The challenge for many manufacturers undertaking IIOT initiatives is deciding whether to build their own Industry 4.0 platform in-house, or purchase a pre-built solution.
On the surface, developing an internal solution may seem like the best way to address an organization’s specific needs. But after beginning an initiative, most manufacturers underestimate the time, resources and hidden costs involved in building an enterprise solution.
“The average large internal IT project runs 45% over budget and 7% over time, while delivering 56% less value than predicted.” McKinsey Digital
In addition, the expertise of manufacturing organizations is not centered on developing enterprise software platforms. That’s why more companies are turning to solutions already in the marketplace that solve the same problems they are facing. Commercial solutions deliver the benefits of best practices based on experience with hundreds of clients.
There are several important factors and challenges when considering whether to build or buy. We’ve outlined the top determinations below:
Time
In-House
IIOT innovation is happening at a rapid pace. In the year or two it takes to develop an internal solution, manufacturers could end up behind the continuous technology advances deployed by third party solution providers. The long development timeline also delays the financial and operational benefits that are the heart of Industry 4.0 initiatives.
According to a Forbes Insight Report, it takes a company a year and a half longer to develop and deploy an IIOT solution rather than working with a third party.
Pre-Built
Pre-built, cloud-based solutions can be implemented quickly with few internal resources needed. Time to value is also accelerated with out-of-the-box platforms that are pre-configured with features and functionalities that solve manufacturers most pressing issues.
Complexity
In-House
Building an IIOT platform is a complex endeavor requiring a dedicated, experienced team of engineers, software developers and technicians. Since digital manufacturing is so new, there is likely no one internally who has been a part of a similar project before. Lack of experience can prolong the length and complexity of projects, often resulting in failure.
The complexity does not end when the platform is built. Internal teams will need to manage maintenance, security issues, bug fixes and new feature development.
75% of all IoT projects fail due to lack of experience by companies developing them. Cisco Study
Pre-Built
More manufacturers are buying IIOT solutions that are ready to go, and have been proven to work. Industry 4.0 software providers are solely focused on developing the most innovative technology solutions that solve real challenges facing manufacturers.
Cost
In-house
There are often hidden, long terms costs associated with developing and maintaining software internally. Because the projects are large and lengthy, there is often scope creep, unexpected costs overruns and the need for additional sensors or equipment to support internal initiatives.
Manufacturers also need to consider the opportunity cost for resources that could otherwise be used to solve core business problems with a bigger impact on the bottom line.
Pre-built
There is a much lower upfront cost for third party, subscription IIOT solutions. They can also be lower in total price because the cost involved in developing and innovating the software is distributed among a large number of users.
Innovation
In-house
Manufacturers that build internal solutions risk developing inferior products compared to software companies dedicated solely to building cutting-edge software that is purpose built for manufacturers. As third party digital platforms advance rapidly, in-house solutions risk falling behind because of the time consuming, complex endeavor of updating and adding features to internal solutions.
Pre-built
Users of commercial IIOT software benefit from the continuous innovations and improvements made to the technology. The dedicated technology experts behind pre-built solutions work with manufacturing clients to add new features and modules that drive continuous improvement and benefit all users.
Automation Intellect’s pre-built IIOT solution has a rapid, low disruption, no contact implementation. Manufacturers are able to gain real-time visibility into plant and machine performance in just days.
Our software was designed by manufacturing experts who know the challenges facing the industry and the data they need to improve productivity and increase revenue.
- Plant View gives managers insight into overall plant performance in one dashboard so they can quickly see areas that need attention.
- TEEP View gives plant leaders insight into capacity and the maximum amount of additional production that can be untapped.
- Fix downtime issues as they happen with real time alerts.
- Eliminate time consuming and error-prone manual reporting.
Are you building an in-house solution now? Integrate Automation Intellect for immediate insight and value.
Many of the manufacturers we talk to say the long timeline for internally built solutions is keeping them from solving everyday challenges like downtime and defects, and delaying continuous improvement initiatives that increase revenue.
