The role of edge computing in IoT
In the most recent 20 years, with the explosion in applications of IoT devices, our lives have been changed dramatically. Whether you are a part of it or not, this trend is positively transforming the industry by exploring new business models. But everything has a price on it. IoT devices are generating a tremendous amount of data, according to a new report from IBM:
Obviously, this causes a lot of challenges and pressures on companies’ IT infrastructure management. In most cases, companies’ managers are bombarded with the vast amount of data from IoT devices. In the business perspective, this has a negative impact on profitability since the inefficient processes of collecting, storing and analyzing data are expensive. To solve this problem, ”edge computing” is created as the next generation of Cloud Computing to simplify data management process and accelerate digital transformation. Let’s imagine that IoT has a role as a “machine” that produces data. Cloud Computing provides “a station” to store data and transfer it to the right place to process. What about Edge computing?
Edge computing is located in the middle stage between IoT and Cloud Computing and defined as the method of processing data at the edge of the network which is closer to the source of the data. Accordingly, edge computing provides new possibilities in industrial IoT applications by shifting the processing power closer to the users. Instead of sending tons of raw data; nowadays, “dumb” devices can become “intelligent” by sending only filtered, analyzed and needed data. This is done by a local smart terminal which is connected to the device and plays a vital role in hosting data processing algorithms; accordingly, increasing the autonomy of machines by real-time optimization. Hence, by integrating this technology into business process, it creates undeniable values for companies through reduction of connectivity cost and saving computing resources.
To make good use of “Edge computing” and enhance IoT networks, you must be flexible and ready to adjust to new trends by expanding your in-house R&D team. Picture this scenario and you would find that there are always some missing pieces in your capabilities and resources that need to be fulfilled and it might cost even up to few million euro to nurture your R&D activities.
By making devices intelligent with more than 5000 delivered systems installed in more than 40 countries, Distence is an expert in digitalization of new and existing industrial assets . We provide smart terminals with developed edge computing technology and Condence – a secure IoT platform as a monthly service along with a team of experts at your service. With our edge computing solutions, companies save cost and enable new business models for extra revenue streams – all contributing to a higher ROI.
Implementation plan – How is the solution delivered?
Stage 1: Define Business problems first and draft technical solutions
– Focus on proper solution in business context
Stage 2: Implement a beta version to learn, test and improve
– Focus on learning and developing
Stage 3: Launch first marketable version of solution for pilot customer
– Get market acceptance and feedback
Stage 4: Improve the solution with the market driven information & requirements
Our customer – Skanska Maskin
Skanska Maskin is one of the largest Swedish construction companies with thousands of projects every year and over 10000 employees.
Skanska Maskin business is renting out tower cranes with a fixed fee pricing model by estimating the cranes’ working hours. The problem was a significant difference between hours calculated for the fixed fee and the actual operating hours. This lead to additional maintenance costs and caused loss of revenue due to unbilled operating hours.
Edge computing solution to monitor operational use was implemented and connected to IIoT platform. This was done in form of installing smart terminal to the crane main power switch and controls. Accordingly, the contract with the customer defines clearly weekly usage and operative hours included with the fixed fee. Besides, Skanska can invoice additional operating hours monthly based on reported data. Return of investment is commonly 14 days.
As a result, site operations could be streamlined by crane remote monitoring and a new business model is created by renting tower-cranes base on working hours. Basic rate includes usage in business hours (when on-site service team is working). Evening and weekend usage is on additional cost per hour.
Don’t miss this year biggest trade fair Hannover Messe – April 23-27, 2018
Hannover Messe is the world’s most important industrial show that attracts leading professionals from across the globe with more than 225 000 visitors per year, from which 30% are from abroad.
Distence participated in Hannover Messe 2017 and is ready to attend as exhibitor jointly with team Business Finland again in 2018. We are giving you the opportunity to secure a FREE TICKET for the trade show and warmly invite you to visit our booth. In accordance with the lead theme of Hannover Messe 2018 which is Integrated Industry – Connect & Collaborate, Distence is happy to present our IoT solutions in digitalization of new and industrial assets by making devices intelligent.