What is IIoT and why does it matter?

How much of your production data is truly real-time today, and how much still depends on human intervention?

Roughly 5 to 15% of manufacturing facilities worldwide have SCADA (Supervisory Control and Data Acquisition) systems that are directly connected and integrated with an MES (Manufacturing Execution System). [i],[ii]

Traditionally, it requires very specific engineering if you want to get data from all the PLCs (Programmable Logic Controller) on the shop floor to your MES, by connecting all of them to the SCADA. But what happens in most plants is that the MES is not actually integrated with the plant floor. So, what do they do? They use either Excel, or paper… There’s no way to process data directly to the MES without people in the middle and you end up spending lots of money just on people handling data.

This is where IIoT (Industrial Internet of Things) comes in, getting rid of all that headache.

At the enterprise level, the MES connects to the ERP or does both. But the problem is that an MES does much more than just work orders and raw materials. An MES also calculates efficiency, in the form of OEE (Overall Equipment Effectiveness), and to do that, it must talk to the equipment on the shop floor.

So, what is IIoT?

IIoT refers to the application of connected sensors, devices and systems within industrial environments, such as factories, utilities and infrastructure, to collect, analyze and exchange data in real time. These deployments increase operational efficiency, improve asset utilization and enhance visibility into complex industrial processes.[iii]

It’s the idea that all the devices publish their data to a single namespace.

I’ll give you an example: A car manufacturing plant wants to reduce machine downtime, optimize production, and improve quality control. They already have Robots on the assembly line, CNC machines, conveyor belt sensors and the usual but important temperature, vibration and humidity sensors. All these devices will now publish to a central IIoT platform, which is a Unified Namespace (UNS) and the data is transmitted via industrial protocols (OPC UA, MQTT…)

The platform, where you would’ve pre-configured all the assets’ anomalies, will analyze real-time data and detect all of the issues that happen on the shop floor. It will also help you predict when a machine is likely to fail.

So, all in all: Higher production throughput, lower maintenance costs, and better product quality, all enabled by connected IIoT devices working together in real time.

Why does IIoT matter?

When everything feeds into a Unified Namespace, systems like SCADA, MES, ERP, and cloud applications simply subscribe to the data they need. It’s not just about connecting devices anymore. It’s about making information available to the people who use it. Ultimately, everything plugs into one ecosystem, with a single source of truth powering all consumers.

Here are four applications of IIoT:

• Predictive Maintenance is an approach which ensures cost savings for routine or time-based preventive maintenance due to smart metered connections
• Smart Logistics Management leverages intelligent products and services to ensure the right product is delivered at the right time, to the right location, and in the required condition.
• Enhanced Product Quality involves optimizing design, production, inspection, and traceability, with continuous adjustments made through in-process quality monitoring and advanced inspection technologies.
• Smart Inventory Management seamlessly integrates all inventory processes, connecting raw materials through to finished goods for improved visibility and control.

Opportunities and Challenges

The Industrial Internet of Things (IIoT) revolution has been driven by advancements in hardware, network connectivity, data analytics, storage, and cloud technologies. Affordable yet powerful hardware now supports smart sensors, wireless networks, and gateways. With the capacity to transmit and process large volumes of data, organizations can leverage advanced analytics on both real-time and historical datasets, enabling new business models and more efficient workflows. When these components work together seamlessly, the system becomes far more powerful than the sum of its parts.

IIoT adoption started slowly but is now gaining momentum. As with any major transformation, Industry 4.0 faces its share of challenges and resistance. Adoption has been slowed by a variety of technical and human factors. Among the most significant are:

• Security and Safety Concerns
• Integration Difficulties
• Infrastructure Requirements
• Business Related Challenges
• Return on Investment
• Human/Social issues
• Ecosystem issues

IIoT is one of the final steps in the digital transformation cycle of your manufacturing model. It will not fix broken processes. But it will expose them, faster than ever.

Never forget, technology is here to assist us, not find solutions.

[i] https://iot-analytics.com/mes-vendors-replace-pen-paper-spreadsheets/

[ii] https://www.criticalmanufacturing.com/blog/10-numbers-on-smart-manufacturing-mesas-response/

[iii]https://biztechmagazine.com/article/2025/07/industrial-internet-things-what-you-need-know-2025-perfcon