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THE INTERNET OF THINGSWhat Philippine Manufacturers Need to Know
THE INTERNET OF THINGSWhat Philippine Manufacturers Need to Know
1 Introduction
Foreword
3 What is the Internet of Things? Digital Devices Data IoT Network
8 Who is Using the Internet of Things? The Internet of Things for Consumers The Internet of Things in the Philippine Manufacturing Landscape Concepcion Industrial Corporation’s Smart Appliances Other Innovations by Local Companies
14 Using the Internet of Thingsfor Your Business Supply Chain and Production Delivery and Logistics Human Resources and Training Security Infrastructure
26 What Will it Take for the Internet of Things to Thrive in the Philippines? Reliable Connectivity Hardware & Software Optimization & Practice Human Capital
32 What Now?
IMAGINE a world where your business is optimized by digital
technology and physical infrastructure working
seamlessly together.
IMAGINE having your supply chain and equipment connected
in one network, where you can easily monitor progress
and quality.
IMAGINE running your business with by-the-minute updates
on what your customers want, 24-hour surveillance of your
factories, and automated production lines that work with
the utmost precision and e�ciency.
With the Industrial Internet of Things, all this and more is
possible. Industrial IoT is quickly becoming a global
phenomenon, such that it has been dubbed as the trailblazer
for a new Industrial Revolution.
This white paper discusses the possibility and implementation
of IoT in the Philippines’ manufacturing sector. It o�ers a
comprehensive look at the many ways IoT can change your
enterprise and its operations, and it highlights the ways you
can utilize the precursors of IoT in your manufacturing
business today.
Allow us to guide you throughthis road to innovation.
Derrick HengSenior Advisor,
Globe MyBusinessGlobe Telecom
FOREWORD
The INTERNET OF THINGS has been making waves lately as
an innovative way to make devices smarter. It optimizes them
to gather data, connects them to each other via the Internet,
and makes use of this network of information to improve
consumers’ lives.
IoT is already making its mark in the Philippines today.
Consumers are looking at smart thermostats, smart speakers,
and even smart wearables like the Apple Watch or FitBit.
These devices all have something in common: they’re enabled
by technology and the Internet to gather data, which
consumers can make use of in order to set goals, conserve
energy, or enjoy life more.
However, rather than just an innovation to make lives easier
for consumers, research suggests that IoT’s greatest
beneficiaries will be businesses. Among those businesses, the
industry to benefit the most will be manufacturing. Nearly
every facet of the process manufacturers go through everyday
can be optimized by IoT, and with our current technologies,
we’re only seeing the tip of the iceberg.
This white paper prepared by Globe myBusiness can help you
better understand how IoT works, and give you an insight on
how you can use it for your business.
Albert de LarrazabalChief Commercial O�cer
Globe Telecom
FOREWORD
The Internet of Things: What Philippine Manufacturers Need to Know 1
$5 Trillion. That’s the annual economic value that McKinsey & Company, a global management consulting
firm, expects will be created by the Internet of Things across B2B environments such as factories, construction
sites, oil & gas, and o�ces1. 38% of that value will accrue to emerging markets.
As of February 2017, the Philippines’ merchandise export sales amounted to $4.782 billion2
and reached a gross value added (GVA) of PHP 2.7 trillion3. With these statistics, Philippine
manufacturers stand to gain enormously from adopting hardware, software, processes, and tools that
leverage the Internet of Things. But what exactly is it?
1http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/an-executives-guide-to-the-internet-of-things2https://psa.gov.ph/tags/exports3https://philippinemanufacturing.wordpress.com/category/status-of-manufacturing/
The Internet of Things: What Philippine Manufacturers Need to Know 2
The INTERNET OF THINGS is a revolutionary system that forms an online network of computing devices
embedded in everyday objects, enabling these devices to send, receive and analyze data at scale.
In a business setting, these optimized processes allow entrepreneurs to make more e�ective business decisions,
ultimately growing revenues and the bottomline.
3
What is theInternet of Things?
Whether or not you’ve heard of the Internet of Things, you’ll surely become morefamiliar with the term in the next few years.
The Internet of Things: What Philippine Manufacturers Need to Know
4
To debunk a common misconception, IoT is more than just machine-to-machine functionality. It involves the
combination of three systems:
Getting to know these three pillars and the way they interact is the easiest way to understand and simplify IoT.
