IIoT implementation challenges: analysis and mitigation by blockchain

Abstract

Purpose

The purpose of this methodology is to categorise the challenges into cause and effect group. The modern scenario of customization, personalization and multi-restrictive working because of pandemics has affected the operations of manufacturing small and medium enterprises (SMEs). In the new normal, the digitalization of manufacturing SMEs can be the path breaker. Modern digitalization includes a mix of technologies such as the industrial internet of things (IIoT), the internet of things, cyber-physical system and big data analytics. This digitalization can help in achieving new design changes, efficient production scheduling, smart manufacturing and unrestricted on-time delivery of quality products. This research paper aims to recognize and analyze the challenges faced while implementing IIoT technologies in manufacturing SMEs and tries to find the possibility of mitigating challenges by blockchain technology.

Design/methodology/approach

There were ten challenges of IIoT implementation identified from the literature review and experts’ opinions. To collect information from Indian manufacturing SMEs, a survey tool was formed in the form of a questionnaire. On the fundament of responses received from industrial experts, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique has been used for categorizing these challenges into cause and effect groups. Further, the authors tried to mitigate observed challenges with the help of blockchain technology.

Findings

With the implementation of IIoT technologies, the manufacturing processes become conciliatory, effective and traceable in real time. Observation of the current study states that the top effect group challenges such as the security of data and reliability of technologies can be mitigated by enabling blockchain technologies. The authors conclude that blockchain-enabled IIoT technologies will be highly beneficial for the Indian SMEs strategically and practically in the current scenario.

Research limitations/implications

Methodology of DEMATEL focuses on responses received from experts. The broader approach of survey from manufacturing organizations is compromised due to small sample size in this methodology. Experts approached for survey were from manufacturing SMEs of Delhi National Capital Region only. Broader survey-based techniques may be applied covering different sectors of SMEs in future work.

Practical implications

Technologies such as blockchain can facilitate advanced security in the application of IIoT and other such practices. While dealing with significant issues and challenges of new technologies, blockchain gives an edge of balance in the current scenario. Its properties of fixity, temper evident and circumvent fraud make this technology ideal for the digitalization of the manufacturing systems in SMEs.

Originality/value

Digitalization of manufacturing facilities is the need of the hour. Pandemic challenges have highlighted the urgency of it. This research will motivate and guide the manufacturing SMEs in planning strategies and long-term policies in implementing modern technologies and coping up with the pandemic challenges.

Citation

Kumar, R., Sindhwani, R. and Singh, P.L. (2022), "IIoT implementation challenges: analysis and mitigation by blockchain", Journal of Global Operations and Strategic Sourcing, Vol. 15 No. 3, pp. 363-379. https://doi.org/10.1108/JGOSS-08-2021-0056