Japan’s Path to Industrial IoT: Bridging Knowledge and Adoption

While Japanese companies might be familiar with installing and using sensor data and automation technology, they’ve been shy to embrace the Industrial Internet of Things (IIoT).

Last September, Infineon held a press briefing on IIoT in Tokyo. Yasuaki Mori, president of Infineon Technologies Japan, stressed, “I don’t think Japan is behind in IIoT. Japanese companies are very knowledgeable of their own ‘use cases.’”

Mori expressed concern that Japan might be missing the whole point of IIoT. He reported that many Japanese corporations aren’t seizing the opportunity to transform their business by connecting with others on IIoT.

In short, Japanese might know the mechanics, but they actually don’t get what IIoT is really for.

Steve Hanna, Infineon’s senior principal and security expert based in the United States, came to Tokyo as a main speaker at the IIoT briefing. Hanna described, extensively, what he sees as the real value IIoT. “For me, the most exciting thing about IIoT is that it creates new business models,” he said.

Junko Yoshida reported on the briefing, and highlighted Hanna’s example of Kaeser Compressors:

Kaeser is a German company manufacturer of compressed air and vacuum products. Kaeser customers who used to buy from Kaeser machines to compress air no longer need to do so. Instead, they can get from Kaeser compressed air per cubic meter, doing away with the big initial investment in equipment. Instead, they get a small monthly bill.

This transformation is similar to the choice between “buying a car or taking a taxi,” explained Hanna. “Many manufacturers are looking at IoT — just to do that so that they can shift their business from selling things to selling services.”

Equally valuable is the “predictive maintenance” enabled by IIoT, Hanna said. He cited VR Group, a state-owned railway company in Finland. “As you know, it is extremely cold in Finland,” he said. “When it’s too cold, sometimes the doors [of a train] wouldn’t close.” This makes maintenance a critical business for the Finnish company.

Previously, VR Group regularly changed door parts and components — regardless of their condition. But by installing sensors into the doors, the company has begun getting “early warning signs for failure,” Hanna said. Sensors can detect when doors start to close a little slower, a sign of impending trouble. IIoT has given VR Group greater reliability at lower cost, he explained.

In many cases, corporations are convinced to use IIoT because it can make their processes more efficient.

But the unresolved reality is that even though IIoT is an excellent time-saver, most business are unprepared to handle a cyberattack on their IIoT systems.

Yoshida points out that if Infineon is serious about talking the Japanese into IIoT, the promise of efficiency alone wouldn’t do the job. The Germany company must demonstrate an expert knowledge of hack attacks, and strut its stuff in IIoT hardware security solutions.

Read the full story on our sister site EETimes.com