DIGITALDEVICES DATA IoT
NETWORK
“The value of IoT products doesn’t come fromthe technology, or the Internet, or the things. Value iscreated in IoT by making sense of data, turning it into
knowledge and meaningful action.”- What the Internet of Things is Not About by Stijn Schuermans, founder of Innovictory and
Senior Business Analyst at leading app economy research company SlashData
The Internet of Things: What Philippine Manufacturers Need to Know
01 DIGITAL DEVICESThe Internet of Things is defined by the
networking of physical things (hence its name)
by enabling them with sensors, cameras,
software, and network connectivity. These
things range from household appliances,
vehicles, machinery and equipment,
infrastructures, and even clothing. When
embedded with sensors, software and
connectivity, these “digital devices” are able
to gather, analyze, send, report and even act
upon data.
5The Internet of Things: What Philippine Manufacturers Need to Know
02 DATAThe data that digital devices collect often
depend on the devices themselves. An easy
example would be a refrigerator that keeps
track of the products inside it, a car that notes
commonly visited locations and drives itself to
those venues, or sensors on machinery that
predict the machine’s degradation.
In fact, sensors can be made to detect various
factors: temperature, touch, proximity,
pressure, the presence of smoke and gas … the
list goes on and on.
But the important part of IoT isn’t the data
itself, even though that’s pretty
revolutionary―it’s the many uses of that data,
which can be dissected and understood
through the IoT network.
6The Internet of Things: What Philippine Manufacturers Need to Know
03 IoT NETWORKThe most important part of IoT is the
network that brings everything together.
By connecting all these sensors (i.e. the
ones in the refrigerator, the car, or the
machine) to one network, you can access
all the data they collect―and in the case
of manufacturing, you can use this data
to improve business operations.
7The Internet of Things: What Philippine Manufacturers Need to Know
8
Who is using theInternet of Things?
But the Internet of Things is, after all, relatively new. It’s being repeatedly improved and revamped, and we are still
on the first few steps toward maximizing its potential.
With this revolutionary technology, it’s undoubtedly at the forefront of many successful companies’ operations.
The Internet of Things: What Philippine Manufacturers Need to Know
Right now, the praise for IoT is more pronounced on the side of consumers, as there are a number of digital
devices people can use to optimize their own homes.
9
The FitBit is a heart rate
monitor designed as a
wearable, so you can track
your pulse anywhere you go,
allowing you to set fitness
goals and keep them.
Samsung’s SmartThings are a
wide range of appliances you can
use at home to conserve energy,
get healthy, and even have fun.
The Apple or Pebble watch
functions almost like a
smartphone you wear on your
wrist with the many apps,
functions and programs it has.
Drones come with a multitude of
uses. They can be used for
photography, surveillance, or
even sports like drone racing.
See other products here: http://iotlist.co
The Internet of Things: What Philippine Manufacturers Need to Know
Amazon’s Echo and Alexa
devices allow you to control
other IoT devices in your
home through voice
commands.
Google’s VR Headset
allows you to experience
virtual reality in ways
you’ve never seen before,
and can take you to
di�erent places or
situations from within the
safety of your own home.
The Ring Video Doorbell
secures your home
through multiple devices
that allow you to monitor
and communicate in
every room of your house,
all through one platform.
Nest’s learning
thermostat remembers
your temperature
preferences, learns your
schedule, and programs
itself to save energy.
See other products here: http://iotlist.co
10The Internet of Things: What Philippine Manufacturers Need to Know
11
The Internet of Things in the Philippine Manufacturing Landscape
1https://www.i-scoop.eu/internet-of-things-guide/internet-of-things-in-manufacturing/ 2http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/an-executives-guide-to-the-internet-of-things
IoT will be more valuable to businesses―most
especially the manufacturing industry1. It’s foreseen
that emerging markets will be the prime areas for
IoT adoption, and eventually, the number of IoT
deployments in developing economies might
surpass those in advanced ones2. This is good news
for countries like the Philippines.
Many internationally-acclaimed corporations are
spearheading the use of IoT for manufacturing, and
some local companies have been quick to jump on
the bandwagon as well.
The Internet of Things: What Philippine Manufacturers Need to Know
12
“Our vision [is] to build better lives by using smart solutions in
our products, which will provide comfort and convenience to
our consumers. To be able to realize this vision, we are forming
a strategic alliance with Ionics to help us develop and apply
the technology to our locally manufactured appliances.”-Raul Joseph Concepcion, chief executive of CIC,
in an interview with ABS-CBN News
One of the most notable local companies to make
the leap is consumer and industrial solutions
manufacturer Concepcion Industrial Corporation.
Teaming up with electronics manufacturing house
Ionics EMS Inc., they’re developing “a new
generation of smart appliances and products using
the Internet of things (IoT) technology”1.
