still lack sufficient budgeting for research and development and strong cybersecurity. In fact, most don’t even have a clear strategy to protect their data and infrastructure from third-party attacks or mitigate risks associated with IoT vulnerabilities.

Only 40 percent develop devices with security in mind and incorporate it at the design stage while others wait until production, when technology changes are difficult to implement. One in five respondents said their organizations have yet to develop a cyber strategy that would confidently address IoT security concerns. Any security flaw turns the network into a vulnerability and a possible entry point for attackers.

“A data breach can result in angry customers and lost business, particularly if the victim company is deemed cyber negligent,” notes Shahryar Shaghaghi, Technology Advisory Services national leader and head of International BDO Cybersecurity. “And for manufacturers that sell to highly regulated industries or the government, an insufficient cyber posture—even if they haven’t had a data breach—can knock them out of the running for new business or result in terminated contracts.”