The combination of ubiquitous artificial intelligence, the Internet of Things and low-cost 3D printing is going to have a profound effect on utilities’ business models, says Tom Roche.

Over the past year we have seen artificial intelligence (AI) progress in leaps and bounds across multiple sectors, and the manufacturing, utilities and services (MUS) sector is no exception. In 2017, and indeed subsequent years, we will see AI and process robotics become even more mainstream as we see MUS organisations look to augment staff and raise productivity. The economic impact of this is expected to double annual economic growth rates and boost productivity by up to 40 per cent by 2035.

The biggest impact AI will have in 2017 is in administrative tasks, call centres and corporate functions such as human resources. Through the use of AI, MUS companies will be able to harvest knowledge and skills, transferring that information on to a platform that is readily available to advise engineers onsite. They will be able to talk to a Chatbot in real time, helping to fix any issues on site without needing to call out for another engineer.

It has been widely talked about that the number of connected devices will continue to increase, with the market size for Internet of Things (IoT) devices expected to reach 20.8 billion by 2020. As a result in the MUS sector this coming year we expect companies to adopt IoT to aid preventive or condition-based maintenance, which can drive efficiencies and remove unnecessary costs.

As well as this, we also expect to see a rise in the adoption of “servicisation” in the sector as IoT becomes more prolific in the industry. For instance, Rolls Royce now sells “power by the hour” rather than the engine itself. Not only does this provide an opportunity to increase revenue, but it also ensures the entire service a customer needs (such as maintenance, spares, expertise) is delivered in a new business model and payment profile, and we except this trend to become more commonplace over the coming year.

However, with the increase in IoT devices we will also see a challenge to power these devices on a grand scale. As a result, the battle between technologies such as SigFox, LoRaWAN and IoT NB to decide which will be the predominant network for deploying devices will begin this year.

As more machines are built with their own IP addresses, there is going to be a greater need for tougher security measures to protect them. Although IoT presents an array of opportunities for businesses, it also exposes more chances for hackers to attack, which could have severe repercussions. For instance, for manufacturers of driverless cars, immense damage could be caused such as overriding safety controls if security measures are insufficient.

Due to the increasing need for more security, the industry will move away from home-made solutions where organisations have built their own systems for managing the remote working of IoT devices, because this will not be appropriate going forward. Instead, businesses will start to adopt commercial platforms rather than building their own. These platforms will embed all of the best practices, meeting the scalability and security requirements which they will inevitably need to keep them secure.

One of the limitations that has been prohibiting the deployment of IoT devices in the MUS sector has been the cost of parts. But in 2017, 3D printing will have a significant impact on this. Manufacturers will be using 3D printing to print electronic devices, changing the cost of producing IoT custom and low-­volume sensors, which as a consequence will increase the variety of solutions available.

An area where printed electronics and smart and functional ink will have an ever more significant impact will be in tracking and tracing products. This will be especially true across international borders, which mostly appeals to manufacturers of products with high tax levels.

For instance, drinks manufacturers will be able to track at a bottle level which bottle was made where, for what market and what percentage of tax was paid on that specific packet by being able to print and embed a sensor into the packet itself. Moreover, on a bigger scale we will see 3D printing enabling businesses to print custom-made products on mass and at a lower cost. These manufacturers will be able to adapt to the specifications of each order by printing the unique components that are required for each job and do that at mass scale, making the business more viable.

Tom Roche, managing director of the Manufacturing, Utilities & Services sector, Fujitsu UK & Ireland