Already they have developed smart appliances like
air conditioners, refrigerators, and washing
machines that are optimized with network
technology in order to make them more
energy-saving, which is beneficial for both the
consumer and the planet.
1 http://business.inquirer.net/209193/209193
Concepcion Industrial Corporation’s Smart Appliances
The Internet of Things: What Philippine Manufacturers Need to Know
13
JuiceBox creator Jason Josol and his team won
the AngelHack Manila award for their futuristic
IoT juicebox.
Photo: https://e27.co/
Galileo CEO Jun Lozada and his team of
innovators at the launch of TARA.
Photo: http://www.philstar.com/
A Clearskies drone takes its first test
flight of 2016.
Photo: https://www.facebook.com/clearskiesph/
Other Innovations by Local Companies
CIC and Ionics are not the only ones trying their
hand at implementing IoT in the country. In Scoping
out the Internet of Things in the Philippines, Harvey
Barkin quotes some entrepreneurs who shared their
own experiences with IoT:
JuiceBox creator Jason Josol says they built a 3D
model of a customizing juicer
Galileo CEO Jun Lozada found a way to ensure
the safety of a mobile device and its user against
cyber thieves
Clearskies CEO Vince Villena and his team put to-
gether unmanned aerial vehicles (UAVs) or drones
to detect oil and gas leaks.
The Internet of Things: What Philippine Manufacturers Need to Know
14
We’ve touched on some of the ways IoT can enhance life for consumers and even for business owners, but there are many more enhancements IoT can o�er to themanufacturing industry.
Using the Internet of Thingsfor Your Business
The Internet of Things: What Philippine Manufacturers Need to Know
15
Because IoT for manufacturing mainly involves machinery, or “things,” it is most useful in departments that
require equipment or upgraded technology. Some examples include:
But that’s not all IoT is good for. The best part about the Internet of Things is that it opens up many possibilities
for creativity in a number of fields and departments.
Here are the top five departments that may be improved by the use of IoT, as well as some innovations you can
add to optimize each.
PRODUCTIONRESEARCH
ANDDEVELOPMENT
DELIVERY
The Internet of Things: What Philippine Manufacturers Need to Know
SUPPLY CHAIN AND PRODUCTION
Quality Control
As mentioned above, sensors placed on your conveyor belts, machinery, and other equipment can tell you a
number of things. They can indicate whether the temperature, pressure, volume, dimensions, etc. are optimal in
your production space and conducive to good-quality products. They can also detect degradation in your
equipment, so you are better prepared for any technical di�culties or glitches.
16The Internet of Things: What Philippine Manufacturers Need to Know
17
SUPPLY CHAIN AND PRODUCTION
Real Time Metrics
You can improve the e�ciency and accuracy of your measurements, tallies and records with IoT. Besides sensors
that can tell you the quality of your products, you can also measure quantity with bar- or QR-codes, RFID tags, and
scanners. Having a scanner at the end of every conveyor belt, for example, can tell you how many products have
been finished and whether or not you’re meeting your quota at the right pace.
The Internet of Things: What Philippine Manufacturers Need to Know
18
Product Development and Innovation
SUPPLY CHAIN AND PRODUCTION
With the edge that IoT o�ers, businesses now can and should look into adding features to their products and
services that will maximize the use of a digital network. Products and services can no longer be stagnant in terms
of o�ering just one function; they need to have multi-functions or Internet compatibility. Thus, in addition to being
an optimizer for your processes, IoT can also become a source of new revenues for your business.
The Internet of Things: What Philippine Manufacturers Need to Know
19
The ultimate stage of IoT utilizes automated cars, trucks, and aerial delivery drones that drive themselves.
However, while this is still a long way o� for many countries including the Philippines, IoT for delivery purposes
already involves global positioning systems that can pinpoint the location of your vehicles, compute the time they
take to arrive at their destinations, and account for any accidents along the way. If you’ve used Uber or Waze, then
you have first hand knowledge of this technology.
DELIVERY AND LOGISTICS
DELIVERY
50M 100M
The Internet of Things: What Philippine Manufacturers Need to Know
20
In manufacturing, new technologies in augmented reality can optimize the training of skilled workers or
employees who handle complex equipment, such that they are able to assemble, utilize or experiment with new
technology or machinery through augmented reality, lessening the risk of physical damage as well as heightening
the chance of accuracy and progress. For example, Microsoft’s Hololens allows you to engage with digital content
and even interact with holograms surrounding you - so imagine the possibilities this presents for working with
simulated equipment or situations.
