Later, in the 1980s, with the maturity of TCP/IP technology, the Internet gradually developed into a global network and came to be known as the Internet.
At the end of the 20th century, the Internet experienced explosive growth, changing the lifestyles of countless people and creating many Internet giants, such as Google, Yahoo, Amazon, and China's BAT (Baidu, Alibaba, Tencent).
Back then, due to limitations in computer hardware and software and communication technology, the internet was not as powerful as it is now. People could only access the internet to send and receive emails, browse web pages, visit forums, play some online games that seem extremely rudimentary now, and watch some low-resolution entertainment videos.
After entering the 21st century, some astute internet companies discovered that the role of the internet should not be limited to life and consumption; it should also be used for production and creation.
In other words, the internet should not only be used for "playing," but also for "improving productivity."
As a result, these internet companies put forward the terms "industrial internet" and "Internet Plus".
It is widely believed in the industry that Tencent was the first to propose the concept of the industrial internet in China. Even if it wasn't the earliest, it was certainly the one that talked about it the loudest.
From the perspective of internet companies, what people were using at the time as "traditional internet" should more accurately be called consumer internet.
The consumer internet revolves closely around consumers. Its main function is to help people have a better consumption experience in areas such as clothing, food, housing, transportation, social interaction, and entertainment.
The early mobile internet, which emerged alongside smartphones after 2007, was essentially a consumer internet. Online games, streaming video, e-commerce shopping, and mobile payments all fall under the category of consumer scenarios.
The industrial internet serves enterprises and aims to "reduce costs and increase efficiency".
The early applications of the industrial internet were simple: internet companies used the internet (building websites, doing e-commerce, and optimizing SEO) to help B-end (enterprise) users open up sales channels and increase sales.
Later, the industrial internet gradually began to penetrate into all aspects of business operations, such as supply chain management, production management, channel management, finance, and human resources.
Today, by leveraging ICT (Information and Communication Technology) to empower industrial enterprises, integrate information, resources, and capital, reduce ineffective costs, and improve the operational efficiency of industries, this is the true industrial internet.
The difference between "Industrial Internet" and "Internet Plus"
It is worth mentioning that although "industrial internet" and "internet+" are often used interchangeably, there are still differences between the two if you look closely at the terms.
"Internet Plus" can be understood as "Internet Plus all industries." It emphasizes connectivity and leveraging the internet's role in optimizing and integrating social resource allocation. For example, "Internet Plus Education" utilizes the information exchange capabilities enabled by internet connectivity to reduce information asymmetry and allow educational services to quickly reach users.
The "industrial internet" is different. In addition to emphasizing the connectivity of the internet, it also emphasizes the deep integration of internet technology with specific industries—the internet penetrates into the core of enterprises, improving management, processes, systems and technologies, and enhancing industrial efficiency.
In short, "industrial internet" sounds more sophisticated, while "internet+" sounds a bit less sophisticated.
The Rise of the "Internet of Things"
At the beginning of the 21st century, while the industrial internet was gradually developing, another emerging phenomenon also began to rise: the Internet of Things (IoT).
The earliest model of the Internet of Things (IoT) was the sensor network, which originated on the battlefields of the Vietnam War in the 1960s. At that time, the United States deployed a large number of sensors along the Ho Chi Minh Trail to monitor the North Vietnamese army's supply transport.
In the 1980s, David Nichols and others at Carnegie Mellon University invented a remotely monitored automatic Coca-Cola machine, considered the world's first Internet of Things (IoT) device. However, the formal concept of the Internet of Things was actually proposed in 1999 (by Professor Kevin Ashton of MIT).
The emergence of the Internet of Things (IoT) has opened the door to a new world for humanity. People have discovered that in addition to the need for connections between people, there is also a need for connections between people and things, and between things themselves. This interconnectedness of everything can create greater value.
How should we understand the Internet of Things (IoT)?
