WE live in exciting times, full of opportunity for business owners and operators. The Internet of Things (IoT) is enabling digital transformation initiatives that are unlocking value and fundamentally upending industry norms. This change is happening at a pace not seen since the widespread adoption of computing and automation technology in the late 20th century. We are in the middle of the Fourth Industrial Revolution, or Industry 4.0. On paper, this technological revolution delivers clear competitive advantages. Honeywell's latest research shows more than 60 percent of medium-to-large enterprises in the United Arab Emirates (UAE) and Saudi Arabia believe IoT technologies are already critical to business operations, or will become so in the next five years. Yet estimates show that companies in this region are not yet able to capture the "trapped" value of more than $400 billion, with 90 percent of them not yet able to leverage new technologies that would drive growth and generate new revenue streams. The good news is that with the proliferation of data-capture sensors, cloud computing, software, and data analytics platforms, companies now have advanced tools at their disposal to drive cost, operational, and energy efficiencies that were previously unimaginable. Yet many companies are still learning how to put all this great theory into practice within their operations. For companies across the Gulf, it's a hurdle that needs to be overcome urgently — for many, future growth is dependent on it. Opportunities for value creation are rife in the region Opportunities for value creation through digital transformation initiatives can be found across the region, across public sector and key industries in areas including the oil and gas, aviation, and building sectors. For example, our calculations have shown that market-ready IoT technologies for the oil and gas industry can help improve plant performance and increase operating profitability by up to $300 million annually for a 200,000 bpd refinery. In the airline industry, we've seen analytics software reduce fuel costs across entire fleets by up to 5 percent, in an industry where even single-digit percentage improvements can save tens of millions of dollars per year. In the real-estate industry, a recent IoT pilot at a major skyscraper in Dubai saw an overall 40 percent reduction in total maintenance hours for mechanical assets, while improving availability to 99.95 percent, enabling significant cost savings and the reduction of unplanned reactive maintenance. IoT-enabled technologies are increasing automation and performance within an enterprise by blending physical objects with software solutions and data analytics. This opens up a wealth of new possibilities to be more efficient, more productive and safe, as well as to increase organizational responsiveness and, ultimately, profitability. Unlocking trapped value While the technology is available in the market, it's still relatively nascent, process specific, and developing rapidly in terms of potential. Companies need to invest time and money in an innovation mindset, and engage with technology providers who understand their operations and have the domain expertise to tailor and implement value-add solutions that can help drive competitive advantages. Forward-thinking regional businesses, however, are already unlocking the value of Industry 4.0 by optimizing various processes in other areas such as petrochemicals, manufacturing, smart buildings and cities, as well as transportation, supply chain and logistics. As a starting point, they are studying and investing in IoT Proof of Value (PoV) and Proof of Concept (PoC) initiatives, and are creating data-based business cases that make one thing clear: The value of digital transformation for industry is undeniable. Industry 4.0: A chance to lead the way The Gulf region has always been open to adopting advanced technologies and implementing cutting edge innovations. This openness largely derives from regional governments and their visionary leadership — there is an understanding that technology has the capability to propel the region forward for businesses and boost local economies. It is inevitable then that we are witnessing more digital transformation strategies being implemented and greater investments being made. Technology providers are coming together to enable the development and deployment of these IoT strategies and businesses are embracing innovation-centric mindsets to try and reap the rewards more quickly. As we continue along this path, we expect IoT to be at the heart of all industrial operations within ten years. And we are not alone in our thinking. Experiencing IoT first-hand It is clear that with regional organizations beginning to deploy IoT solutions and even more considering it as a near future investment, that the Gulf region is a hub of potential. With this in mind, Honeywell recently launched its very first interactive technology experience center in the Middle East, which acts as an immersive, innovation and knowledge sharing hub, bringing together a broad range of hardware and software technologies that highlights the power of IoT and Industry 4.0. We use it to showcase the potential of IoT, and help those organizations who are struggling to put IoT theory into practice understand how digital transformation can work for them in the real world. By harnessing connectivity, we can collectively deliver better outcomes to make businesses more efficient, more productive, and safer. This coupled with greater collaboration and knowledge exchange, ensures the region's businesses will start to unlock the true value provided by IoT. — The writer is president, Honeywell, High Growth Regions, Middle East, Russia & Customs Union.