HUMAN RESOURCES AND TRAINING
The Internet of Things: What Philippine Manufacturers Need to Know
21
Nowadays, IoT has taken security to the next level, with innovations like old mobile devices that live a second life
as 24-hour surveillance cameras, systems that require biometric authentication in order to access sensitive data,
and sensors that detect heat, noise or motion, among many others. A similar device that is currently available for
the home is the Ring Video Doorbell, over a million of which have already been sold worldwide.
SECURITY
The Internet of Things: What Philippine Manufacturers Need to Know
Beyond optimizing products, processes or programs, you can improve your facility itself. As mentioned earlier,
Concepcion Industrial Corporation has been making eco-friendly smart appliances for the home. There are many
other industrial smart appliances you can use to improve your factory, warehouse or o�ce’s environmental
impact, connectivity, or quality. Consider smart plugs, thermostats, lightbulbs or speakers―after all, they’re not
just good for the home.
INFRASTRUCTURE
22The Internet of Things: What Philippine Manufacturers Need to Know
23
Here’s a table that summarizes how IoT products can improve your business.
DEPARTMENT
QUALITY CONTROL
IoT PRODUCT BENEFIT TO YOUR BUSINESS
Heat, Pressure, or degradation sensorsEnsure optimum quality by making sure your
process runs as smoothly andconsistently as possible.
SUPPLY CHAIN RFID tags, bar- or QR-codes and scannersKeep track of your production by addingscannable codes or tags to your finished
products.
PRODUCT DEVELOPMENT Virtual Private Cloud*
Have your own cloud storage facility that isaccessible 24/7. This allows you and your entire
team to collaborate and access all necessary digital materials anywhere within the company.
For other products you can use to optimize your manufacturing business, check out Globe MyBusiness’ o�ered solutions here.*currently o�ered by Globe MyBusiness
DELIVERY Fleet Management System* Track your vehicles and assets, and ensure your routes are optimized through real-time GPS.
The Internet of Things: What Philippine Manufacturers Need to Know
24
DEPARTMENT IoT PRODUCT BENEFIT TO YOUR BUSINESS
SECURITY
Managed Security andSurveillance System*
Secure assets and monitor your businessoperations using state-of-the-art alarms,
surveillance and RFID systems.
Canvas Checklist Mobile App* Keep your warehouse and equipmentwell-maintained with a digital inspection
checklist.
For other products you can use to optimize your manufacturing business, check out Globe MyBusiness’ o�ered solutions here.*currently o�ered by Globe MyBusiness
HUMAN RESOURCES
Virtual or augmented reality equipment By simulating your training and/ormaintenance processes, you can train youremployees without risking the state of your
equipment and machinery.
Managed RFID Solutions* Automate employee attendance through wireless access for easier monitoring.
The Internet of Things: What Philippine Manufacturers Need to Know
25
DEPARTMENT IoT PRODUCT BENEFIT TO YOUR BUSINESS
CONNECTIVITY
Broadband*
Canvas Checklist Mobile App*
BGIX*
Mobile Internet*
By far the most crucial requirement for the Internet of Things is reliable Internet connection. This brings all your digital devices together and
gives you access to their data, from anywhere either within the facility or out of it.
For other products you can use to optimize your manufacturing business, check out Globe MyBusiness’ o�ered solutions here.*currently o�ered by Globe MyBusiness
INFRASTRUCTURE
Smart lightbulbs
Smart plugs
Smart thermostats
Smart speakers
Most smart appliances can be operated by voice commands, or through a network that connects
them all to one device. Many of them are also more eco-friendly and responsive than regular devices.
The Internet of Things: What Philippine Manufacturers Need to Know
26
What Will it Take for the Internet of Thingsto Thrive in the Philippines?
The Internet of Things is an exciting development to look forward to, but it’s going to take quite a bit of nationwide preparation in order to be fully actualized. Here’s a look at just what it takes to utilize the Internet of Things in the Philippines.
The Internet of Things: What Philippine Manufacturers Need to Know
27
For the Internet of Things to be implemented in the Philippines, the following factors will be required:
ReliableConnectivity
Hardwareand
Software
Optimizationand
Practice
HumanCapital
The Internet of Things: What Philippine Manufacturers Need to Know
The Internet of Things: What Philippine Manufacturers Need to Know 28
Reliable Connectivity: Achieve Stable
Internet Connection
With the necessity that compels businesses to
consider being IoT-capable, the country’s network
infrastructure has to coincide. IoT thrives on
WiFi connection to be able to link and sync devices
seamlessly. Two factors need to be taken into
account: Internet speed and adoption.