In a narrow sense, the Internet of Things (IoT) refers to IoT technologies, including Bluetooth, Wi-Fi, Zigbee, and the increasingly popular Cat.1 and NB-IoT.
In a broad sense, the Internet of Things (IoT) refers to IoT scenarios and industries. It leverages IoT technology to enhance data collection and terminal control, creating data flows to serve industry applications.
When we talk about the Internet of Things (IoT), we usually focus more on the technical aspects.
After the concept of the Internet of Things (IoT) emerged, from the perspective of the objects being connected, the Internet was divided into the Internet of People and the Internet of Things.
Note that while the industrial internet utilizes a significant amount of IoT technology, the industrial internet is not the same as the Internet of Things (IoT). Similarly, the consumer internet is not the same as the internet of people.
▉ "Industrial Internet" vs. "Internet of Things"
On November 26, 2012, General Electric (GE) released a white paper titled "Industrial Internet: Breaking the Boundaries of Intelligence and Machines," which first proposed the concept of the Industrial Internet.
White Paper Cover
At the time, GE Chairman and CEO Jeffrey R. Immelt stated:
"The internet has changed the way we use information and communicate, and now it can do even more. By connecting intelligent machines and ultimately connecting humans and machines, combined with software and big data analytics, we can break through the limitations of physics and materials science and change the way the world works."
This demonstrates that the Industrial Internet is a further extension of the Internet concept. The objects it connects, the users it serves, and the usage scenarios it employs are entirely different from those of the Consumer Internet.
In GE's white paper, the Industrial Internet is referred to as the Industrial Internet.
As we all know, "industry" means "production, sector, industry, manufacturing." "Industrial" is usually used as an adjective, meaning "of or relating to industry, industrial, or industrially developed." According to Merriam-Webster, "industrial" also has a noun meaning, primarily referring to industrial production or service.
General Electric (GE), as everyone knows, is an industrial manufacturing company. Therefore, when it chose its name, industry was definitely in mind.
However, we should also know that the concept of industry is obviously much broader than that of manufacturing.
According to the "National Industrial Classification of Economic Activities" (GB/T 4754—2017) promulgated by our country, industries are divided into three categories. Simply put, the primary industry is agriculture, forestry, animal husbandry and fishery; the secondary industry is mining, manufacturing, energy and construction; and the tertiary industry refers to all industries other than the primary and secondary industries.
The tertiary sector encompasses a wide range of industries, including: services, wholesale and retail trade, transportation, warehousing and postal services, accommodation and catering, information transmission, software and information technology services, finance, real estate, leasing and business services, education and health, culture and entertainment, and more.
Industry is a component of the secondary sector, but its share of the national economy has fallen to one-third (32% in 2019). The digital transformation we are talking about now is not just about industry, but about all industries.
Therefore, logically speaking, the "Industrial Internet" mentioned in many news reports and articles online should be called the "Industrial Internet of Things." There are likely two reasons why it's called the "Industrial Internet of Things": firstly, the term "Industrial Internet of Things" was preemptively claimed by some internet companies; secondly, the name of the relevant national regulatory authority is the "Ministry of Industry and Information Technology."
Personally, I believe the term "Industrial Internet" has somewhat hindered the popularization of the industrial internet. Many ordinary people, upon seeing or hearing about the Industrial Internet, instinctively think it's something only industrial companies care about and has nothing to do with them. In reality, the Industrial Internet is closely related to everyone. Every industry must pursue informatization, digitalization, networking, and intelligentization, and must focus on digital transformation.
Industry is broader than sector; the internet of industries can be roughly equated with the internet of sectors.
In short, when people see the term "Industrial Internet," their first thought should be: Is it the Industrial Internet in the narrow sense, or the Industrial Internet in the broad sense?
If it only relates to industrial manufacturing, then it's in a narrow sense. If it includes not only industrial manufacturing but also the practical applications in the primary and tertiary sectors, then it's in a broad sense.