With the help of Globe Telecom, the country’s
average Broadband speed has been significantly
improving in the past five years, peaking at 5.5
mbps in the first quarter of 2017. Broadband
adoption rate has also increased 111% in the
past year.
Globe at Home is also leading the charge in making
access to the Internet more a�ordable and
accessible with 260,000 lines deployed in 2016,
and a goal of 400,000 lines by the end of 2017.
Finally, the introduction of fiber Internet technology
aims to further improve Internet connectivity by
ensuring a connection that is resilient to natural
disasters, particularly typhoons, as the Philippines
is a known typhoon country.
In order for the country to achieve faster Internet
speed, the government can lessen red tape by
taking away tedious permit procedures and building
constraints for the lack of cell sites.
29
Hardware and Software: Figure Out the
Infrastructure and Infostructure
Today’s next-generation sensors are smart,
cost-e�ective, accurate and easily deployable. But
beyond these, the smart factory of the future may
utilize biometric software apps, which will be able to
connect smart mobile devices to the security
ecosystem. Manufacturers will leverage cameras for
touchless fingerprint, eye and facial recognition,
microphones for voice recognition, and other
components for behavioral biometrics.
With sensors and digital devices underpinning the
current infostructure, manufacturers will also be
integrating new ways to apply greater automation
and digitalization across supply chains.
These ways include advanced machines with
robotics, self-optimization and self-configuration
capabilities, which enhance quality control and cost
e�ciency. The smart factory would also allow
manufacturers to control processes using
cloud-based dashboard systems.
The Internet of Things: What Philippine Manufacturers Need to Know
30
Optimization and Practice: Implement
and Innovate
In The Internet of Things and the Future of
Manufacturing, Markus Lö�er and Andreas
Tschiesner say: “Consider processes that govern
themselves, where smart products can take
corrective action to avoid damages and where
individual parts are automatically replenished.
Such technologies already exist and could drive
what some German industry leaders call the
fourth industrial revolution.”
The Roadmap is poised to address concerns over
building an enabling ecosystem for IoT in the
Philippines by stating that:
“The Philippines, by all means, should strive to
develop itself as an innovative hub by aligning its resources and
core strengths with an approach that is carefully planned and
studied. Technology innovation plays a critical role towards
economic growth; therefore, the Philippines should aim to
reach its highest potential by becoming more innovative in
Internet-related technology.”- Lö�er and Tschiesner in their book
The Internet of Things and the Future of Manufacturing
The Internet of Things: What Philippine Manufacturers Need to Know
31
Human Capital: Taking your organization
to the future
Finally, the last crucial step that shouldn’t be
overlooked is making sure your team is ready for the
big changes that come with using new technology
in your business. Some training will be required to
make sure your team understands how digital
devices work, what can be done with the data they
collect, and how to solve technical issues if they
come up. You should be preparing them not only for
dealing with current technologies, but whatever the
future has in store as well.
The Internet of Things: What Philippine Manufacturers Need to Know
32
What Now?Now that you’ve become familiar with the Internet of Things and its benefits for your business, what should you, as a manufacturing business owner, do to make the most of it?
The Internet of Things: What Philippine Manufacturers Need to Know
33
If it isn’t clear yet, understand that this is the most important thing.
Today’s technology relies on the Internet so much that if you don’t have
stable WiFi connection, you will definitely be falling behind.
Every business is unique, which means yours will have its own specific
needs. Discover these needs by going deep into your business and
observing its pain points. Only then will you know what ought to be
optimized by technology.
This is another crucial step. With the number of companies selling various
products and digital solutions, it’s important to find someone you can
trust and rely on.
The Internet of Things may sound like a dream come true, but that doesn’t
mean its precursors aren’t anything short of game-changing. Now that
you know how they can work for your business, try some of them out. As a
bonus, check out our list of manufacturing solutions here.
The only way to tell if something’s working is to see if your overall results
improve. Thus, once you’ve implemented some IoT precursors to your
factory, o�ce, security system or delivery vehicles, check on their progress
regularly to make sure the technology is working at its best.
The Internet of Things may be a few steps away, but technology is moving so quickly that very soon we may well be looking IoT in the face.
To prepare for that day, consider doing the following:
Get stable Internet connection.1
Understand the pain points of your business.2
Find a trusted partner with reliable solutions.3
Monitor the e�ects.5
Implement an IoT precursor (or two) to your business.4
The Internet of Things: What Philippine Manufacturers Need to Know
If you want to learn more about the Internet of Things andhow you can utilize its precursors to optimize your business,
e-mail us at [email protected]
mybusiness.globe.com.ph Globe myBusiness